You don’t need to be a football fan to have heard of Lionel Messi, one of the world’s greatest players.And tomorrow evening, England have the challenge of playing his Argentinian team in the World Cup Semi-Finals.

We’ve had a lot of discussion about Messi in our household, mostly on where he stands against other footballing legends. But today is all about Messi and his Business Model...

You see, in 2023, Messi signed to Inter Miami, a team in the American Major League Soccer (MLS).

Sports are embedded into American culture, and whilst soccer (yes, I did just type soccer!) is the most enjoyed game all over the world, at that time, it was ranked 5th in the US, behind ice hockey.

So, how did Inter Miami (who were bottom of the Eastern Conference) manage to bag Messi over any other club – on a free transfer – and despite a Saudi Arabian mega-deal?

Well, these will have certainly played their part ...

The Vision and the Promise

Back in 2007, David Beckham signed for LA Galaxy, with a clause in his contract allowing him to buy an MLS expansion team for $25 million – this becoming Inter Miami. When his club signed Messi in July ‘23, he commented:

"Ten years ago, when I started my journey to build a new team in Miami, I said that I dreamt of bringing the greatest players in the world to this amazing city...Players who shared the ambition I had when I joined LA Galaxy to help grow football in the USA and to build a legacy for the next generation in this sport that we love so much...”

Partnerships

Rather than competing alone, the club partnered with Apple, Adidas, and Fanatics. This meant Messi would receive revenue share from MLS season pass on Apple TV and a new TV series about Argentina’s World Cup win, profit share of Adidas’s sales of US MLS gear, and a percentage of Miami’s shirt sales from Fanatics.

Legacy

As well as the above, Messi received an ownership stake in the club, similar to an MLS deal inked with Beckham in 2007.

Planning

It wasn’t a deal that took a few weeks, it was a long-term Vision for Beckham, a conversation that Beckham had had ten years ago with his co-owner, allegedly followed by years of secret meetings with Messi.

All well and good, Martin, but what does this mean for me?!

Well, this is a big lesson in Partnerships. And, to think about how these can work in your business (new or existing Business Model):

• What’s your vision?Who else out there can help be a part of this, to help you achieve it?

• What value can your people and potential partners bring? Inter Miami saw past Messi as simply playing great football – they knew he would fill seats, sell merchandise, drive views of media content. How can you help with their customer acquisition?

• Don’t be limited by your industry; there maybe common partners outside. Apple aren’t synonymous with sports contracts, but their MLS season pass has great synergy with Miami.

• Is there an “ecosystem” model where you bring various partners on board from different industry’s that can all share in the success?

Mrs N and I were lucky enough to see Messi play that season when we were in New York and have never seen fandom like it – tickets that usually sold for $20 were going for $10,000, most of the stadium was full of Messi shirts and constant chants of his name, and when he appeared to warm-up no one was even watching the soccer (sorry, football!) match.

A great player, a great business example, and let’s hope we stop the Messi effect Wednesday evening!

BW,

Martin

Martin Norbury

Investor | Business Mentor at Advocate | Author of I don’t work Fridays