MLS Business

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MLS Business

Major League Soccer and USL PRO announced today a groundbreaking, multi-year partnership that will enhance the development of professional soccer players in North America, strengthen the competition in both leagues, and establish a solid foundation for future collaboration.

For 2013, the partnership will include interleague play between USL PRO and MLS Reserve League teams, and the establishment of several exclusive team affiliations.  These initial programs will immediately improve professional player development in the United States and Canada. Additional technical and commercial initiatives between the two leagues will be announced as they are finalized in the coming months.

“This partnership represents the first step in a long-term alliance between MLS and USL PRO to connect domestic professional soccer through a system that benefits player development, competition and the overall business of our sport ,” MLS Executive Vice President of Player Relations & Competition Todd Durbin said.  “Over the past several years, USL PRO has made great strides in restructuring their league in a manner that serves to complement the objectives of MLS.  This is a win-win for all involved, and it demonstrates our strong commitment to growing North American professional soccer at all levels.”

Each club affiliation will be customized to meet the needs of the respective teams, but all will include at least four players on long-term loan from the MLS parent club to its USL PRO affiliate.  Those MLS teams with formal USL PRO affiliates will not participate in the 2013 MLS Reserve League.  Neither MLS nor USL PRO clubs are required to enter into an affiliation, and specific affiliations will be announced in the coming days.

Each of the 13 USL PRO teams will compete in two interleague games against MLS Reserve teams.  With the exception of Antigua, which will play both of its games at MLS Reserve teams, USL PRO teams have been paired with a single MLS team to play a home and home series.  All interleague games will count in both the official USL PRO and MLS Reserve League standings.  Details of the fixtures will be announced in conjunction with the forthcoming release of the official 2013 USL PRO schedule.

“USL PRO has for the past several years been the most sophisticated and competitive professional soccer league under MLS,” USL CEO Alec Papadakis said. “This new partnership with MLS will elevate and strengthen the level of competition for domestic professional soccer while simultaneously creating a more sustainable financial model for team owners. As a result, we expect this partnership will forge a seamless system for the development of players and coaches, and promote the expansion of professional soccer into new North American markets.”

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MLS has become more and more profitable on the club level, mainly because clubs have started realizing the importance of soccer specific stadiums. When clubs were renting out venues that a) were much too big and b) were very very costly (some clubs spending between $50-100K per match), this already put them in a disadvantage. Not to mention that they were also losing out on other very important revenues (mostly concessions and parking) which were all being collected by the stadium owners (and NFL clubs that ran these stadiums). Since the onset of clubs building soccer specific stadiums, being able to keep all revenue streams, including additional events such as concerts, the balance sheets have been much more favorable. In the last few years, clubs such as LA Galaxy, Seattle, Philadelphia, Portland, and Toronto that have been building impressive attendance figures for MLS, which has also helped in this regard. Over the period of 2011 to 2015 the Average Projected MLS Stadium Revenues and Expenditures will be $15M in total revenues and $9.5M in expenditures. Although these aren't Man U or Barcelona type of numbers, but profits non-the-less. As of today - there are only several clubs that do not have their own soccer specific stadium (and I believe those that don't are planning or even currently building). Plus, any new expansion franchise group MUST have finalized plans of a stadium for the league to even consider them as a potential franchise candidate. Unlike the other "major" leagues in the US, MLS was founded in 1993, with its first matches kicking off in 1996, so considering that this league is still in its "infancy" it has shown respectable growth both in the front office, in the stands, and on the pitch. It has surpassed NHL in average attendance, and is slowly catching NBA. I truly feel that when MLS has the luxury of being in around for 30-40 years, which would still make it much younger than most football clubs around the world, as well as many franchises in other sports in the US, it will be even more impressive.
Last replied by Chris Campasano on Monday, 03 October 2011