AppleTV+ to be the Home of MLS through 2032

Discussion in 'LA Galaxy' started by Lazy Assed Assassin, Jun 14, 2022.

  1. TrickHog

    TrickHog Moderator
    Staff Member

    Oct 14, 2002
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    I wonder if they are gonna offer a monthly or just a "season" pass? Or maybe like you are guessing a discounted "season pass" and a monthly access that costs more when added up for the season.
     
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  2. TrickHog

    TrickHog Moderator
    Staff Member

    Oct 14, 2002
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    I really don't see Pro/Rel happening. Why would any MLS owner vote in favor of it? What's in it for them?
     
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  3. Dawdler

    Dawdler Member+

    Apr 2, 2005
    Los Angeles,CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    yes their MLB coverage has a lot of room to grow, from what I have noticed the picture is very crisp and better then the local teams coverage, they really emphasize the game by using an attractive sports bug, that compliments the game instead of taking up a lot of real estate like the Bally sports channels where it looks like the game takes a back seat to their betting coverage.

    they also use a lot of stat numbers during the game like ballplayer one, swings at a fastball 75 percent of the time thrown and ballplayer two only swings 20 percent of the time, and fans seem to be split on it, I myself don't mind it as baseball is a stat driven sport.

    the downside is the announcing, it feels like they are trying to cater to the casual fan with stories and sometimes it feels like they forget a baseball game is going on and it seems to alienate the hardcore baseball fan and I'm also not to keen on a 3 person booth plus an on field commentator that they are going with but I really think Apple TV will make changes as they grow and learn.

    I'd say overall I like what Apple TV is trying to do and I know its going to be another extra expense for me but if it means better coverage, I'm willing to pay a little extra

    I also like the no bullshit watch all the games, I'd really like the NHL to follow this model as well, baseball, basketball and football are so entrenched in American society there is no way the owners of those franchises would give up their local TV rights and they're asinine blackout rules


    also on a side note, I think the NFL will be watching to see how Apple TV handles MLS as the highly lucrative NFL Sunday Ticket is up for grabs and Apple TV is one of the front runners, if the MLS venture goes off without a hitch, we may see a shift in sports streaming and coverage
     
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  4. Neubill

    Neubill Member

    Los Angeles Galaxy
    Jan 26, 2005
    Southern Kelehfornya
    #29 Neubill, Jun 15, 2022
    Last edited: Jun 15, 2022
    As people are finding and sharing little pieces of info here and there, the picture is becoming clearer as to what the league did today. I'm still processing it, but I think MLS has made what will ultimately be seen in retrospect as a quantum leap. We've come a long way since Andrew Shue suited up for the G's.

    MLS is becoming a broadcaster.

    In less than 30 years, we went from buying broadcast time from ESPN to establishing a 10 year $2.5 billion global media rights deal with Apple. Money-wise, this deal just turned the Big Four into the Big 5.

    I'm not an Apple fan-boy, but I have a feeling that they'll give the premium treatment to the MLS product. Our league will finally have a whip-around show. There will be a way to watch match replays. Matches will be streamed, live or archived. Rain or shine, near or far, you can watch the G's wherever you are.

    On the surface, it's still considerably less than the ~ $625 million rights deal per year for the NHL, but this $250 million figure is the base figure. There's still potential for a whole lot more. The dinosaur reporters in the sports world that hate soccer have no idea how massive this deal is, but I have every confidence that what I'm about to describe to you will be copied by the biggest leagues in the world. Allow me a moment to paint a picture.

    Like it or not, the NFL continues to be the standard of success that all other sports leagues aspire to match ($113 BILLION for 11 years) and MLS has been able to thrive and succeed by implementing some of the NFL's successful strategies. Controlling your venue was a biggie; controlling the presentation of the product appears to be the next one.

    The NFL built NFL Los Angeles, which serves as the league's west coast headquarters, on the site of SoFi stadium. Some here may recall that when Stan Kroenke wanted to move the Rams to LA, building this media center on the site of SoFi stadium was part of the sales pitch. From this venue, the NFL has pre-game and post-game shows. So now consider this: it was stated elsewhere that MLS is going to handle the production in-house, from a central location, which is just like what the NFL does.

    ...and even if MLS chooses to rent a facility instead building one for themselves, the key point is this: through the vehicle of Apple TV, this agreement means that MLS will now become a broadcaster of their own matches and generate their own revenue streams while doing it.

    They can sell advertisement time to sponsors for all content they broadcast.
    ...and as a broadcaster, they can bid for the English-language broadcasting rights to tournaments, including the FIFA World Cup.

