The original Messi-authorizing cooperative company incurred a net loss of $11.4 million

According to an article by "Sports Big Business", Messi's brand generated sales of only $3.6 million over three years, which couldn't cover the $2 million licensing fee and $1.8 million production and operational costs, resulting in significant losses. During their collaboration with Argentine soccer star Messi, MGO Global incurred net losses as high as $11.4 million.

Recently, football legend Messi made a significant business decision to terminate the partnership with the US fashion brand management company MGO Global and instead collaborate with the larger brand management company, Centric Brands. MGO Global assumed the expiring royalty fees and transferred the authorization for Messi's fashion business. Established in 2017 and headquartered in Florida, USA, MGO Global focuses on operating the personal brand of football superstar Messi, known as "Messi Brand". The company primarily manages the brand's self-operated e-commerce platform, selling a variety of products including clothing, accessories, and home goods priced between $50 and $130.

In 2022, MGO Global's affiliate company, Messi Brand, filed for listing on the NASDAQ. In January 2023, MGO Global officially debuted on the NASDAQ market. However, on the first trading day, the stock price experienced significant fluctuations. Despite an initial surge of 232%, it quickly fell, closing with a 7% decline, with a trading volume of 14.2 million shares. In 2023, Messi Brand's sales were only $1.69 million, well below expectations. During their collaboration with Messi, MGO Global paid substantial licensing fees, coupled with production and sales costs, resulting in net losses of $11.4 million.



In mid-April 2024, Messi announced the termination of the partnership with MGO Global and collaboration with the larger brand management company, Centric Brands. As a large enterprise with about 150 brand authorizations, Centric Brands' portfolio covers multiple renowned product lines. With its strong influence and financial strength, Centric Brands will provide stronger support and drive for Messi Brand, helping it reach new heights.

The significant losses incurred by MGO Global and the disappointing sales of Messi Brand are not isolated incidents and involve multiple factors. Firstly, the high burden of licensing fees is a significant factor in the losses of personal brand of sports stars. For example, MGO Global paid cumulative licensing fees to Messi exceeding $2 million, while the brand's annual revenue in 2023 was only $1.69 million. This substantial licensing fee became a major financial burden for MGO Global, as sales revenue far from covered the costs.

Secondly, although sports stars have solid fan bases, the success of personal brands in a competitive market environment depends not only on star power but also on providing innovative and differentiated products or services to attract and retain consumers. Overreliance on a star's personal image while neglecting brand building can lead to negative impacts if the star's image is tarnished.

Furthermore, a professional management team is crucial for the success of personal brands of sports stars. Lack of effective management may result in unclear brand strategies, affecting efficiency and performance in areas such as the supply chain, supplier management, and warehouse logistics. For example, Messi Brand's production and sales costs amounted to $1.8 million, far exceeding annual revenue. For emerging brands, issues such as poor supply chain management, inefficient logistics, and mismatched business models with market demand can lead to increased costs.

Lastly, the proliferation of personal brands of sports stars in the market may lead to consumer fatigue. Over the past decade, over 20 sports stars have launched their personal brands. In such an environment, personal brands may struggle to attract consumer attention and purchases if they fail to provide a unique experience or value.