Introduction

          The chances are you may have heard or seen the acronym ‘NFT’ in some capacity and almost certainly it has been impossible to avoid the term ‘Cryptocurrency’. For many, these can be daunting and futuristic sectors whilst for others, they have created a new obsession and fascination and have become a part of their lives. One area that these concepts have integrated into is the World of Football and soccer.

          The theme is mirrored within football too; some players have so far avoided becoming involved in such an area as they view it as a riskful, unknown entity. For others, especially those in the fortunate position of financial comfort, these sectors present an exciting modern opportunity away from the football pitch.

          In this blog, I will endeavour to help you as the reader to comprehend not just what NFTs and Cryptocurrency are but also, more specifically, I will explain their applicability to and place within football. I will include a case study of how a footballer can benefit from these areas as well as considering the risks involved, as is the case to some extent with any investment.

What are NFTs?

          To simplify the idea, imagine buying a piece of art. However, this art happens to only be available digitally. On a purpose-built network you are able to purchase and sell the ‘data’ that makes up this piece of art. There is only one very specific data coding that creates this officially authenticated version of the art. Therefore, you will be the sole owner of this piece of art and any copies that are made of it will not be the ‘official’ version. This can be an investment as this piece of digital art may rise in value and can be sold on for profit to interested buyers. Another way to think about this concept is to imagine they are similar to football trading cards that you may have collected before, with the caveat that only one person can have each card in the world and that the card is digital.

          The graph below demonstrates the rise of NFTs since the beginning of 2021 to give you an idea of why it has suddenly become such a major discussion point:

What About Cryptocurrency?

          Cryptocurrency is a slightly older concept than NFTs. You have most likely heard people, news platforms or social media discussing the likes of Bitcoin, the infamous Dogecoin, and Ethereum, amongst others, since the beginning of the last decade. Crypto, as it is often referred to, comes under many titles or ‘coins’ as digital currency which can be bought and sold. Just like any currency around the world, the different crypto ‘coins’ can rise and fall in value. The medium of exchange for cryptocurrency is only through a digital network where all transactions pass through rather than via a bank or other institution.

NFTs and Crypto in Football

          I have decided to cover both of these concepts within this single blog as they are both interlinked. Often, NFTs are purchased using Cryptocurrency such as Ethereum. Footballers, particularly those at the top, are in a position financially and socially to get ahead in these markets. These sectors present a new and exciting opportunity for investing their money into.

For NFTs, players can leverage their public following and fanbase to increase the value of their digital art and produce a successful investment, made financially possible from their high salaries at the top level. NFTs can certainly be a significant financial opportunity as some can be worth enormous amounts. Players may pay hundreds-of-thousands of pounds, dollars or euros to secure a piece of digital art, in the hope that it will rise in value.

          The most common area of NTFs that players engage with is known as ‘Bored Ape Yacht Club’ and you may have seen this in the form of well-known players changing their social media icons to a cartoon ape. These include current and retired footballers such as Bobby Zamora, Tammy Abrahm, Reece James, Ashley Cole, Trent Alexander-Arnold and John Terry. The BAYC, as it is abbreviated to, uses Ethereum and charges a minimum of £163,000 for one of its specific ‘bored ape’ icons.

          The record sale for a football player is Mesut Ozil who sold a single piece for £75,000. Elsewhere, an Mbappe GIF is believed to have sold for £47,000. Paul Pogba has purchased ‘NFT eggs’ and has partnered with the Cryptodragons Project as an official ambassador. This is a rising theme in football as the likes of Antoine Griezmann, Gerard Pique and Rio Ferdinand have also invested into various platforms that deal with NFTs or Cryptocurrency. It presents another off-field opportunity during and post-career to partner and collaborate with a modern and unique commercial endorsement.         

          It isn’t just players either; clubs are also engaging with these sectors. Seventeen Premier League clubs currently have commercial deals with a Cryptocurrency company and so do Paris Saint Germain and UEFA – a true sign that this digital phenomenon is firmly embedded into football. Even clubs like Southampton and Championship team Watford, sport Cryptocurrency platforms as their front-of-shirt sponsor. Another argument in favour of these concepts is that they are a new space to engage with fans around the world through a new and exciting medium.

          The table below shows just how valuable some of these deals can be for football associations and clubs in 2022:

Case Study: Mesut Özil

          My client, Mesut Özil, has been a successful pioneer in these sectors for football. As well as holding the record sale for a player, he was also the very first individual across any sport to create NFT ‘genies’, an idea that was only otherwise previously emulated by Justin Bieber and Cardi B. These avatars were similar to the concept of ‘bitmojis’ and had its own digital custom clothing range. This generated enormous interest and goes to show the influence and impact that top-level football players collaborating with digital platforms such as NFTs and Cryptocurrency can have globally. The range sold out in 6.7 minutes and generated over $500,000, demonstrating Özil’s global reach and fanbase. To acknowledge this extraordinary achievement he wore the number 67 after his move to Fenerbahce.

