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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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MAKING THE SQUARE QATAR PEG FIT INTO THE ROUND WORLD CUP HOLE

The 2022 World Cup in Qatar will be an autumn affair, the first World Cup not to be played in late spring/early summer.

A task force formed to look into ways to avoid the sweltering summer heat in the tiny Gulf state is recommending that Qatar ’22 be played in November and December.  Its report is expected to be ratified by the FIFA Executive Committee when it meets in Zurich on March 19 and 20.

Summer temperatures in Qatar routinely top 100 degrees while the heat drops to the high 70s in late fall.

The task force, headed by Sheikh Salman bin Ebrahim Al-Khalifa of Bahrain, considered a January-February tournament,  but that would clash with the Winter Olympics.  April was rejected because Ramadan will be observed in the Muslim world in that month in 2022.

Under the recommendation, it is believed that Qatar ’22 would be shorter than the traditional 31 or 32 days, kicking off November 26 and ending on December 23, two days before Christmas.

Though FIFA says all of its confederations favor the move to November-December, it is expected to encounter fierce opposition from Europe’s top leagues.  Most of those leagues traditionally schedule a winter break of up to four weeks for weather reasons, but the task force’s plan would idle players not involved in the ’22 World Cup for up to eight weeks  [February 25]

Comment:  A very bad idea got worse.

The FIFA Executive Committee’s expected rubber-stamp to this topsy-turvy scheduling of a World Cup is further proof that the world’s soccer-governing body is hell-bent on holding its world championship in Qatar at all costs.  Allegations that the Qataris won over a solid U.S. bid through bribery have been swept under the rug.  Reports that foreign workers involved in World Cup preparations have been mistreated or even died in accidents is worth a shrug, all the more troubling because the stadiums and infrastructure promised by Qatar are being built from scratch.  At No. 109 in the latest FIFA World Rankings, the Qatari National Team is poised to be the worst host side in World Cup history, far weaker than South Africa in 2010.  And if a June World Cup in Qatar is being considered unworkable, then Qatar isn’t likely to be able to host the 2021 FIFA Confederations Cup, the tradition World Cup dress rehearsal for a host nation.

On a much, much smaller scale, there’s something for Americans to consider, and it’s not just the fact that, among EuroSnobs, their favorite club’s schedule will be interrupted by a November-December World Cup after just a dozen matches.

TV ratings, those figures that determine in the future how often you can see your favorite European club or whether you can watch UEFA Champions League games on cable or network television here, will take a serious hit if the 2022 World Cup is played in late fall.

At last year’s World Cup, the USA’s first-round match against Portugal was played on a Sunday.  America was sitting on its couch with nothing more than mid-season baseball and a golf tournament as a diversion, and the TV audience for what will be remembered here for Cristiano Ronaldo’s last-gasp, heartbreaking assist, was 24.7 million on ESPN and Univision combined, a record for a soccer telecast in the U.S.  There were no NFL games, no college football games, no NBA games, no NHL games to syphon off viewers.  A similar World Cup game, played on an NFL Sunday in 2022, will be buried in the ratings.  NFL games last season averaged 17.6 million–five pro gridiron games attracted more than 29 million.

Perhaps, in seven years, a November World Cup can steal casual viewers from the NFL.  At present, it’s doubtful.



DON GARBER AS SOCCER’S ICARUS

Major League Soccer will expand to 24 teams by 2020.

League Commissioner Don Garber made that announcement during a TV interview at halftime of his league’s all-star game in Kansas City.  It comes on the heels of the addition of New York City FC for the 2015 season, which was believed to cap the number of MLS teams at 20.  The goal of two dozen teams opens the door for hopefuls such as Orlando, Detroit, Atlanta, Sacramento, Oklahoma City and Minneapolis, whose representatives have been trying to woo MLS in recent months.

“As MLS enters a period of accelerated growth, the addition of new teams will allow us to expand our geographic coverage, grow our fan base and help us achieve our vision of being among the best leagues in the world by 2022,” said Garber.  [July 31]

Comment:  Sheer folly.

Without promotion/relegation–and there will never be promotion/relegation involving MLS–even the idea of 20 teams, let alone 24, is ridiculous.

Twenty-four teams would make MLS the world’s biggest top-flight soccer circuit.  Impressive distinction.  But there are reasons why leagues with pro/rel in soccer-mad countries–the Italian Serie A, Spain’s La Liga, the English Premier League, the German Bundesliga 1, the Brasileiro Serie A, etc.–limit membership to 18 or 20 clubs.

