The Business of the Champions League: Is it Worth It?

mlsTuesday night marked the opening of the CONCACAF Champions League competition for the 2009/2010 season.  24 teams from around from around the region are competing for the right to represent CONCACAF in the Club World Cup.  This is the second season for the competition in its current iteration.  The play-in portion of the tournament started in RFK before a paltry crowd typical of the tournament. Over the next couple of weeks, 16 teams will complete the home and home portion of the tournament in order to earn spots in the group stage.

In Europe, the Champions League competition is the most prominent of club events.  Club teams throughoout the continent claw for the money, exposure and glamor of a spot in Europe.  In CONCACAF, the tournament barely registers a blip on the radar screen of the region’s soccer fans, especially in the US.  Teams must invest time, money and energy to compete in the event without the substantial rewards offered in the European version of the event.  The teams face extensive travel and generate limited revenue from ticket sales.  So from a business perspective, is it worth it?

We say yes.  As the tournament gains traction (especially in some of the newer markets), the exposure to international competition creates an enormous opportunity for exporting the League to the rest of the region.  At the same time,  the elusive American soccer fan who watches only European football gets a chance to see more MLS on FSC in a tournament that makes perfect sense to them.

At the same time, players within MLS have the opportunity to show their wares to an array of potential suitors.  Ultimately, this creates transfer opportunities which can generate revenue for the teams and the League.  Similarly, front offices in MLS have an opportunity to evaluate talent from around the region, as they watch potential transfer targets play against MLS competition.

This process will take time, and likely will be a money loser for some time.  Yet the Champions League is an important business opportunity for Major League Soccer.  Ticket sales will come, as will television revenue and popularity over time.  Of course, it would help of MLS teams show well in the event.

3 Responses

  1. Do you have an information or idea how much the Liberatores cup makes in money. I know it is a really good tournament, but they face similar travel problems as well. Im sure the larger crowds let them turn profits, but how much differences is there between our CCL and theirs?

  2. The crowds are an enormous difference. Even UEFA has travel concerns…Manchester to Kiev is not a short flight.

    I don’t know how much the prize money is for Liberatores

  3. I found these numbers for the 2008 Copa Lib.

    Group Stage (8 groups) $115,000 per home match
    Round of 16 Winners $161,000
    Quarterfinal Winners $207,000
    Semifinal Winners $287,500
    Runner-up $345,000
    Champion $575,000

    So far I have been unable to find any number for the CONCACAF CL

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