Lionel Messi’s decision to sign with Inter Miami CF of Major League Soccer (MLS) next season sent shares of MGO Global Inc, which manages the Argentine superstar’s clothing and lifestyle brand, nearly 85% higher on Wednesday.
In making his move to Miami, Messi will reportedly reject a €400 million per season offer to play for Al-Hilal in Saudi Arabia.
According to The Athletic, Adidas and Apple, both top MLS sponsors, apparently contributed to getting Messi to play soccer in the US, with Apple having discussed offering Messi a portion of the revenue generated from new subscribers to the league's streaming package on MLS Season Pass on Apple TV+.
Adidas, meanwhile, has allegedly proposed a profit-sharing agreement with the international soccer superstar, who signed a lifetime footwear sponsorship deal with the company in 2017 after initially partnering with Adidas in 2006.
The Athletic also reported that Messi's contract is expected to include an option to purchase a stake in an MLS club after he's finished playing in the league, similar to what David Beckham had in his deal with the LA Galaxy.
The 35-year-old Messi will officially become a free agent when his contract with Paris Saint-Germain expires later this month, with the club saying he wouldn't renew his deal after two seasons playing in France’s capital.
Inter Miami is currently sitting in last place in MLS’ Eastern Conference.
MGO Global recently reported a 238% year-over-year increase in its first-quarter 2023 revenue, 87% of which was generated from Messi brand apparel, accessories and homewares.
Shares of MGO Global, though, have plunged 51% year to date.
Contact Sean at sean@proactiveinvestors.com