          Özil also formulated the idea of selling 1% of his ownership stake in Mexican football club, Club Necaxa, to the public and the fans through digital NFTs. An exciting opportunity for fan engagement which was unfortunately blocked by the Mexican Football Federation although it is possible that this may be an indication as to the direction in which football is going alongside NFTs and Cryptocurrency.

The Risks Involved

          This section differs little from any that may be written about investments of any kind. Particularly in Cryptocurrency and NFTs, the market is highly volatile. These are modern concepts that are still unknown entities to an extent. Furthermore, the regulations and laws governing the markets are not fully formed nor comprehensive. This means that there are many aspects of these sectors that create risks for those investing within it. Players may be in the fortunate position of financial stability and can afford to take such a risk but they must be aware of this before investing.

          Another risk that players and their agents ought to be aware of is rogue coin-creators who pitch an idea to a player and try to take advantage of their popularity in the public eye. These creators will make some quick money from the players building hype as ambassadors before exiting with their own profit, leaving the player behind. This is sometimes referred to as the “pump and dump” concept, using false and misleading information and using a players face to inflate the value of their coin and creating what is known as a ‘buying frenzy’ before selling their own shares. The most infamous sports example of this involved Floyd Mayweather allegedly being a part of a pump and dump scheme with the EthereumMax coin. These scams must be avoided if possible and due diligence and research is imperative in order to mitigate against the risk of entering such deals.  

          There is a similar risk with smaller clubs who relied upon cryptocurrency and coins as an important stream of income, particularly over the last couple of years and during COVID. Many cryptocurrency companies failed to compensate these clubs as they were obliged to and no money was received. This caused a significant and unexpected void in the predicted sponsorship finances for these clubs. As this industry is unregulated it does mean that instances such as this are a risk for those in sport and in football that engage with this sector.

          The Cryptocurrency market alone has experienced a 500% growth during the years of COVID-19 and this is likely to continue to rise. Whilst this presents a significant financial opportunity and the possibility of dramatic investment returns, it also raises the level of risk of the loss of money. After all, this is a modern form of speculative trading and profit is never guaranteed. The graph below shows the extraordinary rise and also the possibility of loss of cryptocurrency since 2015:

Summary

          In this modern era of football, Cryptocurrency and NFTs are certainly something one should be aware of, and not just in the football sector. They may be slightly alien concepts still but their continuing rise in society is unavoidable and hopefully this blog provides some understanding as to their place within football. Players and clubs will engage more and more with these sectors and the extent to which they will become an integral part of the world of football is still unpredictable. Watch this space!

Introduction

This may well be the third episode in this series but this must not be understood to mean that boot deals fall lower down on the priority list for agents to manufacture and for the commercial opportunities for a player. In reality, boot deals are arguably the most important sponsorship contract that a player will sign and that an agent will negotiate. It is also the most common. As I will go on to explain, usually all high-level professionals, even some semi-pro footballers, will have some kind of boot deal or arrangement during their playing career.

This may well be the third episode in this series but this must not be understood to mean that boot deals fall lower down on the priority list for agents to manufacture and for the commercial opportunities for a player. In reality, boot deals are arguably the most important sponsorship contract that a player will sign and that an agent will negotiate. It is also the most common. As I will go on to explain, usually all high-level professionals, even some semi-pro footballers, will have some kind of boot deal or arrangement during their playing career.

In this blog I will analyse boot deals and their true significance. I will aim to assess different clauses that can become a part of more complicated boot deals depending on the player that is being sponsored and the lucrative remuneration that can arise alongside it. These are of particular importance to agents to understand and ensure they achieve the best deal for their client. The blog will also outline some of the further extensions of boot deals that can become a part of a treasured boot deal for the top players.

What is a Boot Deal?

The term is fairly self-explanatory. Put simply, it refers to a deal that is made between a player and a boot manufacturer in order to supply the player with boots. This also often includes shinpads and, in the case of goalkeepers, gloves. Of course, as with almost all contracts in football, it can become far more complicated than this.

First and foremost, it is important to understand that boot deals span far across the world of football. The majority of players at a professional level will have a boot deal unless they have deliberately chosen not to, all will at least have been offered or approached for one. Even several semi-professional footballers will have a boot deal of some kind. This may be what is known as a ‘boot supply deal’ where, for example, one or two pairs of boots are provided per season free of charge but with no additional monetary fee paid to the player.

