Will MLS eventually collaspe?

Discussion in 'MLS: General' started by soccermilitant, Mar 3, 2017.

  1. Unak78

    Unak78 BigSoccer Supporter

    Dec 17, 2007
    PSG & Enyimba FC
    Club:
    Chelsea FC
    Nat'l Team:
    Nigeria
    Besides which, the league is really the owners who's franchise values have quadrupled in recent years and will likely continue to do so. That's the only income that really matters in pro sports ownership...

    Hell, UEFA's FFP was invented precisely due to the fact that most of the biggest clubs willfully do not operate in the black or anywhere close to it...

    ...OP do you even billionaire bro???
     
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  2. whiteonrice04

    whiteonrice04 Member+

    Sep 8, 2006
  3. Fiosfan

    Fiosfan Red Card

    Mar 21, 2010
    Nevada
    Club:
    New York City FC
    Nat'l Team:
    United States
    14055188_10210497088608190_3279805975671908701_n.jpg
    Damn Right homie !!!
     
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  4. billf

    billf Member+

    May 22, 2001
    Club:
    Philadelphia Union
    Nat'l Team:
    United States
    The two posts above are perfect. The league need not make money. As an enterprise, the sport operates at a loss globally. Most sports probably do. The margins are pretty thin anyway when you consider the salaries. MLS needs to be sustainable and we've got more than enough evidence thus is the case.
     
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  5. Bill Archer

    Bill Archer BigSoccer Supporter

    Mar 19, 2002
    Washington, NC
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    Bruce Arena. He's like the cockroaches; not even nuclear war can end them.
     
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  6. Bluecat82

    Bluecat82 Member+

    Feb 24, 1999
    Minneapolis, MN
    Club:
    Minnesota United FC
    Nat'l Team:
    United States
    ...and the Cosmos will still proclaim themselves as North America's Super Club (pat. pend.)
     
  7. btharner

    btharner Member

    Jan 22, 2007
    Selinsgrove, Pa.
    There are some on the internet who claim MLS is just a big ponzi scheme. I, personally, do not believe this but I'd like to hear how others might refute such an argument.
     
  8. ElJefe

    ElJefe Moderator
    Staff Member

    Feb 16, 1999
    Colorful Colorado
    Club:
    FC Dallas
    Nat'l Team:
    United States
    [​IMG]
    There are also some on the internet who claim that the world is flat.

    Seriously, go do your own homework and look up what a Ponzi scheme is.
     
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  9. Tony in Quakeland

    Jan 27, 2003
    Pleasant Hill, CA
    Nat'l Team:
    United States
    Refute it by understanding what s ponzi scheme is. A lot of this nonsense comes out of Soccernomics, which I found largely to a load of sophistires and cherry pick facts without context. Here's a good article on the MLS is going to collapse nonsense:

    http://www.sbnation.com/soccer/2015/4/23/8482407/soccernomics-mls-collapse-stefan-szymanski
     
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  10. KCbus

    KCbus Moderator
    Staff Member

    United States
    Nov 26, 2000
    Reynoldsburg, OH
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    Hope was extinguished the moment she called the Swedes "cowardly."
     
  11. tigersoccer2005

    tigersoccer2005 Member+

    Dec 1, 2003
    North Bergen, NJ
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    Star Wars Ep IV-- A New Hope
     
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  12. btharner

    btharner Member

    Jan 22, 2007
    Selinsgrove, Pa.
    I know full well what a Ponzi scheme is, American Greed is oneof my favorite TV shows. Asking for an intelligent opinion on BS often is an exercise in futility.
     
  13. xtomx

    xtomx Member+

    Chicago Fire
    Sep 6, 2001
    Northern Wisconsin, but not far from civilization
    Club:
    Chicago Fire
    Could one of the clamor to Chicago, please?
     
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  14. xtomx

    xtomx Member+

    Chicago Fire
    Sep 6, 2001
    Northern Wisconsin, but not far from civilization
    Club:
    Chicago Fire
    Well, to be technical, the league needs to make "money" and lots of money.
    The league does not need to make a "profit", however.

    This.
    You nailed it.
     
