AEG foresees profits in multisport mecca

This is one of the most amazing articles I have read in a long time and clearly states that once a team has a stadium, the stadium alone could put them in the black not to mention, additional ticket sales, merchendise etc. What a great article, my favorite quote from Leiweke is below

"Look, the two biggest sporting events on the planet are the World Cup and the Olympics, in that order," Leiweke said. "The United States, which is now more diverse than ever in its population, is going to catch up to the rest of the world.

"You hear plenty of critics who say soccer won't ever be that big in this country, but those critics couldn't be more wrong. Soccer's coming to America in a huge way, and the Home Depot Center will be the cathedral of soccer."

 

I love how every time we get a stadium in the US they say it will be the soccer mecca, etc. (Lockhart, CCS, now Home Depot) just imagine what this could mean in 10 years if stadiums keep getting better and better.

 

I hope this doesn't mean they will put in an organ!
I hope we get a lot more cathedrals soon and for the entire league someday.
If we just get the soccer fans that are already here to attend the league on a regular basis, the league will succeed it a big way.
Someday, when salaries are bigger and we get more of the talent, we will tap the kind of interest that brought 60K plus for six matches in the month of April 1978 (unmatched by any team sport here in history), at GS for the Cosmos.. It could happen without the Cosmos someday.

 

Well, if the stadium happens to be a multi-sport complex hosting training for a NFL team, a major tennis academy, and with advertising boards in a soccer stadium, tennis stadium, and indoor velodrome.

If you can't make money off a setup like that, you can't make money at all.

 

True but without the extras you mention there is a smaller operating cost also. I could see the math working out to be profitable in short order for a stadium that's just a soccer stadium with other events from time to time.

 

....especially if those other events include concerts, and you are, say, one of the largest concert promoters in the country, like, um, AEG. This has to play into everything they are doing. a 20-30 thousand seat outdoor stadium is perfect for a lot of concerts and if you own the stadium and promote the concert you make mucho $$$$$$$$$$.

 

That is one of the most interesting soccer articles I have read in a long time. Thanks for posting it. It sounds like they have a really viable plan.

 

Do we have take a trial subscription to read the article, or is there some sort of BigSoccer password we can use?

 

e-mail : bigsoccer@bigsoccer.com

password : bigsoccer

this info works for just about every 'register' site out there.

 

Muchas gracias.

 

AEG's plans to make the Home Depot Center a off-season training locale for some of the top European teams sounds like a cool idea:

"We'd let them use our facility, with the great weather and all the amenities we have, for some off-season training," Leiweke said. "We could let them have it for free, with their only obligation to play two or three matches on their way home against glamour-type opponents in U.S. stadiums where we have teams."

 

I'd assume that if, for instance, Manchester United were staying at the Home Depot dorms and using the Home Depot practice facilities during the summer that they wouldn't have any excuse not to play at least one American team (such as AEG's Galaxy).

- Paul

 

Thats alot of money. i mean $26 million in revenue alone plus maybe a bit more because of concerts. for me it is time that MLS ups the salary cap($3 Million would be fine), but i doubt that LA would give their own money to MLS just because of the salary cap. They could just want their salary cap to be higher. never know.

it's about time that the galaxy set up their own soccer academy. they would have enough money for one. they could have their developement program(without a fee, like in europe) with education or they could help the USSF out and build another u17 residency and a u20 residency. Or they can just focus on their own players and develope them themselves and become the Manchester United of the United States.

 

AEG wants to go head to head with the Neiderlander (spelling?) Group for promotion of big time concerts, etc. Victoria Street is designed to be used for those types of events as well as soccer. To make this work, you need to be building in areas where weather is not likely to cause cancellations. Thats why, in Europe, AEG owns several professional hockey teams - its not that Phil is a closet puckhead - its the venues!

 

Of course he does own the LA Kings - so he may just be a part-time puckhead - but you might just attribute that to his interest in the Staples Center - venues.

 

Actually the way i read this is that AEG wants to take Champions World out of the picture, AEG can say we will let you train for a month at Home Depot for free and in return play three big games around the country that we get to promote

 

VERY important here...

LA - done
NY - looking more positive than ever

Just shows AEG's commitments to building stadiums. Hopefully DC and Chicago are next.

That would be 4 of the 5 most populous metro areas in the US having AEG teams and stadiums. No small coincidence.

 

My guess, Anschutz is going to make a lot of money in 2006 if the league dissolves single entity. I think I saw somewhere that he plans on operating only 1 or 2 teams in the future. What he bought for 15-25mil the last two years could easily be 50-100mil in 3 years.

 

Really?

Paul

 

Re: Re: AEG foresees profits in multisport mecca

The article says the center will net $5 million per year after $21 million in expenses are paid with $26 million in revenue. Expenses could also be at $23 million per year.

That means each of AEG's 6 MLS clubs - if all monies go to the MLS clubs and not AEG's coffers to fund other endeavors or businesses - would get $500,000 to $833,333 each/per year. So instead of losing $1.5 million each they'll lose $666,667 to $1,000,000.

Yet you still want to raise the salary cap?

By the way, the $70 million ($7 million per year) from Home Depot is not really $70 million. AEG had to commit to purchasing $35 million from Home Depot in construction materials.

This sounds good too...but.

You will not see a professional traditional style academy in the U.S. until the NCAA relaxes their rules.

How many of the 100 or sets of parents that have kids in a MLS youth academy will want to jeopardize a college scholarship? Not every player that graduates will be good enough to get a professional contract.

A professional soccer team can't provide the professionalfunding - why DC United's youth players pay to train - for U18's. It must remain an amateur operation. Professional coaches are allowed.

They also can't pay for the players education, only the U.S. Olympic Committee or U.S. Soccer can. See the U17 residency program.

U18's can't be in a professional environment if they expect to get a NCAA Division scholarship or even play in college. Unless they go the NAIA route.

Nederlander.

I don't know I think Uncle Phil is a closet puckhead.

Uncle Phil built Staples.

It was actually built for the Los Angeles Kings, not the Lakers, Clippers, or Sparks. Of course he also built it for concerts and conventions (in conjuction with the LA Convention Center).

 

I say they should go ahead and put a second team in LA so that they get more profits from the Stadium. It seems to me that having only the Galaxy leaves that stadium under-used