Only three of the teams in North America’s Major League Soccer competition are profitable: Los Angeles Galaxy, FC Dallas and Toronto FC. The last club might seem surprising given that they have served up two seasons of last place soccer. But there are plenty of British expats in that part of Ontario who are hungry for live soccer. However, a local correspondent tells me their presence is not the main factor and the club is attracting a much younger demographic who have no experience of live football in Britain.
Only three of the teams in North America’s Major League Soccer competition are profitable: Los Angeles Galaxy, FC Dallas and Toronto FC. The last club might seem surprising given that they have served up two seasons of last place soccer. But there are plenty of British expats in that part of Ontario who are hungry for live soccer. However, a local correspondent tells me their presence is not the main factor and the club is attracting a much younger demographic who have no experience of live football in Britain. The club has certainly been a good earner for Maple Leaf Sports and Entertainment. The franchise, purchased less than three years ago for 10m US dollars is now valued at $44 million. It produced a decent $2.1m profit in the initial season. Los Angeles Galaxy have the highest valuation of any MLS side at around $100m.
Barca Bid for US Franchise – 19/10/08
Globalisation in football seems to be alive and well to judge by Barcelona’s bid for one of the two new franchises available in North America’s Major League Soccer (MLS). The top brass at Barca, one of the biggest brands in sport, flew to Miami to announce their plans. Their bid partner is Marcelo Claure, a Miami-based Bolivian and joint founder of Brightstar, the world’s biggest wireless telecom distribution and supply chain management group. If successful, Barcelona’s team would play at the Florida International University Stadium in Miami. The franchise would begin in 2011, when the stadium’s capacity would be 21,000, but the bidders would like to start a year earlier. Barcelona has watched with envy the way in which the global reputations of English Premiership clubs have grown, allowing teams like Chelsea to make inroads in overseas markets such as the US. But, unlike their English rivals, Barcelona has other professional sports clubs and the US offers scope to develop its basketball business.
The MLS is understandably delighted at interest from a club of the standing of Barca. MLS president Mark Abbott points to the rising cost of franchise fees as evidence of investor interest. They have gone up from $7.5m in 2005 to $40m now. Mr Abbot says that MLS is growing thanks to the support of two groups – the immigrant population and those in their 40s who were exposed to the game as youngsters when Pelé led an ultimately ill-fated assault on the US market in the 1970s. However, average attendances of 16,000 are small by European standards. Those who play the game as youngsters watched over by their ‘soccer moms’ often gravitate to more traditional American sports such as baseball and American football as spectators.
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