Welcome to the Party Montreal

May 7, 2010

The big story in MLS is the arrival of Montreal as the league’s 19th franchise. Although the announcement is scheduled for Friday afternoon, multiple sources are reporting the news.   The Impact are scheduled to start play in 2012 and will join Toronto and Vancouver as Canadian franchises.  Long rumored, the move to Montreal immediately provides MLS with a promising franchise and a fervent fan base.  The Impact regularly attract 10k as a second division club suggesting that numbers closer to 20k are possible in MLS.

Montreal has shown an ability to support soccer (remember that big Canada Cup crowd) and is close to securing a 21k soccer specific stadium. A third Canadian team would create a nice rivalry and Saputo is solid potential owner.  However, with Vancouver and Portland right around the corner, there is a question whether the League can handle another franchise so quickly.  The dilution of the talent pool is a big concern.  That said, Montreal would be a great venue for MLS. MLS will now have a huge footprint in Canada and provide a home team for an enormous swath of the Canadian population (big for TV dollars).

The plan is to expand the current 13k stadium to a capacity of about 21k for MLS matches.  Two years should be plenty of time for such an expansion. The Impact already have games scheduled against AC Milan and Fiorentina this Summer at Olympic Stadium and the looming entrance to MLS should provide extra eyeballs on those matches as the Montreal crowds gear up for first division football.

The Montreal move is a no-brainer.  There is no city in the US or Canada more likely to avidly support soccer than Montreal.  The big question is whether another city will join Montreal in 2012 or whether the league will wait for the perfect opportunity.


Soccer Business Bits: TV in Chicago, Going Green, Donovan Sponsorship & More

April 15, 2010

Just a couple of quick hits today.  In Chicago, the Fire announced Comcast SportsNet Chicago as their official television broadcast partner for 2010 and Univision Radio as its official radio partner.  All locally broadcast television games will be in HD.  The arrangement includes a pre-game and post-game show.  There will also be English language and Spanish language broadcasts over the internet. Radio 1200 will have the games in Spanish over the air.

Keeping with the Fire, Chicago announced a “Fire Goes Green” campaign for its April 24th match against Chicago.  As part of the initiative, the Fire will plant 40 trees,  provide re-usable grocery bags to their fans, purchase energy credits to set-off carbon use at the game and distribute recycling bins around the stadium.  The efforts is part of the Fire’s Earth Day celebration and will also include special foot menus and other “green” distributions during the match.

Galaxy star Landon Donovan appears to have a new sponsorship partner.  Donovan joined Yankee captain Derek Jeter and Falcon QB at the Gillette EA Sports Champions of Gaming event in New York.  The effort was part of Gillette’s showcasing of its newest razor.

Elsewhere, AC Milan’s Summer tour now officially includes second division, and MLS expansion candidate, Montreal.  According to the team’s website, the Italian power will visit Olympic Stadium on June 2, for a friendly.  The game will be preceded by another match with a Serie A side, as Fiorentina will visit the Impact on May 23.  This is a bold move for the lower division club and certainly makes a statement about the team’s ambitions.  Would a match against AC Milan make the perfect stage to announce entry into MLS?


Soccer Stadium & Expansion Update

March 24, 2010

With Red Bull Arena (rightly) garnering all of the attention lately, some of the other stadium projects around the league are also moving forward.  In anticipation of the upcoming season, we thought it worthwhile to take a look at some of the other arenas coming through the pipeline.  Before we get there, we recommend checking this story about a possible Montreal expansion announcement on the near horizon.

The big stadium news of the day was a report that efforts to construct a stadium in Houston are moving forward thanks to a recent agreement between the City of Houston and Harris County to construct $20 million in infrastructure improvements.  The team will foot the bill for the additional cost of stadium construction.  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.   Another round of voting is required to move the project forward.

In San Jose it was announced last week that the city counsel has approved the re-zoning of 90+ acres near the airport to allow stadium construction to begin.  Referring to the plan as a “soccer stimulus package” a varied group supported the proposal before the board. The stadium is planned near the San Jose Airport and will reportedly required two years to construct from the date of the ground breaking.  The funding for the planned stadium has always been a bit fuzzy.  The city of San Jose had previously agreed to chop $40 million off the purchase price of a 75 acre parcel that will include the Stadium and additional mixed use development. We reported a while back that based on a request by owner Lew Wolff, Mr. Wolff will now pay $89 million for the site (purchased by the City for $81 million). The stadium will seat 15,000 (with additional seating for 3,000 more on a berm at the stadium’s open end) and will use 14 acres of the site.