In top level football, however, these deals can be enormously lucrative as well as providing a new pair of boots every few weeks if the player so desires. Furthermore, and arguably more importantly, for a player it is vital that their agent finds a deal with a boot manufacturer that they are comfortable with wearing and can perform to the best of their ability in. This can also include ensuring their boots are customised to perfectly suit their performance. For example, James Milner had special support plates fitted into his boots to soften impact. Other examples include customised stud structures and specially personalised laces. These are all nuanced aspects of boot deals that can be negotiated and implemented.

The deals can be made via negotiation from the boot manufacturer with the player’s agent. However, more common is for a player’s agent to delegate this responsibility to a commercial team or lawyers that specialise in commercial contracts. The contracts themselves are complicated and can include an array of clauses such as performance-based add-ons on top of a fixed ‘base’ sponsorship compensation. This may include terms such as bonuses for televised appearances for the player’s club or country; the percentage of minutes they play per game; the category of the club for which they play for and whether or not they are competing in international and continental competitions such as the UEFA Champions League.

One point to note for boot deals is the concept of exclusivity which we analysed in last week’s blog. Some of the biggest boot-manufacturing brands will also have their own wider range of sports apparel, accessories and other equipment. This can create issues when boot deals cause unintended limitations to other commercial opportunities that a player might have. Namely companies such as Nike, Adidas, Puma, Underarmour and New Balance will include exclusivity clauses within boot deals that binds the player to a full ambassadorial role to promote not just the boots, shinpads and playing kit but also leisurewear and accessories from headphones to watches to backpacks (see last week’s blog). Agents must note this when they are negotiating these deals to ensure that, if the player does have broader obligations of exclusivity to the brand that is providing them with a boot deal, then they must be appropriately and sufficiently remunerated.

Exclusivity is an important factor in boot deals. Often there are disputes that result in percentage losses for players if, for example, they are playing for an Adidas sponsored club whilst in a boot deal with Nike. This gives them less financial leverage when negotiating a boot deal. However, for a player like Harry Kane who plays for club and country sponsored by Nike as well as having a Nike deal himself. This puts him in a great position to negotiate a higher compensation fee for his boot deal.

Some players avoid this problem and will oppose boot deals by choosing to be free from being contractually tied down to a singular boot-manufacturer. They would prefer to have the freedom of choice to wear whichever boots they like the most or may even design their own boot brand. Usually, the temptation of the financial reward of a boot deal is too strong but it has been known for players to prefer to opt out of a boot deal. The most well-known examples of this are Dani Alves and Mesut Ozil; the latter went on to create their own distinctive boot collaboration with Concave.

In this section we can see that boot deals can be separated into three ‘categories’ which I will summarise below:

1. A supply contract:
   A common form of boot deal for youth or lower league semi-professionals. If we consider that a youth player or their parents must source around £250 per pair of top quality boots, this is a significant expense each year. Brands or the agents themselves will usually assist with this by providing supply contracts to distribute boots to upcoming players. This could be a good opportunity for agents to show the player what they can provide and to build a relationship. The brand may also be willing to include other bits of sports apparel such as tracksuits.
   
   
2. Boots + Budget:
   The next step up also does not include a sponsorship fee for the player. Instead, players will be given complimentary boots as per a supply contract, as well as a non-cash budget for the brand. For exciting young players this may be between £5,000 and £10,000 to spend on the wider range that the brand sells from trainers to caps and other apparel. This type of contract may occur for a player who has signed their first professional contract or is playing in the middle divisions of national football.
   
   
3. Full Sponsorship Boot Deal:
   For the top players, this kind of deal involves a cash fee as remuneration on top of free boots and a higher budget to spend with the manufacturer. The value of this sponsorship deal depends on the categorisation of the club for which the player plays which are ranked as a, b, c, and d. The categorisation varies according to the exposure the club receives. For example, when Mesut Ozil was at Real Madrid, they were competing in one of Europe’s top leagues, on television every week and competing in the Champions League. They were an obvious category A club. This was the same when he moved to Arsenal although since Arsenal are now no longer in the Champions League they have become a category B club. This can ultimately affect the transfer of players between clubs as it could cause a large financial loss to the player. For example, a category A club player may have a contract for £2million annually from their boot deal but if they move to a category B club, as per the terms stated in their contract, this may be halved or even quartered! Agents should be aware of this when considering whether a transfer is the right option for their client.

