Footballer Neymar is buying the trademark rights of football legend Pelé for 18 million dollars. What exactly is that all about, and why is it attractive to Neymar? The Flemish podcast channel Sporza discussed this with sports economist Thomas Peeters.
Since the death of Brazilian football legend Pelé, the company behind the brand has been largely dormant. ‘The heirs and other parties involved probably don't know what to do with it, so exploiting it may seem like a logical option,’ says Peeters. He assumes that Neymar has surrounded himself with people who have expertise in this market and who know how to handle the brand.
The purchase is attractive to Neymar. Owning a strong brand name can be very lucrative. In recent years, endorsement and sponsorship contracts have become a large, sometimes even the largest, part of many top athletes' income. According to Peeters, this has everything to do with what is known as the ‘superstar economy’. The global appeal of football and the world of sport in general has increased enormously. This is due to the high level of media attention and the rise of streaming options. As a result, it has become much easier for superstars to earn money from sources other than just their salary or prize money from sport. ‘When Pelé was still playing, those opportunities hardly existed,’ Peeters concludes.
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You can listen to the podcast episode of Sporza here (In Dutch).
