After Everyone’s Gone – MLS 1.0 is within measurable reach of its end
Posted on October 4, 2012 4:46 pm
I’ve decided not to get upset about Adrian Hanauer having to campaign for his job. If they want to make a mockery of the democratic process in order to get some cheap positive PR, well, take it from your old pal Stinky Wizzleteats – that’s something the Seattle Sounders did not invent. The day will come when a Sounders GM is as popular among his customers as, say, the Timbers GM is among his, but that day is not this, and Nguyen Van Thieu comparisons can remain in cold storage.
But things are far from entirely stupid in Seattle. Hanauer has done such a good job – or the groundswell of support for the team is so genuine – that the Sounders have abolished international friendlies.
For all but about, say, two other MLS teams, this would be financial suicide. For every other professional sport in America (and college sport) (but I repeat myself), this is basic stuff. Games that count are the games that make money. Not too long ago I was lauding the genius of MLS teams marketing to people who hated MLS. Now, Seattle is acting like they, and not Chivas, Manchester United or Real Madrid, are the most popular team in town. ChampionsWorld died for nothing.
Sounders fans take a little good-natured ribbing, some of it cleverly disguised as poisonous contempt, for being Johnnies-come-lately-and-in-droves. But then again, “You weren’t even around fifteen minutes ago!” didn’t cut much ice when the Berbers overran the see of St. Augustine, helping make Catholicism in North Africa what it is today.
Now, if 2014 comes around, and the Sounders are hyping Port Vale’s US tour to the stars and beyond, we’ll know that Seattle’s quest for mainstream legitimacy isn’t quite the accomplished mission. But as of today, they are the closest MLS team to answer that description – see below.
A few weeks ago I said there were only a limited number of ways for Chivas USA to succeed in Los Angeles. Through a typographic error, I left out “or unless Phil Anschutz sells the team to someone who barely notices its existence…or better still, to Jorge Vergara himself.”
I had grown up assuming that Uncle Phil (or, as I would say to him if I were ever have an actual conversation with him, “Mr. Anschutz, sir,” averting my eyes as I did so) made his money from Qwest Communications. Forgive the Wikipedia references, but given a choice between convenience and facts, print convenience. A quick glance at the numbers tells us that owning Qwest all by itself put Anschutz comfortably in “Tell Mitt Romney to take the servants’ entrance” territory.
I had also assumed that Anschutz wasn’t the sort of person who would simply sell one of his signature properties on a whim. But Qwest wasn’t the first, just like AEG won’t be the last, of the Anschutz bonanzas. Forbes and Fortune – I assume there’s a difference, but I’m not their target audience – have been tracking Anschutz’s career over the years with unapologetic admiration, and one of the things you realize is that his historic portfolio is, like, insanely diverse.
To me, it sounded insane that Anschutz would sell His Own Entertainment Group because he was clashing with AEG CEO Tim Leiweke – his own employee, fercrineoutloud – over how difficult it would be to bring the NFL back to Los Angeles. But it does fit in with his career. He’s ready to do something else, whatever that is.
The sale price of AEG has been bandied about at $7 billion. That’s including everything from the Stanley Cup-winning Kings to O2, but not aeg.com, goofily enough. If you want to see their online presence, you must go here. David Beckham is still the public face of the organization, as it happens.
The valuation of our beloved (or not, as the case may be) Los Angeles Galaxy has been put at $46 million by Brand Finance, whoever they are - which isn’t even the most in MLS, a cool twelve million behind Seattle. (Seriously, is anyone even considering firing Hanauer?)
This is comparing apples to iPhones, but in 2008 Forbes said the Galaxy was worth $100 million. Maybe the Home Depot Center gets included in that…except Time Warner Cable paid over $5 million a year for the Galaxy’s local broadcast rights, which kicks in this weekend – and presumably TW’s customers will be watching from home.
Even at the lowest estimate, if Phil were to sell the Galaxy all by itself, he would have made double his money over the past fourteen years. Although in retrospect it’s hard to believe that the Galaxy, playing in the Rose Bowl, then all of two years old, was already worth $26 million – considering that in 2001 or so it and the rest of the league was very nearly worth $0 million.
