When Magnus Carlsen, a Norwegian chess grandmaster, was 16, he was already considered quite successful, with the result that his parents, Henrik and Sigrun, set up a small company to manage his profits. Henrik had said at the time that he hoped Magnus would make enough money by the age of 25 so that if he decided to quit chess, he would at least be financially independent.
Magnus has surpassed this goal. He turned 31 on November 30 as he struggled to defend his world title in Dubai in a fight against Ian Nepomniachtchi, a Russian grandmaster.
However, whether he wins or loses, on the day of payment he will add to his account a small amount of the millions of dollars he has received so far. And this is because he has done something that no one else has done until today: He used his reputation to become one of the leading chess players in the chess world. In the process he has amassed a small fortune.
Carlsen has closed several sponsorship deals, including Unibet, a sports betting site, Isklar, a Norwegian water company, and Simonsen Vogt Wiig, a Norwegian law firm. But the key vehicle for his business deals is Play Magnus, a company he founded in 2013, the year he became world champion. It was originally designed as an app that allowed users to mimic Carlsen’s style of play at different stages of his age. Gradually, however, it expanded to become a company with twelve subsidiaries. It now includes a gaming website, teaching platforms and weapon versions.
According to Andreas Thome, CEO of Play Magnus, the company has about 250 employees and about four million registered users. One year after its listing on the Oslo Stock Exchange Euronext Growth, Play Magnus now has a market capitalization of approximately $ 115 million. It is the only listed company in the world in chess.
Carlsen’s personal stake is worth nearly $ 9 million.
Although it has no role in the day-to-day operations of the company, it has a huge influence on its strategy. His father is in the administration. “We have very good communication with the management of the company,” said Henrik Carlsen. “They really want to have Magnus in every important decision.”
Thome was particularly concerned with this issue. “The important thing for Magnus is to make the game more accessible to more people around the world.” “The ideas he stands for are definitely the backbone of what the company believes.”
Carlsen’s ideas had influenced the company’s acquisition strategy from the outset.
“He really wanted a playzone when we only had apps,” recalls Henrik Carlsen. So, in March 2019, Magnus pushed for a merger with Chess24, one of the leading online gaming sites.
Then, with the pandemic closing all the tournaments and postponing the world championship, Play Magnus hosted a series of 10 online tournaments with $ 1.6 million in prizes. The events were attended by 44 of the best players in the world, including Carlsen.
The participation of top players allowed the tournament to attract sponsors. Among them were Meltwater, a media company, FTX, a cryptocurrency exchange, and Mastercard. Julius Baer, ​​a Swiss asset management bank, has become the main sponsor of a second league for emerging players. The final took place in October. Unsurprisingly, Carlsen won. He also raised just over $ 315,000. Wesley So, an American, finished second and won $ 215,000.
“The fact that Magnus strongly supports the tournament, participates in it, takes it seriously and fights, ensures that other top players play in it. That’s why it’s valuable to the company, “said Mr Thome.
Play Magnus has already announced that it will hold another team of champions, with nine tournaments, starting in February. It also creates a regional tournament in India.
Carslen certainly benefits from maintaining the scepter of the world championship. But even if he loses, it will not affect his business.
Mr Thome said: “I think Magnus has reached a status in the world of chess thanks to his performance for so long, which means he will be a game legend forever.”
Copyright:
2021 The New York Times
moneyreview
Follow Skai.gr on Google News
and be the first to know all the news
.
