Revs miss playoffs again
07 Jul 2006, 10:55 AM
Solid article on MLS and business model of soccer in the US.
http://www.bloomberg.com/news/sports/business.html
U.S. Soccer, a World Cup Dud, Sustains Pro League With TV Deals
2006-07-07 00:09 (New York)
By Curtis Eichelberger
July 7 (Bloomberg) -- Major League Soccer has learned not to
count on stellar World Cup performances by the U.S. national team
to sell the sport at home and add kick to its bottom line.
In 2002, when the unprofitable league folded two franchises,
MLS Commissioner Don Garber heard the English-language U.S.
television rights to the 2002 and 2006 World Cups might be bought
on the cheap. Garber, 48, created a subsidiary, Soccer United
Marketing, that paid $40 million for the TV package, then
negotiated a deal to show the games on Walt Disney Co.'s ABC and
ESPN channels.
His long-term goal was to be the sole marketing agent for
all things soccer in the U.S. In the last two years, MLS says it
has benefited from an infusion of $1 billion, including expansion
fees and investment in new stadiums. Soccer United Marketing, or
SUM, sells TV and arena ads and signed a 10-year, $150 million
sponsorship agreement with apparel maker Adidas AG.
While nine of its 12 teams still lose money, MLS may have
found a formula to stay afloat while investing in its future.
``All the indicators are there to suggest soccer is ready to
grow in the U.S.,'' says Scott Guglielmino, vice president of
programming at ESPN. ``Ratings are up, and MLS has done a nice
job adding stadiums and sponsors.''..............
http://www.bloomberg.com/news/sports/business.html
U.S. Soccer, a World Cup Dud, Sustains Pro League With TV Deals
2006-07-07 00:09 (New York)
By Curtis Eichelberger
July 7 (Bloomberg) -- Major League Soccer has learned not to
count on stellar World Cup performances by the U.S. national team
to sell the sport at home and add kick to its bottom line.
In 2002, when the unprofitable league folded two franchises,
MLS Commissioner Don Garber heard the English-language U.S.
television rights to the 2002 and 2006 World Cups might be bought
on the cheap. Garber, 48, created a subsidiary, Soccer United
Marketing, that paid $40 million for the TV package, then
negotiated a deal to show the games on Walt Disney Co.'s ABC and
ESPN channels.
His long-term goal was to be the sole marketing agent for
all things soccer in the U.S. In the last two years, MLS says it
has benefited from an infusion of $1 billion, including expansion
fees and investment in new stadiums. Soccer United Marketing, or
SUM, sells TV and arena ads and signed a 10-year, $150 million
sponsorship agreement with apparel maker Adidas AG.
While nine of its 12 teams still lose money, MLS may have
found a formula to stay afloat while investing in its future.
``All the indicators are there to suggest soccer is ready to
grow in the U.S.,'' says Scott Guglielmino, vice president of
programming at ESPN. ``Ratings are up, and MLS has done a nice
job adding stadiums and sponsors.''..............