Business Law & Tax (BD, November 2021)

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BUSINESS LAW &TAX

NOVEMBER 2021 WWW.BUSINESSLIVE.CO.ZA

A REVIEW OF DEVELOPMENTS IN CORPORATE AND TAX LAW

Player brands boost clubs

Intellectual property rights are •effective money generators Rowan Forster ENSafrica

F

ootball players are brands, often very valuable brands. Football clubs are brands too, and they are also often very valuable. In this article we look at how the value of football player brands can affect the value of the brands of the clubs they play for. Lionel Messi and Cristiano Ronaldo have dominated world football for many years, each winning the Ballon d’Or (the trophy awarded to the world’s best player) multiple times. We have seen how assiduously top players protect their brands. In Ronaldo’s case, his CR7 mark, derived from his initials and his shirt number, plays a big role. Messi has had to work long and hard to get his name registered in the face of opposition from the owner of the brand Massi. We have noted how top players have considerable trademark portfolios, with Messi topping the list with 115 registrations, followed by Neymar and then Ronaldo. We have also reviewed top football clubs, and the value of their brands. We

DON’T MESS WITH THIS BRAND

IT’S A NUMBERS GAME

have noted that the most valuable clubs are Real Madrid (€1.28bn), Barcelona (€1.27bn), Manchester United (€1.13bn), Manchester City (€1.12bn) and Bayern Munich (€1.01bn). Recent developments show how the values of footballers and football teams are inextricably linked.

SHOCK MOVES

Messi and Ronaldo have both moved clubs, Messi leaving Barcelona where he spent 20 years, for the French club Paris Saint Germain (PSG), and Ronaldo leaving Juventus for the club where he first made his name, Manchester United. In Messi’s case the motivation was almost certainly financial — Barcelona is in serious financial trouble and it cannot afford to pay the sort of money players like him expect. In the case of Ronaldo, it is not quite as clear what his motivation was, but it is possible he saw United as the perfect place to end a stellar career.

IMPLICATIONS

The possible implications of the Messi move are discussed in a recent article. “FC Barcelona, now the secondbiggest football club trade-

/123RF — VERVERIDIS

/123RF — KATATONIA mark, risks losing its place to the club Paris Saint-Germain as a result of Lionel Messi’s departure”, the article says and goes on to suggest “this departure may not only impact on the club’s quality of play but also its finances and especially its intellectual property rights”. A reference in an article in Brand Finance (August 6

2021) estimates the departure of Messi could reduce Barcelona’s value by 11%, resulting in a loss of £137m.

THE SIGNING OF MESSI LED TO A 100% RISE IN THE VALUE OF PSG’S CRYPTOCURRENCY

On the other hand, the article predicts good things for PSG. The club now has two of the biggest footballers in terms of brand portfolio, Messi and Neymar. It suggests Messi’s large trademark portfolio “is also an asset for the club that recruits him, as it increases its importance and influence”. The club “could see the value of its brand

increase considerably”. The article goes on to make the point that the signing of Messi led to a 100% rise in the value of PSG’s cryptocurrency, the PSG Fan Tokens, taking the tokens’ capitalisation to about £144m in three days. As for Ronaldo’s move, CONTINUED ON PAGE 2

ENSafrica’s tax team grows

heavyweight firm with a highly acclaimed tax practice, offering a broad range of expertise Chambers Global Guide 2021

Mmangaliso Nzimande Executive | Tax disputes and controversy mnzimande@ENSafrica.com

Africa’s largest law firm


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