Soccer Business Bits: More Philly Stadium News, Portland Vote & More

February 5, 2010

With a new deal announced for PPL Stadium and a stadium opener set for June 27, there is lots of stadium activity in the City of Brotherly Love.  The Philadelphia Inquirier is reporting on additional aspects of stadium and ticket sales.  The team is attempting to sell more than $2 million worth of suites and other business packages.  These include 15 seat, $50,000 a season suites with seats on the 27th row.  The team is also selling 4 seat, $10k tables at field level, 28 $7,500 per seat seats behind the bench and 150 $2k field level seats.

In other stadium news, the Timbers have finally cleared the “last” hurdle needed to move forward with PGE Park renovations in preparation for the 2011 campaign.  The City Council voted to approve the $31 million required to finalize the public/private partnership between the City and owner Merritt Paulson.  At most, the stadium will seat 24,000.

Finally, WPS conducted its dispersal draft following the sudden shuttering of the LA Sol.  Most interestingly, the biggest star in the draft, Brazilian Marta, went third in the draft, in part, because teams feared her high salary.  Taking on Marta’s contract would have put St. Louis over the salary cap.


The MLS Schedule: A Business Analysis

February 4, 2010

MLS unveiled its 2010 schedule and we thought it worthwhile to take a look at some of the business themes that emerged in the release.

1.  National TV: One third of all games will be nationally televised on FSC, ESPN & Telefutura.  This includes at least 25 ESPN HD games and 30 FSC HD games. Telefutura has moved its primary broadcast day from Sunday afternoon to Saturday afternoon (as an aside, this could provide a small attendance jump).  Chicago, Los Angeles and Philly each have 16 national broadcast dates, while the Revs and Wizards have 4 and 3 respectively.  This shows MLS and its broadcast partners are paying attention to atmosphere, camera angles and star power when assigning games.

2. Stadium openings: The opening of Red Bull Arena will be broadcast to a national audience as the Red Bulls host the Fire on the original ESPN.  The first grass match at BMO Field will be on ESPN2.  PPL Park (the new Union home) will open on June 27 as part of a soccer tripleheader that will rely on the World Cup broadcasts earlier in the day to pump viewership. Interesting to see how that strategy works…tough even for die-hards to get 6 hours of soccer in a day.

3.  World Cup:  The league will take a 2-3 week for the World Cup.  Every four years soccer fans wonder whether the World Cup will drive interest in MLS.  A good showing by the US could certainly increase interest in MLS.

4. Philly:  The Union will open on the road and then play a few games at “the Linc”, but the majority of their home games will come at PPL Park.  However, the home dates will be significantly back-loaded.  This is a strategy we support….the fewer games at the Linc the better.

5. Potpurri:  3 dates when all teams play.  Superliga will take place in July.  Seattle has the most home national TV dates (makes sense).


Soccer Business Bits: MLS Schedules, WPS Schedules & More

February 3, 2010

MLS is set to announce the 2010 schedule.  Although “First Kick” and team home openers have been known for a while, the league will finally reveal the dates for all 240 matches.  The big reveal will also provide insight into the league’s plans for the World Cup break, and show what matches will rate national television exposure.  Also, fans will get a first look at ESPN’s plans for televising MLS this season in year two of the variable night experiment.  National games for the other broadcast partners will also be announced.

Early reports indicate that there will be at least three dates when all teams are in action.  Each team will play 30 games, 15 home and away with the regular season concluding on October 24, 2010.  Schedules typically leak out prior to the official announcement in drips and drabs from each team and media.

WPS has also announced that it has finalized its game dates for the 2010 campagin.   Each team will play 24 games with 12 home dates with the season starting on April 10, 2010.  The regular season will conclude on September 26, 2010 with the championship game.

Finally, the San Jose Earthquakes have broken ground on a new $1.2 million training center across from the San Jose Airport.  This is the same location as the planned Earthquakes stadium.  The practice field is grass.  The new field is being built behind the location where the proposed 15,000 seat stadium is intended to go.


