Chapter 438: $300 Million for 10 Years, Mercedes-Benz Wants Lin Quan for Endorsement!
After the eighth round of the league ended, it was time for the FIFA matchdays again.
Since the Spanish national team had already secured their place in the European Championship by defeating Slovakia and North Macedonia, Del Bosque did not call back all the main players for this round of qualifiers. He chose to use many young players to continue assessing their performance on the field.
Del Bosque didn't believe that a league as prominent as La Liga couldn't produce suitable young talents. Their opponents for this international break were not very strong, making it a good opportunity for these young players to gain some experience.
Lin Quan was quite happy that he wasn't called up to play for the national team, enjoying his free time. De Gea, also not summoned, invited Lin Quan to London to watch an esports competition.
In 2015, various esports competitions started gaining popularity in Europe, with more and more capital entering the field, investing in and forming numerous esports teams. For instance, Barcelona's star Piqué intended to invest in an esports club in Catalonia to participate in the LEC (League of Legends European Championship) matches.
Influenced by Piqué, De Gea developed a strong interest in this emerging industry. Knowing that Lin Quan also played this game and they had played together in the hotel during national team training, De Gea invited Lin Quan to join him. He also wanted Lin Quan's opinion on whether he should invest in a team like Piqué.
"Piqué is investing in a Catalonian team, but as a Madrid native, you might want to avoid getting involved. If it somehow gets entangled with the Catalonian separatist movement, it could be hard to explain," Lin Quan advised.
Spain was not entirely united, and Catalonia's push for independence wasn't new, having even held a high-profile independence referendum last year. Many Barcelona players were involved in this movement, with Piqué being a prominent supporter of Catalonian independence, often criticized by the Spanish Football Federation for it.
For Barcelona, Catalonia's independence might not be a good thing. If Catalonia became independent, Barcelona would leave La Liga, losing its Champions League qualification. To rejoin the Champions League, they would either have to join another league, like Serie A or Ligue 1, or create their own Catalonian league. Both options were challenging and not quick solutions. Not playing in the Champions League for several years would drastically reduce their exposure and influence, potentially causing star players like Messi, who aren't Catalonian, to leave.
Lin Quan, having grown up in Catalonia but feeling no sense of belonging to it, remained indifferent and uninvolved in the independence issue, simply watching from the sidelines.
"You're right. I think I'll set up an esports club in the UK instead," De Gea decided promptly after hearing Lin Quan's advice.
"Alright, let's keep watching the match then," Lin Quan replied.
They were watching the quarterfinals of the 2015 World Championship, with FNC facing EDG. FNC, being a European team, enjoyed tremendous support from the local crowd. Their performance justified the applause and cheers, as FNC cleanly defeated the LPL's second seed, EDG, 3-0. The atmosphere was electric, especially when FNC advanced to the semifinals, with continuous applause and cheers from the audience.
De Gea was thrilled: "I heard that East Asian teams were strong, but it seems they're not that great after all."
Lin Quan smirked. East Asian teams, particularly those from LCK, were indeed strong. The LPL was still in a dark period, only rising and achieving significant success in 2018 and 2019. However, not being a fan of Koreans, Lin Quan didn't bother to praise the LCK teams. He also didn't tell De Gea that FNC would be swept 3-0 by a Korean team in the semifinals.
After the match, Lin Quan left early, citing training commitments. He already knew the outcome of the world championship and wasn't particularly interested. Moreover, he wasn't inclined to blindly invest in an esports team. Despite the hype, the future of esports was uncertain, and only a few would genuinely profit.
If he had extra money, investing in emerging tech companies like Tesla would be a better option. Tesla's stock price wasn't cheap, but Lin Quan knew it still had room to grow. With the future promotion and development of electric vehicles, its growth potential was enormous, making it a valuable investment until 2020, when its stock price peaked before facing fierce competition from Chinese companies in the new energy sector.
Having invested in Beckham's team, Lin Quan had around $50 million left, which was still a bit short. So, with some free time, he asked Perret to sort through endorsement contracts to shoot some advertisements during the break and earn some extra money.
With his rising fame and influence, more sponsors sought him out for endorsements. Unlike previous years, these sponsors were now willing to pay substantial amounts. However, Lin Quan had limited energy and didn't take on many endorsements, especially compared to Messi and Ronaldo.
Thus, when Perret started calling these sponsors to inform them of Lin Quan's availability, they were overjoyed, eager not to miss the opportunity. Among these sponsors was a notable car company.
"Hello, we are from Mercedes-Benz. Is there a chance to collaborate with Mr. Lin?"
