Soccer Business Bits

Here is a look at some business stories making headlines in the soccer world. First, we recommend this read from Yahoo Sports looking at Major League Soccer television ratings early in the 2012 campaign.  The article looks at the dramatic increase in NBC ratings when compared to FOX Soccer’s ratings in 2011.  NBC Sports Network is averaging 106,000 viewers per match.  According to the article, the “magic number” is 100k viewers and the league is just scraping over that number now.

Keeping with the television theme, Fox announced that every game of the English Premier League’s final weekend will be aired on American television.  Seven different Fox networks, including Fuel, Speed, FX and others will televise matches on May 13 as part of “Survival Sunday.”  The final game will be broadcast on ESPN’2  per the network’s relationship with the EPL.  Between Fox’s mid-day broadcasts of the EPL during the NFL season, promotion across other brands and other aggressive measures, FOX has really upped its effort to sell soccer.  This may be part of its bigger plans for the 2018 and 2022 World Cups.

Commissioner Garber spoke to a group of AP reporters on Thursday hitting on a number of typical business themes.  These included New York expansion, league television ratings and the success of new teams in the league.  One notable addition was the suggestion that the league would be a willing guinea pig as part of efforts to bring goal line technology to soccer.  The league would welcome the opportunity to sit at the forefront of these efforts.  This is a good fit for the league because American sports fans are comfortable with the use of technology to improve game accuracy.  The technology will not lead to any appreciable delays (it alerts the refs within one second if a goals is scored).

Looking at MLS MatchDay

Just got a new i-phone today and one of the first things I added was the MLS MatchDay App.  Let me say that I was blown away.  The App is a huge improvement over prior iterations and provides great functionality optimized for the small screen.  In full disclosure, I am not a “techie,” so I am sure there issues with the App that are not readily apparent to my uneducated eyes.  Nevertheless, I found the App outstanding, and that is before utilizing the link with MLS Live.

Some of the highlights include the ready availability of highlights, stats, standings and more, all optimized for the phone screen.  The News screen is easy to read, well organized and does an effective job of aggregating stories by up to three “favorite” teams.  Perhaps the most interesting component of the individual team pages is the aggregation of Tweets by team players, staff and official accounts.  Even for those who don’t have Twitter, this feature provides great one stop shopping for the 140 character thoughts of those affiliated with a team.

Perhaps best of all, the App is free (excluding the MLS Live component).  It really is a “must” for MLS fans.  While much of the content is duplicated on the league’s website, the mobile functionality is definitely worth having.

Soccer Stadium Update

It has been way too long since the last Footiebusiness stadium update post, but with two new/renovated parks set to open in the coming weeks, here is a quick look at three stadium projects around the league.  We’ll start in Houston, where the Dynamo’s new home is called BBVA Compass Stadium.  The 22,000 seat stadium will host its first Dynamo match on May 12, 2012.  The stadium will be shared with Texas Southern Football and other local events.  Total cost of the projected stadium is expected to be about $95 million with the Dynamo ownership (primarily AEG and Golden Boy Promotions) funding about $60 million.

The stadium includes 33 suites in close proximity to the field and 2 party suites.  Construction is moving along nicely.  Those standing on the grass field will have the opportunity to look at 75 foot canopies hanging over the stands.  The downtown stadium is part of a stadium district that includes facilities for a number of Houston’s sports teams.  The team just finished hosting a job fair for positions at the new park.  Corporate partners at the stadium include, Bud, Mambo Seafood, Dr. Pepper/Snapple, AT&T, Mazda, Kroger, greenstar, Statoil and Methodist Hospital System.  A link to the stadium construction webcam is here.

Finally, in San Jose, things have been reasonably quiet since last February.  At that time, a vote by the San Jose Planning Commission upheld earlier action by the same board in December.  However, concerns raised by a neighbor to the project had required additional action.  The team is aggressively targeting next Summer to open the new venue.  A rendering of the proposed stadium is here.

In Montreal, Saputo Stadium is continuing to move towards completion. The stadium is expanding to just over 20,000 seats and the roof will now hang over the upper rows of each grandstand.  As a result, about one third of seats will be covered.   There will be more than double the number of  suites and 5x the number of concesssions.  The stadium is accessible by two suway stops and includes a synthetic surface training field next door.  For photos and a virtual venue, click here.

Monday After

Some quick thoughts before we get to the Major League Soccer attendance.  First, I’ve started to see promotions for MLS during the NBC broadcasts of the Stanley Cup Playoffs.  As previously noted, the hockey games draw huge eyeballs and regular promotions should drive some traffic to NBSCN telecasts of soccer.

