The following numbers are taken from the latest Forbes' valuations (MLS here). I don't know if the same methodology is used across leagues.
And the fact that MLS teams are worth more than some top20 global soccer clubs is probably a good indication that the valuation for MLS clubs is a bit out of whack right now...
I don't see how. Now, there may be some speculation in the number, but most MLS teams have much cleaner books and better facilities than most foreign teams. The truly big boys well outstrip the MLS teams, but what does Everton have that LAFC doesn't? They are desperate for a new stadium, for example. They have more income than LAFC, but LAFC has far more potential.
I don't know about that. Seems to me that MLS is a more secure bet with far less debt. Those cap free "global" clubs have an absurd amount of debt and far less security. Look at Newcastle United alone and realize just how much risk there is... no guarantee of top tier pay days... with MLS you know what you're getting even if the team sucks.
Miami Marlins should be MLB 30, not MLS 30. Why are there only a handful of teams between NHL 16 and NHL 30?
Based on actual shares traded, Milan fetched $800 million, Orlando and DC United sold equity at a valuation of $500 million. Meanwhile Mike Ashley was rumoured to be selling Newcastle for $443 million (though that probably came with a lot of unreasonable conditions).
Interesting to see how MLS teams rank against each other. Columbus should move up on the list once their new stadium is built I would expect. Interesting New England isn't higher on the list because of the Krafts and all. Move Colorado.
No thanks. And the Forbes rankings are still crap. They've never shown how they handle KSE's setup of the club, where almost every income stream is separated out into its own company under the KSE umbrella. Its easy for a club to look bad when they're not getting credit for merchandising, stadium use, TV, etc.
Genuine global reach, revenues which dwarf LAFC, and guaranteed broadcast money that will ensure Everton will be able to attract better players than LAFC for a long time to come. The bigger point to all this is that valuations don't matter. Something is worth whatever someone else is willing to pay for it. And if that's the case, what difference does it make to any of us whether LAFC is worth $500 million or $1 billion? It only matters to the owner and potential investors. Does an LAFC valued at $1 billion improve the visibility of MLS both inside and outside the US? Does it open the door for the best players in the world to come to play in MLS? Not really, which is why it's meaningless to compare across leagues. Revenues are what counts, and in MLS valuations are outpacing growth of revenue. The only reason why rising valuations are useful is because it increases the chances that that the league will attract more wealthy ownership, and it shows that the league is moving in the right direction. Other than that, I don't see why it holds any particular meaning to fans.
Of course it matters for precisely the reason that you put forth in the last paragraph you wrote. MLS is in fact attracting extremely deep pocketed investors and pretty much all of those investors are pushing the league toward far greater investment in facilities, academies and first team rosters which in turn is improving the product on the field. That is precisely what should matter to fans. You could argue that values are rising faster than revenues (though revenues are rising pretty quickly too). However, the valuations aren’t pie in the sky as plenty of owners have proven perfectly willing to pay increasing expansion fees while also financing ever more expensive stadium and training facility projects. It’s hard to argue that a team isn’t worth in the neighborhood of $500 mln if owners are willing to pay a $200 mln expansion fee, $250 mln for a new stadium and $35+ mln on training facilities. That said I think we’d all like to see more progress be made on the on field product. Some of that is going to require a deeper and improved domestic talent pool and it is also going to require an even larger increase on the investment being made on the first team. Hopefully this next CBA is a bigger step forward than we’ve seen with previous CBAs.
https://www.forbes.com/sites/chriss...xpansion-fees-sale-prices-surge/#8fd2cba51b58 Some key take always: In 2018 MLS 23 MLS teams generated a combined $816m in revenue. SUM generated an edition $350m in revenues, $125m of which were distributed to owner operators, MLS revenues grew by 6.2% in 2018 over 2017. Total gross revenue for MLS investor/operators stood at $1,166,000,000. Adjusting for a 24th team while assuming SUM revenue was flat would put gross MLS/Sum revenues at $1,201,500,000 in 2019. Assuming a 3% increase in MLS/SUM revenues relative to 2018, then we would arrive at a gross MLS/SUM revenues at $1,237,523,000.
To me the valuations show two things ... 1 - the prospect/potential and growth of MLS 2 - and to me, most poignantly the myriad of issues that surround clubs in the rest of the world. I don't care what they used to mean, I'd rather buy an MLS club than either Milan club, any EPL club not already considered Big 6, most clubs in Spain, and most clubs in France.
Didn't Colonel Moammar Gadhafi own a Serie A club at one time? Or part of one??? A person buys in to a pro club overseas and ya never know who you might get seated next to at the owners meetings in Palm Springs in the offseason! HA! This has to be one more thing MLS has going for it.
