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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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A HIGHLY UNLIKELY SOCCER HOTBED

A crowd of 13,822 was on hand at Harder Stadium to see the host UC Santa Barbara men defeat Big West Conference rival Cal Poly San Luis Obispo, 2-0.  [November 4]

Comment:  Absolutely anywhere in America can become a soccer hotbed, even the laid-back, sunsplashed, tony beach town of Santa Barbara, CA. 

Consider that when Harder Stadium played host to the most significant soccer match in its history, just 9,127 showed up to see the U.S. National Team–16 months ahead of the 1994 World Cup it would host–hold Romania to a 1-1 draw.

This match’s significance was along the lines of, perhaps, a game in the French fourth division.  In winning, the Gauchos clinched the No. 3 seed in the Big West Conference playoffs and avenged a loss at Cal Poly earlier in the season.  Hardly anyone in U.S. collegiate soccer noticed.   But those among the 13,822 who hadn’t made the trip down the coast from San Luis Obispo went home happy and will be back again.

Somehow, Santa Barbara has become a soccer hotbed, at least on the collegiate level.  Last year, Harder Stadium was site of six of the season’s 10 best-attended men’s matches.  An early-season game against UCLA drew a throng of 15,896; followed by Duke at 11,242.  UCSB hosted the 2010 NCAA Division I men’s final between Akron and Louisville, and that attracted 9,672.  In all, the Gauchos, in 12 home games, led NCAA soccer in total attendance, 70,471, and average turnstile count, 5,873.   By comparison, the late, unlamented Miami Fusion could muster only an additional 1,500 per home game before it was booted out of Major League Soccer.

There are other collegiate soccer hotbeds, like reigning champion Akron, and long-time powers Maryland, UConn, Virginia and Indiana.   Like those schools, UCSB men’s soccer is a winner and represents a school far from any bright lights, but it has the additional advantage of not having to compete for attention with a gridiron football team.  Regardless, most NCAA Division I men’s teams are lucky to break four figures on a regular basis, and nearly every NASL and USL club would kill for the Gauchos’ box office numbers.

Gaucho coach Tim Vom Steeg must be left marvelling at it all.  When he was a younger man, standout defender Vom Steeg was a member of the now-forgotten Real Santa Barbara (1989 and 1990), then of the Western Soccer League and American Professional Soccer League.   It was the highest level of soccer in the U.S. at the time.  Playing a few miles down the coast at La Playa Stadium on the campus of Santa Barbara City College, Real Santa Barbara faced the likes of Marcelo Balboa, Eric Wynalda, Robin Fraser, Martin Vasquez and Dominic Kinnear.  Announced attendance was always in the neighborhood of 830, but reality said that there were no more than a hundred souls in the stands, and most of them could be caught gazing beyond the field, past the gently swaying palm trees and marina to the blue Pacific.  The prospect of any Real Santa Barbara game being televised nationally–like the UCSB-Cal Poly match–would have been both laughable and embarrassing.

Obviously, things have changed in Santa Barbara.  But there is the suspicion that the biggest change involves the rise of a generation of soccer-savvy young people who are willing to rally around the right team at the right time and who realize that those good times they see beamed from major European stadiums can be replicated here in the U.S.



NAMING RIGHTS, AND NAMING WRONGS

FC New York of USL Pro has forged an affiliation with the Springfield, MO, Demize of the fourth-division Premier Development League, Tampa-based United Soccer Leagues has announced.  The Demize will serve as a feeder club for the third-division FC New York.  [November 24]

Comment:  American soccer has a long history of dreadful official team nicknames, conjured up by fan votes, focus groups, wrongheaded marketing types, headstrong club owners who aren’t as creative as they think they are, and other guilty parties.

The list begins with, in no particular order, the Ohio Xoggz, Minnesota Kicks, New York Kick, Indiana Kick, Tampa Bay Mutiny, San Francisco Fog, Central Florida Kraze, San Diego Jaws, San Diego Sockers, Chicago Shoccers, Los Angeles Salsa, Mobile Revelers, Miami Fusion, Pennsylvania Stoners, West Virginia Chaos, Washington Diplomats (a.k.a. Dips), Colorado Springs Ascent, Dallas Burn, Cleveland Crunch, Arizona Cotton, Connecticut Bicentennials (who played their only season a year after the U.S. bicentennial), Kalamazoo Outrage, Dallas Sidekicks, Oklahoma City Slickers, Cincinnati Kids, Phoenix Pride, Toledo Pride, Myrtle Beach Boyz, Myrtle Beach SeaDawgs, Pittsburgh Riverhounds,  New York Capital District Alleycats, San Jose Clash, Des Moines Menace, Albuquerque Geckos, New Orleans Jesters, Everett BigFoot . . . and extends far over the horizon.