Finally, in Philly stadium construction continues with PPL Park set to open in the Summer.  For construction images, click here.  Over the next few days, we will provide stadium updates from Kansas City, Portland and Vancouver


MLS Expansion: Where we were

January 14, 2010

With the draft upon us, we believe the official start of the MLS 2010 season is here.  As we are getting ready to cover  the new season we started to look back at our posts from the winter of last year as we were gearing up for the 2009 campaign.  At the time, expansion was the hot topic, with a long list of cities vying for 2 2011 spots.  Since then, Portland and Vancouver have become  the big winners and the list of possible expansion cities for the next round have changed dramatically.  We thought we would re-visit some of that discussion in the last moments before the unofficial start to the new season.

When MLS officials announced the next round of expansion, St. Louis, Montreal and even Portland were among the favorites to land the new franchises.  Passed over in the prior round of expansion, St. Louis, lead by Attorney Jeffrey Cooper, landed a stadium deal and big name investors like Albert Pujols.  Nevertheless, MLS has long had concern about Cooper’s financial stability.

When Montreal  and Atlanta dropped out of the race (leaving Portland, Ottawa and Vancouver among the possibilities) the Gateway City seemed almost guaranteed a spot for 2011.  Then a dark horse entered the race in the form world famous F.C. Barcelona.

barca

The Spanish powerhouse combined with Marcelo Claure and Florida International University to  submit a bid to bring MLS back to South Florida.  As MLS fans well know, the Miami Fusion entered the League as an expansion team in 1998 and were contracted just four years later.  That background, combined with South Florida’s rather weak history of supporting its teams (Florida Marlins anyone?), has lead many to scoff at any move back to the Miami area.  Add in the lack of a Soccer Specific Stadium (the team would share with the FIU Football team) and the Miami bid seems like a sure loser.

However, the leadership of MLS seems to disagree.  Apparently wowed by the glam of FC Barcelona and the billions in Claure’s pockets, the league seems eager to embrace South Florida.  Commissioner Don Garber just announced that if the Miami bid is accepted, the team would start play in 2010, a year ahead of schedule and at the same time as Philadelphia.

Count me among the unconvinced.  The “beloved” Miami Dolphins strugle to sell out their games, the Panthers are barely a blip on the Miami scene and Marlins are an annual embarassment.  Why would MLS be any different? The idea of 9,000 fans snoozing through Sunday afternoon game in 110 degree Miami August heat, is a nightmare scenario for supporters of the Leage.   MLS may love the idea of Barca dumping money into its coffers, but like Chivas before them, I see little chance of a big time soccer power adjusting to life in Major League Soccer.  League rules will not permit “Barca USA” to serve as a farm team of the parent club or as a way station for up and coming talents.  MLS should have no interest in serving as a marketing opportunity for the Spanish Giants.  As much as Barca might love the idea of selling jerseys in North America, I think the League would be far better served  taking $40 million from St. Louis and and Portland in 2011.


Guest Commentary: WHAT MLS IS DOING RIGHT (AND WHAT IT CAN DO RIGHT NOW) TO GROW ITS POPULARITY AMONG U.S. SOCCER FANS

December 8, 2009

We are still traveling, so we thought we would re-visit this excellent guest post from Craig Codlin posted during the season.  Craig does a great job looking at MLS efforts to market its product and grow its popularity.  We should be back on Wednesday.

All season, we have focused on the efforts of individual teams to convert soccer fans to MLS fans.  We have interviewed various front office personnel, analyzed marketing efforts targeted to hardcore fans and interviewed soccer fans around the country to determine what they want from MLS.  Today, we offer the guest commentary of Craig Codlin, a 38 year old corporate attorney and lifelong soccer fan living in Seattle.  Now a Sounders season ticket holder, Craig previously lived in New York City and endured multiple losing MetroStars seasons.  He is a fan of all things MLS and today provides us with some great insight into the League’s effort to keep and retain fans.  Thanks to Craig for some outstanding analysis.