Remember how they would try to get us to comprehend the scale of the solar system? The Earth is a pea at the goal line of a football stadium, and the sun is a beach ball at the other end of the field, and Neptune is a golf ball the next town over – something like that. Well, the Galaxy is, in the words of a noted Nietzschean scholar, the smallest ****ing province of the Anschutz Empire.
Yet Anschutz – who before MLS came along was seen in public about as often as Bigfoot’s shy cousin – pops up regularly at special Galaxy events. He was on the field for the Galaxy’s trophy presentation, just like he was on the ice when the Kings won the Stanley Cup.
He even showed up to the Time Warner Cable Sports Network launch party, although maybe he’s just another fan who’s thrilled that KDOC will never again show America’s Funniest Videos instead of the first half of a match due to ”technical difficulties.” Maybe that’s why he’s selling AEG – he read something about photographs stealing souls.
It’s natural enough for us to worry that the next owner won’t be as dedicated. The primary selling points of AEG are a basketball/hockey arena and a vaporware NFL team. It’s unlikely that the Galaxy’s next owner will be the silent Steinbrenner that made the Galaxy competitive. (Although as New England has reminded us, a long-time owner richer than God’s agent is no guarantee of success or popularity.)
There’s also another troubling aspect – the Galaxy aren’t as popular as they act. The temptation to compare the Galaxy to Dennis Reynolds in last season’s finale of “It’s Always Sunny” is irresistible. The numbers don’t lie – the Galaxy have fallen to third in attendance.
Actually, numbers lie a lot. Portland and Kansas City average a sellout or more, so if they played in bigger stadiums, they might have passed the Galaxy by now, too. Toronto might have been ahead for years, at least until this year’s accumulated sewage backed up into BMO’s seats. And unlike Toronto, no one sane would call the Galaxy long-suffering or unsuccessful on the field.
Local billionaire Patrick Soon-Shiong, recent Lakers investor, is apparently the front-runner in the bidding – he sat next to Phil when the Los Angeles City Council sacrificed their first-born children to Roger Goodell. However, there apparently will be other suitors. Like, Mark Walter, chairman of the Dodgers, whose interest in maintaining the Galaxy as a summertime competitor can presumably be measured in the microns. Walter does use the corporate magic word “synergy,” but baseball and soccer didn’t mix in the 1920′s when the two sports played in different seasons, and it’s hard to see how that buzzword could begin to apply to the Dodgers and Galaxy.
If Los Angeles soccer fans fear the future, at least we’re not alone. This Downtown News editorial verges towards humorous hysteria, mostly because of the feeling of ignorance and powerlessness – and the Downtown News and its readers are not used to feeling out of the loop. But it’s hard to argue in the slightest with its conclusion:
Maybe everything from here on out will be smooth and easy. Maybe not. There’s one thing we can be sure of though: Whatever happens, it’s being planned right now, far out of view of the public.
Or, as Vonnegut might have said, MLS is whatever people who have all our money, drunk or sober, sane or insane, decide to do today.
And we fans, more than ever, are waiting to see what happens, as decisions are made without even the slightest pretense of considering our input.
Why, that’s just like the NFL! Or the NHL! Or the NBA! Hey…MLS 2.0 is a big-time league, after all!
Nowadays it’s hard to see what any MLS team gets out international friendlies. If they play the big teams, they get charged an arm and a leg and don’t make money. If they play the smaller affordable teams, nobody comes. At one time MLS could claim that playing a Champions League perennial was a good way to expose people to the domestic team. Difficult to believe that massive numbers of potential fans haven’t heard of their local MLS team now. The only thing MLS can get out of international friendlies is to charge the visitors for the privilege of playing an MLS team.
They keeping aeg.com to frack with?
On the Seattle-fans-vs-everyone-else thing:
Seattle fans take the stance: “We get 30,000 a game, you don’t. Therefore, we’re doing it right and you’re doing it wrong.” There is *some* level of validity to that, in terms of how the respective front offices act/don’t act. However, the Sounders have benefited from a favorable set of circumstances — the Mariners are terrible, the Seahawks are terrible, the Huskies are terrible, and the Sonics are … in Oklahoma. And only the Huskies out of those pre-date the NASL Sounders. They aren’t competing with a Yankees/Cowboys/Buckeyes who have dominated the market for decades.
