Since we are out on the road today and since things are fairly quiet in the world of soccer business (sorry Mr. Kroenke), we thought we would revisit a post that generated a bunch of interest when it first came out. The subject? The mysterious finances of MLS that were partially revealed as part of efforts to secure funding for the renovation of PGE park.
In a report prepared by HVS, many MLS financial numbers became public for the first time. The report is here. Because many of you may have not seen the report, we thought it would be worthwhile to bring back the link and sum up some of the highlights.
The report projects finances from 2011 (when Portland enters the League), until 2015 and aggregates data from past seasons. Total MLS stadium revenues for 2011-2015 are projected at $14-15 Million per year. This includes ticket sales, advertising, naming rights, concessions and more.
The report also addresses season ticket sales for 2007 and 2008 with Toronto the high (16,641 in 2008) and Chivas the low (837 in 2008). The report does not include Seattle’s 22k for 2009. Most teams fall in the 3-5k range, but the League did show a 26% increase from 2007 to 2008 (including the addition of San Jose in 2008).
Because the report focused on the viability of a stadium in Portland, many of the numbers focus on seating, concessions, merchandise and other game day items. Around the League, Club prices range from $5,000 (both L.A. teams) to approximately $1,000. Suites range from $154,000 per year (Galaxy) to $21,000 per year (KC). Some teams sell suites by the game, while most offer only annual purchases.
Stadium naming rights are also discussed; The Home Depot Center is a $70 million deal for 10 years, while Pizza Hut Park is $25 million over 20 years. Dick’s Sporting Goods Park is a $40 million two year deal and Rio Tinto is a $1.5-$2 million dollar annual deal (for 15 years)The report also projects annual ticket sales in Portland (well below the mean), ticket prices, revenue from non-soccer events and more.
This is a fascinating picture of the League’s current, past and future finances. Based on these numbers, the City of Portland and presumably investors in Vancouver, Portland, Philly and St. Louis were eager to buy into MLS. The report makes for fantastic reading (in its entirety) and will definitely make for interesting conversation.
What are your thoughts? Are their numbers in the report that surprise you? Impress you? Let us know.