Don Garber, the commissioner of MLS, recently articulated an important concept relating to the way MLS is going to be marketing itself in the future.  Essentially, he said that he believes there are plenty of soccer fans in the U.S. and that MLS’s job is to convert these soccer fans into fans of the League. This is important in many ways, not least of which is the apparent complete shedding of the original plan MLS had and stuck with for many years, which was to focus most of its energy to selling its product to the U.S. non-soccer fan.  The theory, I imagine, was that MLS would already have the diehard soccer fans in its pocket just by virtue of showing up in the U.S. and filling the void and that it should spend its resources on converting the non-soccer fans into fans.  As we all know, this was a flawed approach, resulting in such horrors in the early years as the game clock that counted down to zero and the “shootouts” to avoid the seeming travesty of a tie.

Soccer fans in the U.S. are a fiercely loyal and stalwart bunch.  They show up at pubs at 8am to watch games in Europe and they endure the constant barrage of barbs and verbal jabs that come from the general American sports media and fans who sometimes seem to feel that the possibility that soccer could gain a toehold in this country is a personal affront to everything American.  But because of their fundamental love for the sport, nobody else can bring as much passion to the stadiums, and as solid numbers to the TV broadcasts, as this group of people. But getting this group to embrace MLS, when they are generally more inclined to spend their soccer viewing time watching higher quality European, Mexican or national matches (even more so given the abundance of high quality soccer currently available on cable and satellite)is an immense challenge. I do not believe it is insurmountable, but it will take some time, partially because MLS in many ways dug a hole with this group of fans from the outset due to its focus on the soccer-mom families instead of the true U.S. soccer fan.

I believe that there are three actions that MLS is currently taking (or in the process of taking) that will greatly enhance its ability to bridge the gap and pique the interest of the U.S. soccer fan who has not yet embraced the League. seattle

Building and Cultivating Regional Rivalries. One of the major problems MLS confronts from a marketing perspective is that its geographic spread (which, of course, includes Canada) is much larger than almost all (if not all) of the existing domestic leagues world-wide, with major population centers spaced thousands of miles apart, making it much more difficult to cultivate interest outside of the cities that have teams. If you live anywhere in England, you are at worst a short train ride away from an EPL club and if you live in a major population center such as London there are many teams all within a ride on the Tube.  The proximity of all of the teams naturally creates intense rivalries, which in any sport generates interest. MLS simply does not have a situation where all of the teams can be in relative proximity to one another, so it must foster regional rivalries. The addition of Philadelphia, whose sports fans bear chips on their shoulders as the red-headed step-child city of the Mid-Atlantic, and two more Pacific Northwest teams, will clearly help.  The hope is that their entrance into MLS will create pockets of intense regional rivalries on which the League can build interest and a broader fan base. The first time Seattle Sounders FC heads into Portland, you can bet that the game will be nationally televised and promoted, simply to get as many U.S. fans as possible seeing a stadium packed to capacity with passionate fans creating complete and utter bedlam.  I would imagine that any soccer fan in the U.S. would find it worth their time to spend two hours watching that game, the same way that many hard core baseball fans country-wide love seeing the Red Sox and Yankees square off in meaningful October games.  The addition of Montreal would also create a natural rivalry with Toronto, which will also be great for the League. Putting aside the quality of the play on the field for a moment, nothing gets the U.S. sports fan more excited than the perception that a sporting event is something more than just a game, but rather something that is greater than the sum of its parts.  Stands filled to capacity with screaming, chanting, passionate fans helps create that perception.  Which leads me to…

