via Imago
July 16, 2023: Lionel Messi presents his jersey next to Inter Miami owners, Jorge Mas, far-left, Jose Mas, third from left, and David Beckham, far-right, during the teamÃs The Unveil event at DRV PNK Stadium on Sunday, July 16, 2023, in Fort Lauderdale, Fla. The event was held to officially welcome Argentine forward Lionel Messi 10 and Spanish midfielder Sergio Busquets 5 to the team. – ZUMAm67_ 20230716_zaf_m67_028 Copyright: xMatiasxJ.xOcnerx
via Imago
July 16, 2023: Lionel Messi presents his jersey next to Inter Miami owners, Jorge Mas, far-left, Jose Mas, third from left, and David Beckham, far-right, during the teamÃs The Unveil event at DRV PNK Stadium on Sunday, July 16, 2023, in Fort Lauderdale, Fla. The event was held to officially welcome Argentine forward Lionel Messi 10 and Spanish midfielder Sergio Busquets 5 to the team. – ZUMAm67_ 20230716_zaf_m67_028 Copyright: xMatiasxJ.xOcnerx
Sports is the second religion in the North American continent and we see big bucks floating in major leagues. It is not a tremendous surprise that the top three revenue-generating leagues belong to the USA in tandem with Canada. While they generate a major chunk of the revenue through attendance, broadcasting rights play an equal role. Therefore, many stakeholders are willing to invest to multiply their fortunes.
The NBA has generated a ton of money through broadcasting, thanks to its star-focused approach. The MLS which is lagging way behind did make a major move by signing Lionel Messi, but has it paid off?
Will MLS broadcasting rights witness NBA-level growth after Lionel Messi?
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The NBA is the third-best revenue-generating league in the world, having garnered over $10 billion. Thus, broadcasting rights involve a lot of stakes. Disney, which owns ESPN in tandem with Warner Bros Discovery, pays about $2.6 billion annually to garner the broadcasting rights for NBA games. This includes the marquee NBA Finals. The deal signed in 2014 will expire in the 2024-25 window and the league would have accumulated $26 billion by the end of it.
Therefore, the huge payout is a big funding mechanism for the coveted league. There is no doubt that the NBA has generated this much revenue thanks to its big-name players like Stephen Curry and LeBron James. This player-centric approach differs from the NFL, which adheres to a team-specific approach to marketing its game.
USA Today via Reuters
May 12, 2023; Los Angeles, California, USA; Los Angeles Lakers forward LeBron James (6) and Golden State Warriors guard Stephen Curry (30) embrace after game six of the 2023 NBA playoffs at Crypto.com Arena. Mandatory Credit: Jayne Kamin-Oncea-USA TODAY Sports | Courtesy: Reuters
The MLS adhered to a player-centric approach, too. The league made a major splash by bringing Lionel Messi to Inter Miami, who needs no introduction. A player who just won the World Cup with Argentina and is regarded as top-two of all time implies a revolution in MLS. Sports business investor Joe Pompliano reveals how MLS’ annual TV deal right now is $250 million compared to $8 million in 2007.
Lionel Messi’s MLS introduction is surreal to watch — and it feels much different than when David Beckham arrived in 2007.
That's because the league is in an entirely different position.
MLS Annual TV Deal
2007: $8 million
2023: $250 millionMLS Average Attendance
2007: 15,000… pic.twitter.com/YYinNNaw0q— Joe Pompliano (@JoePompliano) July 17, 2023
The 2007 reference comes in here because David Beckham sent shockwaves when he joined the LA Galaxy during that year.
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Incredible growth story for MLS but the NBA is way ahead
Ever since Beckham’s arrival, MLS has grown by leaps and bounds in the last two decades. The valuation of every entity has now increased. Because of the increased fortune, Inter Miami could sign Lionel Messi for a deal that cost them more than $50 million a year. That salary rivals the highest-paid NBA players such as Stephen Curry and Nikola Jokic. His arrival has naturally increased the prices of tickets.
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The league’s broadcast rights’ $250 million valuation is still ten times behind NBA. The next media rights deal for NBA may further increase the gulf. Despite that, MLS has held its own. Messi’s arrival is of huge magnitude and can further ground soccer deep in the psyche of USA sports lovers.