Money in Philly: Union Ink Stadium Deal

February 2, 2010

The Sports Business Journal is reporting that the Philadelphia Union are set to sign a ten year naming rights deal with energy firm PPL Corp. for the new $120 million stadium on the Chester Waterfront.  The agreement has been announced at $20 million dollars for the life of the deal and the new facility will be called PPL Park.  In addition to stadium naming rights, PPL will also get hospitality events and experiences at the stadium, TV and radio advertising, signage boards and sponsorship rights in the youth soccer programs in which the Union have a foothold.  Given Pennsylvania’s recent de-regulation of the power industry, PPL is making a calculated gamble that now is a great time to enter the world of sports marketing.

Despite economic conditions, the deal compares favorably with those of other MLS stadiums.  Dick’s Sporting Goods Park is a 20 year, $30 million dollar deal, BMO is 10 years and $23 million and Toyota Park is 10 years and $7.5 million.  The outlier is the 10 year $70 million dollar deal for the Home Depot Center.  According to the article, other suitors including Waste Management, Sony, Amway, Under Armour & Coke.  Coke will ultimately be announced as the team’s soft drink sponsor.


The Business of Selling Online: Re-Sale

February 1, 2010

A couple of weeks ago started our series on the business of selling MLS and WPS merchandise online.  The first post looked at sales through official websites for the leagues and teams.  You can view that post here.  We then took a look at third party sellers of soccer merchandise.  Today, we will take a look at the re-sale market for MLS & WPS merchandise.

We started our search on e-bay and found a fairly eclectic selection of MLS gear.  2010 jerseys were not to be found, but there was an extensive selection of 2009 merchandise, much of it signed.  There was a large selection of Galaxy/Beckham gear and a wide array of Rapids jerseys, while Sounders jerseys were in very short supply. Most items were apparently offered by individuals, but a number of e-bay “sellers” were in the marketplace as well.

WPS merchandise was almost non-existent on e-bay, although there were a smattering of signed items available.  With only one year of history, this is not particularly surprising, but the total absence of items for some teams was startling.

We then went to Craiglist, and searched various cities for soccer merchandise.  There was a fair amount of Dynamo gear available in the Houston area, but almost no Revolution items in Boston.  From town to town, the availability of MLS gear was fairly hit or miss.  However, the prices were generally reasonable.  There was no WPS gear to be found.

Overall, it is apparent that the re-sale market for MLS/WPS gear is pretty limited.  If there are any sites that you recommend, please let us know.


Soccer Business Bits: CBA Extenson, Sol Closed & Manchester United Bonds & More

January 29, 2010

The big news in American soccer circles is the announced extension of collective bargaining talks between MLS & the Players Union.  Talks have been extended until February 12, 2010.  Training camps will go forward as planned.  MLS released this statement from Commissioner Don Garber.  “While we still have areas of disagreement, the talks have been constructive and both parties believe it makes sense to continue to work hard to reach agreement. This extension provides both MLS and the players the opportunity to continue our discussions while clubs are in training camps preparing for the 2010 MLS season.”

In other news, WPS signature franchise Los Angeles Sol announced that it will cease operations and not participate in the 2010 season.  The League’s premier team had been the subject of sale rumors, but even that was not enough to keep the team afloat.  The Sol are led by Brazilian star Marta, but lost a reported $2 million last year despite being the only team in WPS to have a shirt sponsorship.  The deal, with Amway International, included the Amway name on the jersey, stadium signage and placement on an array of Sol items.   WPS Commissioner Tonya Antonucci said, “While it’s regrettable to lose the Los Angeles market as part of our WPS footprint, we are pleased to have two new teams coming into the league in 2010.”  The league and our ownership committee worked incredibly hard over the past month to complete the transaction. In the end, we ran out of time and came up short of where we needed to be funding-wise for the Sol in 2010.”

Finally, a couple of business related audio recommendations. Listen here to an intersting story on the Glazer family’s issuance of more than 500 million pounds worth of bonds to keep the EPL side afloat. The team is more than a billion dollars in debt!  Also, our good friends as the American Soccer Show landed an exclusive interview with Rev striker Taylor Twellman.  Some great business and CBA bits in there.  Kudos for a great interview.


