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April 30, 2006
Business Week: A Breakout Year for Soccer
As we wrote here last November, we think MLS is on the verge of turning the corner on profitability. With the World Cup less than six weeks away, Business Week has weighed in on the issue and guess what? They agree.
We think this bit from their article is particularly important:
Over $1 billion has flowed into MLS in less than two years as investors sense that the league may be at a tipping point. Red Bull, the sassy Austrian energy-drink company, recently plunked down $100 million to buy the New York franchise. The owners of the Toronto Maple Leafs hockey team announced they would buy an MLS franchise next season. Dave Checketts, former general manager of the NBA's New York Knicks and Utah Jazz, bought Real Salt Lake last year. Jorge Vergara, CEO of Grupo Omnilife and owner of Mexico's famed Chivas of Guadalajara soccer club, bought Chivas USA in Los Angeles... More important, Adidas-Salomon last year said it would invest $150 million in the league over the next 10 years.
Posted by Jay at 10:26 PM | Comments (0)
April 10, 2006
DC stadium plans on track, says team CEO
The Washington Business Journal has an interview with DC United CEO Dave Payne in their latest issue and, according to Payne, things are on track for DC United's proposed stadium on the Anacostia River.
"It is our hope that we will be playing in the new stadium either in 2008 or at the very latest in 2009," the paper reports Payne said.
While there are still any number of things that could go wrong—the deal is contingent on a federal land swap which is working its way through Congress—it looks as though there are plenty of things to look forward to for DC fans.
The Business Journal also noted that Payne had an optimistic view of the future of the league. "We have a number of new markets that are kind of knocking on the door with ownership in place. We have a television contract for 2007 that will pay us rights fees for the first time. There is just a lot of good news. There is a number of new stadiums either online, under construction or about to begin throughout the league, so many of the fundamental building blocks of our league are moving in the right direction."
Posted by Jay at 01:23 PM | Comments (0)
April 06, 2006
Ronaldo to the Red Bulls?
Here at SSV Blog Central, we are feeling particularly prescient today. On March 7, almost exactly a month ago, we wrote the following about Red Bull's investment in MLS:
So, what if MLS has embraced that rule? Imagine a team with, say, Zinedine Zidane and Thierry Henry playing just outside New York City. Would attendance go up? Could you sell TV rights to Europe so the fans there have some footy to watch in the summer when their domestic leagues are on break? Would American TV ratings go up? Yes, yes, and yes. Would owners still be making a much smaller investment than it would take to buy a team in the EPL, La Liga, or Serie A? Yes. With a recognized world star or two on each roster, MLS becomes a very different creature in the eyes of the world soccer community.
So why are we so glib? Because today, Michael Lewis of the NY Daily News and Big Apple Soccer is reporting that the Red Bulls are interested in signing Ronaldo from Real Madrid. Wait, it gets better—Ronaldo is also interested in playing for the Red Bulls.
Read the article. It's good stuff, and there's a hilarious quote from Mo Johnston.
We'll also offer up one other observation. The article mentions that Ronaldo, Zinedine Zidane, and David Beckham each only make $8.25 million annually from playing soccer—the rest of their vast incomes is derived from endorsements and image rights. By comparison, Ken Griffey Jr. is going to make nearly $13 million this year playing baseball for the Cincinnatti Reds. The average salary in Major League Baseball was nearly $2.5 million in 2005. Shaquille O'Neal is making $20 million this year to drag his body up and down a basketball court. The average NBA player makes about $4 million.
My point? American sports owners are not afraid of writing big checks to their players. If MLS owners get a good return on investment from the Beckham Rule, watch out—because the world of soccer will change very, very quickly.
Posted by Jay at 01:16 PM | Comments (2)
April 02, 2006
Well done, Houston
It's a bittersweet opening day in MLS for San Jose Earthquakes fans. The team we remember as ours played its first game in Houston today, spanking ex-Quake Joe Cannon and the Colorado Rapids 5-2 behind a whopping four goals from Brian Ching. Well done, guys, even though it's weird as hell seeing you wearing orange and playing somewhere else.
We saw the AP story about the game and noted that the attendance was reported at 25,462. Knowing that some MLS teams have fluffed their numbers a bit in the past, we checked in with a source who was at the game. His take? "The crowd was probably closer to 30K."
Which brings me to the following. On the dark day last December when we learned that the team was being moved, we wrote a letter to our members that closed with the following paragraph:
Finally, we have a message for the soccer fans in the city of Houston. The team you are inheriting from San Jose is the best in MLS. The players, coaches and staff are not only good at their jobs, though—they are also fine people. Although it grieves us greatly to lose them, we would ask that you recognize the tremendous gift that you have been given. Please support them as we have supported them.
It's a bit too early to tell whether Houston fans will match the enthusiasm of those in the Bay Area over the long term but we have to say, they're off to a great start. To them, we wish the best of luck and we look forward to a new Earthquakes team kicking Dynamo butt as soon as possible.
Posted by Jay at 10:38 PM | Comments (2)