Happy Saturday!

🍂 It's already September, can you believe it?

But before you cozy up in your go-to sweater and indulge in a Starbucks Pumpkin Spice Latte, come along on a brief journey to sultry Miami, FL.

We'll explore the Messi phenomenon that the U.S. soccer industry has never witnessed before ⚽️

Today, we'll discuss Messi-Mania and its impact on the economy, and more, in just 4 minutes to read.

— Weronika

QUOTE OF THE DAY

“It took me 17 years and 114 days to become an overnight success.”

— Lionel Messi

BROUGHT TO YOU BY

A Finance Blog That Isn’t Boring

"Like Tim Urban and Morgan Housel had a baby." - One reader’s description of Jack Raines’s finance blog, Young Money.

Every Thursday, Jack uses stories, anecdotes, data, and drawings to craft the most interesting articles that you will read all week.

From finding a career you actually want, to explaining crazy behavior in financial markets, Jack publishes excellent content on all things careers, finance, and more.

READER RESPONSE

Last week, we asked readers: What represents luxury to you?

Here are a few responses:

• "Taking a month or two off to visit Europe.” — Emilian, Cary, NC
  

• "Not having to cook dinner.” — Julia, London, UK
  

• "A beach house, with a big library, on an isolated white sand beach, where I'd spend every weekend with my wife and kids, away from work and cell phone.”— Ahmad AlAhmari, Saudi Arabia
  

• "A Sunday afternoon nap.” — Anne Marie, Glenside, PA
  

• "Having $22 smoothies every day.” — Mathilda, Miami, FL
  

Want to see your name and response up in lights?

Next week’s question: Leave your response.

MESSI-MANIA

New beginning

Lionel Messi, the Argentinian soccer star with 44 trophies, is the pinnacle of achievement and distinction in the soccer world.

Messi holds the records for the highest number of goals in Spanish La Liga (474) and the UEFA Super Cup (3) and boasts the highest count of officially recorded assists in football history (357).

Messi reached new heights by securing victory with Argentina in the FIFA World Cup 2022, serving his most dedicated fans unforgettable memories.

And as you probably already know, he’s bringing his clout and prestige to U.S. soccer.

A little more than a month into his remarkable $60 million yearly agreement with Inter Miami, Messi has far surpassed the high hopes of both the club and soccer enthusiasts.

He recently notched his tenth goal in just seven matches, contributing to Inter Miami's victory in the Leagues Cup tournament through a penalty shootout, securing the team's first-ever trophy.

But Inter Miami, founded in 2018, had struggled in the MLS with a 41% win rate and an 11-game winless streak before their last three matches. The team had yet to build a strong fan base until now.

Widely regarded as the world’s greatest soccer player, Messi’s influence has lifted his mediocre team, transforming the American soccer landscape and the local economy.

Business landscape

In the meantime, brands strive to capitalize on his immense popularity.

Apple is one of the companies reaping rewards from Messi-Mania. Apple has reported that subscriptions to the American Major League Soccer (MLS) Season Pass on Apple TV+ have more than doubled since Messi joined Inter Miami.

In a recent earnings call, CEO Tim Cook said he “could not be happier with how the partnership is going.”

Messi also enjoys a $19.2 million annual partnership with the German sportswear giant Adidas. His association with Adidas dates back to 2006, and ever since, he has maintained a prominent role as the brand's ambassador. In 2017, Messi inked a lifetime contract with Adidas, promoting the brand across all markets Adidas operates.

Messi's list of endorsed brands encompasses lucrative contracts with Budweiser, Gatorade, Konami, PUBG MOBILE, Pepsi, and Mastercard. Each one of them could easily generate tens of millions of dollars.

Inter-Miami jerseys are yet another example of his brand value. Messi's distinctive pink Inter Miami jersey emerged as the best-selling item in sports for Fanatics last month.

In domestic sales for team jerseys, within just 24 hours of the jersey drop, Messi has eclipsed NFL superstar Tom Brady, who set the record when he switched from the New England Patriots to the Tampa Bay Buccaneers in 2020, and NBA legend LeBron James, who held the record for his 2018 move to the Los Angeles Lakers.

Outshining two of America's most esteemed athletes is remarkable, but Messi's entrance rewrote the narrative around soccer.

Major Soccer League’s redemption

Messi's arrival has influenced match ticket prices, reminiscent of the economic boost from when Lebron James joined the Miami Heat almost a decade ago.

Everywhere he’s played, James has significantly boosted ticket prices. This was especially true last season when fans eagerly anticipated him breaking the all-time scoring record. Likewise, ticket prices spiked during Kobe Bryant's final season with the Lakers.

The average cost for Inter Miami's away tickets is around $400, marking a substantial 59% surge compared to the average NFL game ticket. This is significantly higher than the pre-Messi era's $31.

Considering that soccer doesn't even make it into the top five most-followed sports in the U.S., with just 21.6% of sports fans following it, this level of enthusiasm for a single player marks a significant shift for the MLS.

Local economy

Messi’s inclusion also has serious economic implications for the city and local businesses in South Florida.

According to the Greater Miami Convention & Visitors Bureau, Miami tallied around 16.5 million tourists in 2021. With Messi’s arrival, analysts expect a 10% increase, meaning over 1.65 million new tourists visiting because of Messi’s legend.

With an average expenditure of $2,400 per tourist during their stay, Messi’s signing has the potential to elevate annual tourist spending by about $400 million.

According to the U.S. Bureau of Labour Statistics, every $1 million spent on tourism can create up to 30 jobs. When we do the math, the surge of $400 million in tourist expenditures could generate around 12,000 new jobs.

Local businesses, like bars and venues, report that Messi attracts fresh soccer enthusiasts thrilled to witness the World Cup champion play in the U.S.

Many taprooms organize watch parties and after-parties during home games. These events attract attendees from Messi's home country of Argentina and various regions across South America and the U.S.

Roughly 30 miles to the south, bars and entertainment establishments in Miami also embrace the Messi madness, calling themselves a soccer town.

The buzz has also reached the fast-growing downtown Fort Lauderdale, where, over the last decade, the downtown population has multiplied, reaching 26,000 residents. There are close to 50 upcoming projects underway, set to deliver 17,000 residential units.

The city has discovered a new path to draw people to the area, moving away from the usual beach-centric strategy.

Messi’s presence offers opportunities for local businesses, the real estate sector, and tourism in the surrounding area.

"I am very happy to have chosen to come to this city with my family, to have chosen this project, and I have no doubt that we are going to enjoy it very much," Messi said.

"I can't wait to start training to compete. I feel the same desire I've always had to compete, to really want to win and to help it (Miami) continue to grow."

Dive deeper

For further insights into Messi's adventure in the U.S., check out this article from Forbes.

WHAT ELSE WE’RE INTO

📺 WATCH: Why Chandrayaan-3’s moon landing is important to India

🎧 LISTEN: Generating cash flow with online businesses and putting that in physical assets, like real estate with Connor Gross

📖 READ: Europe is about to start charging for entry, more about ETIAS visa and Europe’s city taxes

See you next time!

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