MLS money: fans bring the dough, Interesting facts on TFC vs MLS teams

[tfcmanu]

"Toronto FC was one of the most successful launches in pro sports history" [Forbes].

Three MLS teams were in the black in 2007: Los Angeles Galaxy, FC Dallas and Toronto FC. Sure, that season was well before the tumble, but the fact is there were profits, proving soccer here can mean good business.

Toronto was the big surprise, given other first-year franchises have struggled to land both loyal fans and sponsors. But as MLS comish Don Garber said, with perhaps just a hint of hyperbole, "Toronto FC was one of the most successful launches in pro sports history" [Forbes].

He could be right: in its inaugural season, Toronto sold out its entire 20,500-seat BMO field.

http://www.examiner.com/x-3716-MLS-Examine...bring-the-dough (http://www.examiner.com/x-3716-MLS-Examiner~y2009m2d22-MLS-money-fans-bring-the-dough)

[joel]

The part you are quoting from the article was from a Forbes article back in Sep 08

http://www.forbes.com/2008/09/09/mls-soccer-beckham-biz-sports-cz_kb_0909mlsvalues.html

So you're quoting a quote

[Parkdale]

So you're quoting a quote


and I just quoted you.

[torfchamilton]

And with 11 of 15 clubs now with shirt sponsors—including new franchise Seattle's five-year, $20 million jersey-plus-playing-surface Microsoft (http://seattletimes.nwsource.com/html/sounders/2004444715_soundersfc29.html) agreement

From the article, what is the playing surface Microsoft agreement?

[tfcmanu]

The part you are quoting from the article was from a Forbes article back in Sep 08

http://www.forbes.com/2008/09/09/mls-soccer-beckham-biz-sports-cz_kb_0909mlsvalues.html

So you're quoting a quote

AND......quote from forbes..you are rite here is a smiley face:)

[noochie]

From the article, what is the playing surface Microsoft agreement?

It's just a naming rights thing... for Sounders games it will be known as the The XBOX Pitch @ Qwest Field.

[BakaGaijin]

“The league’s second-smallest market with a dearth of sponsors and non-soccer events held at their stadium, nowadays the Crew set the standard in just one category: operating loss.”

LOL.

[Detroit_TFC]

From the article, what is the playing surface Microsoft agreement?

If the Sounders start losing, the field will turn blue and then black and the game will start over.:D

[BFin]

“The league’s second-smallest market with a dearth of sponsors and non-soccer events held at their stadium, nowadays the Crew set the standard in just one category: operating loss.”

LOL.
SOMEONE MAKE A BANNER FOR COLUMBUS!!!

[I_AM_CANADIAN]

"Toronto FC was one of the most successful launches in pro sports history" [Forbes].

Three MLS teams were in the black in 2007: Los Angeles Galaxy, FC Dallas and Toronto FC. Sure, that season was well before the tumble, but the fact is there were profits, proving soccer here can mean good business.

Toronto was the big surprise, given other first-year franchises have struggled to land both loyal fans and sponsors. But as MLS comish Don Garber said, with perhaps just a hint of hyperbole, "Toronto FC was one of the most successful launches in pro sports history" [Forbes].

He could be right: in its inaugural season, Toronto sold out its entire 20,500-seat BMO field.

http://www.examiner.com/x-3716-MLS-Examine...bring-the-dough (http://www.examiner.com/x-3716-MLS-Examiner%7Ey2009m2d22-MLS-money-fans-bring-the-dough)
Not one hint of hyperbole; which is why I can't understand the league considering places like Miami over established soccer towns like St. Louis, Montreal and Vancouver. Another fan-less franchise is the last thing MLS needs for both its credibility and profitability.

[Don Julio]

Not one hint of hyperbole; which is why I can't understand the league considering places like Miami over established soccer towns like St. Louis, Montreal and Vancouver. Another fan-less franchise is the last thing MLS needs for both its credibility and profitability.

Toronto was not an "established soccer town". What are you talking about?

[TFC_Chris]

If the Sounders start losing, the field will turn blue and then black and the game will start over.:D

Nah, the centre circle will light up with 3 red lights around it. :hump:

[I_AM_CANADIAN]

Toronto was not an "established soccer town". What are you talking about?
I'm saying in the future. Odds are, Miami are going to fare no better than they did last time they had an MLS team. Why pick a place that will probably become another KC over places that would go wild over an MLS team?

Although I, for one, always thought TFC would do well as long as they weren't run like a Mickey Mouse team, ala Lynx. There are certainly enough football fans in this city.