Soccer Business Bits: Stadium News in Houston, Seattle Ticket Update & More

January 28, 2010

According to the Houston Chronicle, Dynamo President Oliver Luck is in talks with a developer about the construction of a soccer stadium on private land in Southwest Houston.  Although the article cites Luck as continuing to affirm his desire to build a stadium on City owned land, the discussions with a private developer represent a significant change from the earlier plan to build in conjunction as part of a Tax Increment Re-Investment Zone. As recently as November, we wrote the following about the City/team partnership:

“Total cost of the projected 21k seat stadium is expected to be about $80 million with the Dynamo ownership (primarily AEG and Golden Boy Promotions) funding about $60 million.  The rest of the funds could come from tax credits,  the TIRZ money and from some of the stiumulus money floating around.  The TIRZ program will also provide the property for the stadium.  According to Houston President Oliver Luck, multiple banks are lining up to provide financing for the construction project.”  We will certainly follow this story as it develops.

In Seattle, the Sounders have announced plans to cap season ticket sales at 32,000.  To date, the team has sold 31,000 season tickets with two months until opening day.  The team has also announced renewal rates in excess of 95% and this represents a 10k increase in the cap on season ticket sales as compared to last year.

Finally, ESPN has announced more elements of its World Cup broadcast package.  All 64 matches will be in HD and broadcast live.  ESPN360 will also have the games as well as ESPN MobilTV.  ESPN Classic and ESPN2 will re-air games each night.  There will also be significant pre-match, halftime and post-match shows.  This level of coverage shows ESPN’s continued devotion to soccer and its willingness to invest significant resources in broadcasting the games.


MLS Charity Week: The Revs

January 27, 2010

Last week we took at look at various American soccer charity efforts especially those in Haiti. The charitable efforts of professional sports leagues and teams are typically overlooked by their fans, yet they are an important component of the community outreach programs in which almost all leagues are involved.  In addition to providing a way to give back to the community, local charitable efforts often provide teams with an outstanding opportunity to connect with fans and potential fans. This week we will focus on the charitable efforts of the American Soccer Community.  We have interviewed league representatives from MLS and WPS and individual teams to find out how soccer “gives back”.  Monday, we chatted with MLS Executive Vice President JoAnn Neale who overseas MLS W.O.R.K.S., the charitable arm of MLS. Yesterday, we spoke with WPS Director of Communications Robert Penner about the womens’ league’s charitable efforts.

Today we take a look at charitable efforts at the team level, and our focus is the New England Revolution.  Revs Director of Communications Lizz Summers was kind enough to share a few words about the Revs’ good works.  Ms. Summers joined the Revs in 2006 after three seasons as the director of media relations at the University of Texas.  In her current role, Ms. Summers, who holds both an undergraduate and MBA from Boston College, oversees team media relations, public relations, corporate communications and new media activities.  In addition to directing the New England Revolution Charitable Foundation, Ms. Summers also directs the club’s other community relations efforts.  Thanks to Ms. Summers for answering our questions about the Revs’ charitable efforts.

Footiebusiness.com: The Revs are involved in charitable and community activity through the New England Revolution Charitable Foundation.  What is the goal of this group and what are the programs that the Foundation is trying to reach?  How is it determined what charities the Foundation assists?

Lizz Summers: The New England Revolution Charitable Foundation was actually founded very recently, in 2007, with a mission to assist New England-based charitable and community-based organizations, specifically those involved in education, family and health-related areas. Additionally, assisting programming involving and supporting youth soccer was also a priority. For the first few years, most of this support came through in-kind donations, although we’ve also made monetary donations to a select number of organizations. The Foundation’s mission statement has been the backbone for the team’s evolving community relations initiatives, too, so we have a consistent theme between the two entities.

