Coming to America!: Why David Beckham and Lionel Messi Turned Down Millions to Come to the MLS

Recently, Paris Saint-Germain superstar Lionel Messi announced that he will sign a deal to play for Major League Soccer (MLS) team Inter Miami.[1] Messi will reportedly start playing for Inter Miami in late July, 2023.[2]

Soccer, more widely known as football across the globe, is the most popular sport in the world. However, it is not as beloved by people in the United States. While the number of fans in the United States is rising, the sport’s popularity in America still pales in comparison to the rest of the world.[3] Thus, the North American soccer league, the MLS, does not generate similar revenues, nor does it pay similar salaries to those of other leagues around the world, particularly those in Europe. The rise in the popularity of professional soccer in the U.S. has helped the MLS improve its reputation, but it still has a way to go to compete with the top leagues around the world.

This is evidenced by Los Angeles F.C. is the highest valued MLS team, worth an estimated $1 billion.[4] Alternatively, the highest valued soccer team in the world is Real Madrid of Spanish La Liga, worth around $6.07 billion.[5] In 2022, Forbes listed Real Madrid as the 13th most valuable franchise in the world.[6] The highest valued North American sports franchise is the Dallas Cowboys, which is worth around $7.64 billion.[7] This figure also makes the Cowboys the most valuable sports franchise in the world.[8]

Similarly, the highest paid MLS player is Xherdan Shaqiri, who made $8.2 million this past year.[9] This does not compare to the $75 million playing salary of Cristiano Ronaldo, the highest paid soccer player in the world[10] or the $70.3 million paid to Matthew Stafford, the owner of the largest on field salary in North American sports.[11]

Many of the world’s highest paid athletes are soccer players. This is due, in part, to the MLS having stricter salary cap rules, so richer teams cannot unfairly attract talent.[12] It seems that the best players in the world have it in their best interests to take their talents to the European teams with the deepest pockets. However, the Messi signing marks the second time in the MLS’s 25-year existence that one of the top soccer players of the time signed on with MLS teams.[13] David Beckham joined the L.A. Galaxy after winning La Liga with Real Madrid in 2007.[14] The question then remains, why did these two aging stars take deals with MLS teams when they only have a few years left to cash in on their talents? The answer: they can avoid the intensity of more prominent leagues, while making a fortune in the process.

Before taking a look at the Messi deal, it is important to look at the deal Beckham signed in 2007 and how it allowed him to make more money than he would have playing in elite European leagues.

David Beckham’s Move to the MLS

David Beckham was 31 years old when he joined the L.A. Galaxy.[15] The new deal was surprising to many, as Beckham agreed to wages that were only a fraction of the wages he made with Real Madrid the previous year.[16] Beckham was making $29 million per year when he was with Real Madrid, and his new contract paid him $32.5 million over five years.[17] The deal was even more surprising in 2007, as the MLS was looked down upon by many fans throughout the world, even more than it is now.[18]

Beckham saw that his deal was much more lucrative than most people thought, and it turned out to pay off for him in the long run. Some aspects of the contract required Beckham to have foresight into his impact on the game and how that stood to make him the most amount of money possible.

For starters, his contract also included a share of the revenue the team made, including revenue from ticket sales, sponsorships, food and drink sales, etc.[19] Beckham’s superstar status brought multitudes of fans to see the Galaxy play which drastically increased the team’s revenue.[20] When Beckham’s salary was added to the total revenue share he was paid, it shows that he made $255 million during his five years with the club.[21] This made him the highest earning player in the world at the time, as his pay sat around $50 million per year.[22] Beckham’s popularity helped to draw bigger crowds and increase the team’s revenue which, in turn, increased the amount he was paid.