Never mind the questionable potential or track records of the possible MLS markets being discussed.  Just go with the numbers.  Twenty-four teams? That means that if each team magically takes turns winning an MLS Cup, the fans in an exemplary market like Portland, where the Timbers are on a 45-game home sellout streak, will have to wait more than a generation between league championships.  Throw in a mini-dynasty by a team from a glamorous market like (gulp)  Oklahoma City or Sacramento and the wait is even longer.  Meanwhile, without promotion/relegation, troubled teams like Chivas USA and Toronto FC, with 10 or more opponents ahead of them in the conference standings, can continue to stink up the bottom of the league into perpetuity while their dwindling, hopeless fan bases look on.

So how does Garber adequately cover two enormous countries while keeping fans of losing teams engaged?  He can’t continue to expand the playoffs–he already throws around playoff berths like penny candy.  He should leave things, then, at an already bloated 20.  And if he must restore MLS’s presence in the Deep South, he should convince the league’s biggest problem child, Chivas USA, to arrange a move to Atlanta or even Orlando (even though Florida has proven to be the black hole of pro soccer over the past three decades).  Moving a team may be seen as a sign of weakness, but it’s the magic formula used for ages by Major League Baseball, the NFL, NBA and NHL whenever there’s a need to leverage a new stadium or favorable ownership change–or simply scare former fans into showing up again.

It is hoped that Garber and the MLS Board of Governors come to the realization that their league doesn’t have to be anywhere close to the NFL (32 teams), Major League Baseball (30), the NBA (30) or the NHL (30) in membership to be considered major league.  Heck, the NHL was considered major league back in the mid-1960s when it had six teams; it earned that distinction by presenting a major league product.  But if Garber is hell-bent on expanding to two dozen teams, he should have one last look at the U.S. soccer history books.  The last soccer league here to grow to 24 was another without promotion/relegation, the North American Soccer League, in 1978.  Within two years, three weak sisters went belly up, and the panic was on.  Within six years, there were seven left.



RAY HUDSON: YOU WANT IT, YOU GOT IT

Aguera Ander Herrera scored on a low shot in the final minute to give host Athletic Bilbao a dramatic 2-2 draw with FC Barcelona and prevent Barca from clinching its 22nd  Spanish league championship with five games remaining.

That same day, second-place Real Madrid won, 2-1, at crosstown rival Atletico Madrid to draw to within 11 points.

Bilbao was nursing a 1-0 lead in the 67th minute when Lionel Messi, who missed Barca’s last three La Liga matches with a hamstring strain and was ineffective four days earlier in his team’s shocking 4-0 loss at Bayern Munich in the opening leg of the UEFA Champions League semifinals, scored a breathtaking equalizer.  The Argentine striker turned three Athletic defenders inside out at the top of the penalty area in the process.  Alexis Sanchez then put Barcelona ahead three minutes later.  (April 27)

Comment:  Breathtaking, particularly for beIN Sport color commentator and former MLS coach Ray Hudson:

http://deadspin.com/messi-back-to-scoring-ridiculous-goals-bringing-ray-hu-483785010

No, that was not a man being torn apart by a thousand rabid squirrels.

Hudson, whose outbursts have produced some verbal gems (in this case, the Bilbao defense, truly, had to have felt “emasculated”), has his loyal fans and his bitter critics going back nine years to his days with GolTV.

But this nuclear explosion has to have TV viewers here examining exactly what they want from an announcer.

For those who compare American soccer announcers with their Spanish-language counterparts, the Americans are sorely lacking in passion.  And how can they not be?  Some Spanish-language announcers work themselves into a lather, screaming into the microphone, while the two teams are simply standing on either side of the halfway line, waiting for the referee to whistle for the opening kickoff.  Try that approach calling an NFL, MLB or NBA game on TV here and viewers will storm the network’s corporate offices.

On the other hand, there’s the thoughtful, understated,  library-quiet Martin Tyler, the Brit who probably converted few American viewers to soccer with his sleepy work during ESPN and ABC telecasts of the marquee games of the 2010 World Cup.

The right approach, as in everything in life, lies somewhere in between.  At present, for those who relished Hudson’s verbal meltdown, leaving him with nowhere to go if he has to call something even more amazing/dramatic: God help you.  In the meantime, beIN Sport should issue Hudson’s partner, solid–and Job-like–play-by-play man Phil Schoen, combat pay.  Or a Purple Heart.  Schoen, at this point, surely must be hearing impaired.



MLS: OLD ENOUGH TO VOTE–AND GLOAT (BUT WON’T)

Major League Soccer will kick off its 18th season Saturday, March 2, with 12 of its 19 clubs in action.  Another six will play the following day.

