Messi has earned an estimated $130 million over the past year, landing him at No. 2 on Forbes' list of the world's highest-paid athletes—just behind Cristiano Ronaldo, who vaulted to the top after signing with Saudi Arabia's Al Nassr in January. But Messi’s earnings aren't all tied to his performance on the field. About half of his earnings come from endorsement deals built on his image, including with Adidas, Budweiser, and PepsiCo.
By Scoring A Lucrative Deal At Inter Miami, Lionel Messi Is Playing A New Financial Game
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The greatest soccer player in the world made a smart move choosing Florida, a state with no income tax. But his first goal is to clear U.S. immigration with a Spanish tax fraud conviction on his resume.
On June 24, Philadelphia Union will take on Inter Miami at Subaru Park. Normally, a match-up between the 3rd and 15th-place teams in the eastern conference wouldn't generate much interest. But the game—still seven days away—is already sold out.
Call it the Messi effect. Soccer star Lionel Messi won't be at the game on June 24 since his contract with Paris Saint-Germain doesn't even expire until June 30. But the mere announcement that he would sign with Inter Miami, eschewing much bigger deals abroad—including a reported $500 million offer from Saudi Arabia's Al-Hilal—already has fans buzzing. Inter Miami, which already has plenty of star power with David Beckham as co-owner, now has over 8 million followers on Instagram, more than any other Major League Soccer team. The Dallas Cowboys, which Forbes ranked as the world’s most valuable sports team in 2022, has only 4.5 million.
The 35-year-old Argentine is considered by many to be the greatest soccer player in the world. He has seven Ballon d'Ors—literally "the golden ball" award, considered the most prestigious in soccer–and multiple other individual awards, including FIFA Player of the Year. Plus, he’s steered teams to 10 La Liga Liga titles, four UEFA Champions League titles, and two Ligue 1 titles. In 2022, he finally captured the elusive World Cup for his home country of Argentina.
With that resume, Messi could have gone anywhere. But another part of his history–namely his earnings and protracted battle with Spanish tax authorities–suggests one reason he might have chosen Florida, a destination for other big, high-earning sports stars like Tiger Woods, Derek Jeter, and Tom Brady.
For the highest earning athletes, Florida is a great place to live and/or train and play. Florida does not have a state individual income tax. That doesn’t guarantee a star athlete who lives there a state income tax free existence, but it does help cut the bill–particularly if that athlete is playing for a Florida based team. States with income taxes typically impose them based on both where you live and where you work. (Since federal law doesn't allow two states to tax the same income, those who live in one state and work in another, will often be required to file in both states and will then get a credit in their home state for the taxes paid or withheld in the state where they worked.)
This can be particularly tricky–and a big deal–for athletes. . .
...The footballer is a dual citizen of Spain and Argentina but does not hold a U.S. passport. While he can typically visit the U.S., including his reported multi-million dollar properties in Florida, without worry, he'll need a visa to work. That could be tricky.
Jonathan Grode, U.S. Practice Director and Managing Partner for Green and Spiegel, a U.S. and Canadian immigration law firm, has worked extensively with professional athletes on visa-related issues. He says professional athletes typically enter the country on a P-1 visa, issued in five-year increments and tied to contractual agreements.
But P-1 and related visas aren't issued automatically.. They are subject to review, and of particular interest is Section 212 of the Immigration and Nationality Act, which states, in part, that entry to the country can be denied to "any alien convicted of, or who admits having committed, or who admits committing acts which constitute the essential elements of (I) a crime involving moral turpitude (other than a purely political offense) or an attempt or conspiracy to commit such a crime."
While moral turpitude can be interpreted widely, crimes involving dishonesty fit the bill, says Grode, and can be "treated severely." A visa application would likely be denied in a typical case like this–where the applicant had a tax fraud conviction...
When that happens, an applicant who has been turned down would need to apply for a waiver. Grode notes that a waiver application can take months. That could be problematic, considering Messi is expected to make his MLS debut in July. But, Grode notes, this is Messi—the biggest footballer in the world. His legal team likely already had a plan, including a waiver, in the works. Messi’s team did not respond to a request for comment.
If all else fails, other visa alternatives exist, like applying for an O-1 visa. The O-1 nonimmigrant visa is for the individual who possesses extraordinary ability in the sciences, arts, education, business, or athletics or who has a demonstrated record of extraordinary achievement in the motion picture or television industry and has been recognized nationally or internationally for those achievements. Under almost any measure, Messi would qualify—he's a game-changer.
Fellow soccer phenom Neymar da Silva Santos Júnior, known simply as Neymar, believes he's a league changer, too. Neymar, who played with Messi at Barcelona and PSG–and had his own share of tax woes–declared, "I'm certain that Leo is going to change the league in the United States."
He encouraged fans not to sleep on the move, saying, "I believe the league will become a lot more popular. So everyone has to take advantage and enjoy watching him play because unfortunately nothing lasts forever."
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