The champion for a time, of course, was MLS’s Kansas City Wiz, which mercifullychanged its name to Wizards after a couple of seasons.  Earlier this month, it drew jeers for changing its name yet again, this time to a masterstroke of incongruity:  Sporting Kansas City (or, according to other accounts, Sporting Club Kansas City).  Never mind that, unlike Sporting Lisbon (Sporting Clube de Portugal) or Hamburg SV (Hamburger Sport-Verein), the Kansas City Wizards under any name is not a major traditional European sports club with thousands of dues-paying members who cheer on the big-time soccer team and also engage in club activities like volleyball, basketball, athletics, weightlifting, gymnastics, rugby, aquatics, etc.   Sporting Kansas City just sounds . . . European-ish, soccer-ish.  What’s the sense in making sense?

But back to New York and Springfield.  Until a pro soccer team comes along with something like “suicide” or “felony” in its nickname, nothing can top “Demize.”  After all, with the exception of the more durable Sporting Lisbon and Hamburger SV, plus the Wiz/Wizards/Sporting KC, Kraze, Chaos, Outrage, Riverhounds, Menace and Jesters, the clubs mentioned above, are no longer with us.  They’ve met their . . . y’know.



PERHAPS A GOOSE AT THE GATE?

Two clubs that have never won a league championship, the Colorado Rapids and FC Dallas, will meet Sunday, November 21, at Toronto’s BMO Field in the MLS Cup final.  [November 20]

Comment:  The MLS report card came in last month and the results were mixed as TV ratings remained flat while attendance improved by 7.7 percent.

Average league attendance was 16,675, thanks in part to the Seattle Sounders, who increased Qwest Field capacity and saw its attendance jump from last season’s 30,897  to 36,173 in ’10.  The New York Red Bulls, who moved from the cavernous, lifeless Giants Stadium (12,490 average last season) to the sparkling Red Bull Arena (18,441 this year), also helped get MLS above its overall average of 16,037 in 2009.  In all, the 2010 numbers were the third-best in the league’s 15-year history, behind the novelty-inspired 17,406 of 1996 and 2007’s 16,770.

Where does this place MLS as a gate attraction?  It’s far behind the world’s best-attended soccer league, Germany’s Bundesliga (42,790), but as soccer leagues go, it’s not far down the list.  Next is the vaunted English Premier League (34,088), followed by Spain’s La Liga, Italy’s Serie A, Mexico’s Primera Division, Argentina’s Primera Division, France’s Ligue 1, Holland’s Eredivise, the J-League,  the Campeonato Serie A of soccer-crazed Brazil, and MLS.  And in the U.S., the NFL, whose teams play eight home games a year, leads at 67,508 in 2009, followed by Major League Baseball (81 home games per team, 30,213 average in 2010).  The battle for third is tight, with the NBA (41 home games per team, 17,110 in 2009-10) ahead of the National Hockey League (41 home games, 17,004 in 2009-10) and MLS.  (You could pick nits, regarding number of games and stadium/arena capacity, but it would have to start with baseball’s total attendance of nearly 80 million compared to pro football’s 17.4).

Not bad for a league that nearly shuttered its doors after the 2001 season, when its winningest team, the late, unlamented Miami Fusion, averaged an abysmal 11, 177 at Ft. Lauderdale’s Lockhart Stadium, a converted high school football stadium.  MLS contracted that winter, killing off the Fusion and its other poorly supported Florida cousin, the Tampa Bay Mutiny.

It is hoped, then, that a win by Colorado or Dallas inspires a spin at the turnstiles in 2011 for at least one of the finalists.  Despite each being blessed with new, soccer-specific stadiums, only 13,329 a game turned out for Colorado at Dick’s Sporting Goods Park this season–12th-worst in the 16-team league–and just 10,815 supported Dallas at its Pizza Hut Park.  After Sunday night, soccer fans in Dallas-Ft. Worth or Denver can’t use a lack of a champion as an excuse not to support the home town team.

[A note regarding MLS’s bottom-feeders:  Kansas City (10,287), which played its home matches in a minor league baseball park, and San Jose (9,659), confined to a small college football stadium, brought up the rear.  K.C. (2000) and the original Earthquakes (2001, 2003) have each won the MLS Cup, so a title isn’t a cure-all at the ticket window.]