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FOR WHAT THEY’RE WORTH: $157 MILLION PER MLS TEAM

The average worth of Major League Soccer clubs reached $157 million in 2014, up 52 percent from the previous year, according to a valuation by Forbes magazine.

Topping the list were the Seattle Sounders at $245 million, while the Colorado Rapids, worth $105 million, brought up the rear.  The biggest mover was DC United, whose value increased 97 percent, from $71 million in ’13 to $140 million last year.  Average team worth was $103 million in 2013, nearly triple what Forbes valued the teams five years earlier.

Eight of MLS’ then-18 clubs turned a profit in 2014, led by Seattle’s $10 million.  The biggest loser was the New York Red Bulls at $9 million.

2014 valuation of MLS clubs, plus revenue and operating income*:

1.  Seattle Sounders — $245 million, $50 million, $10 million.

2.  Los Angeles Galaxy — $240 million, $44 million, $4 million.

3.  Houston Dynamo — $200 million, $26 million, $5 million.

4.  Portland Timbers — $185 million, $35 million, $4 million.

5.  Toronto FC — $175 million, $32 million, -$7 million.

6.  Sporting Kansas City — $165 million, $29 million, $4 million.

7.  Chicago Fire — $160 million, $21 million, -$6 million.

8.  New England Revolution — $158 million, $25 million, $7 million.

9.  FC Dallas — $148 million, $25 million, -$3 million.

10.  San Jose Earthquakes — $146 million, $13 million, -$1 million.

11.  Philadelphia Union — $145 million, $25 million, $2 million.

12.  New York Red Bulls — $144 million, $22 million, -$9 million.

13.  D.C. United — $140 million, $21 million, -$1 million.

14.  Montreal Impact — $128 million, $22 million, -$3 million.

15.  Vancouver Whitecaps — $125 million, $21 million, -$6 million.

16.  Columbus Crew — $112 million, $18 million, -$4 million.

17.  Real Salt Lake — $108 million, $17 million, $1 million.

18.  Colorado Rapids — $105 million, $15 million, -$3 million.

*Operating income before interest, taxes, depreciation, amortization.

Forbes cited a number of reasons for the league’s surging team valuation, including:

o  Growing attendance, which through July averaged 21,000, as MLS continued to widen the gap with the NBA (17,800) and NHL (17,500) in that department.  That average projects to total attendance of 7.2 million in 2015, thanks in part to the addition of new teams in New York and Orlando.   The 2013 total was 6 million.

o  An influx of overseas talent that picked up in 2015 with the arrival of the likes of Kaka, Andrea Pirlo, Steven Gerrard, Frank Lampard, David Villa and Didier Drogba–a clear indication that owners are willing to spend to enhance the product on the field.

o  More soccer-specific stadiums throughout MLS.  The latest was San Jose’s Avaya Stadium, which opened in March, and DC United plans be in new digs by 2018.  Like United, the Earthquakes’ value has doubled since ’13.

o  The end of a TV deal with ESPN, NBC and Univision that paid MLS an average $30 million per year.  The new deal, in which Fox replaced NBC, pays $90 million a year.  Hardly NFL figures, or even NHL figures, and average viewship of 232,000 this year on Fox Sports 1 trails even the WNBA, but that represents a 65 percent improvement over NBCSN’s average audience of 141,000.  [September 19]

Comment I:  Total team worth of more than $2.8 billion for a league that as recently as 2002 nearly went under.  No wonder there were no signs of panic when MLS Commissioner Don Garber, during his “State of the League” address in December, revealed that the league was losing more than $100 million a year.

Comment II:  Being part of MLS is still far from being a license to print money, but no wonder the owners of LAFC, which won’t begin play until 2018, paid a league-record expansion fee of $110 million to try to succeed where it predecessor, the ill-fated Chivas USA, failed.  By comparison, the Miami Fusion, one of the league’s first two expansion teams, paid $20 million in 1997 to join MLS.

