The company that runs Lionel Messi’s lifestyle and clothing brand is set to celebrate the first Nasdaq IPO of the year on Friday (January 6), hoping that the soccer superstar’s dazzling display in the World Cup last month encourage investors.
MGO Global, which rightly chose MGOL as its stock listing, plans to list 1.5 million shares at $5 each and raise around $7.5 million with a market capitalization of $66 million.
It’s a big goal for the company, co-founded in 2018 by Argentine Maximiliano Ojeda and American designer Ginny Hilfiger, sister of famed fashion designer Tommy Hilfiger. Currently, MGO only has Messi as its client, which makes its success depend on the athlete’s performance and long-term collaboration. Although Messi is the face of his eponymous brand, he is not a shareholder in the business. Instead, his contract stipulates receive 12% of sales with a minimum guarantee of $4.2 million over three years.
“While our intent is to seek growth and expansion of our brand portfolio in the future, we are not currently negotiating or have likely agreements to add additional Messi-branded assets to our portfolio at this time,” MGO wrote in a filing. . to the Securities and Exchange Commission (SEC).
MGO also operates in a crowded and competitive industry. The company itself does not produce any sports equipment, as Adidas owns the exclusive rights to any Messi-themed shoes or jerseys. In the SEC filing, the company also acknowledges that it has not yet been profitable: “We have a history of operating losses and we may continue to incur losses for the foreseeable future. We may not be able to generate enough net sales to achieve or maintain profitability.”
Accelerated rise of MGO Global
2018: MGO Global is co-founded by Ginny Hilger and Maximiliano Ojeda, with the goal of harnessing the “fame, celebrity power, and global social media influence of world-class athletes, artists, and other cultural icons.”
2019: MGO acquires the Messi Brand, a line of clothing and accessories inspired by Lionel Messi, currently the only asset of the company.
2022: MGO files $8 million initial public offering, backed by Boustead and Sutter Securities.
2024: Terminates Messi’s current license agreement with MGO, which covers all current MGO products.
Person of interest: Lionel Messi
Messi’s star power has surely never been stronger. The Instagram post of him celebrating Argentina’s World Cup victory in Qatar last month became the most popular photo in the app’s history, receiving more than 74 million likes (for comparison, the population of Argentina is 45 million people). Messi’s home province of Santa Fè saw the number of newborns named Lionel and Lionela increase by more than 50% in December compared to the previous month, and the soccer star is also leading recent polls for the Argentine presidential election scheduled for later this year. by two digits.
But Messi’s future, for now, seems to remain in the sport. A free agent this June, multiple outlets have speculated that Messi is heading to MLS as David Beckham’s Inter Miami FC aggressively try to sign the seven-time Ballon d’Or winner. However, following his recent success, some reports They say Messi is considering a one-year extension at Paris St. Germain (PSG), his current club, to pursue further UEFA Champions League success.