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Post by Soccerhouse on Nov 4, 2019 12:43:11 GMT -5
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Post by atv on Nov 4, 2019 13:00:33 GMT -5
Excerpts ....
“Put simply, Major League Soccer’s surging expansion fees and sales prices are not being driven by financial performance. In fact, though revenues are broadly on the rise, the league and most of its teams continue to operate at a significant loss. But MLS investors are still spending big to secure a share of the US soccer market because their eyes are set on potential goldmines down the road: A new national TV deal in 2023, a stateside World Cup in 2026 and, if everything goes just right, a future American sports landscape wherein domestic soccer can hold its own against the likes of the NFL and financial performance of a typical MLS team.”
“...we estimate that, of the 23 teams that played in 2018, just six turned a profit (and half of those were just barely in the black). Altogether, the league’s teams lost more than $100 million last year. And MLS is losing even more money at the league level—as a single-entity operation, player salaries are paid through the league office—which means team owners are on the hook for a sizable capital call in addition to the red ink in their local markets.”
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Post by rifle on Nov 5, 2019 6:28:51 GMT -5
I love soccer and I don’t wish for MLS to fail but I truly don’t get it. Six of twenty four teams made a profit last year. TV ratings are abysmal.
Is it sustainable?
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Post by footyfan on Nov 5, 2019 7:31:04 GMT -5
I love soccer and I don’t wish for MLS to fail but I truly don’t get it. Six of twenty four teams made a profit last year. TV ratings are abysmal. Is it sustainable? The owners also pool and divy up the revenues recieved from USMNT and USWNT events via SUM which make them profitable. |
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Post by atv on Nov 5, 2019 8:37:12 GMT -5
“Forbes said that SUM distributed $125 million to the league's owners last year.” This is probably the only thing keeping 2/3rds of the teams afloat.
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Post by 04gparent on Nov 5, 2019 10:36:19 GMT -5
If you have the time, read the entire Forbes article. Its one of the best articles about the financial footing of MLS I have seen...
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Post by atv on Nov 5, 2019 11:30:59 GMT -5
I agree. Good article.
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Post by rifle on Nov 5, 2019 16:46:27 GMT -5
If twenty four teams split $125M SUM dividend and most lost more than five million.. its clearly ALL about the promise of the World Cup. And the ongoing TV deal that will be woven therein.
And every organization outside of SUM gets slaughtered. This is an American capitalist meritocracy?
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