Footiebusiness

Today we thought we would take a quick peek at some popular soccer websites to see what kind of business news is making headlines. It is the era of the DP in MLS with signings coming fast and furious.  MLSRumors is reporting on an apparent continuation of that trend.  Tim Leiweke, president and CEO of the ownership group gave indications at a recent press conference that Houston will be aggressive in the DP market in 2011.

At MatchFit, Jason Davis offers his thoughts on the debut of FSC’s new show “Soccer Talk Live”.  The show features former MLS midfielder and ESPN broadcaster Kyle Martino.  After two weeks, reviews have not been positive and Davis echoes those thoughts.  We admittedly not seen the show, but the MatchFit review is fairly comprehensive and is definitely worth a read.

duNord does what it always does so well with a round-up of soccer news from around the country.  He includes a number of interesting business stories including some about travel to Central America for Champions League matches.  There are also good stories about stadiums and ticket sales.

SoccerAmerica provides an update on the status of attendance in MLS.  The league is showing a 2% increase in average attendance with 16, 350 as the season average.

Multiple sources are reporting that Thierry Henry’s Red Bulls jersey is expected to become MLS’  best seller this year.  According to reports, more than 50k Henry jerseys will be sold this year.  Assuming $75 per jersey, that works out to almost $4million in jersey sales gross.  By way of comparison, 300,000 Beckham jerseys were sold in the first year after he joined the league.  Nevertheless, 50k is a big number in jersey sales (Beckham’s 300k was far ahead of all other American sports stars), and is an impressive haul for the the Red Bulls and MLS in the less than two months since his signing.  According to SBJ, adidas MLS merchandise sales are up almost 20% this year thanks to Henry, Marquez and Donovan sales.  According to the article, novelty sales (e.g. pins, cards, etc…) have seen significant increases this year.

In Seattle, the Sounders have announced a foreign friendly against Chivas in October.  As we have said many times on this blog, friendlies against club teams from other nations serve a valuable purpose for MLS and the visiting squads.  However, we question the wisdom of this match. Coming in the middle of the playoff stretch drive and on the heels of matches in CONCACAF Champions League and the Open Cup, it seems like the Sounders are over extending themselves.  This is especially so, because the Sounders are not hurting for support and don’t need the match to generate interest.

Finally, the Philadelphia Biz Journal is reporting on the Union’s youth soccer initiatives as part of the $2o million Pepsi Refresh project.  The campaign is part of a bigger effort that includes a significant amount of participation from MLS.

Busy weekend in Major League Soccer and WPS.  In Connecticut, an impressive crowd of more than 4,000 saw the Boston Breakers host a league game.  Veteran’s Stadium in New Britain has been host to US Men’s National Team matches, Revolution US Open Cup matches and other soccer matches.  The 4,000 is a solid figure for WPS and approximates (and beats) some Open Cup crowds.  Taking their game on the road is a smart move by the Breakers and the match attracted a large crowd of local soccer teams and parents who had an opportunity to experience WPS without making a trip to Boston.

Elsewhere, kudos to FSC for doing a solid job of promoting its MLS coverage during its EPL broadcasts.  ESPN has long failed to use its broadcasts of foreign leagues and international matches as a platform to push Major League Soccer.  FSC ran a regular crawl during the games and used other means to push its Saturday telecast of the Dallas game.

In MLS, attendance was a mixed bag, but Houston pulled an impressive number with almost 19k at Robertson Stadium. Crew Stadium pulled over 16k, a solid number for a team that has struggled to draw a crowd equal to its showing on the field.  Dallas topped 10k (barely) continuing its unimpressive show at the gate.   In San Jose, the Earthquakes and their new DP, managed to draw their biggest Buck Shaw crowd at 10,800.  Given the size of the stadium, it remains surprising that the team cannot sell out every game.

We are on the road tonight, so we thought we would quickly touch on the recently released mid-summer salary numbers. The  salary list offers insight into the status of MLS earnings.  Highlights include the new DP salaries, including $300k for the Sounder’s Fernandez and around $500k for N’Kufo and Boscovic.  These deals represent the new breed of “low level” DPs making more than the rest of the roster, but well below the millions earned by Henry, Donovan and Ljunberg.

Totaling the numbers also reveals the remarkable salary discrepancy between teams like New York and Los Angeles (approximately $25 million combined) which is about as much as the 10 lowest teams combined.  Chicago, Seattle and Toronto are the only other teams above $3 million.   Chivas USA is the only team below $2.5 million.

Given the vagaries of MLS finances, it is difficult to fully appreciate the implications of the salary numbers.  Allocations, transfer fees and other monies are hidden from view and thus it is difficult to determine how much teams are actually paying out of funds other than the tyipcal salary pool.

