Here’s How Much The Fanatics Deal Is Worth To Paris Saint-Germain

Earlier today Paris Saint-Germain and Fanatics, the global leader in licensed sports merchandising, announced a ten-year e-commerce, manufacturing and licensing deal that will being this summer.

The deal is a massive expansion and extension from the previous e-commerce only arrangement between the two groups, which will now see Fanatics gain an even broader set of e-commerce rights as well as new manufacturing rights and management of the Club’s overarching apparel, headwear and hard goods licensing program, creating a wider range of products for PSG fans and dedicated PSG stores.

Although monetary terms of the deal were not disclosed, a person familiar with the agreement said that the French soccer team could triple its eCommerce business by 2023 (currently between €10 million ($11.2 million) to €12 million ($13.4 million) and by the mid-point of the deal they expect PSG to take in over €50 million ($56 million) annually (such deals are hard to place exact numbers on because a portion of the payout to PSG is guaranteed and a portion will depend on merchandise sales).

The Fanatics deal puts an exclamation point how rapidly the value of PSG has increased since it was acquired by Qatar Sports Investments for $100 million in 2011. PSG has played in the very lucrative Champions League every season since from 2012 (they are currently in the final eight of this year’s tournament) and easily won Lique 1 this season. Off the pitch, PSG have become lifestyle brand with global appeal. Most of PSG’ eCommerce business today is overseas and the agreement with Fanatics will significantly build upon that team’s international reach.

During the past decade, PSG has increased in value more than any team, except for the Golden State Warriors. For more insight on how PSG’s business has brown and evolved, check out the interview below I did for our Forbes SportsMoney show last December with Jean-Claude Blanc, the team’s deputy chief executive.

When we last compiled our ranking the the world’s most valuable soccer teams 14 months ago, PSG ranked 11th, worth  $1.1 billion. But the deal with Fanatics, combined with its Champions League play will not only increase PSG’s value but will also increase its standing in our next ranking.

Another factor that increase the value of all Lique 1 teams: A little over a month ago, it was reported that Saudi Arabia’s public investment fund was looking to buy the French soccer team Olympique de Marseille, which competes in France’s Ligue 1, for €250 million ($280 million). Yesterday, the team’s president, Jacques-Henri Eyraud, was quoted as saying the team is not for sale. But the fact that big money is interested in the French league brings back memories of when non-English buyers like Malcolm Glazer (Manchester United), Roman Abramovich (Chelsea), John Henry (Liverpool) began pumping money tin the Premier League couple of decades ago.

As the money flowed into the league team values rose. The same could happen in Lique 1, with PSG and Fanatics at the top.