Lionel Messi, the globally renowned soccer superstar, is planning to extend his storied career to the United States by signing with Inter Miami, the Major League Soccer (MLS) team partly owned by David Beckham. This move isn't just about soccer, but signifies a seismic shift in sports marketing and revenue models, thanks to strategic alliances with giants such as Apple and Adidas.
What's New: Messi's intended journey to Inter Miami comes with unique implications, turning down substantial offers from Saudi Arabia and chances to rejoin Barcelona. Though the deal is yet to be formalized, MLS has recognized Messi's intentions, preparing to welcome one of the most decorated soccer players in history.
Why It Matters: Beyond the obvious soccer spectacle Messi's move would bring to MLS, this shift is a paradigm changer in the realm of sports business. Inter Miami's owners, including Beckham, and Messi's representatives have devised a multi-faceted offer: unrestricted by MLS salary rules, a post-career ownership stake in Inter Miami, and revenue-sharing deals with both Apple and Adidas, two companies Messi has maintained lucrative relationships with.
These deals are tied to increased sales for Adidas, which previously signed Messi to a lifetime sponsorship deal, and increased subscription sales for the Apple TV+ streaming service. In a synchronized move, Apple has recently acquired the rights to broadcast MLS games and announced a multi-part documentary series about Messi, suggesting strategic long-term planning.
Why You Should Care: This move doesn't only reshape Messi's career trajectory and the landscape of MLS, but it also sets a precedent for future athlete-company collaborations. The potential agreement shows the increasing interconnection between sports, technology, and lifestyle brands, indicating a new era in the sports business.
Adidas, an iconic sportswear brand, and Apple are setting a new standard for athlete-brand engagement, potentially catalyzing a wave of similar collaborations across other sports and leagues. This symbiosis between athlete, team, and brands will inevitably reshape marketing strategies and revenue models, redefining what it means to sign a player of Messi's caliber.
Messi's probable move to Inter Miami represents a crucial juncture for MLS, American soccer, and sports business as a whole. By integrating groundbreaking marketing and revenue tactics through partnerships with Apple and Adidas, this move could redefine the sports industry's future, prompting a new era of growth, engagement, and profitability.
Credit: New York Times (Das, Smith) https://www.nytimes.com/2023/06/07/sports/soccer/lionel-messi-inter-miami-mls.html
Apple Unveils Vision Pro: A New Era in Spatial Computing Begins
Apple is stepping into the future of computing with its groundbreaking Vision Pro goggles. Set for release next year, this device intertwines digital and physical realities, heralding an era of spatial computing. It promises high-resolution video and intuitive controls that far outstrip competitors in the VR market.
What's New: The Vision Pro, Apple's first high-tech goggles, comes with an array of sensors that track eye movements, hand gestures, and voice commands. These become the primary modes of control, offering a novel and immersive user experience. Moreover, the device presents unique possibilities for branding within VR apps, transforming the virtual reality space into an arena for advertising and consumer engagement.
Why It Matters: Spatial computing is a massive leap forward in technology, offering immersive, seamless interactions with both the digital and physical world. This transformative shift stands to revolutionize how we interact with technology on a daily basis. Moreover, with Apple's foray into this arena, brands gain a whole new platform for consumer engagement. From personalized product placements within a user's virtual environment to branded digital avatar accessories, the Vision Pro opens up a world of innovative marketing opportunities.
Why You Should Care: As consumers, the advent of spatial computing offers an enhanced and interactive experience, bringing digital applications into the physical world around us. Whether it's cooking with a recipe displayed in your line of sight or assembling furniture with digital instructions projected onto the parts, the Vision Pro promises to make everyday tasks easier and more engaging.
On the other hand, for businesses and brands, the Vision Pro represents a paradigm shift in advertising and consumer interaction. It provides a new, immersive platform for branding, offering innovative and engaging ways to reach audiences. Whether it's through event sponsorship in virtual spaces, branded wellness experiences in meditation apps, or personalized avatar accessories for video calls, the potential for creative and immersive marketing strategies is vast.