The graphic below shows the distribution of boots and hence, boot deals, across the English Premier League:

A Financial Boost

As mentioned in the previous section, boot deals can be lucrative, particularly so for the top players with the greatest public presence and commercial acumen. These top-end boot deals incorporate the image rights agreements that we discussed last week and will include clauses for players that bind them to appearing in photoshoots, doing personal public appearances, posting on social media and other brand activations. Brands are willing to invest significant sums into these contracts to have the biggest names in football donning their boots in globally televised football games. The biggest boot deals (per annum) are shown in the graphic below and I have provided a summary of the notable top-four beneath:

• The £23million-a-year that Puma agreed to pay to Neymar to convince him away from Nike is the world record for a boot deal. It was, and still is, an eleven-year contract which has provided Neymar with long-term financial comfort. Part of this deal was Neymar’s own boot line named the Future Z range, a personalised collaboration that some of the world’s biggest players will have the opportunity of engaging with. Neymar publicly spoke about how Puma had appealed to him due to the legacy of players such as Johan Cruyff and Diego Maradona as well as Brazilian compatriots, Pele and Eusebio; who were all major ambassadors of the Puma brand.
  
  
• Lionel Messi is second with an £18million annual deal with Adidas and was the first footballer to collaborate with their boot sponsor to form a sub-brand, namely Adidas Messi. It is the same form of collaboration as the now worldwide iconic Air Jordan brand and may reap the same rewards once Messi has retired. The Argentinian seven-time Ballon d’Or winner was also the first footballer to sign a lifetime contract as part of their boot deal.
  
  
• It may surprise some that Cristiano Ronaldo, AKA CR7, is third on the list with a £15million fee per annum with Nike. However, his lifetime deal is valued at an enormous £780million and he was Nike’s third athlete to sign such a deal following the decent company of Lebron James and Michael Jordan.
  
  
• Finally, Kylian Mbappe has signed a £140million deal with Nike over ten years. As a young player with years ahead of him, most likely spent at the very top of football, he is positioned to be the face of Nike, particularly once CR7 has retired.

As we can see from the above examples, boot deals of this magnitude are often long-term deals as this provides great financial security to the players and attracts the biggest names to these brands. It would be an impossible risk and unfeasible investment for any smaller brand but the biggest world-renowned brands that can afford to commit such a large sum of money commit themselves to these players to help keep themselves at the top of the industry.

In these cases, there are also often collaborations between the player and the manufacturer that will release a range that is directly affiliated with and usually named after their top endorsed athletes. As well as their usual release of new boots every year or so, these collaborations will be uniquely designed and promoted and royalties will be paid directly to the player as part of their deal.

The Future of Boot Deals

I believe and predict that the future of boot deals is altered from the modern situation we currently see. It makes sense to me that more and more players will move away from the contractual obligations that arise with boot deals. In the modern era, footballers have become celebrities and influencers and can develop their personal brands through social media and otherwise. The ability of players to grow, develop and promote their own personal brand is significantly restricted by signing a boot deal with a single brand.

Players like Alves and Ozil may slowly become more of the norm by removing boot deal contracts and giving themselves more freedom. The biggest names will instead create their own brand and enter into agreements with manufacturers. For example, Mesut Ozil’s M10 brand now has a contract with manufacturer, Concave, in order to design and sell his own range of boots. A consequence of this may be that brands offer larger sums for boot deals to convince players to stay but in the age of personal brands, it will most likely make more social and financial sense for the biggest players to go their own way through their personal brands. Rather than being contractually obliged to always wear a single brand in all of their apparel and accessories, they will be able to express themselves and their personal brand freely.

Do you recognise any of these player brands below?

Summary

Boot deals are the most common form of off-pitch opportunity for players. They are a form of commercial deal that almost all professional football players will have during their career. It is vital for agents to have an in-depth comprehension of different clauses, important points to note, potential hiccups and unique extensions that arise with boot deals. If managed correctly, they can be a significant source of income for the player and should be regarded with great value and importance. However, the future of boot deals may look slightly different and instead manufacturers may strike agreements with personal brands of the biggest players in order to release a personal range without forcing them to engage with other contractual clauses which restrict them.

It is also important to note that whilst boots are an important aspect of a sports manufacturer’s business, they are not their biggest income generator. Companies such as Nike, Adidas, Puma, Underarmour and New Balance make the most financial reward from selling trainers which are worn by everyone around the world, including non-football fans. However, boot deals are struck to use footballers as promotional celebrities in order to push out the brand and simultaneously generate further sales of trainers and their other apparel.

Introduction

            Last week we began to understand that football players in their own right can carry considerable commercial value. In the cases of some of the top stars, they are more influential and have a greater following than the clubs they play for. The impact of this is that the clubs can utilise the status of their star players to enhance their commercial revenue. As the graph below shows, the clubs that generate the greatest revenue are also associated with the most lucrative sponsorship deals which contribute
large sums to their finances. However, the wide variety of partners that sponsor the clubs, from airlines to beverages to watches to cars, often do so, not on the basis of the club alone, but because particular globally recognisable and marketable members of the squad can become the faces of their advertising campaigns. Hence, there must be an arrangement and contract in place between the club and the player that sets out the extent to which the club can ‘use’ their image to attract these kinds of sponsorships.

