Home > Blogs > Bill Archer Blog

Share

Rating: 4 votes, 4.75 average.

It's Why We're Here

Submit "It's Why We're Here" to Facebook Submit "It's Why We're Here" to Yahoo! Buzz Submit "It's Why We're Here" to Digg Submit "It's Why We're Here" to Google Submit "It's Why We're Here" to del.icio.us Submit "It's Why We're Here" to StumbleUpon Submit "It's Why We're Here" to Furl Submit "It's Why We're Here" to Reddit
Posted 16 Mar 2009 at 11:10 AM by Bill Archer

This week Major League Soccer, the United States of America's FIFA-sanctioned professional first division football league, kicks off it's 14th season.

Those of you who were around for the first opening week in 1996, who cheerfully handed over perfectly good money so you could watch perfectly awful soccer, well remember the almost deafening chorus of naysayers, know-it-alls and nattering nabobs of negativity who assured everyone that the league was destined for the alphabet soup trash heap along with all the other ill-conceived leagues that had fallen by the wayside over the years.

We didn't much care back then, and we sure as hell don't much care now. For all it's warts and flaws and shortcomings and arguments about schedules and formats and single tables and relegation and all the rest, we have a collective message for the rest of the US sporting world:

Bite us.


One of the many little side dramas of the recent expansion and stadium construction discussions has been the almost inevitable "concerns expressed" by some self important ratty-assed local politician or other that Major League Soccer is a shakey proposition (they always bring up the NASL, as if they had the first clue about what happened there and why) and that investing in infrastructure to support it risks ending up holding the bag on some white elephant stadium that nobody but the local Drum and Bugle Corps will ever want to use.

One of the locals in Chester PA went so far as to demand that MLS show him their books so he could see for himself whether this was a real, live sports league. No, seriously. And just the other day some councilperson or other in Portland was whining about how she wasn't convinced that MLS has "a future".

Of course the flaw in this kind of thinking, (besides the belief that there's a snowball's chance in hell that MLS will invite some idiot in to poke around at will in their filing cabinets) is that unlike any other league in the history of leagues is that the balance sheet is the next best thing to irrelevant.

Joe Roth, to pick an example, isn't investing his kid's college money in the Sounders, needing to show a profit from day one to keep him from hauling out his big old Rand McNally and start scouting around for another town he can move to. Neither is anyone else.

And that's the point that all of these people who've been boldly predicting the demise of the league lo these many years have been missing and continue to miss: it's not going to happen because these guys aren't - as I keep saying until I want to scream - "buying a franchise" in MLS.

Rather, they're buying into MLS as a concept.

Almost all of us tend to forget that Roth and the others don't "own" a team. The closest any of the "owners" come is that they are 49% shareholders in the local branch of a larger corporation.

(In fact, the league was in jeopardy not so long ago, when Horowitz bailed on Miami and Tampa was contracted and two guys owned nine teams between them. If you weren't scared back then, it was because you weren't paying attention. But the inclusion of a dozen or so extremely rich partners, MLS became a very solid outfit. These are guys who don't run scared.)


We call these guys "owners" only because we don't know what else to call them. Initially they were called "Owner-Investors" but that wasn't particularly helpful, so a few years ago they changed the title to "Investor-Operators" which they apparently felt cleared the whole thing up.

And in truth a good deal of the iron-fisted control that MLS HQ used to wield over virtually every aspect of team operations has gone by the boards, a movement which began when the Metrostars slapped down league VP Sunil Gulati (Ivan Gazidis' predecessor) for giving his pal Tab Ramos a huge raise and contract extension when the team wanted to waive him.

And as the thing has evolved the teams have much more control over their rosters and their own front office and their own local operations than ever before. But only up to a point.

And that point is the salient issue, the one that makes stuff like that Forbes magazine survey of team-by-team profitability interesting but, in the end, almost entirely irrelevant: these guys don't much care. Collective results matter a lot more than individual ones.

Sure it's everyone's job to bring their operation into the black, but not in order to save themselves from having to fold or move to Oklahoma City or Milwaukee.

Rather, it's because each team's profitability enhances the league's profitability, and it's their interest in the league which matters, not whether FC Dallas shows an increase in concession sales this summer.

Some smart aleck at Forbes, or instant expert Tripp Mickle at SBJ (can that actually be his name? It sounds more like some kind of bladder disorder) or (this isn't a backhanded insult, so stay calm) some sportswriter in Toronto can wax eloquent about how this team or that is making money and what a shame it is that some others - which they're usually delighted to name but I won't - lag behind in attendance or parking revenue or whatever-the-hell else.