The unveiling of Apple's Vision Pro is more than just an advancement in technology - it signifies a new frontier in interactive consumer experiences and innovative marketing opportunities.
Credit: CNET (Eadicicco) https://www.cnet.com/tech/computing/why-apple-vision-pros-3500-price-makes-more-sense-than-you-think/
PGA and Liv Merge to Create Unnamed Golf Behemoth
Summary: The recent announcement of a proposed merger between the PGA Tour and its Saudi-funded rival, LIV Golf, has sent shockwaves throughout the industry. The resolution to the contentious battle between the two leagues promises a unique reshaping of the golf landscape.
What's New: The much-anticipated merger proposal follows a period of intense rivalry, marked by antitrust lawsuits and competition between the two golf leagues. The agreement, pending regulatory approval, could bring a closure to the legal disputes while inviting rigorous scrutiny. The proposal also includes Europe's DP World Tour, indicating an end to the in-court and out-of-court battles.
Why It Matters: This merger signals a major shift in the golfing world, impacting not only the players but also the business dynamics of the sport. This relationship has been the subject of "sportswashing" accusations, where sports are used to distract from negative aspects such as human rights violations.
Why You Should Care: The evolution of the golfing landscape following this merger could present both unique opportunities and challenges. Changes in player dynamics and sponsorship arrangements could directly impact brand strategies and partnerships in the sports sector. Also, being able to combine all of the major players within both leagues brings back more eyeballs to individual golf events.
Furthermore, the involvement of the Saudi Arabia Public Investment Fund adds a layer of complexity to the mix. Navigating the political nuances might become an important aspect of brand management in this transformed golfing world.
Finally, the impact of the regulatory process on the merger could set precedents for future branding and licensing agreements in the sport. The careful monitoring of the merger’s unfolding could provide crucial insights for strategy development in the dynamically changing world of sports branding.
Credit: CNBC (Rizzo) https://www.cnbc.com/2023/06/07/pga-tour-liv-golf-merger-confusion.html
Twitch Backtracks on Branded Content Guidelines After Outcry from Streamers
Twitch, the popular live streaming platform, has withdrawn its updated branded content guidelines a day after they were announced, in response to mounting criticism from its user base. The revised rules would have placed significant restrictions on in-channel sponsorships, a critical source of income for many streamers.
What's New: Earlier this week, Twitch introduced updates to its branded content guidelines, the rules that govern how streamers can display sponsorships, endorsements, and other paid promotions. However, following an immediate and vocal backlash from both prominent and smaller channels, the company announced the withdrawal of the new guidelines.
Why It Matters: The withdrawn guidelines would have imposed drastic restrictions on popular ad formats often embedded in livestreams, impacting the income streams of many Twitch users. In addition, these changes would have come into effect in less than a month, causing potential upheaval for existing sponsorship deals.
Why You Should Care: The outcry over the proposed changes highlights the delicate balance that streaming platforms must maintain between supporting creators' income generation and regulating branded content. The incident underscores the need for platforms like Twitch to carefully consider and communicate changes, especially those that could materially impact creators' earnings.
The now-withdrawn rules sought to limit "burned in" ads—advertising displayed directly onto streams—to relatively small display ads, taking up less than three percent of the screen. The potential changes brought into focus the challenge creators face in earning income from streaming. Many rely heavily on ads and sponsors, given that Twitch's standard revenue sharing agreement takes a 50 percent cut of creator earnings.
The incident compounds other recent controversies surrounding Twitch. Last year, the platform stirred up discord when it proposed moving from a 70/30 to a 50/50 revenue split, which would have further reduced creators' earnings. It's clear that any future changes to branded content rules or revenue splits will be closely watched by streamers and their sponsors.
Credit: Techrunch (Hatmaker) https://techcrunch.com/2023/06/07/twitch-backtracks-on-changes-to-branded-content-rules-after-streamer-backlash/