Thought experiment: if the Sounders had entered MLS in the late ’90s, a time when the Sonics were making the NBA finals and the Mariners featured the AL’s two best players, would they have made the same impact?
Can anyone tell me what the first paragraph of this lengthy screed means? It reads like it was written by weasels on a meth jag. I’m pretty sure it’s about the Seattle Sounders… or it might not be… or it might have started out that way, but then took a sharp right turn… or GAAACK!
plastic grass: unacceptable.
1) “It reads like it was written by weasels on a meth jag.” You do know this just encourages him?
2) “plastic grass: unacceptable.” Comedy gold.
Shush! You are spoiling the Bigsoccer delusion!
Seattle as an original MLS team … hmmm …
Shootout in Seattle has a nice ring to it.
Seattle soccer fans wanted to see the Sounders move to MLS back when MLS was first being formed. But Scott Oki, a good guy and the owner of the Sounders at the time, was focused on children’s charities and ultimately decided that keeping the Sounders in the APSL was a better way to serve that goal and also because the APSL was established versus the start-up riskiness and novel single-entity structure of MLS. The Sounders thus became a competitor for any other potential MLS investor in Seattle. The stadium situation was also an issue, and this along with failed flirtation with MLS in the early 90′s led directly to the huge turnout of soccer fans who helped win the state-wide vote to construct CenturyLink Field.
I think the Sounders would have been very successful if they were an original MLS team. They had a very successful relaunch in 1994 as an APSL team. The magic was back. But when MLS finally started, and we weren’t in it, a segment of fans began to see the Sounders as “minor league”. MLS was on TV and was doing everything right to promote themselves as “major league”. MLS also eventually struck a deal with the APSL/A-League that pretty much made the APSL/A-League into a farm system. That only lasted a few seasons, but it affected the way the fans viewed the Sounders and the league they played in.
It was a long and drawn out journey, from 1993 failed negotiations to the 1997 stadium vote to the 2002 opening of CenturyLink Field to 2004 when RSL and Chivas USA beat us out for MLS expansion to 2007 when we finally got in. But we’re here now, and that’s what counts as far as I am concerned.
“But then again, “You weren’t even around fifteen minutes ago!” didn’t cut much ice when the Berbers overran the see of St. Augustine, helping make Catholicism in North Africa what it is today.”
See Dan, this kind of stuff was always edited out of my stuff on ESPN. Are we the only two on Earth who enjoys that sort of reference?
Question.
Are the teams that currently playing on turf planning on moving to greener pastures…?
…Heh. That was a joke.
…But seriously. Are they gonna move to the natural shite?
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Question.
Are the teams that currently playing on turf planning on moving to greener pastures…?
…Heh. That was a joke.
…But seriously. Are they gonna move to the natural shite?
Timbers can’t even if they wanted to. The field is on top is a spring that runs through downtown Portland so the water table is pretty low. And then there is the rain…
You could also argue that the Sounders would be EVEN more popular had they been included in MLS 1.0. Who knows, perhaps they’d open the entire stadium for every match and draw 66k weekly. To suggest the Sounders are merely benefiting from lackluster performances by the other Seattle sports teams is very naiive. Did the Revs see an uptick with the cellar dweller Red Sox this year?
My man I like your post but you got the valuation wrong. Sounders are valued at $158M (EV* which is Enterprise Value or what someone would pay for the company). The $58 M is only the brand part of the valuation.
So Galaxy went from $100M in 2008 to $135M in 2012. I think that is slow growth given that the S&P 500 grew almost 100% since then and given that MLS is still niche in the US.
My bad…I took the wrong numbers from the PDF document of Branded finance.
Seattle valuation is $176M
Galaxy is $150M
Red Bulls are $135M
Which is a bit fair, when you think that Roma is $528M or Chivas Mexico is $225M
According to the Branded finance PDF document Chivas Mexico has an (EV* which is Enterprise Value or what someone would pay for the company) value of $203M
According to the Branded finance PDF document Chivas Mexico has an EV* (Enterprise Value or what someone would pay for the company) value of $203M
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