Understanding Sports Business Models

[cpwilson80]

http://www.businessweek.com/bwdaily/dnflash/sep2002/nf20020923_8893.htm

Business Week has a quick overview of how the revenue breaks down in Football, Baseball and Basketball.

Interseting how the article points out revenue sharing and competitiveness in the league as two strong points. IS MLS not the epitome of both? ;)

[seahawkdad]

Well, yes, but there are other factors that seem to still be making it an uphill battle.

This week's Business Week has an article on the MLS which is basically saying that soccer still isn't making it as a spectator here, with all the usual explanations.

It is, however, an evenhanded article. And it's basic theme is that it may be too soon to tell. It closes by reminding that it's a young sport and that in 1961 there were only 8 NFL teams, even though the league had been around for 50 years.

I'd provide a link, but it won't be available to non-subscribers until next week.

It does mention Aunschwitz's problems with business ethics questions...

Which is a segue into my pet theory of why he's in the game. I think if you look at the pattern of his holdings, he's in the entertainment center business, making his money in this arena (so to speak) through admission, TV rights, concessions and parking. It's just a good think that he's spotted soccer as a potential growth area that no one else was tring to occupy.

What do you think?

[Real Ray]

Originally posted by seahawkdad
Which is a segue into my pet theory of why he's in the game. I think if you look at the pattern of his holdings, he's in the entertainment center business, making his money in this arena (so to speak) through admission, TV rights, concessions and parking. It's just a good think that he's spotted soccer as a potential growth area that no one else was tring to occupy.

What do you think?

I think you're 100% right. I would even go as far as to remove the "pet theory" qualification. There was a previous article in Business Week, that I thought summed up his style very well For Anschutz, who made his billions not only in railroads and telecom but also in oil and real estate, the concept of an out-of-home empire is as simple as putting up a shopping mall: First you build or buy the real estate, then you secure anchor tenants. The model is the $407 million Staples Center he built in 1999. Today, Anschutz fills Staples an impressive 250 days a year with events, including Kings and Lakers games. He is currently building a $120 million stadium in Carson, Calif., for one of his pro soccer teams, as well as arenas in London and Berlin for two of his six European pro hockey teams

http://www.businessweek.com/magazine/content/02_16/b3779088.htm