            In this blog I will examine the concept of Image Rights Agreements and their influence upon player contracts and their income. I will also outline the complications that this may cause such as exclusivity clashes and difficulties in agreeing upon off-field image contracts to the extent that a transfer negotiation may fall through as a result.

What is an Image Rights Agreement?

            Image Rights Agreements are a relatively new addition to football contracts. They have risen as a result of the growing commercialisation and marketability of football players in the age of social media influencing, global recognition and lucrative sponsorships of clubs. These agreements are made in order to protect the players right to receive an income from the use of the personal attributes. Image Rights Agreements, therefore, provide a mechanism for which clubs can remunerate players for their off-pitch commercial activities with sponsors associated with the club which benefits the club itself commercially and financially.

            The endorsement of products and the players’ involvement in any kind of marketing affiliated with the club for which they play can vary greatly. Players often appear in television advertisements, on billboards and can be seen posing in or with a range of endorsed products. Image Rights Agreements also incorporate the use of the player and their image for activities such as photo shoots in the new season kit of the club or other official merchandise and teamwear and the permissibility of distributing
these images across the club’s social media channels.

            Many things can affect the value of a player’s image. It is important to note that the ‘image’ of a player refers to a broad scope. This includes; their face, haircut, voice, nickname, autograph, squad number and any other ‘trademark’ characteristics they might possess. Their following, publicity, reputation, personality, fame, status and personal fan-base then further influences the value of their image. For example, an airline company, in this case Emirates, that is an official vehicle partner of a major club such as Arsenal, is more prone to be interested in using the most recognisable faces of
the club in their campaigns. Let’s say, for the sake of this example, that Bukayo Saka was requested by Emirates to be a part of their latest advertisement, Arsenal would be able to call upon Saka for his services through their image rights agreement and a license they will have obtained. This license is obtained through demonstrating that the provision of Saka’s image to the sponsor is commercially viable and generates additional income for the club.

            On Saka’s side, the young English star will most likely have set up his own Image Rights Company. This is commonplace for players of this stature. The players sell their image rights to the company which will then be entitled to a fee directly from (in this case) Arsenal for the use of Saka’s image. The benefits of this is that the money received directly from the club will only be taxed at a company rate of 19% rather than included in a player’s 45% income tax if it were to be paid directly to Saka. Further tax
may be paid at a future date once the player takes the money out of the company but it is most likely to be kept there and can be seen as security savings for once a player retires.

            The agreement with the image rights company will have been set out when the player signs with the club in their employment contract. This avoids legal complications and sets out the parameters the clubs can use in exploiting the image of their star players. However, in some instances, disputes over image rights agreements can be a decisive factor in signing for a club. This was the case in 2019 when it seemed Paulo Dybala was set to transfer to Tottenham Hotspur in the English Premier League. Ultimately, the deal collapsed as a result of a failure to agree upon image rights clauses. Despite being irrelevant to the football on the pitch that a club is signing the player to play, in the modern era of commercialised football, it is interesting that image rights can take on a significant role in contract negotiations.

Exclusivity and The Issues That Can Arise

            Exclusivity is a fairly straightforward term to comprehend. It refers to the idea that a player or a club that enters into an endorsement contract will likely have agreed to exclusivity to that product or brand. In other words, partnering with a certain brand or company will simultaneously prevent a similar agreement taking place between the same party and a rival company and therefore prevents the sponsored party from publicly promoting their products. The most prevalent example of this in football is
between the two sports apparel giants, Nike and Adidas. Evidently, a player or club that is partnered with or sponsored by one is not permitted to advertise or even use the products of a rival company.

            In more complex cases, exclusivity can also apply to things like using headphones, watches, leisurewear, cars and hats of a certain brand which sponsors a player. This can make things difficult and restricts what a player can and can’t do; it is something they must be wary of when negotiating and signing an endorsement contract. Nonetheless, this may explain why you are unlikely to ever see Lionel Messi drinking Coke, Raheem Sterling shaving with a non-Gillette razor or Joe Hart using any shampoo other than Head & Shoulders!

            The issue with exclusivity arises when there is an obvious clash and contradiction between a player and the club for which they are signed. A useful case study to understand this is Lionel Messi. Unbeknownst to some, the Argentinian was actually sponsored by Nike from the age of 14 and even made his Barcelona debut donning Nike boots. However, in 2006, after Adidas offered around double the annual fee that Nike were currently paying, Messi switched to the rivals and he was perfectly within his right to do so. Nonetheless, this caused a commercial problem with legal, contractual implications as Barcelona’s primary sponsor was Nike. This is where exclusivity gets complicated.