 

 

 

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KLINSMANN’S UNNECESSARY DONOVAN GAMBLE

Juergen Klinsmann, the coach hired to shake up the U.S. National Team, dropped the biggest bombshell of his controversial tenure by announcing a 23-man World Cup squad that does not include all-time U.S. scoring  leader Landon Donovan, a player considered the best ever produced by this country.

Klinsmann had until June 2 to reveal his final roster, but with his preliminary squad still training at Stanford University ahead of final World Cup tune-ups against Azerbaijan (May 27), Turkey (June 1) and Nigeria (June 7), he pulled the trigger, sending home Brad Evans, Clarence Goodson, Maurice Edu, Michael Parkhurst, Joe Corona, Terence Boyd, and the man considered the face of American soccer.

The final 23 headed to Brasil ’14:

Goalkeepers — Brad Guzan (Aston Villa, England), Tim Howard (Everton, England), Nick Rimando (Real Salt Lake, MLS);

Defenders — DaMarcus Beasley (Puebla, Mexico), Matt Besler (Sporting Kansas City, MLS), John Brooks (Hertha Berlin, Germany), Geoff Cameron (Stoke City, England), Timmy Chandler (FC Nurnberg, Germany), Omar Gonzalez (Los Angeles Galaxy, MLS), Fabian Johnson (Hoffenheim, Germany), DeAndre Yedlin (Seattle Sounders, MLS);

Midfielders — Kyle Beckerman (Real Salt Lake, MLS), Alejandro Bedoya (Nantes, France), Michael Bradley (Toronto FC, MLS), Brad Davis (Houston Dynamo, MLS), Mix Diskerud (Rosenborg, Norway), Julian Green (Bayern Munich, Germany), Jermaine Jones (Besiktas, Turkey), Graham Zusi (Sporting Kansas City);

Forwards — Jozy Altidore (Sunderland, England), Clint Dempsey (Seattle Sounders, MLS), Aron Johannsson (AZ Alkmaar, Holland), Chris Wondolowski (San Jose Earthquakes, MLS).  [May 22]

Comment:  This isn’t on a par with the decision to leave Eric Cantona off the roster of what would become 1998 World Cup champion France, but by American standards, it’s close.  And, on the face of it, a completely unnecessary gamble.

In a perfect world, Klinsy’s grateful selection of players melds in Brazil and beats Ghana, upsets Portugal and walks arm-in-arm with Group “G” favorite Germany into the round of 16.

But in this imperfect world of Klinsmann’s own making, the U.S. could be tied late with Ghana or trailing Portugal or Germany by a goal, and  standing at the halfway line, ready to ride to the rescue, will be Wondolowski or the 18-year-old Green (total international experience: one half hour), not the guy who’s scored 57 career goals, including five in his 12 World Cup matches (all U.S. records).  In short, by omitting Donovan and assembling a team that includes Yedlin, Brooks, Gonzalez and 15 other players with no World Cup experience, Klinsmann, the coach whose aim is to motivate his players by making them uncomfortable, has succeeded in leaving everyone unsettled, including fans who, over the years, have derided Donovan with the nickname “Landycakes.”

Klinsmann described the decision as a matter of 23 players being better than the 32-year-old forward/midfielder:  “… I just think the other guys right now are a little bit ahead of him.”   Perhaps it’s true.  But in soccer, player selection can be a very subjective thing.  Perhaps the coach is still holding a grudge against Donovan for his well-publicized sabbatical in late 2012 and early 2013 that caused him to miss the USA’s first matches of the final round of World Cup qualifiers.

Whatever the reason, Klinsmann has created a potential nightmare for himself.  Some have speculated that he has concluded that getting out of the so-called “Group of Death” is impossible and it’s best to blood young players like Yedlin (total U.S. minutes played:  34) in Brazil in preparation for the 2018 World Cup.  But this isn’t the 1990 World Cup all over again, where then-coach Bob Gansler, looking to the ’94 World Cup the U.S. would host, threw a team averaging 23 years of age to the wolves.  Three and out is no longer acceptable under any circumstances.