Now that the Foundation has been going for several seasons, we’re taking a deeper look at the impact it’s had in several areas, and we’re re-examining its focus and mission statement. Being a sports team, we have tremendous ambassadors both on the field and off who can speak to a variety of health and wellness topics, more so in some respects than education and family. In 2010, we’re beginning the process of re-focusing the Foundation’s efforts, and extending the health and wellness theme to not only youth programming, but also adult programming to further involve our supporters. Between the Foundation’s growing involvement, its increasing fund raising activities and some of the team’s new community relations initiatives, we’re looking to increase our ability to help  charitable organizations with more monetary support as we head into the future.
FB: Many MLS fans are familiar with MLS W.O.R.K.S.  Do the Revs participate in such league-wide charitable efforts, or does the team focus on its own local charities and organizations?

LS: We do get involved with several of the MLS W.O.R.K.S. initiatives, and will have some deeper involvement in 2010 in some programs. The great thing about the MLS W.O.R.K.S. set-up is that teams can opt-in to most of the programs if they compliment the team’s efforts. Some teams may have conflicts either with local ties or sponsors and they’re unable to participate in some programming, but can incorporate other programs. We’re becoming more active in the league’s overall efforts as we continue to refine what our goals are in the community.
FB: Are the charitable efforts of the Revs separate and distinct from those of the New England Patriots and Kraft Sports?  Is there a company wide charitable philosophy that is consistent through all aspects of Revs/Pats?

LS: Where the Kraft family owns and operates two professional sports teams, as well as other sports and entertainment operations, there is certainly some crossover between the two teams. We also share a lot of best practices, especially us leaning on the Pats staff for advice and guidance since they have so much experience through national NFL programs, as well as their own. We’re actually looking to launch a program this year that we’re modifying from something the Patriots have done in the past, but tying it back to a health and wellness theme. The big thing that the Revs are now trying to do is create community and charitable opportunities where our fans and supporters can join us in giving back or lending a hand – hand-in-hand with the team. The great thing about the soccer community is that it’s a very close-knit group, especially in each city. We’re developing programs and opportunities that we hope our supporters will connect with, and that together with us – players, staff – we can make a greater difference.

FB: How is it determined which players attend certain charitable events?  Are players contractually obligated to participate in community/charity events?

LS: In the past, players have agreed to make a certain number of charitable or community appearances a year on behalf of the team, but we have never pushed players to participate if they don’t want to. Every year, we have some players who are more civic-minded than others, or who just enjoy being active in the community and they seek out opportunities to get involved. We’ve even helped a players connect and get involved with agencies and groups that they have an affinity to outside of the team’s work. Usually, we’ve tried to balance the appearances and rotate all the opportunities around, especially ones that fall in the afternoons or on weekends when the guys are looking to spend time with their families. For some higher-profile events, we’ll offer it up to the team to see who wants to participate.

Great stuff from the Revs and Ms. Summers.  Soccer is indeed a tight community and it is great to see players and teams acting as such valuable ambassodors for the sport.


Footiebusiness Charity Week: WPS

January 26, 2010

Last week we took at look at various American soccer charity efforts especially those in Haiti. The charitable efforts of professional sports leagues and teams are typically overlooked by their fans, yet they are an important component of the community outreach programs in which almost all leagues are involved.  In addition to providing a way to give back to the community, local charitable efforts often provide teams with an outstanding opportunity to connect with fans and potential fans. This week we will focus on the charitable efforts of the American Soccer Community.  We have interviewed league representatives from MLS and WPS and individual teams to find out how soccer “gives back”.  Yesterday, we chatted with MLS Executive Vice President JoAnn Neale who overseas MLS W.O.R.K.S., the charitable arm of MLS.

Today, Robert Penner, the Director of Communications for WPS was kind enough to share a few words about WPS’ charitable efforts.  While only in its second year, WPS is already starting to develop its approach to charitable involvement on a league basis.  At the same time, many WPS teams already have their own charitable/community activities which will expand in year two.  Mr. Penner is a veteran of sports media and marketing and has worked with the A.T.P.,  U.S. Open and NBC.  Most recently, Mr. Penner worked with Puma, a founding partner of the WPS. Thanks to Mr. Penner for answering a few questions about WPS and charity.

Footiebusiness.com: Does WPS have a “go to” charity or community program?  Are there certain organizations that have an ongoing relationship with WPS?