The Associated Press is reporting that RSL is contributing significant money to the construction of a soccer complex in the Salt Lake City area.  The project includes 16 soccer fields including a centerpiece field with 2,000 seats. RSL will match $21 million in bond money that has been procured by the municipality.  The proposal faced strong opposition from local environmental groups.   RSL has had a strong relationship with the community during its existence.  Recall its “Cup “tour where RSL is brought the trophy to just about every county in the State of Utah in a great combination of celebration and promotion.

Elsewhere, the Kansas City Star is already taking a look at the Wizard’s in 2011.  With a new stadium lurking and the recent signing of Omar Bravo, the Wizards have some great marketing opportunities for their upcoming season.  It will be interesting to see how the Wizards market their new Mexican star. The process has already started and the team has half a year to figure out their plan.

Finally, the mid-week crowd at Toyota Park was 14k.  Although a good number for a Wednesday in MLS, it is surprising that a match featuring the Fire’s two new DP’s didn’t draw bigger numbers on what was a seemingly nice night in Chicago.

After watching FSC’s coverage of the CONCACAF Champions League, we thought we offer few thoughts on thankless job of broadcasting the tournament.  Most recently, FSC televised Toronto’s 2-1 win over Cruz Azul and the coverage was typically low grade.  Camera work was poor and the commentary wanting, but it is difficult to blame FSC.

The network pours significant resources into televising an event that has yet to interest a significant portion of American Soccer Fans.  Games from Honduras, El Salvador and Trinidad & Tobago do not grab the imaginations of fans focused on European soccer and the MLS regular season.  The stands are typically empty for these games (whether in the US or abroad) and field conditions are typically terrible   While ratings are tough to come by, it is almost certain that far less than 100k people (and likely less than 50k) tune in to watch the CONCACAF Champions League matches.

Despite these challenges, FSC has made a devoted and dedicated effort to broadcast these matches from all reaches of the region.  For fans of MLS and soccer in the Americas, FSC’s coverage is more than sufficient and is welcome beacon in the late Winter when the knockout stages of the tournament kick off.  During the Summer, FSC is the lone window into Major League Soccer’s efforts to compete in an event that should gain significance in the coming years.  With bigger than usual crowds expected in Seattle, Toronto and Salt Lake City for the group stage, there is a sense that the tournament has gained appreciation among an increasingly sophisticated fan base.

FSC’s coverage may not be ideal, but it is important.  If the tournament wasn’t televised, it would fade into obscurity and importance.  Improved camera work and commentary are inexpensive enhancements that will come with time.  Until then, celebrate FSC’s broadcasts of the Champions League.

Tripp Mickle at the Sports Business Journal is reporting that Classic Sports and CSTV creator Brian Bedol has been retained by MLS to assist in planning the league’s broadcast and digital medial strategy.   Followers of the league’s tv relationships know that MLS’ longterm deal with FSC is expiring at the end of the season and its deal with ESPN is at the halfway point.  There have also been rumblings about a possible relationship with Versus to replace and/or supplement these earlier arrangements.

According to SBJ, Besol has a longterm friendship with MLS Commissioner Don Garber and MLS is his only consulting gig.  A Harvard MBA, Bedol also launched Court TV in 1990 and has been active in efforts to secure RSN relationships for individual franchises.  His involvement with MLS suggests that the leage may be exploring the possibility of an MLS channel.

The Star is reporting that the CBC”s most recent MLS telecast drew only 134,000 viewers, making it the 14th rated national sports program in Canada for the week.  The CBC deal expires in 2010, but with the upcoming entry of two more MLS franchises in Canada, it stands to reason that there will be a market for MLS broadcast rights. 

Finally, San Jose announced the signing of Brazilian (and former Hull) midfielder/forward Geovanni as the team’s first Designated Player.  This continues the DP trend in the league that has seen high profile players added in New York, DC, Seattle and elsewhere over the last few months.  Whether the signings will impact tv ratings and attendance remains to be seen.  However, the recent big crowds in Chicago and New York for games where multiple DPs are on the field suggest a bump.

A couple of weeks back, we wrote about our trip to PPL Park.  Today, we thought we would give some thoughts on our weekend trip to Gillette Stadium for the Revs/Dynamo match. Built primarily for football, Gillette is a massive stadium surrounded by Robert Kraft’s recently constructed Patriot Place shopping center, parking lots and Route 1.  Acces to the stadium for typically MLS matches is fairly simple and we breezed into the stadium a few minutes before the game.  Ample free parking in the stadium lots is a nice feature and we parked about 30 yards from the stadium entrance despite our late arrival (certain lots are set aside for special pass holders, but a few minutes before the game, the staff manning the lots leaves their station).