If the U.S. somehow advances out of Group “G” next month, Klinsmann is a bloody genius.  But if the U.S. crashes, Klinsmann will be hounded by the spectre of Donovan and what might have been.  And that will cast doubt on every decision he makes–whether risky or mundane–from now through Russia ’18.



IN THE END, A SUCCESSFUL EXPERIMENT

David Beckham closed out his Major League Soccer career in triumph as the Los Angeles Galaxy defeated the Houston Dynamo, 3-1, at the Home Depot Center in the 2012 MLS Cup, making defending champion Los Angeles the second club, after DC United, to capture four league titles.

Beckham has not revealed his next move, although he has been linked to clubs ranging from Queens Park Rangers in his native England and Glasgow Celtic to teams in Australia.  A clause in his current contract gives him the opportunity to become part-owner of an MLS club.  [December 1]

Comment:  Beckham exited the championship game in stoppage time to chants of “Thank-you, Beck-ham!” by Galaxy fans, a far cry from the first half of his stay.  He arrived in 2007 as damaged goods and started just two matches in his first season.  The Galaxy lost on a regular basis.  He alienated captain Landon Donovan and other teammates.  He managed to get himself loaned to AC Milan in a cynical and vain attempt to keep alive his England career.

It was all chronicled in the 2009 book, “The Beckham Experiment”–which appears to have been premature by at least three years.

Much has been made in the media of Beckham’s 5 1/2-year stay since he announced his MLS retirement a couple of  weeks ago.  In 2006 BC (Before Beckham), MLS had 12 clubs, the latest of which, Toronto FC, paid $10 million for the right to lose money.  Average attendance was a stagnant 15,504 (2.97 million total) and only four of the league’s stadiums were designed for soccer.  This year, Montreal, having paid $40 million, became the league’s 19th club.  The San Jose Earthquakes broke ground on MLS’s 15th soccer-specific stadium.  Average attendance was 18,807 (6.07 million total)–better than the NBA and NHL for the third straight year.  Each team has a youth academy, up from zero in ’06, and thanks to the so-called “Beckham Rule,” there are 31 star players scattered throughout a previously faceless MLS whose pay, in effect, doesn’t count against a team’s miserly-but-sensible salary cap.

Is it all Beckham’s doing?   Commissioner Don Garber, in his state of the league address five days before the game, went so far as to say, “I don’t think anybody would doubt that he has over delivered ….  There’s arguably not a soccer fan on this planet that doesn’t know the L.A. Galaxy and Major League Soccer, and David played a significant role in making that happen.”

So how much credit does Beckham deserve?  The truth, of course, lies somewhere in between.  Clearly, there’s no one like him–think a superstar like Thierry Henry, playing in the nation’s biggest market, could have had the same impact on his own?  What Beckham did–thanks to his splash, flash and the Beckham Rule that was necessary to make his arrival possible–was to show fans, the media, potential investors and corporate America that MLS was through treading water after 10 modestly successful seasons and finally meant business.  Mere survival was no longer an option.

Beckham will be missed.  No sane person ever expected him to lift soccer in the U.S. to the same plane as gridiron football, baseball and basketball, and he didn’t.  He merely moved the ball forward, his customary 35 yards at a time, and on so many fronts soccer now eclipses ice hockey as North America’s fourth-most popular team sport.

What remains for the immediate future is what Beckham left on the field at the Home Depot Center:  a cup final between two clubs owned by the same man, Philip Anschutz.  As Becks departs, that sort of arrangement remains a necessity in an MLS still at the toddler stage.



