Marcas

How much is the “Messi” trademark worth?

The news caused a great stir: last July 1st, after more than 20 years at FC Barcelona (Barça), Lio Messi became a free agent.

By Mariza De La Mora. Legal Services Consultant ClarkeModet

The news caused a great stir: last July 1st, after more than 20 years at FC Barcelona (Barça), Lio Messi became a free agent. He would no longer wear the number 10 blue and deep-red jersey that identified him, which used to be the best selling of the club, surpassing by 70% the sales of all the rest (the same reason it was also the most counterfeited jersey).

Therefore, what would it be of the equipment and all other official items regarding Messi now he is no longer a player of the club? The answer is in the clause “sell-off” commonly included in contracts and granting the club three grace months from the agreement’s end to merchandise and withdrawn from inventory everything identified with the player. Thus, Barça would be able to sell until October 1st all the merchandise related to Lionel. After that date, the club cannot do it or could be in any infringement, but for any special edition product or honoring its now “historic” captain, in which case it should be negotiated independently.

According to the study of Brand Finance, Messi’s departure could represent a loss of 11% of the €1.266 billion Barcelona’s brand valuation; this is about €137 million, 77 million of which correspond to trade revenues; 17 million to revenue from ticket and consumable sales by fans on match day and on-field results (for winning any domestic title or Champions League); and about 43 million to jerseys and merchandising sales.

Obviously, his signing with Paris Saint Germain FC (PSG) would represent now certain revenues for this club, exceeding those related to sports, and it can be glimpsed from the very moment the Argentine arrived in Paris and went out to say hello wearing a T-shirt with the phrase “ICI C’ES PARIS” (here is Paris, evoking the PSG fans’ motto “This is Paris”), which boosted sales of the garment almost immediately. Interestingly, the phrase had also been a target of IP conflict: it was in dispute with the fans, who had registered it years earlier, and although the club tried to buy it for €2,000, no agreement was reached. Nevertheless, it is now PSG’s official trademark, which does not prevent it from being sung in the stands.

According to his contract, Messi will play for PSG now with number 30 on the back for at least two seasons, including a portion of the payment in cryptocurrency “Fan Tokens,” whose value varies according to demand. This virtual currency, available for purchase by fans, will be fungible and redeemable for products in the club store. In addition, its possession above specific amounts will enable fans to participate in certain decisions within the club, such as choosing the best player or the design of the uniforms. In this way, we can see how PSG’s brand value will also increase through these digital assets.

Messi’s talent and titles inside the courts have led to his name becoming his personal trademark, although, in Europe, his registration was not without some difficulties either. In 2011, a Spanish company cycling opposed the grant of the trademark “MESSI” based on its trademark “MASSI,” arguing the names were too similar and would lead to confusion among consumers. However, after a seven-year-long dispute, the Court of Justice of the European Union ruled that the footballer was sufficiently well-known so that there was no possible confusion.

In general, regarding the right of his image commercial exploitation, when a soccer player signs a contract with a club, he assigns this right within the scope of the professional and sporting activity he performs, being obliged to wear. In the case of Messi, the colors of PSG and the club’s sponsors; however, in his private and personal life, he is free to use his image for the purposes he wishes unless there is a separate agreement between the parties.

Messi’s positioning goes beyond being one of the best players in the world, having his own brand and the value of his image, as he also has at least 13 sponsorship brands, among which Adidas and Huawei stand out as the ones that generate the most profits. In other countries, like the United States of America, Gatorade, Pepsi, and Mastercard are some of his sponsors.

The size of the value generated by this personage is even reflected in the spectacle presented by Cirque du Soleil, “Messi 10”, which started at the end of 2019 in Barcelona, offering an artistic proposal inspired by soccer football. Given the change of club and city, it will be interesting to see the contractual and legal implications concerning this event and glimpse its reinvention.

As it could not be otherwise, the idol’s image also landed in the world of digital art and Non-Fungible Tokens (NFT), creating the “Messiverse,” where works of the artist and designer BossLogic representing highlights of his career are gathered.

Finally, a much more well-known but no less important aspect is the related broadcasting rights. These not only generate most of the revenue for the soccer clubs but also make it possible for us to continue enjoying his goals from the comfort of our homes, anywhere in the world.