Soccerstoriesbook's Blog


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.

 

 

 



ARE WE NOT RUBES?

Manchester United, looking to recover quickly from its worst showing in the English Premier League era, rallied to defeat EPL rival Liverpool, 3-1, at Miami’s Sun Life Stadium to win the 2014 Guinness International Champions Cup.  A 14th-minute penalty kick goal by Liverpool’s Steven Gerrard was cancelled out by strikes by United’s Wayne Rooney (55th minute), Juan Mata (57th) and Jesse Lingard (88th).

The tournament, held in 12 U.S. cities and Toronto as a warm-up to the European season, kicked off July 24 with eight European clubs, two of them defending champions of their respective national leagues, plus UEFA Champions League winner Real Madrid.  Manchester United (2-0-1) won its group over Inter Milan of Italy (1-0-2), AS Roma of Italy (1-2-0) and Spanish giant Real Madrid (0-2-1).  Liverpool topped a group that included Greek champion Olympiakos (1-1-1), English champion Manchester City (1-2-0) and Italy’s AC Milan (0-3-0).

Attendance for the 13 games totaled 642,134, for an average of 49,395.  Topping the list was the throng of 109,318 at Michigan Stadium in Ann Arbor, Mich., to see Manchester United defeat Real Madrid, 3-1.  That crowd was the largest in U.S. soccer history, eclipsing the 101,799 on hand for the 1984 Olympic gold-medal match at the Rose Bowl in Pasadena, Calif.   A more modest 51,014 were on hand for the Manchester United-Liverpool finale.  [August 4]

Comment I:  Proof positive that World Cup fever not only hit America full-force early this summer but that it lingers.  Throw in the 84,362 who witnessed Manchester United’s 7-0 demolition of the Los Angeles Galaxy at the Rose Bowl, a Bayern Munich-Chivas Guadalajara friendly at Red Bull Arena in New Jersey and a dozen other exhibitions involving Major League Soccer teams and foreign opposition ranging from Spanish champion Atletico Madrid to EPL tail-ender Aston Villa, and about a million fans in the U.S. paid top dollar to say they saw in person some of the finest players from some of Europe’s most storied clubs.

Comment II:  Are we not rubes?

Sure, there are plenty of expatriates here who’ve just got to see the old hometown club.  And then there are the so-called Eurosnobs, young Americans who’ll get up at dawn from August to May to watch their adopted club–usually from the English Premier League–on a television at the local pub, er, sports bar, but wouldn’t cross the street to watch an MLS game for free.

But to the folks in Europe, a million people over here just shelled out big bucks to watch some clubs with fresh hardware and others living on their good name.  The spectators wore their replica jerseys and cheered and chanted as their favorite players went through the motions during cameo appearances while plenty of the playing time was taken up by fine fellows fighting to win a place on the roster, if not into the starting 11.  Wholesale substitutions disrupted the flow of the games, players weren’t exactly keen on the extensive travel, and coaches considered these moneymaking adventures an intrusion on serious pre-season preparations.  In the end, fans here saw moments of brilliance, mis-timed tackles, remarkable goals, and shots that actually resulted in throw-ins.  And at the final whistle of each match, a result that meant absolutely nothing.

There are many benchmarks that will indicate that the U.S. is developing into a soccer nation.  Like criticism of the U.S. National Team for its shortcomings in a World Cup instead of praising its goalkeeper for repeatedly bailing it out.  Or the prompt emergence of a genuine successor to the soon-to-retire Landon Donovan.  Or, in this case, attendance at meaningless midsummer friendlies involving European clubs in numbers that aren’t an embarrassment to MLS.



NO NEED FOR A FOURTH LION

Uruguay, behind two goals by Luis Suarez, defeated England, 2-1, in a Group “D” showdown in Sao Paulo that kept the South Americans’ hopes alive and all but sent the winless English home.

Suarez, who led the English Premier League with 31 goals to spark Liverpool’s strong run last season but was coming off knee surgery, scored in the 39th and 84th minutes.  The second came after an errant header by England midfielder Steven Gerrard–a Liverpool teammate–sent him in alone against goalkeeper Joe Hart.  In between, Wayne Rooney, scoreless in nine previous World Cup appearances, shrugged off two near misses to produce an equalizer in the 75th.  [June 19]

Comment:  American TV viewers saw not only the likely exit of England after just two matches but the temporary exit of impartiality on the part of ESPN commentators.

Englishman Ian Darke has established himself as the Voice of Soccer in the United States with his knowledge, authority, wit and professionalism, but on this day he was too much the England fan.

Darke and analyst Steve McManaman went from restrained and nervous cheerleaders for 84 minutes to sharp critics after Suarez’s second strike to, in the end, resigned fans.  What should have been, at most, recognition of yet another textbook example of a gritty Uruguayan team getting a necessary result dissolved into a eulogy for a not-so-good English team.

Two moments were telling.  In the 29th minute, Uruguay captain Diego Godin, sitting on a yellow card for a handball in the ninth, hauled down Daniel Sturridge and was not issued a second caution.  Darke was right in criticizing Spanish referee Carlos Velasco Carballo, but he wouldn’t let it go throughout the rest of the half.  And in the 61st minute he initially dismissed an apparent head injury to defender Alvaro Pereira as cynical Uruguayan time-wasting.  Only after replays showed that Pereira had been clobbered by the knee of England midfielder Raheem Sterling did Darke temper his earlier remarks.

Has Darke been impartial during his calls of U.S. matches?  Of course not.  His paychecks are signed by ESPN, and from the Landon Donovan game to what is now known as the John Brooks game, his calls have been enthralling.  But while there may be many fans of the English Premier League in this country, most soccer fans here are not, and most of those have no allegiance to England.