Aside from the usual player moves and coaching changes, the league remains relatively unchanged from 2012, although the start date marks the earliest kickoff in MLS history.  A record 87 matches will be televised nationally on seven different channels, and the league will be out to top last season’s attendance figures as it drew 6,074,729 fans and averaged a record-18,807–ahead of the NBA and NHL and behind only the NFL and Major League Baseball at the turnstiles.  [February 28]

Comment:  MLS, wisely, has never been a league to look back; given the alphabet soup of leagues that have crashed and burned over the past century, there never was a reason to remind anyone that it has been trying to be the very first one to fly.

But if it did publicly point to the past, it might … discreetly … modestly … pop a very quiet champagne cork and take a quick sip.

Season 18 makes MLS the oldest professional soccer league in American history.  Eighteen is one year older than the North American Soccer League (1968-84), the league formed by the merger of a pair of one-year-old circuits, the long-forgotten United Soccer Association and National Professional Soccer League.  The NASL was down to five clubs in 1969, then rode the Pele-led New York Cosmos gravy train to 24 teams and a national TV contract in the late ’70s, only to over-spend itself into oblivion a handful of years later.   The only other notable pro league in the U.S. was the original American Soccer League, which was founded in 1921 and was out-drawing the NFL until battles with the USFA (forerunner to U.S. Soccer) and FIFA and the Great Depression killed it off in 1933, although it reorganized and limped along on a minor-league basis until 1983.

MLS, now just three years away from full adulthood, still faces many challenges, not the least of which are poor TV ratings in a sports landscape ruled by the tube, plus too many clubs operating in the red.  And there would not have been an 18th birthday were it not for the likes of Phil Anschutz, who at one point propped up half the clubs in the league. But while the NASL in its 17th season was in its death throes, hemorrhaging money as its number of franchises had dropped to nine and average attendance to a tepid 10,759, MLS is not far from adding its 20th club (a reconstituted New York Cosmos?  Orlando?), and the fan base in many of its cities is made up of young adults who are loyal, knowledgeable and loud.  While NASL clubs shoehorned themselves into all manner of baseball stadiums and pro, college and even high school football stadiums, 14 MLS clubs play in new or relatively new soccer-specific stadiums.  MLS has proven to be one of the most competitive soccer leagues in the world–nine different clubs have lifted the MLS Cup and eight have claimed the Supporters Shield–and the quality on the field continues to improve (though some critics would ask, how could it not?).   And while the NASL tried to build itself on the backs of big-name, high-priced foreigners, the MLS this season loses the world’s most recognizable star in David Beckham but has attracted enough stars from abroad to make itself interesting.

With the MLS  now old enough to vote, should it gloat?  Nope.  Would Major League Soccer’s cautious, spendthrift approach, without a legion of Internet-driven 20-something hipsters in the stands, without its soccer-specific stadiums, without the explosion of television-exposure options, have survived back in 1968-84?  Of course not.  In short, after ASL I, ASL II, the International League, USA, NPSL, NASL, MISL, AISL, USL, WSA/WSL, ASL III, APSL and A-League, Major League Soccer can thank the soccer gods that it has proven itself to be the right league at the right time.



BLATTER BLATHER

Major League Soccer Commissioner Don Garber was struggling to remain diplomatic in the wake of recent comments by FIFA President Sepp Blatter, who criticized MLS for its lack of progress.

Blatter told Al Jazeera television, in an interview broadcast December 28, that “there is no very strong professional league” in the U.S.  “They just have the MLS.  But they have no professional leagues which are recognized by the American society.”

He added that MLS was “still struggling” to lift soccer to the level of gridiron football, baseball and basketball in America.  “We had the World Cup in 1994,” Blatter said.  “But we are now in 2012–it’s been 18 years.  It should’ve been done now.”

Countered Garber in an interview with the New York Times:  “We still have a lot of work to do–we understand and accept that.  But arguably there’s probably not another sports league in the world that has achieved as much as we have in the last 20 years.  [January 2]

Comment:  Blatter’s latest blatherings triggered a firestorm of criticism among American fans of MLS and Americans who simply believe the man should have been unseated when his first term as FIFA chief ended in 2002.  What was disappointing was how a man who, as FIFA general secretary, held America’s hand as it prepared for and pulled off World Cup USA ’94, could still have such a dismal understanding of this country.