Second, the schedule of games this weekend was telling.  When TFC first joined the league, they were one of the few franchises to schedule games for late Saturday afternoon.  These times had previously been a soccer dead zone, and summoned memories of the Clash playing the Burn before a sweltering, high school sized crowd at 4:00 from the Cotton Bowl in the league’s early years.  However, since TFC returned to the practice of scheduling these matches, other teams have followed suit.  This past weekend, Philly, New England, Seattle and TFC all hosted mid-afternoon games.  Whether this trend will continue and will positively impact televising ratings remains to be seen.  However, it is telling that many of the league’s newer franchises prefer these afternoon games.

On to attendance, more than 18,500 turned out for Philly’s first win of the season in a nationally televised battle.  Perhaps suffering from sports overload in Beantown, the Revs only mustered 10k+ for their home loss to DC United.  Seattle managed more than 38k for their afternoon tilt while TFC also managed almost 18,500.  Other than the Revs (who have suffered with early season gate issues for a while now), these crowds suggest that afternoons are workable.  However, the “big 3″ are also “new” MLS teams.

In the evening games, Sporting managed a bit crowd in excess of 19k for their much hyped match against RSL.  FC Dallas followed with a very solid 16k+ while the Red Bulls managed just over 17k.  Later in the evening, more than 22k were treated to a Galaxy win and clinching Beckham goal.

Critical Mention Update

It has been far too long since we have looked at the Critical Mention website for references to MLS.  Over the last year or so, we have discussed MLS’ efforts to measure the value of its television exposure through various local and national broadcasts.  Through the website criticalmention.com, MLS tries to alert media  to the “value” of its presence on various television programs.

In advance of the Summer Olympics in London, David Beckham will be the first male solo cover model for Elle UK Magazine.  The upcoming feature rated a mention on E! News and reached almost 800,000 viewers in its 7:47 p.m. times slot.  The program lasted approximately 30 seconds and provided an estimated $52,000 in value.  However, although the clip provided exposure for Becks, neither MLS nor the Galaxy rated a mention in the spot.  For a direct link, click here.

Elsewhere, the Chicago Fire got some positive local press for a charitable effort in the community.  The telecast was part of the Fox affiliate in Chicago’s nightly news.  The story reached more than 190k folks in the third largest television market.  Critical Mention estimates the value of the publicity from the broadcast at more than $35k.  For a link to the clip, click here.

Finally, we’ll look at KONG in Seattle where the King News at 10 included a lengthy bit on the Sounders.  Most remarkably, the clip included highlights from the Sounders’ reserve match.  That is the first time I have ever seen that! The clip also included an interview with Freddy Montero, highlights of the last match and a promo for the next league game.  According to Critical Mention, the clip reached 50k people for $2200 in publicity.  The clip can be seen here.

Soccer Business Bits: Chelsea Comes to Town, Smart Soccer & More

The Philadelphia Inquirer is reporting that English Premier League power Chelsea will be the opponent for the 2012 iteration of the Major League Soccer All Star Game.  The match will be played at PPL Park and the official announcement will take place tomorrow at 11:30 a.m.  Manchester United was the opponent for the last two AS Games and Chelsea was last the opponent in 2006.  Chelsea will play at least two other matches as part of their US tour, including Seattle and AC Milan.  Notably, Chelsea, like MLS, is adidas sponsored.   The game will undoubtedly sell out and will generate some publicity for the Union in the City of Brotherly Love.

Today it was announced that AT&T will present the the All Star Game as the “first smart soccer game.” The game will showcase the new miocoach  philosophy provided by adidas. According to the league’s press release “the micoach professional soccer team tracking system provides coaches with “real-time performance metrics,” including player position, power output, speed, distance covered, intensity of play, acceleration and GPS heat mapping. It can then all be outputted and displayed on a mobile tablet or computer over a WiFi network. And it is not only for coaches and players to assess their performance. There are numerous consumer applications. MLSsoccer.com is currently developing several digital products to incorporate the micoach data and bring fans closer the game than ever before.”

Finally, the NHL Stanley Cup Playoffs start on Wednesday and the NBC Sports Network and NBC will broadcast an enormous number of games over that time.  The playoffs are easily the NBSCN’s biggest viewership grabber and could be a vehicle to promote the network’s other live sports property.  It will be interesting to see what efforts the network makes to push soccer during its hockey telecasts.