    We are at the threshold of a new era. Remember when Don Garber said that a goal for MLS was to become a destination league? If you make money, you can spend money on players. I believe this deal may prove to play an important part towards that.
     
  5. Lazy Assed Assassin

    Jul 21, 2015
    Global rights is a big deal too. Every time a David Beckham or (future Galaxy forward :fingers-crossed:) Son Heung Min joins MLS there’s going to be an uptick in viewership and some of those people will stick around. It really can’t be understated how important it is to make it easy for interested, but incidental viewers to be able to watch your product. The answer to the question "I want to watch Son’s first game for LA, how can I do that" is the same every time, for anyone, anywhere for 10 years.

    To echo a lot of the optimism here, I could see in 10 years time MLS getting close to the Ligue 1 in viewership numbers assuming no one else jumps on the "every game, any where" bandwagon, but I imagine that would be much harder for other leagues to accomplish.

    FWIW at the end of 2021 one report showed the following tv viewership numbers
    1. Premier League 1.7b
    2. La Liga 903m
    3. Serie A 380m
    4. Bundesliga 298m
    5. Ligue 1 120m
    6. Primeria Liga 98m
    7. Eredivisie 90m
    8. MLS 72m
    9. Brasieirao 55m
    10. Primera Division 43m
    Not saying it’s a given at all, even surpassing Eredivisie in 7th will be tough and could take 4-5 years, but if that happens 7th to 5th seems achievable in years 6-10 of the contract.
     
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  6. skydog

    skydog Member+

    Aug 1, 1999
    Durham, NC
    Club:
    Los Angeles Galaxy
    Then we are going to have to return to the practice of signing more 29yo-35yo international mega-stars for this to happen. Because we still won’t be able to afford the salaries of in-prime household name players. And young but quite promising unknowns are not - by definition - big TV draws.
     
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  7. El Futbolisimo

    El Futbolisimo Member+

    Sep 28, 1999
    #32 El Futbolisimo, Jun 15, 2022
    Last edited: Jun 15, 2022
    I want a really savvy scouting dept. One that does their due dil and keeps an eye out for those players who maybe are not in their prime but not retirement poster boys either is key. Those players that for whatever reason are relatively unknown, have fallen through the cracks or simply didn't get picked up. Galaxy has to work smarter and harder. Make the team a winning team and people will notice and be drawn to watch and follow. Even the casual fan that understands a little bit about the game.

    BTW I hear that the MLS Next Pro will also be available through Apple.
     
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  8. barroldinho

    barroldinho Member+

    Man Utd and LA Galaxy
    England
    Aug 13, 2007
    US/UK dual citizen in HB, CA
    Club:
    Manchester United FC
    Nat'l Team:
    England
    Apparently this was in the beta for Elden Ring but was cut after a slew of hardcore Dark Souls veterans were found curled up in the fetal positions, quivering, catatonic, faces soaked with tears, mumbling "It's just... too... difficult...".
     
  9. barroldinho

    barroldinho Member+

    Man Utd and LA Galaxy
    England
    Aug 13, 2007
    US/UK dual citizen in HB, CA
    Club:
    Manchester United FC
    Nat'l Team:
    England
    *Dives for cover, then remembers this isn't twitter*
     
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  10. TrickHog

    TrickHog Moderator
    Staff Member

    Oct 14, 2002
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    So so true....
     
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  11. TrickHog

    TrickHog Moderator
    Staff Member

    Oct 14, 2002
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    And that is why I am proposing the league add one more DP slot for each time, the "TrickHog" DP for a player well past their prime but who still has name recognition. So every team would get 1 Young DP, 2 Regular DPs, and 1 TrickHog DP.

    Like the other DPs, TrickHog DPs don't count against the salary cap, but more importantly, the cost of the PT, ice baths and reconstruction surgeries that come with TrickHog DPs are covered by the league....
     
  12. hav77

    hav77 Member+

    May 31, 2010
    Club:
    Los Angeles Galaxy
    Whoa... @barroldinho sighting.
     
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  13. hav77

    hav77 Member+

    May 31, 2010
    Club:
    Los Angeles Galaxy
    That's where the sweet TV money comes in!!!
     
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  14. skydog

    skydog Member+

    Aug 1, 1999
    Durham, NC
    Club:
    Los Angeles Galaxy
    You are talking about what would help the Galaxy. I was talking about what would help MLS TV ratings. Two very different things.