Robert Penner: WPS is in the process of developing their philanthropic platform and the causes we want to support through it. It’s something that takes time and something that you want to do properly. We’ve looked at a variety of options during our Inaugural Season and recognize the importance of having a charity component within the league.

FB: How is it decided where to allocate time and resources from WPS to charitable organizations?

RP: This will be a function of the partnerships we implement through our philanthropic arm.

FB: Do WPS teams and players participate in their own charitable or community organizations or does the league dictate where teams devote charitable and community resources?   Are players contractually obligated to participate?

RP: The League does not determine the extent to which, or how teams support charities and non-profit organizations. Nearly every team has a charity or cause they support. Many WPS teams support breast cancer awareness amongst other important community initiatives.

FB: How can fans get involved in WPS charitable activity?

RP: Right now the best way to get involved is through your WPS Team.


Footiebusiness Charity Week: MLS W.O.R.K.S

January 25, 2010

Last week we took at look at various American soccer charity efforts especially those in Haiti. The charitable efforts of professional sports leagues and teams are typically overlooked by their fans, yet they are an important component of the community outreach programs in which almost all leagues are involved.  In addition to providing a way to give back to the community, local charitable efforts often provide teams with an outstanding opportunity to connect with fans and potential fans.

This week we will focus on the charitable efforts of the American Soccer Community.  We have interviewed league representatives from MLS and WPS and individual teams to find out how soccer “gives back”.  We start today with MLS Executive Vice President JoAnn Neale who overseas MLS W.O.R.K.S., the charitable arm of MLS.  Thanks to Ms. Neale for her thoughts on MLS W.O.R.K.S., and check back during the week more stories about soccer and charity.

Footiebusiness.com: What is MLS W.O.R.K.S.  What was the impetus for forming it in 2007?

JoAnn Neale: MLS W.O.R.K.S. is Major League Soccer’s community outreach initiative, dedicated to addressing important social issues affecting young people, and it serves as a platform for both League and club philanthropic programs.  MLS W.O.R.K.S. seeks to establish Major League Soccer as a leader for improving the lives of people through sport. MLS W.O.R.K.S. was launched in April 2007 as way for the League to partner with charitable organizations on a national level, but to also highlight and promote the charitable efforts of its clubs and players who give back to their local communities.

FB: MLS W.O.R.K.S. is involved with many different organizations.  How is it decided where to allocate time and resources from WORKS to these organizations?

JN: MLS W.O.R.K.S. supports many organizations on various levels, but we try to partner with organizations that align with our objectives and make sense both nationally and in local markets with MLS clubs.

FB: Do MLS teams participate in W.O.R.K.S. or are there individual charities and outreach groups associated with individual teams?  How is it determined which players participate in W.O.R.K.S. events?

JN: Although most of our clubs have their own charitable foundations and support local organizations, all 16 clubs support MLS W.O.R.K.S. and our initiatives.  Because our markets vary so much, we create our programs with flexibility so they can be shaped to have relevance in each community.  We work closely with our clubs to find player ambassadors that support our initiatives, but we also work to highlight all the charitable efforts of our players in each market, even if they are not W.O.R.K.S. specific.

FB: How can fans get involved?  Are there any specific auction items fans should be on the lookout for?

JN: We recently launched the MLS W.O.R.K.S. Community Service Program, a collaborative effort to combine sport and service, promote goodwill within MLS markets and improve lives and communities at the grassroots level.  Part of the program, which we will be expanding during the 2010 season, is to highlight what our fans are doing to make a difference in their communities.  We will launch a contest during the 2010 season to recognize fans from each market that are going above and beyond.

Currently, we are conducting an online auction to help raise additional awareness and funds to support Unicef and their relief efforts for children and families in Haiti.

FB: W.O.R.K.S. advertising is present on signboards during games and on MLS broadcasts.  How is it determined when/where W.O.R.K.S. programs are advertised.

JN: We will be increasing our marketing efforts during the 2010 season to try and give our initiative and charitable partners additional exposure during various times of the season.  For instance, leading up to and surrounding Earth Day, we will promote MLS W.O.R.K.S. Greener Goals and during October, W.O.R.K.S. field boards will be pink to support Breast Cancer Awareness.