Objective Player Analysis: Part II

Dave Laidig is back with the second part of his series looking at the use of statistics and numbers in soccer.  For Part I, click here.

In part 1, we reviewed Opta’s Castrol Index ratings of MLS players and
an adjusted index minimizing statistical anomalies.  In this part, we
use the objective performance data – i.e., the Castrol Index and the
adjusted ratings – to analyze the relative contribution of the
different positions, and to serve as the basis of determining the
value of each position.

The beginning of Part 2 relies heavily on the work of Benjamin
Leinwand and Chris Anderson, available at
http://www.soccerbythenumbers.com.  In short, I attempted to replicate
their work, and then extend the new areas.  I am indebted to their
efforts, and appreciate their willingness to share their results with
the public – and to start a conversation that consumes large chunks of
my free time.

Using both the Castrol Index and my adjusted scores, I set about
replicating the Leinwand- Anderson analysis.  Their analysis created a
regression equation using a team’s average Castrol Index rating for
each position and the team’s league points (i.e., a mathematical model
roughly summarized as: a Constant + Fwd Rating + Mid Rating + Def
Rating + GK Rating = Expected League Points).

The Leinwand- Anderson analysis reported Defenders have higher average
Castrol Index scores.  And the Defender position was the only one
significantly related to league points in a multiple regression
equation; an equation including a team’s average Forward, Midfielder,
Defender, and GK ratings (which are 7.07, 7.09, 7.59, and 6.53
respectively).  Considering forwards are paid more than Defenders,
this suggests that investing in defenders may be a more productive use
of resources.  Using publically available data, I was able to recreate
their result, although some of my interim calculations were a touch
different.  Replicating their process as best I could, I obtained an
R-squared of .62; meaning this model roughly explains about 62% of the
variation in a team’s league points.  Perhaps more importantly, and as
originally reported, only one position group resulted in a significant
relationship with the league table.

As stated in Part 1, I believe the Castrol Index can be improved,
especially among players with lesser playing time.  Accordingly, I ran
my adjusted index scores through the same process as the Leinwand-
Anderson analysis.  Notably, defenders still retained a higher average
rating over midfielders and forwards (7.89 versus 7.58 and 7.67
respectively), but the position averages became closer with using the
adjusted index.  Using the adjusted ratings, the R-squared value was
.72; which adds 10% over the model using the original Castrol Index
ratings.  Consequently, the adjusted ratings were a better predictor
of team performance.

Next, I attempted to address a unique soccer feature of the regression
equation.  The Leinwand- Anderson equation treats Forwards,
Midfielders and Defenders as equal units.  But we know, depending on
the formation and game situation, there are uneven numbers at each
position.  Thus, I modified the equation to account for the relative
time contribution of each position.  To do this, I used average
position score from the first analysis, and weighted it by that
position’s contribution to the overall team minutes.  For a math
illustration, the LA Galaxy forwards may have an adjusted index
average of 7.17, and contribute 20% of the team’s minutes.  I would
then report .2 * 7.17 or 1.43 as a value of that position’s point
contribution to the team.

By considering playing time with each position, the multiple
regression equation for the position’s adjusted point contribution was
significant for Forwards, Midfielders, and Defenders, with a
non-significant p-value of .14 for Goalkeepers.  Thus, this model
permits analysis of all field positions, not just defenders.  In this
model, defenders have a larger regression coefficient than
midfielders, which is larger than forwards.  This would support the
notion that defenders contribute more to wins than other positions.
Further, the R-squared value was .78; which, by explaining 78% of the
variance in league minutes, represents the model with the greatest
explanatory power (compared to .62 for the Leinwand- Anderson model
and .72 for the Leinwand- Anderson using adjusted index ratings).

Although this mathematical model shows each position’s contribution to
league points, the model is clumsy for team use.  Contracts are
determined player by player, and not position group by position group.
Thus, in order to make the equation useful, the regression equation
coefficients need to reflect the value of one player. Consequently, I
considered league data and determined forwards accounted for 19.0% of
all league minutes, midfielders 39.5%, defenders, 32.2% and
goalkeepers 9.1%.  With eleven players, I calculated how many
“players” were assigned to a particular position group.  Using
forwards for example, this position had 2.1 players’ worth of league
minutes applied to this position’s regression coefficient.

As a result, the estimated impact of inserting a field player with a
higher adjusted index score on the team’s league points can be
calculated.  Recalling our model, the defender position group had the
highest contribution to league points.  But when comparing a single
player to a single player, the value of a forward was greater than
that of a defender.  This result is due in large part to the defender
group consisting of more players than forwards, thus the defender’s
contribution is diluted by the extra players incorporated into its
effect.