    Wait, wouldn't winning more games increase eyeballs for the Galaxy? Yes it would but a team winning is another team losing so that argument is a zero sum game for MLS as a whole. The only way to get more of the non-obsessed soccer people to watch MLS games is to have something that draws them in. Ibra and Beckham and Donovan and David Villa and Henri and Rooney and even Chich do/did that. Jeremy Obibisse, Ola Kamara, Adam Druksa and Sebation Driussel don't do that.
     
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  15. El Futbolisimo

    El Futbolisimo Member+

    Sep 28, 1999
    Yeah, we are talking apples and oranges. I took off on a tangent because I wanted to make that point which always irks me to no end how useless we are at scouting.

    Having said that my wonder is if lower tier or smaller market teams going to justify spending huge monies from lucrative tv deals or whathaveyou on these Trikhog DPs. I don't see a team like San Jose or Austin spending millions on some older famous player just for the optics of it. Maybe it would not make sense to them given their situation and this could happen at many a club across MLS. What then?
     
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  16. 73Bruin

    73Bruin Member+

    Jul 12, 2008
    Torrance, California
    What sweet money are you referring to? Maybe for some clubs, but this $250mm divided by next year's 29 teams is $8.6 million. If you subtract the $5mm the Galaxy used to get from Spectrum and their old share of the national rights this is practically a push with no real gain and may be a loss if you factor in inflation and the players gaining a share of the tv revenue.
     
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  17. Lazy Assed Assassin

    Jul 21, 2015
    Do we know the split is going to be even amongst teams? It would certainly align with MLS’ past financial choices. But I wonder if teams like LA and Seattle and NY might have argued the distribution should be ratings based? Garber has said the $250m is a base and there’s room form MLS to earn more money whether that gets distributed who knows. I suspect the nationally broadcast games are part of the additional revenue beyond the $250m and with the stability a long term decent contract buys you could upsell those big games

    With Apple being the broadcast partner and owning the presentation client they have access to a wealth of technology that open up some new options for revenue generation as well. The one that jumped immediately to mind that isn’t that new was the sideline banner replacement technology (https://coffeebeans.io/2022/01/25/virtual-replacement-perimeter-overlay-technology/) the current technology requires special systems installed in stadiums, but Apple’s work in AR/MR and object occlusion they implement that purely in software. So if you select the Galaxy as your team you get Galaxy broadcasters and Galaxy sold adverts on the sideline board. And because you’re logged in and MLS isn’t having to negotiate with three or four different broadcast partners the Galaxy sold ads could be across all the games you watch not just Galaxy games.

    I presume there will be a tie in to Apple Pay as well which should reduce the friction between an impulse decision so adverts like "Join the Galaxy on Saturday, 4 tickets, 4 drinks and 4 hotdogs for $140" or "Get 2 large Dominos Pizza for the second half for just $9.99" would allow for seamless purchase as your watching with only a quick confirmation on your phone.

    And then there's AR/MR. Based some Apple patent filings it seems pretty likely that their forthcoming augmented/mixed reality headset will have big tie ins with sports. While that’s not necessarily beneficial to teams specifically it opens up new opportunities . The more I think about it, the AR/MR angle might actually be what Apple is interested in rather than MLS specifically, but I digress.

    All that to say, the base fee might not be all that much, but the opportunity to generate revenue is interesting and potentially very lucrative.
     
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  18. skydog

    skydog Member+

    Aug 1, 1999
    Durham, NC
    Club:
    Los Angeles Galaxy
    Without doubt the "2.5 billion dollars" figure, like lottery payouts, can sound more impressive than it really is once you take into account the fine print. As you note it will "only" be ~$8 mil/team on average however it is split. The contract also specifies that MLS will be responsible for producing the games, which I am told is very expensive.* Between regular season and playoffs MLS put on around 950 games. The cost of producing almost a thousand games has to be enormous and it will come out of that $250 mil.

    But on the other side of the ledger is additional income. MLS will also be paid by ESPN, Univision, Fox and maybe Turner to show games as well. Likely they will they pay less per game than currently because the games are also shown on Apple+ but how much less? I have no idea. Also possibly additional ad income as LAA suggests? I would imagine the Apple shown ads $ would go to Apple, not MLS though, right? (I'm obviously ignorant about the entertainment indusrty.)

    * Trickhog or you other entertainment industry folks jump in here - What falls under the term "produce a soccer game?" Apple is apparently doing its own in house announcing so that leaves what? Filming the games and sending the resultant feed to Apple studios and what else? Is replay generation done on site or would that be done by Apple studios? Other tasks?
     