            Once more, the same situation is repeating itself at Paris Saint-Germain who are also sponsored by Nike and their 2022/23 kit is labelled with the ‘Air Jordan’ emblem. In the photoshoots of the new kit, as a global star, Messi was obviously used to promote the teamwear. This is only possible as there are certain exceptions to exclusivity clauses that permit players to wear the brand of rivals if necessary in line with their club. This has to be the case or Messi wouldn’t be able to wear a PSG shirt every weekend!
However, measures are still taken to ensure there is not a breach of an exclusive contract, in this case, the one that Nike has with the French club. In the photos from the PSG kit shoot, which can be viewed online, obvious efforts are made to hide Messi’s boots (which are presumably Adidas) from display and to ensure the images are not seen to be promoting their rivals as well. Fortunately for Messi, Argentina are sponsored by Adidas so it is more straightforward for him on the International stage.

            The sole purpose of exclusivity is that a player must not be seen to be wearing or using and obviously promoting a rival brand, but it becomes more complicated once club partnerships are considered. This has impacted major stars such as Cristiano Ronaldo (Nike) at Real Madrid (Adidas) and even for managers such as Jose Mourinho (Jaguar) who experienced issues as manager of Manchester United who were affiliated with Chevrolet as their Official Vehicle Partner.
 
           To give you a sense of the influence that these players can have and why the exclusivity clauses are so important to the sponsors; it is estimated that Cristiano Ronaldo generated approximated $216million in additional value for his sponsor’s rivals Adidas simply by sporting it as part of his Real Madrid kit. Messi returned the favour himself and it is suggested that as he wore the Nike kit of Barcelona, he contributed
around $110million in value to Adidas’ rivals. So, despite the best efforts of the company to maximise exclusivity, the impact of such global stars still having to wear the rival’s brand is strongly felt. Hence, brands will do all they can to ensure that the exclusivity clause is applicable in as many circumstances as is reasonably enforceable.

Summary

            This blog has hopefully provided you with a useful overview and understanding of two important aspects associated with the off-pitch commercial opportunities for players. Image Rights Agreements, whilst a modern phenomenon, are now an integral part of a player signing with a club and can dramatically impact the income that player may receive so its importance is not to be overlooked. For exclusivity, it is important for anyone involved in football to understand when and where exclusivity clauses are applicable and what obligations are necessitated between players and clubs. The last
thing a player would want to do is to breach their contract and lose out on additional
income from a sponsor.

Introduction

            Welcome to our latest series of blogs. In these episodes we will be delving into the world away from the sport itself that modern footballers find themselves in. This will span across the lifestyle that the players live off of the pitch; their secondary careers for once their career as a football star ends for which the foundations are laid and it begins during their playing career; and also their growing significance as commercial entities.

            I will begin this week by explaining the impact that the commercialisation of individual players has had on the game of football. The opportunities of brand endorsements, commercial paid partnerships, lucrative sponsorship deals, ambassadorial roles and social media influencing is becoming increasingly attractive to players that find themselves in the public spotlight for a narrow window of time. It is of utmost importance to the player and to their agent that they sensibly, effectively and appropriately maximise the opportunity that the player has and the benefits that are coupled with it.

            For this week, I will narrow the scope of focus onto general commercial deals, the idea of developing a personal brand for a player and the concept behind endorsements. I will also analyse a case study of a player that encapsulates exactly what it means to materialise the off-field opportunity of a global football superstar. I will only briefly touch on aspects such as boot deals and image rights as these are more complex and common areas that I will address individually in another blog.

Players as Commercial Entities

            The purpose and incentive of off-field commercial opportunities for players is to maximise the rewards they receive from their short window in the public spotlight. These rewards come in the manner of financial gain, positive publicity and can also give the player an early advantage for once they move on from football and may have to seek a new career path. Unless, of course, they earn enough from a combination of on-field performance as well as sponsorship deals that they need not find a new career! Importantly, the on and off-field performance of a player are affected by one another. Most commercial sponsorship deals will include performance-based clauses and bonuses; I will explain this in more detail in a future blog.

            A further attraction of commercialising individual players is that a large presence in the public eye, such as in advertisements, campaigns, charity work or just a frequent appearance on social media allows the player to engage with their own fan base as well as with the clubs. By regularly posting the right content on social media and being seen to be involved in activities away from the football field enhances the interaction between players and fans and they become a more relatable role model, which further attracts additional opportunities.

            In recent times, it has become more common that global superstars within football can be far more influential than the club which they play for. This is judged in terms of their social media following and global recognition. For example, even the European powerhouse, Paris Saint Germain, who boast an Instagram following of over 60million, are dwarfed by their superstars Lionel Messi (362million) and Neymar (179million) and even pipped by young star Kylian Mbappe (72million). Neymar and Messi also oust their previous club Barcelona, despite being one of the most iconic clubs in the history of football, they have a measly 110million followers compared to their former stars.