Which is true and which needs to be remedied but which also misses the point: MLS as a league has more value with an operation (for example) in Dallas, even an operation which may not be making money, than it does without it. It's the league which matters to the shareholders, not this team or that. Developing the league as a whole is their goal. Sure owners like the Hunt brothers love showing up at MLS Cup wearing Nordecke scarves like the fans and hoisting the trophy. Who wouldn't?

But after the crowd goes home and the owners retire to whatever exclusive corner of LA they retire to, it's the welfare of the league that they talk about, not Guillermo Barros-Schelotto. Because at the end of the day, the other MLS owners quite literally "own" the majority of the Columbus Crew. Just like - are you paying attention up there? - the other 13 MLS teams own 51 % of Toronto FC.

They're delighted as hell to see the turnstiles spinning away up there. It's their money too.

Which is how it's designed to work. Which is why it's still around. Which is why, at this point, it looks like it's going to be around.

In terms of expansion, I'm the first one in line to complain about how Jeff Cooper in St. Louis is getting a raw deal, but in reality the Board of Governors knows exactly what they're doing. They aren't looking for ridiculously wealthy "deep pocket" partners because they're snobs or because the new guy always has to pick up the dinner check and they want to make sure he can afford it.

It's because they want - well OK, they demand - partners who aren't terribly concerned about this year's P & L in whatever city they're running. Their eyes are ten years down the road. Or twenty.

People don't usually remember that so-called "Single Entity" was supposed to be temporary, a short-term idea that would help the league get established without a bunch of franchise transfers, team foldings and the other evils of free-for-all sports league ownership.

But nobody talks about it being temporary any more. It's about as permanent as it can be.

Toronto fans, and soon enough Seattle fans, moan and groan about how the single entity concept is outmoded and should be eliminated. What they're really saying is "our team could become the New York Yankees of MLS if you'd let us spend our money".

And they're right. Except that the damn league wouldn't be here without it.

(And of course single entity is why talk of promotion and relegation is utter nonsense; you can't cash Joe Roth's mega-million dollar check in March and then in October, when his team finishes in the bottom three, tell him he has to go play in USL1 again. "Thanks for the money Joe; tell Frank Marcos we said Hi")

And Seattle fans in particular need to be a little more circumspect with all this chest-thumping and "we're showing everyone how it should be done" and all of that stuff that is already annoying the hell out of everyone before they ever kick a ball in anger. Everybody already knows. We've been here for 14 years.


There's talk these days about European leagues "looking at the MLS model", but what they're talking about is a salary cap. Which is fine, but US sports leagues all have salary caps now and it doesn't prevent the Mets from trying to buy pennants. It's the league structure which makes MLS stable, not their salary budget.

The naysayers can blab all they want - and they will. But MLS is growing and doing just fine, and the ownership structure which everyone derides is the biggest reason why.

It reminds me a lot of the old saying about democracy: it's the worst possible form of government, with the exception of everything else.
Posted in Uncategorized
Views 3074 Comments 22 Email Blog Entry

Share
Post a Comment Post a Comment
Total Comments 22

Comments

  1. Old Comment
    rednow.red4ever's Avatar
    That was a very nice reminder for people whining away as to why MLS has remained in existence...

    Just as an aside though- MLB doesn't really have a salary cap, just revenue sharing if you actually manage to spend like $200 million- so basically just a Yankee tax.
    Posted 16 Mar 2009 at 11:26 AM by rednow.red4ever rednow.red4ever is offline
  2. Old Comment
    ianai's Avatar
    Well said. It's easy to lose site of the reality and why we're where we are today. Hell I gripe about some of these things as well, but you're right. For all its suck, it is the reason we'll be tuning in giddily Thursday night.
    Posted 16 Mar 2009 at 11:36 AM by ianai ianai is offline
  3. Old Comment
    Good article, Bill. I just don't remember anyone ever saying Single Entity was a short term solution.
    Posted 16 Mar 2009 at 12:17 PM by Etienne_72772 Etienne_72772 is offline
  4. Old Comment
    SonicDeathMonkey's Avatar
    One would hope that your comment about Promotion/Relegation would quiet down the thickheads who whine about it, but I seriously doubt that's going to happen.
    Posted 16 Mar 2009 at 12:20 PM by SonicDeathMonkey SonicDeathMonkey is offline
  5. Old Comment
    Quote:
    Which is true and which needs to be remedied but which also misses the point: MLS as a league has more value with an operation (for example) in Dallas, even an operation which may not be making money, than it does without it. It's the league which matters to the shareholders, not this team or that. Developing the league as a whole is their goal.
    It is true that the league needs teams (even money losing teams) in order to exist since watching LA, TFC, and Seattle play each other over and over would get pretty dull. It's also true that it doesn't necessarily matter if the team in, say, Colorado or Columbus or New England happens to make or lose money in a given year.