[ensco]

I questioned the Forbes story at the time it came out. I'm not buying that the Galaxy and FC Dallas were profitable.

I'd bet the only team that made money other than TFC was DCU, because they actually get 16,000-18,000 paying fans. Maybe Houston also.

I don't care what AEG says, I've been to the HDC, most of those luxury boxes are dark, and the attendance is inflated. The supposed $6 million that the team gets for "sponsorship" from Amex, Delta and Valero is a fantasy - it's simply not true. They get a tiny fraction of that. Further, the jersey sales do not make millions for Herbalife or the Galaxy - most of that goes to Beckham.

Does the Galaxy's supposed profitability reflect Beckham's $6.5 million salary, which exceeds the whole operating budget of most MLS teams?

As for FC Dallas, they have huge problems. Actual, not reported, attendance is a joke. The media down there don't even cover the team. The Dallas Morning News have Stars offseason stories on FC Dallas gamedays, but nothing about the Hoops. That team is in trouble, I don't care what MLS HQ says.

[I_AM_CANADIAN]

I'd like to know what infallible source you have to back up those claims. Beckham sells shirts, he puts fans in the seats of the biggest SSS in the country, which is owned by the Galaxy. I don't see how them being profitable is implausible.

[Nomad]

I questioned the Forbes story at the time it came out. I'm not buying that the Galaxy and FC Dallas were profitable.

I'd bet the only team that made money other than TFC was DCU, because they actually get 16,000-18,000 paying fans. Maybe Houston also.

I don't care what AEG says, I've been to the HDC, most of those luxury boxes are dark, and the attendance is inflated. The supposed $6 million that the team gets for "sponsorship" from Amex, Delta and Valero is a fantasy - it's simply not true. They get a tiny fraction of that. Further, the jersey sales do not make millions for Herbalife or the Galaxy - most of that goes to Beckham.

Does the Galaxy's supposed profitability reflect Beckham's $6.5 million salary, which exceeds the whole operating budget of most MLS teams?

As for FC Dallas, they have huge problems. Actual, not reported, attendance is a joke. The media down there don't even cover the team. The Dallas Morning News have Stars offseason stories on FC Dallas gamedays, but nothing about the Hoops. That team is in trouble, I don't care what MLS HQ says.


I've been to HDC as well and the crowd was a sell out when i was there.

If you have sources for your claims on sponsorship and jersey sales, i'd like to see them.

[ensco]

I'd like to know what infallible source you have to back up those claims. Beckham sells shirts, he puts fans in the seats of the biggest SSS in the country, which is owned by the Galaxy. I don't see how them being profitable is implausible.

Here's the source for most of the stories about the Galaxy's business "genius" in the Beckham deal.
http://www.sportsbusinessjournal.com/index.cfm?fuseaction=article.main&articleId=55652

On the ticket stuff, sure. On the luxury box stuff, not buying it. Ask anyone who has been to a game out there. Many boxes are dark. On the sponsorship dollars.....major nose strecher. Most of the people in the sports marketing business think what the Galaxy were claiming was impossible to believe. The $6 million a year in sponsorship dollars represents a huge premium to what the Lakers were getting, for instance.

Here's what there is on the jersey deal. Beckham gets 40-50% of sales which, after manufacturing and distribution costs, doesn't leave much for the team or the sponsor (I think the sponsor gets nothing, probably).

http://sportsillustrated.cnn.com/2007/writers/grant_wahl/01/17/beckham.qa/index.html

Believe what you want.

[deltox]

DCU have to pay A LOT of money for rent per game. theres no way they make money.

[ensco]

DCU have to pay A LOT of money for rent per game. theres no way they make money.

Ahhh. Didn't know that.

[GuelphStorm2007]

Hopefully some of the teams like DCU will move into there own SSS. Because they must be paying a arm and leg for rent. Hopefully in the Future MLS Will expand to cities that have some sort of Soccer culture. A lot of people are high on St Louis, Which is not bad but there is a lot of competion there for Sports dollar . You have the Cardinals, the Rams all playing at the same time there. Hopefullly they will expand to cities like Portland,Montreal,Vancouver, Honalulu. were there is not big competioin for the Sports dollar there.

[gmacpheetfc]

Honalulu?

[BuSaPuNk]

Honalulu?

I thought the same thing!! Wow what a road trip that would be!! :hump:

[Daveisonfire]

From the article, what is the playing surface Microsoft agreement?

They will be playing on a giant one of these

http://www.microsoft.com/SURFACE/index.html