rio tintoStadiums: Even on television (and even more so in person), there is a vast difference between seeing a game played in a fantastic venue like Rio Tinto or HDC versus converted baseball stadiums (with pitchers mounds in full view, tiny dimensions and horrible fan sight lines) and cavernous football stadiums (particularly once the NFL and college football get started and the additional lines on the pitch make die hard soccer fans’ eyes bleed). Thank goodness, assuming there are no unpleasant surprises, MLS is in the process of building great new stadiums in Houston, San Jose, Kansas City, Philadelphia, Portland and New York, all of which should be completed and fully functioning by 2012 (and all of which, other than Portland, will have natural grass surfaces, I believe). Only Seattle (which seems to work, even in a large stadium…for now), New England (which will not change in the foreseeable future), D.C. (which is actively seeking a new stadium deal) and Vancouver (which sees B.C. Place as a temporary home with a waterfront soccer stadium on its wish list) will be left in gigantic football stadiums, and there will be no more minor league baseball or small college football stadium eyesores left. This alone will make MLS seem much less “minor league” to traditional soccer fans. Getting the soccer specific stadiums filled, of course, is still a challenge (see Colorado and Dallas as prime examples), but I believe that as more and more games are played in proper soccer venues, soccer fans will as a whole take MLS more seriously and begin to show up in greater numbers.  Also, with the vast majority of MLS teams having permanent homes for which they control the scheduling, the League will be seen as more financially stable, eliminating the concern for fans that they will be getting themselves invested emotionally and financially in a team and league that could disappear at any time.  Ideally, MLS will do its best to ensure that future stadium projects are as close to downtown epicenters (or at least easily accessible public transportation from those epicenters) as possible, since those stadiums tend to draw the best crowds. Of course, in the end, it is the product on the field that will do the most to win over the hearts and minds of the U.S. soccer fans, leading me to probably my most important point…

collective bargainThe Collective Bargaining Agreement. While the traditional management stance since the beginning of time has always been to keep wages as low as possible, MLS needs to take a giant, progressive leap forward here and take a position which for management will seem counter intuitive. MLS teams have got to have the ability to pay, and therefore retain, their quality players, particularly the players that they spent the time to develop.  The wages paid to second and third tier players (after the designated players, of course) are disgraceful by any standard, much more so for a professional sports league that considers itself “major league”.  Even the top tiered non-DP players have every incentive to leave the U.S. for even minor European leagues since the pay discrepancy is so vast (Kasey Keller has stated he was offered three times as much as his $300,000 salary with the Sounders to play in the Romanian league).  Keeping as much domestic talent as possible (understanding that, for now, almost all truly world class U.S. players will still bolt for Europe if given the opportunity) should be a huge priority for MLS.  Not only does it keep recognizable American faces here, but it increases stability for the teams within MLS to be able to build their team (and their brand) around a core of high quality American players. Knowing that the same players will (generally) be around from year to year fosters more fan loyalty and, not coincidentally, sales of player-related merchandise such as jerseys. Currently, MLS team strategy seems to be to sign one aging big name DP plus a couple of decent players, and then to fill in the gaps with the chaff of dirt cheap, interchangeable parts. The solution to this problem is conveniently available right now, as the League is conducting its collective bargaining agreement negotiations with the MLS players union. The cap needs to be loosened considerably (possibly with a Larry Bird-rule type exception, allowing teams to keep the stars they cultivate) or, at the very least, should be more than tripled to around $6-7M (plus the DP exception) with annual lock-step percentage increases to the cap each year during the life of the new collective bargaining agreement. This action alone will immediately increase the quality of the product on the field and allow MLS franchises room to develop and sign players good enough to create much higher quality play league-wide on the pitch. MLS needs to be forward thinking about this and understand that while the “NASL dilemma” makes this step a bit scary, there is a way to do this smartly that will dramatically increase the league’s credibility among the U.S. soccer fan.

With the “Summer of Soccer” being an unquestioned success at both the turnstiles and in the amount of attention heaped upon it by the mainstream media, the time is right for MLS to make its sales pitch to the U.S. soccer fan.  By continuing to take the steps MLS seems to be consciously taking to foster rivalries, as well as building stadiums that represent well the sport we love, MLS has begun making much better choices to appeal to this crucial base of fans.  But in the end, the quality on the pitch will be the ultimate determining factor as to whether these fans will buy-in to the MLS experience.  The collective bargaining agreement is the tool with which the League can finally make a huge statement to these fans that it understands that quality of play is the single most important thing a soccer league can offer.  It is time to shed some (but not all) of MLS’s fiscal conservatism and give MLS teams the flexibility to go out and build quality clubs that have the capability to play aesthetically pleasing, competitive soccer.


Soccer Business Bits: USL Change, CBA News? & More

November 11, 2009

broken soccer ballMultiple outlets are reporting that 6 USL-1 teams, including 2011 MLS expansion side Vancouver, have broken away from the USL to form their own six team League for 2010.  Though still waiting for USSF approval, the new league will feature Vancouver, Montreal, Atlanta, Carolina, Miami and Minnesota.  There are also reports that a team from St. Louis will join the new league.