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  19. skydog

    skydog Member+

    Aug 1, 1999
    Durham, NC
    Club:
    Los Angeles Galaxy
    It doesn't always have to be either/or name recognition vs club contribution. It can be both. Some of the 29yo+ international stars can still really produce at the MLS level. Ibra, Henri, Villa, Keane (what a player!), Giovinco, Chicharito, Drogba, Rooney and even Beckham were major international stars who came in and produced for their clubs, with many of them rating in the top 3 or so players in the league.
     
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  20. TrickHog

    TrickHog Moderator
    Staff Member

    Oct 14, 2002
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    #45 TrickHog, Jun 16, 2022
    Last edited: Jun 16, 2022
    Outside my wheelhouse but my guess would be MLS is producing the video feed - the same way one company handles all of that for the World Cup - hiring the cameramen and remote truck and director for each game. And then the raw feed of that is sent to Apple TV, who will put on the graphics and provide the announcers, etc. That's how the World Cup is done - one company produces the video feed, then it is sent to every broadcaster that has World Cup rights around the world, and they add their own graphics and announcers. But I'm guessing here. But yes - gotta be at least $20k per game for just the camera team and truck on site for each game. The bare minimum MLS is shelling out would be 20-50million for the season.
     
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  21. El Futbolisimo

    El Futbolisimo Member+

    Sep 28, 1999
    Would it be worth it for MLS or each team or a combination thereof to invest in their own equipment and personnel? I would certainly look into that. I mean if each MLS team has their own team and equipment there is not need for Galaxy to pack up their equipment on road games. Each MLS venue has their own setup.
     
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  22. Neubill

    Neubill Member

    Los Angeles Galaxy
    Jan 26, 2005
    Southern Kelehfornya
    This.

    The same high standard equipment across all venues, including the Hawkeye technology VAR cameras.
     
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  23. Lazy Assed Assassin

    Jul 21, 2015
    This will be really interesting to watch – though we may never know the answer. At $250m a year + production costs it’s marginally Apple’s most expensive AppleTV+ output to date, but not by much and definitely not per hour basis. Accepting "Hollywood Accounting" is a thing and @TrickHog would know better if these numbers are inflated, but Apple’s Foundation series was reported to cost $25m per episode and there were 10 episodes produced. I believe The Morning Show was $15m per episode for $150m. So this isn’t expensive for them and the return is measured more in subscriptions and the halo effect on hardware sales. For reference on just how little $250m is, last quarter their net income worked out to $384m a day.

    If you take the average viewership last season in MLS across English and Spanish language broadcasters that turns out to be a shade over 500,000. I’m not sure all 500,000 are going to buy a subscription, but then also don’t know how many people outside North America will decide to buy one either. But if you called it $100 for the MLS subscription that would be $50m yearly just for the subscription. If it’s going to be a case of you also need the standard AppleTV+ at $5 a month then your at $80m in revenue.

    Lots of conjecture here on my part. We’ll see what the product looks like next year, but 2024 could be far more instructive to the strategy.
     
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  24. TrickHog

    TrickHog Moderator
    Staff Member

    Oct 14, 2002
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    I can tell you this from experience - Apple, while splashing cash where they want to, is also notoriously cheap and tries to nickel and dime where they can. They always underbid on the sound post for their shows. So they will spend money, but also be tight with it where they can. I totally believe that they picked a number that is going to be profitable for them - and personally think their strategy of looking for a good value - signing their first big sports league deal with an affordable league with tremendous upside and growth potential - MLS is on it's way up - and the value of this deal post-2026 World Cup could make it a VERY good move for Apple.

    As for show budgets - yes, I believe those numbers. I have a show coming out next Wednesday. Our sound budget was probably about $60k-$70k per episode - I generally stay out of the money negotiations so the clients keep liking me :). But on one of those episodes they spend $1million dollars just for the CG animation on one character in that episode. And if you are trying to guess the show, the hint is that the animated CG character in question is a chimpanzee. And it looks amazing....
     
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  25. Lazy Assed Assassin

    Jul 21, 2015
    100% I’ve heard some horror stories and I guess you don’t get to $380m a day profits without watching every penny. Certainly didn’t mean to imply they’ll lose money - they don’t rally do loss-leaders. More like break-even-leaders.

    keeping my eyes open for CG monkeys. Guessing it’s not Umbrella Academy.

    /edit: oh wait I misread the budget. It’s could definitely be UA season 3 :D
     
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