    That said, we can't eternally have almost all the franchises losing money and just shrug it off as unimportant due to single entity. Single entity is supposed to let a number of profitable teams carry two or three struggling teams for the greater good. Right now we have the ratio reversed. I'm wondering how long it will be before we get to the break even point where the league, as a single entity, starts paying for itself. That's when we'll be able to see significant increases in things like the salary cap.
    Posted 16 Mar 2009 at 12:36 PM by Kingston Kingston is offline
  6. Old Comment
    Can we sticky this blog post? It would be a whole lot easier to post a link to it than explain to some yamhead Eurosnob why MLS doesn't have pro/reg, teams with carte blanche spending, etc.
    Posted 16 Mar 2009 at 01:08 PM by WHOLMAN2 WHOLMAN2 is offline
  7. Old Comment
    "Collective results matter a lot more than individual ones."

    okay

    "And of course single entity is why talk of promotion and relegation is utter nonsense; you can't cash Joe Roth's mega-million dollar check in March and then in October, when his team finishes in the bottom three, tell him he has to go play in USL1 again."

    Umm, why, given the collective target?

    As you say, if the Investor-Operators are concerned about the league then their nominally own teams don't matter except as part of the bigger picture and if the league makes more money for each of them in the long run with relegation-promotion, they should be happy.
    Okay, they'd have to share some with the lower league and promoted clubs but that should be manageable.

    IMO however, MLS is not foreseeably ready for relegation-promotion because there is not enough reliable club support. Most interest, attendance and revenue would probably drop off dramatically at relegated clubs and the league can't yet carry that as the promoted clubs wouldn't replace the losses.
    Posted 16 Mar 2009 at 01:48 PM by StewartJG StewartJG is offline
  8. Old Comment
    FFCinPCB's Avatar
    Angry child-like name-calling and derogatory remarks used to justify the viability, maturity, and professionalism of an organization.

    Yes indeed, the league and its fans really have evolved and come a long way. I'm surprised more of us "Euro-Snobs" haven't jumped ship and gleefully embraced the offering. Very tempting.

    Just as an FYI:

    "child-like name calling" would be, like, "poopiehead" or "doodoo face" or "fart fanny"

    I believe you're looking for the term "childish" which would designate a certain immature petulance.

    You're welcome.
    Posted 16 Mar 2009 at 02:01 PM by FFCinPCB FFCinPCB is offline
    Updated 16 Mar 2009 at 03:32 PM by Bill Archer
  9. Old Comment
    nice DCI shout out. go green machine!
    Posted 16 Mar 2009 at 02:22 PM by CHthirteen CHthirteen is offline
  10. Old Comment
    Quote:
    Originally Posted by FFCinPCB View Comment
    Angry child-like name-calling and derogatory remarks used to justify the viability, maturity, and professionalism of an organization.

    Yes indeed, the league and its fans really have evolved and come a long way. I'm surprised more of us "Euro-Snobs" haven't jumped ship and gleefully embraced the offering. Very tempting.
    Yeah. because we all know such drama doesnt exist in the European game

    Hint: its 10x as worse.
    Posted 16 Mar 2009 at 03:24 PM by bostonsoccermdl bostonsoccermdl is offline
Post a Comment Post a Comment
Total Trackbacks 0

Trackbacks


All times are GMT -5. The time now is 05:19 PM.


 

Copyright © 2009 Big Internet Group, LLC. All rights reserved. PRIVACY POLICY. TERMS OF USE.
The BigSoccer name and logo and 'Share the Passion!' are service marks of Big Internet Group, LLC.
The BIG Network: Soccer | Aussie Rules Football | Travel | Cricket | Lacrosse | Music
Views expressed by the bloggers and users of BigSoccer do not represent the views of Big Internet Group, LLC.