What impact this change (if it goes through), will have is very much in question.  Some MLS fans are prematurely excited at the prospect of MLS teams essentially operating farm teams in the new league, while others think that this move is a precursor to an “MLS2″.  Frankly, we think neither is likely. If this division holds, it will likely have the impact of weakening USL and the new league, especially when Vancouver and Montreal (probably) bolt for MLS and Portland does the same. The lower leagues have already lost a strong team in Seattle, and despite the prospect of new teams in New York and Baltimore, further division is not in USL’s best interest.  Strong lower divisions are important for the survival of soccer in the US and this move seems simply to weaken the overall product.

American soccer fans have marked January 31 on their calendars because it is the date the Collective Bargaining Agreement expires.  The parties have started negotiating, and this is certainly a story we will religiously follow.  For now, we think it a bit early, but since there have been a couple of early shots across the bow, check out this story at MatchFit for details.  One hidden impact of the labor situation will be the decisions faced by college players eying a career in MLS as part of the January draft.  Will players be less willing to enter the draft if there is no deal?

Check out this nice story from MLSnet.com about the MLS playoffs in Afghanistan.

One final note.  Seattle is looking to take its MLS success to a global stage.  Here is a story on the Emerald City’s efforts to bring the World Cup to Qwest Field.


Soccer Business Bits: Looking North-Canada in the News

September 9, 2009

tfcAccording to multiple news sources, TFC is set to announce the signing of Julian de Guzman as its Designated Player at a press conference tomorrow.  de Guzman, arguably Canada’s top player, is set to come to Toronto on a free transfer following a successful run in La Liga with Deportivo La Coruna.  A defensive midfielder, de Guzman’s signing will upgrade a Toronto side in danger of missing the playoffs for the third straight year.    At the same time, in what appears to be some creative juggling of the salary cap, TFC fan favorite Danny Dichio is set to retire and join the Toronto coaching staff.

In our view, the arrival of a DP to MLS is always good news.  The timing of the signing is a bit strange; it seems too late for a new arrival to help Toronto’s flagging fortunes.  While deGuzman is not the type of player to draw fans to away games, he will raise the League’s profile in Canada at a time when a Vancouver franchise is on the horizon and Montreal possibly close behind.

Speaking of Montreal, there have been a number of stories floating around about the possibility of David Beckham joining the Saputo bid to bring a team to the Canadian city.  It is well known that Beckham has the right under his contract to purchase an MLS franchise and Montreal may make a likely outpost for his purchase.

Finally, MLS has announced that the 2010 MLS All-Star game will take place at Houston’s Reliant Stadium.  Given the location, it is not a stretch to assume that the game will feature a Mexican side in the annual MLS v. International Club format.  The venue is an interesting choice for MLS, and in our view, a bad selection.  The All-Star game has succeeded as a showpiece event for the League, and the prospect of bringing a Mexican team to Houston suggests that the MLS fans will be among the minority at their own event.  Moreover, it is highly unlikely that MLS will sell out the event at the 70k seat venue.   It is already surprising that MLS chose Houston over the new stadiums in Philly or New York; now MLS has gone one step further and removed the game from the cozy confines of Robertson Stadium.


Guest Commentary: WHAT MLS IS DOING RIGHT (AND WHAT IT CAN DO RIGHT NOW) TO GROW ITS POPULARITY AMONG U.S. SOCCER FANS

August 19, 2009

mlsAll season, we have focused on the efforts of individual teams to convert soccer fans to MLS fans.  We have interviewed various front office personnel, analyzed marketing efforts targeted to hardcore fans and interviewed soccer fans around the country to determine what they want from MLS.  Today, we offer the guest commentary of Craig Codlin, a 38 year old corporate attorney and lifelong soccer fan living in Seattle.  Now a Sounders season ticket holder, Craig previously lived in New York City and endured multiple losing MetroStars seasons.  He is a fan of all things MLS and today provides us with some great insight into the League’s effort to keep and retain fans.  Thanks to Craig for some outstanding analysis.