For a club, signing certain players can have additional benefits away from football due to the commercial value that they add to the club. For example, Messi moving to PSG makes them a more attractive prospect as a club to major sponsors. Clubs will try to obtain an image rights agreement with the player in order to benefit themselves from any commercial deals the player enters into and attracts to the club. Image rights agreements will be explored further in a future blog but for now it is important to recognise that they contribute to rising transfer fees for popular players.This is reflected by the statistic that 60% of all sponsorships entered into by the major brands such as Adidas, Nike, Puma and Underarmour are with individual players rather than clubs, leagues, stadiums or competitions.

 A considerable difficulty in the modern era for players is that some of the biggest clubs in the world will now take 50% of commercial income generated by an individual player or sometimes up to 75%! Consequently, this makes developing the personal brand and public image of a player more important, particularly when a player relies on utilising their personal brand more as clubs are not entitled to this income. It is the external sponsorship from companies and brands that the club can claim such a large percentage of. I will explore this in greater detail in a future blog.   

Companies and brands may be interested in players for a wide array of reasons. Paid partnerships come in many forms. Some of the largest players may become ‘cover athletes’ for or the ‘face’ of brands, such as is the case with Jack Grealish and Gucci. They will be featured in TV advertisements, events, public appearances and part of modelling campaigns. These kinds of deals are often global as the player being used has global recognition and therefore commercial value in many countries.

            For other players that do not reach the levels of global stardom but are still very well-known and recognised in the public domain, they will sign commercial deals in ambassadorial roles that may only stretch as far as social media posts and use of the product the company provides. However, they also may feature in TV advertisements, photoshoots, public interviews or other marketing campaigns. Their exact obligations are specified as part of the endorsement contract that they will sign with the brand.

            For the players, these deals bring lucrative financial reward as well as a useful array of complementary gifts from the brands. The sponsorship agreements that players may have cover an almost limitless scope of product categories. They may sign deals to become an ambassador for car dealerships, phone brands, clothing apparel, betting companies, airlines, luxury watches, headphones, everyday things such as toiletries and even brands in the food, beverage and alcohol industry. Further to this, the most common sponsorship deal that almost all footballers of a certain standard will sign is a boot deal; I will explore this in far greater depth in a future blog.

Building A Personal Brand

            It has become a common trend in the modern football era, particularly with the top players, to work towards building a strong and popular personal brand that is attractive to potential sponsors. As we will see in the case study given in the following section, possessing a world-renowned personal brand opens up a unique variety of opportunities to companies and to players which comes hand-in-hand with lucrative remuneration and publicity.

            Players may work directly with professional media agencies such as MediaCom and We Play Forward to develop personal brands and seek the best commercial opportunities. This process begins with the player establishing their own values, principles, behaviours and visions in order to inform those helping them as to what form of commercial partnership the player might best engage with. For example, religious and cultural beliefs may alter and restrict the companies that would be appropriate for a player to endorse, such as a personal objection to gambling or alcohol. This would mean the player is unlikely to enter an agreement with a betting or alcoholic beverage commercial partner! This was the case recently with Kylian Mbappe who took a stand and refused to be a part of a new gambling advert. However, a stance such as this may open up alternative opportunities such as partnering with a betting-rehabilitation charity or a responsible-drinking campaign. It is the responsibility of the player and their agent to find a sponsor that fits appropriately with the attributes, personality traits and interests of the individual player.

            A player can build their own personal brand in a variety of ways. Through the manner of their interaction with their fanbase and the insight they provide them through their social media channels, the players begin to develop a specific public image. Their personality and interests shape the kind of commercial sponsorship deals they are likely to become involved in. Some players will become widely known for certain ‘trademark’ things or behaviours. The most typical example of this is Cristiano Ronaldo’s ‘Siiii’ goal celebration. Other examples include Leroy Sané who includes #inSané on his social media posts, or the ‘JLingz’ hand sign seen being used by Jesse Lingard.

If developing a personal brand is successful enough, players may even venture beyond partnering with a large brand and take on the challenge of monetising their own brand through some platform. There are several examples of this such as the aforementioned JLingz brand which is now a line of clothing or the street apparel brand belonging to Mesut Özil, M10 Streetwear, named after his M10 trademark. Alternatively, players may enter collaborations with brands in a variety of ways that will name the product after them. There have been many examples of this such as the David Beckham Homme aftershave, the Chris Kamara Street Soccer video game or the CR7 Drive Sports Drink by Herbalife and Cristiano Ronaldo, one of many that Cristiano has developed as a result of his global brand.