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  15. KCbus

    KCbus Moderator
    Staff Member

    United States
    Nov 26, 2000
    Reynoldsburg, OH
    Club:
    Columbus Crew
    Nat'l Team:
    United States
    As is going into an MLS forum, sympathising with someone calling MLS a big scheme and then expecting to be given a bouquet of roses.
     
  16. soccermilitant

    soccermilitant Member+

    Jan 14, 2009
    St.paul
    Nat'l Team:
    United States
    sorry for this thread I just got little overboard reading SBD/
     
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  17. Paul Berry

    Paul Berry Member+

    Notts County and NYCFC
    United States
    Apr 18, 2015
    Nr Kingston NY
    Nat'l Team:
    United States
    The combined value of the 20 teams in 2016 was $3 billion, 493 million according to Forbes (up 80% since 2013).

    MLS is a single entity. There are ways companies manage debt and survive despite hemorrhaging money. It could even be floated on Nasdaq.
     
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  18. NaBUru38

    NaBUru38 Member+

    Mar 8, 2016
    Las Canteras, Uruguay
    Club:
    Club Nacional de Football
    No, financial fair play was established so old rich are protected from new rich.
     
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  19. tigersoccer2005

    tigersoccer2005 Member+

    Dec 1, 2003
    North Bergen, NJ
    Club:
    New York Red Bulls
    Nat'l Team:
    United States

    But----cartel....:p
     
  20. Unak78

    Unak78 BigSoccer Supporter

    Dec 17, 2007
    PSG & Enyimba FC
    Club:
    Chelsea FC
    Nat'l Team:
    Nigeria
    This is absolutely true. My point is that it (FFP) wouldn't mean anything if teams normally didn't operate at a loss and could have conceivably gone on doing so without issue.
     
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  21. HomietheClown

    HomietheClown Member+

    Dusselheim FC 1971
    Sep 4, 2010
    Club:
    --other--
    I kinda hope MLS does collapse.

    At least the franchise in Chicago so it can start from scratch.
     
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  22. The Franchise

    The Franchise Member+

    Nov 13, 2014
    Bakersfield, CA
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    One of the major issues causing MLS teams to lose money is reinvestment.

    If you own a growing business, there's a very real chance that adding more capital will increase the rate of growth. Doing so means the business lost money, because more was put into it than it generated. Yet the total value grew, and by more than the additional amount spent. This is MLS, where teams are spending money on building new stadiums, building new training facilities, and starting or purchasing youth clubs and B sides in USL. Creating these things initially costs more than their annual upkeep does, so it's remarkably easy to run a loss. And yet, club values continue to rise, and more people than ever want to invest.

    The other aspect is affiliated businesses. In grad school, we had one of RSL's FO officers (COO, I think) come speak to us (in 2004). When bidding to enter the league, they looked at the business models of all the existing teams and determined that they could be profitable as a total enterprise if they owned not just the team, but also the stadium and the TV and radio broadcast operations. Without that, they didn't see a path to overall profitability unless the league's fundamentals changed, but with it, they saw long-term stability.
     
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  23. Paul Berry

    Paul Berry Member+

    Notts County and NYCFC
    United States
    Apr 18, 2015
    Nr Kingston NY
    Nat'l Team:
    United States
    English teams make massive losses and have extremely high payrolls, yet they survive. As long as MLS investors continue to believe that in the long-term they'll make money, and valuations continue to rise, they'll continue to invest.

    Several of the new stadiums are linked to urban redevelopment, so it's likely that real estate prices will rise and in many cases the stadiums are paid off in full. AT&T stadium cost $454 million allowing for inflation and is now worth $561 million. (The Giants pay $1.2 million a year in rent).

    Finally, payrolls are getting smaller but the quality of MLS has not declined and in some cases has improved. Attendances continue to rise, (they will flatten out below 23,300 due to maximum stadium capacities).
     
  24. Olo2317

    Olo2317 Member

    Jun 1, 2014
    Club:
    CA River Plate
    Nat'l Team:
    Argentina
    how can it be that the ny cosmos could sell out 80k stadium every week back in the 70s,yet today when soccer is supposedly on a rampage growth curve, MlS teams can't fill a measely 20k stadium week in,week out. for example red bulls,columbus crew etc...
     
  25. Centennial

    Centennial Member+

    Apr 4, 2003
    Centennial
    Lack of advertising dollars. Tv, Jersey sponsor, sponsorships in general.
     

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