Don Garber, the commissioner of MLS, recently articulated an important concept relating to the way MLS is going to be marketing itself in the future.  Essentially, he said that he believes there are plenty of soccer fans in the U.S. and that MLS’s job is to convert these soccer fans into fans of the League. This is important in many ways, not least of which is the apparent complete shedding of the original plan MLS had and stuck with for many years, which was to focus most of its energy to selling its product to the U.S. non-soccer fan.  The theory, I imagine, was that MLS would already have the diehard soccer fans in its pocket just by virtue of showing up in the U.S. and filling the void and that it should spend its resources on converting the non-soccer fans into fans.  As we all know, this was a flawed approach, resulting in such horrors in the early years as the game clock that counted down to zero and the “shootouts” to avoid the seeming travesty of a tie.

Soccer fans in the U.S. are a fiercely loyal and stalwart bunch.  They show up at pubs at 8am to watch games in Europe and they endure the constant barrage of barbs and verbal jabs that come from the general American sports media and fans who sometimes seem to feel that the possibility that soccer could gain a toehold in this country is a personal affront to everything American.  But because of their fundamental love for the sport, nobody else can bring as much passion to the stadiums, and as solid numbers to the TV broadcasts, as this group of people. But getting this group to embrace MLS, when they are generally more inclined to spend their soccer viewing time watching higher quality European, Mexican or national matches (even more so given the abundance of high quality soccer currently available on cable and satellite)is an immense challenge. I do not believe it is insurmountable, but it will take some time, partially because MLS in many ways dug a hole with this group of fans from the outset due to its focus on the soccer-mom families instead of the true U.S. soccer fan.

I believe that there are three actions that MLS is currently taking (or in the process of taking) that will greatly enhance its ability to bridge the gap and pique the interest of the U.S. soccer fan who has not yet embraced the League. seattle

Building and Cultivating Regional Rivalries. One of the major problems MLS confronts from a marketing perspective is that its geographic spread (which, of course, includes Canada) is much larger than almost all (if not all) of the existing domestic leagues world-wide, with major population centers spaced thousands of miles apart, making it much more difficult to cultivate interest outside of the cities that have teams. If you live anywhere in England, you are at worst a short train ride away from an EPL club and if you live in a major population center such as London there are many teams all within a ride on the Tube.  The proximity of all of the teams naturally creates intense rivalries, which in any sport generates interest. MLS simply does not have a situation where all of the teams can be in relative proximity to one another, so it must foster regional rivalries. The addition of Philadelphia, whose sports fans bear chips on their shoulders as the red-headed step-child city of the Mid-Atlantic, and two more Pacific Northwest teams, will clearly help.  The hope is that their entrance into MLS will create pockets of intense regional rivalries on which the League can build interest and a broader fan base. The first time Seattle Sounders FC heads into Portland, you can bet that the game will be nationally televised and promoted, simply to get as many U.S. fans as possible seeing a stadium packed to capacity with passionate fans creating complete and utter bedlam.  I would imagine that any soccer fan in the U.S. would find it worth their time to spend two hours watching that game, the same way that many hard core baseball fans country-wide love seeing the Red Sox and Yankees square off in meaningful October games.  The addition of Montreal would also create a natural rivalry with Toronto, which will also be great for the League. Putting aside the quality of the play on the field for a moment, nothing gets the U.S. sports fan more excited than the perception that a sporting event is something more than just a game, but rather something that is greater than the sum of its parts.  Stands filled to capacity with screaming, chanting, passionate fans helps create that perception.  Which leads me to…