To illustrate, I went back to my adjusted index scores to provide some
examples for each position.

Upgrading from a median forward to an 80th percentile forward
(represented by Zusi) would expect to yield an additional 7.98 league
points.  Upgrading from a median defender to an 80th percentile
defender (AJ DeLaGarza) would expect to yield an additional 4.68
points.  And upgrading from a median midfielder to an 80th percentile
midfielder (Zach Lloyd) would expect to yield an additional 3.03
points.

And this model can be adapted to a team’s current system of player
valuation (instead of using the adjusted index or Castrol Index) by
using the assumption that player distributions are similar. And while
the player rating distributions may not exactly replicate the adjusted
index, this method provides structure for roster management decisions.

Upon review, one is justified in saying defenders contribute more to
wins.  With a closer inspection, we see less variability among
defenders compared to other positions.  And on a player by player
basis one can justify paying more for a forward upgrade because of
greater expected results.  In sum, forwards may be more valuable for
their combination of rating and scarcity.

However, this analysis alone does not justify current expenditures.
In Part 3, we will consider how salary affects team success and
whether salary is associated with player performance.

Monday After

Over the weekend, the Colorado Rapids and Real Salt Lake announced that Subaru will be the presenting sponsor of the Rocky Mountain Cup.  The rivalry will include three matches in 2012.  According to the press release, “The Rapids and Subaru will also host a special tailgate for the supporters before the Subaru Rocky Mountain Cup match. Both Subaru and the Rapids will also work with supporters’ groups to innovate ways to enhance the rivalry and assist the fans in developing the Subaru Rocky Mountain Cup. These efforts will include giveaways, special deals, promotions, media opportunities, pub crawls and more.”

The Charlotte Observer weighs in with this piece about the possibility of MLS expansion in the Carolinas.

With respect to attendance, the week opened on Wednesday where RSL played host to more than 20k fans at Rio Tinto. That is a great crowd for a mid-week game. On Thursday night in Frisco, FC Dallas knocked off the Revs in stoppage time before just over 11k at FC Dallas Stadium. Montreal continued the solid showing with more than 23k at their second home game.   In Columbus, the arrival of Thierry Henry only resulted in a crowd in the 11,500 range.   The Red Bulls are the league’s second most glamorous franchise, so the smallish crowd is disappointing.

In Kansas City, Sporting drew a raucous crowd of more than 20k for the arrival of the league’s glitziest team, the Los Angeles Galaxy.   Oddly, RSL’s second game of the week drew less than 17k after the big mid-week crowd.  In Portland, more than 20,000 came to Jeld-Wen Field on Saturday night. DC United drew a solid crowd in excess of 15k while San Jose sold its typical allotment of just over 10k.

Poll Time

It’s a holiday weekend for many, so we thought a quick business poll leading into the weekend would be fun.  The poll is seeking the biggest business surprises in the early MLS season.   Unfortunately, I couldn’t think of many surprises.  Go ahead and vote or add your own.  Enjoy the weekend!

Soccer Business Bits: French Opening, Fenway Football & More

In the wake of  Dave’s intellectual discussion from yesterday, here are a few mundane business notes.  In an item from last week, the SBJ reported that Comcast Spectator and its Front Row Marketing subsidiary are promoting the French Trophee des Champions to Red Bull Arena to open the Ligue 1 2012/2013 season.  Over the past few years the game has traveled to other locales including Morocco and Montreal.  According to SBJ, Comcast will handling game promotion while Ligue 1 carries the risk for the game.  The match is set for July 28 and tickets will range from $25-$200 per seat.

Keeping with theme of clubs coming stateside without involving MLS, it was announced that Liverpool will make its long awaited trek to Fenway Park.  The American owned EPL team will face AS Roma on July 25.  The storied baseball venue hosted soccer last Summer with great success, but given the joint ownership between the Red Sox and Liverpool, it was only a matter of time before the Reds made their way to Boston.  The ownership group has faced criticism from both sets of fans who believe that their beloved franchise is suffering from joint ownership.

One final note.  Television viewership for the various games on the NBC Sports Network continue to roll in via Twitter and the overall numbers are fairly good.  The broadcasts are averaging more than 100k which compares favorably to the rest of the programming on the NBC Sports Network other than the NHL.  The Stanley Cup playoffs are coming in the next couple of weeks and the viewership explodes for the network during that time.  It will be interesting to see if promotion by the network during those games brings viewers to MLS.

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