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American Sports v/s Soccer: The Battle for Gen Z's Closet
May 22, 2025 | Edition #15
Hey there!
Here is a fact: American leagues are now rivaling European soccer giants in the global merchandise market. The NBA and NFL are key drivers of this growth, extending their footfall to traditional soccer markets like South America and APAC. In today’s edition, we dig deep into the marketing playbooks of the NFL, NBA, and soccer giants like Real Madrid and Liverpool FC.
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Today’s TLDR:
👕 The Merch Battle: Who is Winning and How
🎯 Oklahoma City Thunder’s Genius Business Strategy
📖 The stories shaping the industry (and the lessons we learned this week)
Let’s dive in. 🚀
The NFL is expanding globally. Hosting games across different continents with a clear aim: to reach $25 billion in annual revenue by 2027. And the league is on the right track.
The NFL will return to Mexico in 2026.
All 32 NFL franchises are now part of the Global Markets Program (GMP).
Games are now available in Chinese, Korean, Japanese, and other languages.
The strategy has paid off. Big time.
🇩🇪 In 2022, the NFL debuted in Germany in front of a sold-out Allianz Arena.
🛍️ The next year, the NFL recorded the highest merch sales on a match day outside the US in Frankfurt.
🌍 Logically, this year, the league will host matches in Dublin, London, Berlin, and Madrid.
The NFL, though, is following in the NBA’s footsteps. Basketball is arguably the most globalized American sport with cultural relevance, and the NBA has done enough to build on top of it.
NBA is a global phenomenon:
NBA’s global expansion is evident:
117 International games across 16 countries.
125 International players from 43 countries.
NBA League Pass is now available in over 200 countries.
It helps that the USA has produced the most globally recognizable icons for three generations: Michael Jordan, Kobe Bryant, and LeBron James. On top of it, from Basketball Without Borders (BWB), 68 players have made it to the NBA or WNBA.
A YouGov survey across 51 global markets found that 28% of fans are interested in the NBA, compared to 21% for the NFL. This growing interest has led to a significant rise in international revenue share for the NBA:
🔝 15% of the NBA’s total revenue is expected from the global market.
🔝 Global merchandise sales revenue reached $7B last year.
🔝 30% of the league’s total merchandise business relied on the overseas market.
As of 2023, the NBA had 37 official retail stores in 12 countries. The focus on merch sales is not a fad. It’s a necessity, as the growth of the industry evinces:
But make no mistake: the global expansion of American sports is invariably going to eat up the space of European soccer giants. And guess what? Clubs like Real Madrid and Barcelona have sensed that, too. And they are keeping pace.
European clubs strike back:
Recently, Travis Scott made a surprise appearance at the El Clásico. Or so the world thought. In reality, it was a calculated marketing move. SportsPro reported:
🎶 Scott had a concert in Barcelona right before the match, attended by club legends like Thierry Henry, Ronaldinho, and others.
🔥 A limited-edition co-branded jersey sold out in a jiffy.
🍽️ Content creators who posted with the limited edition jerseys were invited to a dinner with Scott.
While partnering with celebrities plays a key role in retail sales, soccer clubs are also mindful of keeping their grip on the International market. The key? Integrating culture into branding.
Real Madrid: Expanded content in multiple languages for global fans.
Liverpool: Released Chinese New Year and Diwali-themed apparel.
Manchester City: Simplified its logo for a wider, international appeal.
So, to succeed, franchises must:
✅ Sign international players.
✅ Partner with regional celebrities.
✅ Build a global brand identity.
The future is pretty clear: clubs that can effortlessly marry global with local will win. Who does it first is the question,
If You Had to Build an NBA Franchise Around One of These Young Superstars Right Now, Who Would You Pick? |
Shai Gilgeous-Alexander is your NBA MVP of the season. You might have seen his glorious speech. If you haven’t, you definitely should:
With that—Alexander’s first MVP—his valuation has skyrocketed:
He is eligible for a 4-year, $293M extension this offseason
Or, a 5-year, $380M deal next season.
Alexander will be the first player to earn $80M+ in a single season.
However, despite this colossal deal, Shai’s salary still provides OKC with financial flexibility. Here’s why:
OKC has 15 first-round picks through 2030.
Shai's current salary ($35.8M) is almost half of the NBA’s highest-paid player, Stephen Curry.
His cost-per-win ($2.65M) is lower than Doncic’s ($3.44M) and Tatum's ($3.41M).
For comparison, Nikola Jokic was pocketing $47.6M during his MVP season, one of the top-five players in the NBA in terms of salary. By comparison, Alexander’s $35.8M salary puts him at 31st in the same list. It’s comparable to Steph Curry’s MVP season of 2015-16, when Curry was not among the top-50 players with the highest salaries.
SGA's not just a superstar, he’s a blueprint.
OKC added Shai to their roster when he was still a developing talent. Hence, an early signing came at a much lower cost than an MVP-range player.
Currently, Alexander takes up roughly 25% of the salary cap.
With a Supermax extension, Shai’s salary could take up 42% of the salary cap, but it still gives the team flexibility..
Comparably, Embiid, Jokic, and Brown’s contract already eats up 50% or more of the salary cap.
For OKC, having a star like Shai at a lower cost allows more flexibility:
✅ The team stays well within the financial limit.
✅ They can sign and retain young talents without paying the luxury tax.
✅ OKC can keep multiple future options open.
That’s how Thunder has retained players like Chet, Jalen Williams, Cason Wallace, and others. OKC’s strategy to bring the talents early and develop them after signing has paid off. They have built a playoff team without shelling out big bucks like the Warriors, Celtics, or Lakers. And no one can point any fingers at them:
So, OKC has a roster filled with young blood and led by one calm and composed MVP who doesn’t eat up the salary cap, and gives much more in return. In Alexander, the Thunder also have a marketable role model, banking on whom they can grow their global popularity.
And in the coming years, Shai could be a top-five name on Forbes' list of highest-paid athletes. His prospective $65M salary next year will top that of Curry, James, Jokic, and more. And with that, Thunder might enjoy a global limelight that’s long overdue.
Anthony Edwards and Justin Jefferson, both under 25, have a combined net worth of $134.2M. Despite playing for mid-market franchises, their personal branding — from Jefferson’s revamped website to Edwards’ Prada deal — drives massive commercial appeal, making them two of the top-five highest-paid young athletes, per Forbes.
Knicks vs. Pacers is a lifeline for MSG Network, which is deep in financial trouble. The network restructured $804M in debt (with $514M forgiven), slashed rights fees to the Knicks (–28%) and Rangers (–18%), and even went dark on Optimum. Amid this, the Knicks vs Pacers history is a beacon of good hope for the debt-ridden network.
Stanley Cup Finals might be the new Super Bowl. Last year, the resale tickets exceeded $1,500, and lower-level seats crossed $3,000. If the Toronto Maple Leafs ever reach Game 7 at home, ticket prices could easily exceed $8,000, setting a new all-time record, surpassing Super Bowl ticket prices.
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