Twenty years ago hardly anyone outside of France knew about Paris Saint Germain. Despite not winning a single international trophy since then, they somehow managed to become one of the most iconic brands in world football. The biggest celebrities want to be associated with PSG and the club's value is the fastest growing among all soccer teams over the past decade.
This development is closely linked to its cooperation with kit sponsor Nike. So here is the story of how those two rocked the kit industry and created the most fashionable football club in the world. PSG is the second fastest growing club in the world in all sports, just behind the Golden State Warriors.
Nike is the most important sponsor of PSG
The injection of capital from the Middle East
They grew by almost a thousand percent in ten years and are now valued at around a billion euros. Behind that astronomical figure is an investment from the Middle East. Qatar Sport Investment took over PSG in 2011. He first focused on improving the team and has spent more than a billion euros on new players alone since taking over. Movement similar to the one carried out by City Football in Manchester City.
Players
Some of the most notable transfers: Cavani, Ibrahimovic and Kylian Mbappé. And anyway the record of more than 200M that they paid for Neymar. The investment woke up a sleeping giant and PSG can now compete with the best clubs in Europe.
The most important signings that came with investments from the Middle East
But it also made the club very dependent on oil money from its investors. This is a high risk for a club. FC Málaga is just one example of how a club can suffer when its wealthy sponsor suddenly loses interest. This is why PSG executives made a plan to become less dependent on foreign money y decidieron invertir fuertemente para tener acceso a nuevos mercados. Una parte esencial de la strategy: build a global brand.
A club for culture
Soccer and its look are becoming more and more intertwined with street culture and hip hop. You see artists wearing soccer jerseys on stage, revealing new kits for brands, and even being interviewed about the trend. "This is definitely a fashionable thing" PSG is at the heart of this development. All the cool kids wear PSG uniforms. And the Parc des Princes has become a meeting point for some of the world's biggest celebrities, who like to stop by in Paris. It's hard to imagine a better city to determine a club as a fashion statement.
Paris: HUB fashion par excellence
Paris is already a world capital of fashion and style. And that authenticity is very important, as PSG's brand manager (Fabien Allegre) pointed out. She stressed that they don't proactively ask celebrities to wear their gear, but "it has to be organic." There has to be an attachment." It has to be organic. There has to be an attachment." Along with famous musicians and artists, PSG also works with stars from other sports to build your brand. Steph Curry and Kevin Durant visited and supported the club.
The strategic alliance with the Jordan brand
But what really put PSG on the map is their collaboration with Michael Jordan and his famous Jumpman brand. Owned by PSG kit sponsor Nike, Air Jordan is one of the most iconic brands in American pop culture, hip hop and sports. What started as a deep partnership between a player and a brand has grown to be iconic and revolutionized an industry.
Some prominent athletes are ambassadors of the PSG brand
The Air Jordan brand today covers more than 30 versions of the shoe, many of them re-released multiple times. The shoes often sell out as soon as they are available and are resold online to sneaker collectors. In 2019, Air Jordan made its first quarter with revenue of over a billion dollars. To put that in perspective: that's about as much as Under Armor earns in the same amount of time. Its status among sneaker lovers is definitely one of the reasons for Jordan's success. The brand went from making basketball shoes in the beginning to becoming a big name in fashion. In that sense, the collaboration with a club in the fashion capital, Paris, makes a lot of sense. The great mix between the brands becomes apparent when looking at the markets that PSG and Jordan are targeting.
Winning business partnership
Jordan es una de las marcas más relevantes de EE. UU. Y gracias a sus raíces está fuertemente ligada a la cultura del baloncesto. Y aún cuando Jordan es definitivamente una marca global, fundamentalmente en Europa, aún hay grupos target que no están familiarizados con la marca. El baloncesto es cada vez más grande, pero no recibe tanta atención en Europa como el fútbol. El PSG en cambio es muy conocido en Europa, por lo visto fundamentalmente en Francia, one of the countries with the highest purchasing power. This means that, even though both brands are similar in character, both sports and fashion, they are famous and loved by different audiences.
The most important strategic alliances
Strengthening the exclusivity of the brand
By collaborating, they combine these audiences and cover markets that are often too far away for them individually. Jordan had already tapped into the soccer market when he released a custom shoe featuring Neymar, who was probably the most exciting player at the time. And he plays for PSG. It was already an indication that the kit's deal with el PSG no se limitaría a tener el Logo de Jumpman en los kits. No other football club will be kitted out in Jordan kits, at least until 2021.
Part of the collection are also shoes and more than 70 other posts. And anyway, the collection is not only presented on the field, but on the catwalk of the big fashion shows. It's safe to say that the collaboration paid off for PSG. The club sold more than 80,000 kits on the launch weekend alone. And it's clear where the extra sales are coming from: Compared to the previous season, US jersey sales have grown by an incredible 470%. And there is another market that promises similar figures in the future.
Entry into the Asian market
If there is a country that truly buy premium brands and luxury brands, it's China. And since basketball is one of the biggest sports in China, working with the Jordan brand could help PSG take a leading position in the competition for Chinese soccer fans. The deal with Jordan also puts PSG on the map for other sponsors.
Acaban de firmar un acuerdo de diez años y varios millones de euros con el gigante del comercio electrónico Fanatics. La empresa además realiza el merchandising de la NFL, NBA y MLB. Es probable que hayan tomado nota del PSG en vinculación a su colaboración con Jordan, que causó revuelo en el mercado estadounidense. Inclusive se puede argumentar que la fuerte marca global del PSG aumenta sus oportunidades de fichar a los mejores jugadores; definitivamente es un factor blando valioso a la hora de convencer a estrellas como Neymar y Mbappé para que se unan al club.
The construction of a sporting and commercial image
Despite not having a single Champions League, PSG is positioned as one of the most recognized clubs in the world. From a historical perspective, it will always be difficult for PSG to compete with clubs like Real Madrid, Manchester United or Barcelona in terms of sales. But for a team new to the European stage, it's impressive how quickly they managed to build a club that stands apart from the rest.
Will fashion bring a Champions League for PSG?
