AEG foresees profits in multisport mecca

Discussion in 'MLS: News & Analysis' started by O'Dubhghaill Rules!, Feb 20, 2003.

  1. O'Dubhghaill Rules!

    May 21, 2001
    Boston, MA
    Club:
    New England Revolution
    I'm pretty sure AEG has got all kinds of non-soccer events planned for this place. I don't think it's going to be under-used.
     
  2. Preston North End

    Feb 17, 2000
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: Re: Re: AEG foresees profits in multisport mecca

    Let me add something...it was built with the basketball teams in mind, just not for them.
     
  3. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    Club:
    DC United
    Nat'l Team:
    United States
    Re: Re: Re: AEG foresees profits in multisport mecca

    Where did you get that $1.5M from? If you believe the league when it says they cut losses in half last year, that would mean they lost $30M the year before.

    And I don't think anyone believes that.
     
  4. Geoduck

    Geoduck Member

    Sep 24, 1999
    AEG currently operates the Kodak Theater, and it owns Staples Center and the Forum. Wouldn't the soccer and tennis stadiums simply cannibalize the concert revenues AEG is already making?
     
  5. The Cadaver

    The Cadaver It's very quiet here.

    Oct 24, 2000
    La Cañada, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    No - you need different sized venues for different types of acts. This gives AEG a range of options and the ability to book all different kinds of entertainment. What he is doing is setting up a situation where he can offer touring talent the best venues in LA.
     
  6. Preston North End

    Feb 17, 2000
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: Re: Re: Re: AEG foresees profits in multisport mecca

    Sure they could've. I don't think the league blows as much smoke up people's rear-ends as most do.

    You don't really believe each team has a budget of $10 million or so? I do.

    You believe they bring in that much revenue? I don't.

    MLS dropped Tampa and Miami last year, so that alone lops of around $2.5-5 million, maybe more.

    The first post in the thread linked below talks about profits and losses...

    https://www.bigsoccer.com/forum/showthread.php?s=&threadid=24502

    ...I think the article mentioned is closer to the truth than most would like to believe. It may not be the gospel, but I'm sure is pretty close.

    MLS is still bleeding money and in a big way for the "size" of the business. Sure it's a necessary bleeding, but it's still big.

    If the article is gospel, AEG's clubs lost $14 million ($2.33 each), so the NTC's profits of $5 million will help, but won't be enough to raise the cap or start an academy.
     
  7. snowfx2

    snowfx2 New Member

    Jul 28, 2001
    so cal
    Re: Re: Re: Re: AEG foresees profits in multisport mecca

    Phil is a minority owner in the Lakers and Sparks.

    Also, Staples Center was also built by Ed Roski and Rupert Murdoch.
     
  8. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    Club:
    DC United
    Nat'l Team:
    United States
    Re: Re: Re: Re: Re: AEG foresees profits in multisport mecca

    The article you're talking about said that the league saved $10M for BOTH teams. Which means the budget for each team was 1/2 that.

    Further, there's alot of evidence in there that the league isn't losing as much money as you think.

    I always think it's funny when someone cites an article, and that article ends up undermining their case.

    Indeed.
     
  9. Mr. Cam

    Mr. Cam Red Card

    Jun 28, 2001
    Except for one thing; leftwingers don't believe in p$r$o$f$i$t$s$!!!
     
  10. snowfx2

    snowfx2 New Member

    Jul 28, 2001
    so cal
    I thought Anschutz is a republican
     
  11. Preston North End

    Feb 17, 2000
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: Re: Re: Re: Re: AEG foresees profits in multisport mecca

    Wrong.

    LA Arena Company built Staples. The principles were Uncle Phil and Ed Roski. Murdoch (Fox) wasn't involved until later and then I think Roski was out, but not Uncle Phil.
     
  12. Preston North End

    Feb 17, 2000
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    What?!

    That they saved $10 million for BOTH teams doesn't mean the budget for each team was $5 million.

    If the budget for each team was $5 million and according to your business mechanics for each team to lose $5 million - which is the $10 million MLS saved - each team had no revenue at all.

    Revenue - $0.00
    Expense - $5,000,000.00
    Net Loss - ($5,000,000.00)

    A budget includes both revenue and expenses. To lose $10 million with a $10 million budget means you have no revenue.

    I agree. I think MLS is better off financially then most do.

    But I don't think they are making money.

    By "better off" I mean they aren't losing $50 million per year, but they aren't losing single digits either. I really don't believe they are making money.

    Oh really?
     
  13. The Wanderer

    The Wanderer New Member

    Sep 3, 1999
    Re: Re: Re: AEG foresees profits in multisport mecca

    All of this is easily circumvented if MLS gives money to USSF to "earmark" for youth programs....for NCAA purposes, let USSF run it even though it would just be an umbrella program that MLS controls. NCAA couldn't do jack about it, since USSF is an 'amateur' organization.
     
  14. Preston North End

    Feb 17, 2000
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: Re: Re: Re: AEG foresees profits in multisport mecca

    The NCAA already allows this.

    Professional organizations (MLS, A-League, or D3 Pro Select) can "donate" money to the USOC or USSF for player developmental purposes. The program needs to be run by the USOC or the National Governing Body for the sport (U.S. Soccer).

    The problem with this is MLS doesn't have the money. Though one can argue...what's another $1-2 million?

    I think $1 million from the three pro leagues - with most, if not all, coming from MLS - could help fund four regional U20 teams.

    I don't think it is happening, but really, who's to say MLS isn't "donating" money to U.S. Soccer at the moment?
     
  15. The Wanderer

    The Wanderer New Member

    Sep 3, 1999
    Re: Re: Re: Re: Re: AEG foresees profits in multisport mecca

    That's the reason they're not doing it, not because Johnny's soccer mom doesn't want him to skip college. That's a separate issue that BYU is addressing in its own revolutionary way.
     
  16. UncleSam527

    UncleSam527 Member

    Jan 14, 2002
    On the first page, AEG sounds as if they want to host World Cup games at the HDC. Correct me if I am wrong, but isn't the Galaxy stadium expandable to only 27,000? I thought to host a WC game, a stadium had to seat at least 35,000. Am I wrong?
     
  17. Jeremy Goodwin

    Jeremy Goodwin Member+

    SSC Napoli
    Feb 16, 1999
    Club:
    Montreal Impact
    Nat'l Team:
    United States
    The new standard for hosting world cup final phase matches is 40k.

    I don't think that applies to Qualifiers though.
     
  18. ferenzvaros

    ferenzvaros Member

    Jul 21, 1999
    NY, NY
    I just tried reading this article, but only got the reply "archive access denied." Does anyone have a way to gain archive access or a copy they could post/email. A million thanks!

     
  19. christopher d

    christopher d New Member

    Jun 11, 2002
    Weehawken, NJ
    Likewise here. I got the following:

    Subscriber Login


    Your subscription has expired.

    Please call us at 1-800-829-9839 or 704-973-1400 (9:00 A.M - 5:00 P.M. EST) to reinstate your account.

    If whoever was kind enough to set up the bigsoccer login could do so again, that would be great.
     
  20. I got that too...

    The Wanderer- Do you have a link or some infor into what BYU's doing? I understand they're going to sponsor a low division (PDL) team but how are they sidestepping the whole NCAA thing? Interesting topic, Im sure most of us would love a read or two.
     

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