Case Study: CR7

            Predictably, in football at least, David Beckham, Neymar, Lionel Messi and Cristiano Ronaldo have accumulated the greatest earnings from commercial deals and other off-field ventures. Beckham continues to generate an annual income of approximately $40million, he laid the foundations of his personal brand early in his career and still works with major brands now such as H&M, Sainsbury’s, Samsung, Adidas, Breitling and his own fashion brand, Kent & Curwen. For Neymar, his commercial income of over $20million is generated across a large variety of brands from Nike, clothing brand Relay Jenas, C&A underwear, GAGO MILANO watches with which he has three of his own branded pieces, Beats by Dre headphones, food and beverage giants McDonalds and Red Bull, Gillette toiletries, Panini stickers and many other brands that have paid large sums to collaborate with the Brazilian. The full extent of his reach can be seen in the exhaustive list below:

To continue, Lionel Messi supposedly earns around $33million annually from endorsements with leading brands such as Adidas, Gatorade and Pepsi and a number of partnerships in different categories.. However, arguably the greatest personal brand in football and certainly the most lucrative is the CR7 trademark, belonging to Portuguese superstar Cristiano Ronaldo.

In 2021, Cristiano was one of the world’s highest paid athletes across any sport. He earned over $100million in that year alone. Notably for the purpose of this blog, over half of that figure (approximately $55million) was earned through commercial sponsorship deals away from the football field. This placed him third in the world of sport for endorsement income, behind only Lebron James and now-retired Tennis star, Roger Federer. He has earned over $1billion across his illustrious career and his ability to balance his match performances with an extraordinary ability to globalise and monetise his personal brand has been a significant feature of his success.

Aside from the footballing ability, attention-capturing character, marketable appearance and catchy goal celebration, Cristiano’s social media has played a vital role in catapulting both his fame and his fortunes away from the pitch. His Instagram following of almost 500million users puts him way on top as the most followed person on the planet, streaks ahead of second-placed Kylie Jenner and third-placed sporting-rival, Lionel Messi. His Twitter following of over 100million also puts him near the top of the world, around 30million behind number-one ranked former US President, Barack Obama. To indicate this significance of Cristiano’s influence, it is important to note that within the very first 24-hours following his departure to Italy, Real Madrid lost one million social media followers whilst Juventus gained over 6million. The impact of his move to Juventus in 2018 and then subsequently rejoining Manchester United in 2020 is shown in the graphic below:

These world-leading social media statistics have made what Cristiano has achieved commercially possible. His channels have provided him with an enormously powerful and influential platform to connect with his fans in a unique manner. Brands have identified this opportunity to have Cristiano promote and endorse their products to his engaged audience of millions and hence many have vied for his signature and commitment as an ambassador. This enthusiasm to sign one of the game’s greatest states was reflected as he became only the third athlete in history, after Lebron James and Michael Jordan, and the very first footballer, to sign a lifetime deal with Nike worth over $1billion. Alongside the fundamental sportswear apparel and boots deal, the CR7 brand has been utilised widely. It is suggested that companies will pay around $1.5million per promotional Instagram post onto Cristiano’s page.

Cristiano has taken on endorsements with an expansive variety of brands. These include nutrition brand Herbalife, through his own drink ‘CR7 Drive’; streaming and media platform DAZN; Clear shampoo; and he is a global ambassador for the luxury watchmaker Tag Heuer, among many others during his career. He has been a part of an array of advertising campaigns and his face is seen across cities from bus stop posters to large LED Billboards. It is the perfect example of monetising one’s position in the public spotlight.

Importantly, Cristiano has developed his own personal values and attributes that form his global brand known as CR7. The trademark has become synonymous with things like fitness, lifestyle, family-oriented and, of course, the ‘Siii’ celebration. This has enabled him to collaborate with companies and to set up his own ventures. CR7 has been used in naming his own fragrances; his own fashion brand of underwear, shoes and other apparel; a hair clinic; and even his own CR7 lifestyle hotels which can now be found in New York, Lisbon, Madrid, Paris and his home city of Madeira, which happens to be conjoined with the Cristiano Ronaldo museum.

His endorsements, partnerships and off-field work have not always been about attracting large and lucrative deals with major brands. It is almost imperative that a player of such calibre, and other footballers of any level that have the financial ability to do so, align their principles and their personal interests with charitable causes. In Cristiano’s situation, he has often emphasised his family values through partnering and supporting charities such as UNICEF, Save The Children and the Red Cross. He is also a regular blood donor and even auctioned his 2013 Ballon d’Or trophy for $600,000 which was contributed to the Make-a-Wish foundation. Building a successful brand as a player is not just for the purpose of receiving pay packages; it is also about achieving a position and status in society that can be utilised to make a meaningful and positive difference to the world around the player.