SO-CALLED ‘BECKHAM EXPERIMENT’ HAS BEEN WORTH IT

A pair of two-time Major League Soccer champions, the Houston Dynamo and Los Angeles Galaxy, will meet Sunday, November 20, before a sellout crowd at the Home Depot Center outside Los Angeles in the 2011 MLS Cup final.  Kickoff will be at 9 p.m. EST/6 p.m. PST (ESPN and Galavision).  [November 13]

Comment:  The game could mark David Beckham’s final appearance in the U.S., and that’s not a good thing.

The 36-year-old English icon’s five-year, $32.5 million contract with the Galaxy expires at the end of the year, and among Beckham’s reported suitors are Paris Saint-Germain, Tottenham Hotspur and even Queens Park Rangers.

If he leaves, despite the Galaxy’s reported interest in re-signing him, what sort of grade does the so-called “Beckham Experiment”–the title of a rather premature book on his MLS adventure published a couple of years ago–deserve?

Call it a high “B”; not quite a low “A”.   That’s an “A-” for overall effect, dragged down by an “S” (satisfactory) for effort.

There were just as many highs as lows over the five-year period.  More than a quarter-million Galaxy/No. 23 jerseys were sold before Beckham was even introduced as a member of the Galaxy, a media event that attracted 700 journalists.  As advertised, there were memorable free kicks that produced goals, and that crowd of 66,000 that poured into Giants Stadium to see the man with the educated right foot make his Big Apple debut.  There also, however, were injuries, plus the controversial loans to AC Milan and training spells with Arsenal and Tottenham that caused many to question Beckham’s commitment to his American team.  The collapse of  the much-vaunted Beckham youth academy in L.A. didn’t help.  So mixed has been the Beckham legacy in MLS that he earned–or was saddled with–the 2011 MLS Comeback Player of the Year award for assisting on 15 goals in 26 games a year after a torn Achilles limited him to just seven league appearances in 2010.  Oh, and no MLS championships or U.S. National Open Cups or CONCACAF Champions League trophies.

Nevertheless, Beckham will forever be linked with a brief period in MLS history when things went from flat to positive, from indifference to optimism.  The year before Beckham’s arrival, the league had 12 teams, too many of them troubled.  The charter U.S. internationals and key foreign starts like Carlos Valderrama and Marco Etcheverry who had given the teams their initial identities back in 1996 had retired.  It wasn’t, to quote Rodney Marsh’s assessment of English soccer in the early ’70s, “A gray game played on gray days by gray men,” but it was close. 

The creation of the so-called Beckham Rule–the introduction of the designated player exception that allowed teams to reach beyond their salary cap and sign marquee foreign players like Cuauhtemoc Blanco, Denilson (sorry, FC Dallas), Thierry Henry, Rafael Marquez and, most recently, Robbie Keane–changed all that.  Beckham’s arrival and how it lured other big names to MLS added the necessary flesh and blood to the brick and mortar as MLS grew by six clubs and added an impressive list of soccer-specific stadiums.

Most Americans aren’t aware that MLS (17,872) has surpassed the NBA (17,323) and NHL (17,132) in average attendance; that the expansion team fee has ballooned from $10 million, pre-Beckham, to $40 million; that the league’s most recent TV rights deal, with outsider NBC, hit $30 million for three years.  What they do know is that they can name one soccer player–David Beckham–where before they didn’t know Tab Ramos from Jamie Moreno from Mike Petke.  Back when the league was just trying to gain any sort of traction, back when the Galaxy was 11th out of 13 teams in 2007 (9-14-7) and 13th out of 14 the following year (8-13-9), people were talking and writing about Becks, or at least the photogenic Becks and wife Posh.

And that’s why Beckham will be missed if he chooses to close out his playing career elsewhere.  If and when he goes, don’t count on the general American public and the typical U.S. sports columnist or commentator to magically shift their attention to Dwayne De Rosario or David Ferreira or even Henry.   In that sense, Beckham has proved to be irreplaceable.