His third son was bought and employed for 4yrs by a Serie A club ... totes on the legit side of things. https://thelab.bleacherreport.com/dreams-of-a-dictator-s-son/
From that article: Which is a very interesting read! "But there was nothing normal about the footballing career of Saadi Gaddafi. Not every player can have a dictator for a father. What we can say is that Saadi had a genuine enthusiasm for football. A Juventus fan, he was a driving figure in his family’s decision to purchase a minority stake in the club in 2002. He also played a prominent role in arranging to host the preseason Supercoppa—contested between the winners of Serie A and the Coppa Italia—in Libya’s capital, Tripoli, in August of the same year. When the opportunity came for him to join Perugia a year later, he was not about to take it lightly. A deep-lying centre-forward who imagined himself in the Alessandro Del Piero role, he constantly sought advice from his fellow attackers. “He had a huge desire to learn,” Berrettoni says. “That was a thing that jumped out at you.” Saadi never made it further than a spot on the substitute’s bench during the first few weeks of the season. Then, at the start of November, it emerged that he had tested positive for nandrolone during a routine doping check. He was handed a three-month suspension. When he returned, the story was much the same. Even on a Perugia team that was languishing near the foot of the table, manager Serse Cosmi had no use for a forward of such modest ability. Or, at least, not until Perugia faced Juventus in April. This was the team Saadi most wanted to play against, the one he supported and owned shares in. He got his wish, coming on as a substitute for the final 15 minutes."
Another interesting thing is that the clubs lost a combined $95 million last year but only four clubs were responsible for 2/3 of that.
Out of the ten worst Houston and Montreal seem in terminal decline. Bad owners? The Red Bulls and Dallas would really benefit most from training compensation and solidarity payments. Minnesota have their own stadium this year so they should show some improvement. Chicago and Columbus are getting reboots. NYCFC slashed their payroll in 2019 but really need a stadium that can host events. Toronto can breathe easily that they lost the MLS Cup and won't need to pay Bradley an inflated salary any more but their owners seem the most willing to take a long-term gamble. What are your opinions?
And SUM distributed $125 million to the clubs that Forbes does not count in revenues. That’s more than $5.4m more in revenues than Forbes reports as revenues. So, in reality, when including SUM distributions to the clubs, MLS collectively had a $30m profit.
I'd bet nearly all of those ownership groups are profitable once they get their cut of the SUM gold. EDIT: Looks like the details were posted before I could post this admittedly vague and useless post
It doesn't work like that. SUM is an investment, not something that is handed out on an annual basis. NYC have just sold Joe Scally to Borrusia Moenchengladbach for up to $7 million including performance linked add-ons.
Our new owners that took over control from AEG, this new move combined with a new, downtown SSS appeared to have all the pieces in place for our Houston Dynamo to be one of the best MLS clubs in the league. Then our Front Office staff started to go heavy handed on the ticket buying crowd, league results started to change as the middle part of this decade rolled on, so instead of fixing the downward trend, these same FO suits started to openly blame fan loyalty. The more the wheels started to come off by the start of 2018 our FO was willing to blame anyone and everyone but themselves. That was our FO so that is on them. You ask about our owners Paul, here is what I will leave in this issue. Here is a club memo straight from the top when Mr. Brener took over for AEG. Dear Forever Orange Member, Thank you for your support of the Houston Dynamo, Houston Dash and BBVA Compass Stadium. Aside from saying “thanks,” I am writing to introduce myself as the new owner/operator of the Dynamo, Dash and BBVA Compass Stadium. I have completed a deal to purchase the majority share of the club from AEG, who has run it very well since its arrival in 2006. While I am the new managing partner, I have been a minority owner since 2008 and a passionate supporter of the Dynamo and Dash. We have had an excellent decade of existence here in Houston, and I am excited to lead this organization into the future. I will have three very impressive investors sharing in this opportunity with me. They include Oscar De La Hoya, Jake Silverstein, and Ben Guill. De La Hoya, a former world boxing champion and founder and CEO of Golden Boy Promotions, has been a minority partner of the Dynamo since 2008. Silverstein is a private investor based in Portland, Oregon. The Silverstein family was an early cable industry pioneer, and he now leads a diversified investment platform, Stormlight Expeditions. Guill is a Houston-based businessman and is the founder and managing partner of White Deer Energy. He is also a minority shareholder of the Houston Astros. We are a diverse, committed, experienced and passionate group. Under our ownership, we will look to build off the great traditions that have already been established. We will emphasize winning; we will focus on the fan experience at BBVA Compass Stadium, and we will commit to the community. To hear more about my decision to purchase the club and expectations for the future, visit HoustonDynamo.com. There is an incredibly bright future ahead for the Dynamo, Dash, and BBVA Compass Stadium, and we look forward to sharing it with you. We appreciate your support of our club and look forward to meeting you at an upcoming game. There are less than 90 days until the Dynamo home opener. I can’t wait! In the meantime, we wish you and your family the happiest of holidays. FOREVER ORANGE! Gabriel Brener Managing Partner Our players did make a solid run at the Open Cup and Beasley was captain to hoist it in 2018. Now there is Tab Ramos at the helm of his first MLS club so hope is there again. Results will speak for themselves as that bolded part above is what we are still waiting on from the top.