As one of the top three brands in the high-end global car market, Mercedes-Benz's endorsement choices were all international superstars. Their approach to Lin Quan showed his significant influence in the football world. Besides his influence, Mercedes-Benz was also targeting the Chinese market.
Lin Shuhao's brief "Linsanity" in the NBA garnered him widespread fame and numerous endorsement deals.
Lin Quan, a Chinese football star, has had a long-standing, excellent performance in the world's most popular sport. His influence and status in football far exceed that of Jeremy Lin in basketball. In China, Lin Quan's influence and appeal easily surpass that of Jeremy Lin.
Therefore, having Lin Quan as an endorser is highly beneficial for Mercedes-Benz in expanding the Chinese market. China's rapid economic development in recent years has significantly increased people's purchasing power, and car sales have been rising yearly. This growth has also fueled the luxury car market, where brands like Mercedes-Benz, BMW, and Audi are thriving.
However, the competition in this market is fierce. BMW and Audi, rivals on par with Mercedes-Benz, have also done exceptionally well in localizing their brands. Although Mercedes-Benz has slightly higher brand recognition, it hasn't significantly outpaced the other two in sales.
Hence, Mercedes-Benz is taking a two-pronged approach: continuing to develop new technologies and products to cater to various customer preferences while also increasing their investment in marketing to attract more potential customers.
Lin Quan, a global superstar with massive influence both internationally and in China, is an ideal choice for this strategy. By securing him as an endorser, Mercedes-Benz effectively hits two birds with one stone, fulfilling both their local and international endorsement needs.
Given this, Mercedes-Benz offered a highly lucrative contract: 300 million euros over 10 years, averaging about 30 million euros per year. This amount exceeds the annual salaries of most football players.
Honestly, Lin Quan was quite surprised by Mercedes-Benz's offer. Although he had numerous endorsements, he had never encountered such a large contract. However, considering the deal closely, the price didn't seem outrageous.
While 30 million euros per year may seem high now, factors like currency depreciation and inflation could make this amount less significant over ten years. For instance, tennis star Roger Federer would sign a 300 million, 10-year contract with Uniqlo three years later, similar to Lin Quan's deal. Given that Uniqlo doesn't have the same financial clout as Mercedes-Benz, this offer seemed reasonable.
Additionally, the 10-year duration demonstrated Mercedes-Benz's strategic thinking. Lin Quan was about to turn 20, and in 10 years, he would be 30, which is generally the peak period for a professional athlete. After 30, athletes often start to decline. By securing Lin Quan for this long-term contract, Mercedes-Benz was not only leveraging his peak performance and fame but also preventing him from endorsing competitor brands.
In essence, Mercedes-Benz's investment achieved three objectives: maximizing Lin Quan's influence, securing long-term brand association, and blocking competitors. Therefore, the money spent was indeed worthwhile.
Despite being satisfied with the high offer, Lin Quan and his agent saw an opportunity to negotiate further.
"Mr. Kreiler, the contract duration is a bit too long. I'd like to shorten it," Lin Quan said.
He was pleased with the amount offered, recognizing the good faith in the initial offer. However, he chose to focus on the contract length rather than the fee, aiming to reduce it from 10 years to a more manageable period, ideally five years, or at most eight.
"If the duration is too long, what length do you think is suitable?" Kreiler asked.
He wasn't outright rejecting Lin Quan's proposal but was curious to hear the specifics. Internally, there had been concerns about the long-term risks of a 10-year contract, given the potential for injuries and performance declines in athletes.
"Five years would be ideal. Of course, we can adjust the contract amount accordingly," Lin Quan replied, adopting a reasonable stance.
Kreiler's eye twitched slightly. "Adjust accordingly" implied significant negotiation. He responded, "Five years might only be worth about a third of the original amount."
A 30 million euro annual fee for just five years seemed too steep. While Mercedes-Benz could afford it, it wouldn't be sensible, especially compared to their deals with other sports stars like Federer and Beckham, who had much lower annual rates.
"900 million euros a year is too low," Lin Quan shook his head.
At that rate, he might only consider a three-year contract, not five. He proposed a compromise, suggesting they meet halfway.
"How about this: we reduce the contract length by two years and lower the total fee by 100 million euros, making it an eight-year, 200 million euro contract. How does that sound?" his agent Perret proposed.
Kreiler found this offer intriguing. An eight-year, 200 million euro deal averaged out to 25 million euros a year, less than the initial 30 million. The duration was still lengthy enough to secure Lin Quan's prime years, and the reduced financial risk made it more appealing.
After considering it, Kreiler nodded. "Agreed. It's a deal!"
(End of Chapter)