Mainstream America really doesn’t know what to make of soccer.  An estimated 18 million of their countrymen and countrywomen and countrykids play the sport.  Its women’s national team is usually No. 1 in the world while its men’s national team, usually ranked around No. 30, is capable of beating Spain in the FIFA Confederations Cup and Italy in Genoa, then losing to Jamaica in Kingston. And its official national league, whose average attendance of 18,807 last season topped the NBA and NHL for the second year in a row, making it third behind the NFL and Major League Baseball in average gate, remains a television bust, stuck at 0.1 and 0.2 in the ratings.

What Blatter and mainstream America need to understand is that MLS is no measuring stick of soccer here.  America loves the NFL, Major League Baseball and the NBA a whole lot more than MLS, not because they’ve had a 74-, 152- and 47-year head start, respectively, on MLS, but because the NFL, MLB and NBA are the best at their craft in the world.  The NFL, MLB and the NBA play their game like they invented it because, well, they have.  Even the National Hockey League can make the same claim, if, for the sake of this argument, we co-opt our Canadian friends.  As for MLS, everyone in America knows that it’s not the best soccer league in the world, even those who know nothing about the English Premier League, Spain’s La Liga, the Italian Serie A, Germany’s Bundesliga or the Brazilian and Argentine championships.  And it’s hard to imagine a time when an MLS, which has gone from crawl to hobble to jog in those 18 years, will have the means and talent to challenge those leagues.

MLS will continue to be a symbol, a happy, regular rallying point, for soccer here, but it will never be the heart–or reliable barometer–of our sport.  While the NFL can boast of astronomical television ratings and Major League Baseball can point to its tremendous total attendance figures, soccer in the U.S. quietly moves forward with a balance that should be the envy of the so-called “big four” pro team sports:  a professional league that continues to grow and improve, a competitive men’s national team, a world-class women’s national team, and those millions and millions or participants of all ages and both genders.  All underscored by a patience that Blatter doesn’t seem to possess.



THE REVOLUTION WILL BE TELEVISED

In the first-ever regular-season European soccer match televised by a major American television network, Manchester United strengthened its grip on the top spot in the English Premier League by knocking off Chelsea, 3-1, at Old Trafford.  Chris Smalling, Nani and Wayne Rooney scored to give the Reds a three-goal lead at halftime.  Chelsea’s Fernando Torres scored a consolation goal but later missed when presented an open net.  Rooney also misfired on a penalty-kick attempt.  [September 18]

Comment:  Do not adjust your set.

Those guys in shorts on your screen really were playing football, on an NFL Sunday.  And it came courtesy of Fox–not Fox Soccer Channel, its cable offspring.  The game was aired in the U.S. on a delayed basis, either before or after Fox’s regional NFL telecast, thus creating an unprecedented football-gridiron football doubleheader.

The Manchester United-Chelsea game was the first of four Sunday EPL matches that will be aired this fall on Fox, the network no doubt encouraged by the number of viewers–2.6 million–it drew for its live telecast of last May’s UEFA Champions League final between FC Barcelona and Man. U.

Nearly 20 million Americans routinely tune in to watch NFL games.  Whether that means that many of them tuned in to see the New Orleans Saints beat the Chicago Bears, then stuck around to watch the doings in the Theater of Dreams, is very questionable.   Joe Six-Pack isn’t easily converted, whether it’s politics, religion or, more important, sports.   Nevertheless, Fox’s gambit sends a warning shot across the bow of those who continue to dismiss soccer as a sport with no future on American TV.

A month ago, NBC and Major League Soccer announced a $36 million, three-year deal that basically shifts MLS coverage from FSC, which reaches approximately 40 million homes, to the NBC Sports Network (known at present as VERSUS) and its 76 million homes.  Beginning in 2012, NBC and the cable NBC Sports Network will show a total of 49 MLS games a season, including four U.S. National Team matches.  Of those, the NBC network will air two U.S. games, two MLS regular-season matches and two MLS playoff games.

ABC/ESPN/ESPN2 remains in the game:  it still holds the rights to MLS games, including the MLS Cup, through 2014.  But as MLS Commissioner Don Garber told the New York Times, “The three-year deal [with NBC] allows us to align all our TV relationships [ESPN, Univision and newbie NBC] to end concurrently at the end of the ’14 season and provides us with a potential opportunity to have a more exclusive relationship with a broadcaster.”

By then, the ratings numbers from another World Cup, driven by that coveted 18- to 34-year-old demographic, will be in.  Then the fight over that admittedly modest-but-growing TV soccer pie will begin in earnest.

Hard to believe that when MLS launched in 1996, it had to pay ABC/ESPN for air time.  In a country where a sport’s worth is measured by its TV contract, that’s a bit of progress.