rio tintoStadiums: Even on television (and even more so in person), there is a vast difference between seeing a game played in a fantastic venue like Rio Tinto or HDC versus converted baseball stadiums (with pitchers mounds in full view, tiny dimensions and horrible fan sight lines) and cavernous football stadiums (particularly once the NFL and college football get started and the additional lines on the pitch make die hard soccer fans’ eyes bleed). Thank goodness, assuming there are no unpleasant surprises, MLS is in the process of building great new stadiums in Houston, San Jose, Kansas City, Philadelphia, Portland and New York, all of which should be completed and fully functioning by 2012 (and all of which, other than Portland, will have natural grass surfaces, I believe). Only Seattle (which seems to work, even in a large stadiumfor now), New England (which will not change in the foreseeable future), D.C. (which is actively seeking a new stadium deal) and Vancouver (which sees B.C. Place as a temporary home with a waterfront soccer stadium on its wish list) will be left in gigantic football stadiums, and there will be no more minor league baseball or small college football stadium eyesores left. This alone will make MLS seem much less “minor league” to traditional soccer fans. Getting the soccer specific stadiums filled, of course, is still a challenge (see Colorado and Dallas as prime examples), but I believe that as more and more games are played in proper soccer venues, soccer fans will as a whole take MLS more seriously and begin to show up in greater numbers.  Also, with the vast majority of MLS teams having permanent homes for which they control the scheduling, the League will be seen as more financially stable, eliminating the concern for fans that they will be getting themselves invested emotionally and financially in a team and league that could disappear at any time.  Ideally, MLS will do its best to ensure that future stadium projects are as close to downtown epicenters (or at least easily accessible public transportation from those epicenters) as possible, since those stadiums tend to draw the best crowds. Of course, in the end, it is the product on the field that will do the most to win over the hearts and minds of the U.S. soccer fans, leading me to probably my most important point…

collective bargainThe Collective Bargaining Agreement. While the traditional management stance since the beginning of time has always been to keep wages as low as possible, MLS needs to take a giant, progressive leap forward here and take a position which for management will seem counter intuitive. MLS teams have got to have the ability to pay, and therefore retain, their quality players, particularly the players that they spent the time to develop.  The wages paid to second and third tier players (after the designated players, of course) are disgraceful by any standard, much more so for a professional sports league that considers itself “major league”.  Even the top tiered non-DP players have every incentive to leave the U.S. for even minor European leagues since the pay discrepancy is so vast (Kasey Keller has stated he was offered three times as much as his $300,000 salary with the Sounders to play in the Romanian league).  Keeping as much domestic talent as possible (understanding that, for now, almost all truly world class U.S. players will still bolt for Europe if given the opportunity) should be a huge priority for MLS.  Not only does it keep recognizable American faces here, but it increases stability for the teams within MLS to be able to build their team (and their brand) around a core of high quality American players. Knowing that the same players will (generally) be around from year to year fosters more fan loyalty and, not coincidentally, sales of player-related merchandise such as jerseys. Currently, MLS team strategy seems to be to sign one aging big name DP plus a couple of decent players, and then to fill in the gaps with the chaff of dirt cheap, interchangeable parts. The solution to this problem is conveniently available right now, as the League is conducting its collective bargaining agreement negotiations with the MLS players union. The cap needs to be loosened considerably (possibly with a Larry Bird-rule type exception, allowing teams to keep the stars they cultivate) or, at the very least, should be more than tripled to around $6-7M (plus the DP exception) with annual lock-step percentage increases to the cap each year during the life of the new collective bargaining agreement. This action alone will immediately increase the quality of the product on the field and allow MLS franchises room to develop and sign players good enough to create much higher quality play league-wide on the pitch. MLS needs to be forward thinking about this and understand that while the “NASL dilemma” makes this step a bit scary, there is a way to do this smartly that will dramatically increase the league’s credibility among the U.S. soccer fan.

With the “Summer of Soccer” being an unquestioned success at both the turnstiles and in the amount of attention heaped upon it by the mainstream media, the time is right for MLS to make its sales pitch to the U.S. soccer fan.  By continuing to take the steps MLS seems to be consciously taking to foster rivalries, as well as building stadiums that represent well the sport we love, MLS has begun making much better choices to appeal to this crucial base of fans.  But in the end, the quality on the pitch will be the ultimate determining factor as to whether these fans will buy-in to the MLS experience.  The collective bargaining agreement is the tool with which the League can finally make a huge statement to these fans that it understands that quality of play is the single most important thing a soccer league can offer.  It is time to shed some (but not all) of MLS’s fiscal conservatism and give MLS teams the flexibility to go out and build quality clubs that have the capability to play aesthetically pleasing, competitive soccer.


Soccer Business Bits: MUN2 Interview, MLS Expansion Update and More

August 10, 2009

us-soccerWith the Mexico/USA qualifier set for Wednesday on MUN2, we posed a couple of questions about the broadcast and the channel to Kevin Dugan of NBC Universal/Mun2 digital media.  Please see his thoughts below:

Footiebusiness: mun2 seems targeted to the Spanish speaking offspring of native Spanish speakers, yet this game will attract many native English speakers outside the typical target audience.