The most profitable clause in Beckham’s 2007 contract guaranteed him the option to purchase an MLS expansion franchise for $25 million when he retired.[23] In 2013, after Beckham’s retirement, the MLS entered discussions with Beckham and his advisors to start an expansion club.[24] In 2018, the team was approved by the league and was slated to launch in 2020.[25] The team got their first games in 2020, but faced delays due to the COVID-19 pandemic.[26] The team has been playing in the MLS ever since, and was valued at $600 million in April 2023.[27] Beckham had to gamble that the MLS would continue to flourish, and even bet that his popularity would help boost the league’s popularity. It ended up panning out for him, as his pay cut from $29.5 million to $6.5 million ended up turning his $25 million investment into upwards of $500 million.[28]

Lionel Messi Joining Inter Miami CF

Lionel Messi will follow in David Beckham’s footsteps and join the MLS in the waning years of his career. The 36-year-old Argentinian superstar announced that he is going to sign with Inter Miami, the club owned by David Beckham.[29] The news shocked the soccer world, as Messi picked an MLS club, rather than returning to his preferred destination of Barcelona, or taking a massive payday from the Saudi league.[30]

Jorge Mas, the principal owner of the club, spoke more about the details of Messi’s new contract.[31] Messi is slated to make an average salary of somewhere between $50 million and $60 million per year for two-and-a-half years, with an option for 2026.[32]

Messi’s deal is similar to that of Beckham’s, in that it guarantees him revenue shares from two of the MLS’s biggest partners. Messi will receive a percentage of the MLS’s broadcasting revenue from Apple TV, as well as a percentage of the revenue generated from sales of Inter Miami’s Adidas apparel.[33] Messi will also receive an ownership stake in Inter Miami after he retires, but unlike Beckham’s deal, none of his stake will be subsidized by the MLS.[34]

Messi gave multiple reasons for his choice to leave Paris Saint-Germain for Inter Miami.[35] He says that he did not return to PSG because his two years there were very difficult.[36] The first year in Paris was especially hard for him.[37] Messi says that he felt very comfortable during the first six months of his second year with the club, but the long break for the World Cup made things tough for every team that season.[38] He remained uncomfortable after his second season, and he wanted to explore different avenues to find someplace he will enjoy.

Many believed Messi would make a triumphant return to Barcelona, where he had spent over 20 years of his career. In fact, he had never wanted to leave Barcelona for PSG, but he was forced to in 2021.[39] Messi had agreed to a 50 percent pay cut from Barcelona to stay on the roster and help the team financially, but Barcelona ran into salary cap issues anyway, and it was unable to register him.[40] Messi says that he heard La Liga had already approved everything for his return, but he wanted to make his own decision on where he went.[41] Barcelona has continued to have registration issues that might hinder Messi’s return, forcing him into making a decision that he did not want to make.[42]

Messi also refused offers from another European team and a Saudi Arabian team.[43] He said, “[a]fter winning the World Cup and not being able to return to Barcelona, it was my turn to go to the United States’ league to live football in another way.”[44] He further claimed that his decision was not based on money, because if it had been, he would “have gone to Arabia or elsewhere.”[45]

Messi wants to join the MLS because it is less demanding than the other leagues and will make his day-to-day life more enjoyable. He said that he will bring the “same responsibility and the same desire to want to win and always do thing well. But with more peace of mind.”[46]

Messi’s announcement has already caused Inter Miami ticket prices to skyrocket, and his popularity could make his deal just as lucrative as Beckham’s.

[1] https://www.espn.com/soccer/story/_/id/37820900/lionel-messi-inter-miami-mls-key-info-contract-deal-debut-more

[2] Id.

[3] https://www.thejustice.org/article/2023/02/call-it-soccer-the-rise-of-the-worlds-game-in-the-united-states-brandeis

[4] https://www.statista.com/topics/2892/major-league-soccer-mls/#dossier-chapter2. (It is estimated that Inter Miami will be worth more than $1 billion. (https://www.cityam.com/lionel-messi-tipped-to-make-inter-miami-worth-1bn-and-be-mls-game-changer/)).

[5] https://www.forbes.com/lists/soccer-valuations/?sh=aadae3a198bb.

[6] https://www.forbes.com/sites/mikeozanian/2022/09/08/the-worlds-50-most-valuable-sports-teams-2022/

[7] https://en.as.com/nfl/what-are-the-most-valuable-franchises-in-nfl-n/

[8] Supra n.6.

[9] https://theathletic.com/4522808/2023/05/16/mls-player-salary-averages/

[10] https://www.cnn.com/2023/05/03/football/cristiano-ronaldo-forbes-highest-paid-athletes-spt-intl/index.html

[11] https://www.sportico.com/personalities/athletes/2022/100-highest-paid-athletes-in-the-world-2022-full-list-1234674901/

[12] https://www.mlssoccer.com/about/roster-rules-and-regulations