The ususal MLS sponsors ring the stadium and there are no electronic message boards at field side.  The Revs only open about 2.5 quarters of the stadium and most of the upper two levels.  However, one of their big marketing campaigns this season is the opening of certain seats on the “other” side in 2011.  The team was actively hawking those seats during the game.

Food choices are plentiful at the stadium as are bathrooms.  However, lines for concessions are typically long and an effort to get a half-time drink or eat could mean missing portions of the second half.  Exceptionally annoying are the “hawkers” that walk the aisles selling food during the game…often blocking views and ruining sightlines.   The half-time entertainment included the Rev Girls throwing shirts to the crowd and a soccer match between mascots of all of the Boston area sports teams.

Attendance for the game was about 11,500 on a beautiful night.  There were no football lines on the field and the overall atmosphere was quiet (it was a very boring game).   Overall, Gillette is a nice stadium, but the soccer experience is wanting. Access by car was great (we were out of the parking lot within minutes) and food choices plentiful.

We will continue this series of posts as we make our way to other stadiums around the league.  We welcome your thoughts on Gillette and the other stadiums in MLS.

Steven Stark and Harrison Stark are the authors of World Cup 2010: The Indispensable Guide to Soccer and Geopolitics recently published by Blue River Press.   The book combines humor, soccer knowledge and a bit history to discuss the World Cup from a variety of angles.  In addition to in depth previews of each team, the book also provides discussion on the politics of hosting, the background of the tournament and offers some predictions on the result.  The first part of the book provides context for the event, while the team guides will be a great companion for  fans looking for insight into the teams on the field.

The Starks were kind enough to take a few questions from us about their book, the politics of the World Cup and the games coming to South Africa.  Thanks to the Starks for a few minutes.

Footiebusiness.com: The book discusses the impact of the first African World Cup and addresses the politics, geography and climate that will make 2010 unique.  Recent reports indicate that ticket sales for South Africa are falling well short of expectations. How do you believe those elements that make South Africa a such a unique destination for the World Cup are affecting ticket sales?  Why are fans staying away?

Steven Stark/Harrison Stark:  There are a couple of things going on here.  It’s a long trip to South Africa for everyone – and an expensive one too. We’re in the middle of the worst economic downturn in over a half century, so money is tight. And, any time you put the World Cup in a locale that is not one of the leading industrial nations of the world, some people are going to be scared away.

For the home nation, we write in the book that like everything else in South Africa, the nation’s attitude to the sport is inextricably tied to the history of apartheid. Most whites in South Africa are more cricket and rugby fans than soccer ones. So that’s a sizable part of a potential audience, too, that may not be buying tickets.

FB: In addition to the geopolitical and historical elements, the book also provides detailed information on each team coming to South Africa.  Was the book  written for the “hard core” soccer fan or someone watching soccer for the first time.  How did you balance the difference in knowledge and interest among your target readers?

SS/HS:  We tried to reach both audiences. In a sense, the chapter introductions may be more geared to a first-time fan (along with the country profiles), while the team discussions are more geared to the hard core fan.

FB: The book offers a series of predictions about the results and classifies teams based on their level of expectation.  What is your basis for those predictions?

SS/HS: Well, we watch a lot of soccer and read a lot about it too. But in the book, we make the point that the World Cup is unusual in that pedigree tends to count for an enormous amount in trying to determine who will do well. A very small set of countries – namely Brazil, Argentina, Germany, and Italy – tends to dominate this tournament. That doesn’t necessarily mean they’ll win again but they’re always the best bets.

FB: What efforts have been made to market the book?  Have you been doing book signings and radio/TV interviews?  What types of stores will be carrying the book?

SS/HS: Hopefully the book is available everywhere, both on line in places such as Amazon and in stores. We are doing a tour featuring New England, New York, and California and we will be doing a fair number of radio/TV interviews. Information about all those is available on the book website (http://worldcupsoccervoice.blogspot.com/) and on booktour.com . We’re also analyzing the Cup for realclearsports.com.

FB: The cover depicts two prominent players (Ronaldinho and Beckham) who will not feature for their national teams? Was thought given to changing the cover to reflect that reality?  Do you think that “hard core” fans will be turned off by the cover photo?

SS/HS: Don’t judge the book by its cover! Yes Beckham got hurt after we had gone to press. But no, it’s too late to change things now.

FB: Finally, given soccer’s place on the American sports landscape, why do Americans purchase more tickets than any other country for the World Cup?  What does that mean for the future of the game in the United States?

SS/HS: It’s certainly a hopeful sign but one shouldn’t read too much into it. As we said before, this is a hard Cup for anyone to get to, and we’re a wealthy and large country so we have more fans available who can make the trip. Last year’s run to the Confederations Cup final may also have convinced some Americans that this team has a chance to do well.