Does mun2 intend to retain these viewers going forward?

Kevin Dugan: Most of the original programs on mun2 are in English. We also program the best Spanish language content form Latin America with English subtitles – not unlike other networks, which regularly import English-language shows from the United Kingdom.

FB: Do you believe your programming is attractive to those of a non-hispanic  background?

KD: Absolutely! Check it out for yourself:

holamun2.com/chicas http://www.holamun2.com/chicas
holamun2.com/xtreme http://www.holamun2.com/xtreme
holamun2.com/hookup http://www.holamun2.com/hookup

FB: In addition to the game, what else will mun2 be doing to keep these viewers?

KD: Being ourselves – uniquely American!

FB: Given that this is the first time many viewers will be exposed to mun2, you will have a unique opportunity to create a first impression.  Did you consider broadcasting live from Azteca in order to improve the level of the broadcast?

KD: The Telemundo Deportes team will handle the production of the game. The Telemundo Deportes team is incredibly experienced having covered hundreds of matches around the world. We’re in great hands!
We have also just posted a video that includes interviews about the game with Lionel Messi, Carlos Bocanegra, and Jorge Campos, among others. Check it out: http://www.holamun2.com/usavsmex.  We will be posting similar videos leading up to the game. We look forward to you joining us on mun2 next week. Thank you!

Thanks to Kevin Dugan:  Here are a couple of additional notes from around MLS:

We are traveling this weekend, so just a couple of quick  hits.  First, Don Garber has seemingly foreclosed the possibility of Montreal joining MLS in 2011 as part of the Vancouver/Portland entry into the League.  However, according to this article, the addition of Montreal seems like a certainty, perhaps as early as 2012.  For our thoughts on Montreal (and South Florida) joining MLS click here.

One team that will definitely be joining the League is the Philadlelphia Union.   The team is reportedly nearing 10k in ticket sales.  For those eager to see stadium progress, click here for construction photos.

Our series on MLS fans will continue this week.  Please stay tuned for more.


Soccer Business Bits: New MLS Expansion?

June 30, 2009

barcaOvernight English language broadcast numbers are out for the USA/Brazil match, and the numbers are instructive.  Of the top 10 markets, only three are MLS cities, and two of the top five (Miami and West Palm Beach) were home to one of the League’s failed franchises.  Other  top markets like Hartford/New Haven and Richmond scored very well, despite only a passing association with exisiting franchises.  Las Vegas was a solid #2, perhaps suggesting heavy betting action on the game.

Regardless, the real story here is the South Florida market.  Remember Barcelona’s efforts to bring a team to Miami?  Remember the short lived Miami Fusion?  We admit, we were against the idea of MLS expanding back into Florida.  South Floridians are notoriously fickle sports fans; Exhibits A-C are the Heat, Panthers and Marlins.  But as these TV numbers suggest, soccer is definitely a premier attraction in the Sunshine State (this will likely be even more evident in the Spanish language numbers).

The question for MLS is can a franchise (with or without Barca) survive in South Florida.  As we have said before, the idea of 9,000 fans snoozing through Sunday afternoon game in 110 degree Miami August heat, is a nightmare scenario for supporters of the League.  Would the popularity of top-level international football translate into numbers for MLS?  As the US marched through the Confederations Cup, it became clear that soccer is plenty popular, just not MLS.

There are three levels of soccer fans in the US.  There are the MLS fans who cheer on their local team and their national team.  There are the “Euro” fans who follow the big European teams (or South American teams) and their national teams, but have little interest in MLS.  Finally, there are the “event” fans, who get caught up in the hype of a big event and/or will follow the US in any sporting event. The first group is small (but growing), and these are the fans that MLS needs to capture, especially in a market like South Florida, where soccer is king, but MLS is not.

One final expansion note, there was a story out recently that the Saputos are again announcing an effort to bring an MLS team to Montreal. Montreal has shown an ability to support soccer (remember that big Canada Cup crowd) and is close to securing a 21k soccer specific stadium. A third Canadian team would create a nice rivalry and Saputo is solid potential owner.  However, with Philly, Vancouver and Portland right around the corrner, there is a question whether the League can handle another franchise so quickly.  The dilution of the talent pool is a big concern.  That said, Montreal would be a great venue for MLS.