Messi’s magnet, 8 new sponsorships for PSG

Messi’s magnet, 8 new sponsorships for PSG

Five months have passed since Leo Messi’s media landing in Paris. On the field, his statistics currently show 6 goals and 5 assists in 16 games. Meanwhile, his figure is an unquestionable commercial magnet: he has attracted eight new sponsorships and contributed to renewing some emblematic ones.

The finances of Paris 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 a major commercial hook. The 80 million euros per course that the Argentine costs (salary of 40 million, incentives and taxes) are practically amortized.

“In 2021, our increase in income will be very significant, surely more than 10% compared to 2020,” Marc Armstrong, PSG’s director of sponsorships since 2018, tells EFE. Since a fund from Qatar bought the entity in 2011, the average annual growth of the entity has slightly exceeded 20%.

The British executive, former vice president of the international marketing area of ​​the NBA, notes that, in addition to the pull of the Argentine legend, he also attracts the Parisian hiring policy.

“Messi proved to be at the top of his game in the Copa América (won by Argentina in 2020). In the Champions League, he has also performed, but that is not the only thing that attracts. Our hiring policy, with Donnarumma, Hakimi, the permanence of Mbappé”, he confirms. PSG have spared no effort. He has spent just over €1.4bn on transfers since taking over the Qatari leadership a decade ago.

The club model has been transformed. It relies less and less on broadcast rights and focuses more on commercial income (sponsorships and spin-offs).

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, eight new PSG business partners have entered from the most varied areas of activity.

On the fashion side, DIOR; from the automotive industry, Autohero; from the world of cryptocurrencies, Crypto.com; that of the delivery men, Gorillas; of natural drinks, Smart Good Things; of soft drinks, the energetic Volt and Big Cola; and of 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, specialist in sports marketing, in statements to EFE.

Nike will 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, Coca-Cola stands out 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 gained 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 bonuses of the Champions League as veins for the club to continue growing economically.

MORE THAN ONE MILLION T-SHIRTS SOLD IN ONE YEAR

According to market sources consulted by EFE, the sale of PSG shirts in 2021 has already exceeded one million units, surpassing the numbers of recent years, with the arrival of Neymar and Mbappé (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 around 140 euros per unit, depending on whether they are sold in PSG or Nike stores, it is estimated that PSG pockets 20% of that amount (around 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 meters of surface double that of the previous store and are 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 houses a new take-away space for healthy food, authored by the French company Wild and The Moon and which seeks to reflect PSG’s interest in promoting healthy food.

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.