Ligue 1 The Argentine remains a major commercial hook
yesand five months have passed meditico landing of Leo Messi in Paris. On the pitch, his statistics currently show 6 goals and 5 assists in 16 games. Meanwhile, his figure is an unquestionable business magnet: has attracted eight new sponsorships and contributed to renewing some emblematic ones.
The finances of Pars Saint-Germain (PSG) are already tasting the fruits of Leo’s stay, who arrived in the French capital after spending a lifetime at Barcelona. At 34 years old, the seven-time Ballon d’Or winner remains as a large commercial hook. The 80 million euros per course that the Argentine costs (salary of 40 million, incentives and taxes) are practically for amortized.
“In 2021, our income increase will be very significant, surely more than 10% compared to 2020“, indicates Marc Armstrong, director of sponsorships of PSG since 2018. Since a fund from Qatar bought the entity in 2011, the entity’s average annual growth has slightly exceeded 20%.
The British executive, former vice president of international marketing for the NBA, notes that, in addition to the pull of the Argentine legend, it also attracts the Parisian recruitment policy.
“Messi proved to be at the top of his game in the Copa America (won by Argentina in 2020). In Champions, he has also performed, but it is not only that that attracts. Our contracting policy, with Donnarumma, Hakimi, the permanence of Mbapp”, he confirms. PSG have spared no effort. They have spent just over 1,400 million euros on signings since they took over the Qatari leadership a decade ago.
The club model has been transformed. It relies less and less on broadcasting rights and focuses more on business revenue (sponsorships and derived products).
In the last available year, 2020, it was about 235 million euros, which represented 54% of total revenue (excluding the sale and purchase of players). In 2021, this percentage should be the one that progresses the most.
Since Messi signed on August 10, 2021, they have entered eight new commercial partners of PSG of the most varied areas of activity.
On the fashion side, DIOR; of the automotive autohero; from the world of cryptocurrencies, Crypto.com; of the delivery guys, Gorillas; of natural drinks, Smart Good Things; of soft drinks, energy Volt and Big Cola; and of the water, Sports Water.
“These are interesting sponsorships, which contribute several million euros to the coffers, but they are not the main ones. These are Nike-Jordan and Accor (hotel chain),” says Vincent Chaudel, sports marketing specialist.
Nike dress PSG at least until 2032 (in exchange for 75 million a year), while the contract with Accor (65 million) expires shortly, in 2023. Among the recent renewals, that of Coke until 2024, more than for his weight (estimated at one million per year) for his loyalty to PSG (for 22 years).
According to Chaudel’s calculations, PSG won 15 million followers on social networks since Messi’s arrival, “an added value” for the negotiation of other commercial agreements.
The expert points, however, to the broadcasting rights of the French League (negotiated downward before the signing of the Argentine) and the financial premiums of the Champions League as veins for the club to continue growing economically.
Rendez-vous ds 2pm, ce monday, pour louverture des portes de notre toute nouvelle boutique! pic.twitter.com/A48trZzMd4
? Paris Saint-Germain (@PSG_inside) January 3, 2022
According to market sources consulted, the sale of PSG shirts in 2021 has already exceeded one million units, exceeding the numbers of recent years, with the arrival of Neymar and Mbapp (2017). It is estimated that Messi has contributed to an annual increase in that chapter of between 30% and 40%.
At a standard price of about 140 euros per unit (160 dollars), depending on whether they are sold in PSG stores or Nike, it is estimated that PSG pockets 20% of that amount (about 30 euros per unit). Most of it belongs to the manufacturer and the distributor.
The club’s new flagship store, presented this week at number 92 on the Champs-Élysées in Paris, aims precisely to accelerate this lifestyle segment. Its 370 square meter surface doubles that of the previous store and is distributed over two floors.
In them, you will find an infinity of products, from the traditional t-shirts and balls, to some related to street art and sports, such as skateboards and spray cans.
The transversality of the club is such that the new flagship store hosts a new take-away space for healthy food, created by the French company Wild and The Moon and that seeks to reflect PSG’s interest in promoting healthy food.
To mark the opening of the first Wild & The Moon takeaway area in the new Paris Saint-Germain boutique on the Champs-lyses, the Parisian club is launching six new drinks.
They are available in limited edition glass bottles from Weds January 12th, 2022https://t.co/midWpYevvM
? Paris Saint-Germain (@PSG_English) January 12, 2022