Colorado thinks about 2003 All-Star Game

Discussion in 'MLS: News & Analysis' started by kenntomasch, Aug 1, 2002.

  1. kenntomasch

    kenntomasch Member+

    Sep 2, 1999
    Out West
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    Yes, the MLS tradition that goes ALLLLL the way back to 1996

    As soon as another team builds the National Training Center in the second-largest city in the country, maybe they'll think about that one. ;)

    I wouldn't be surprised if some of the deal was actually contingent on having x number of huge events a year, at least at the beginning. To get financing or sponsors or the Home Depot involved, perhaps. Fairness goes right out the window when you're talking economics.
     
  2. ElJefe

    ElJefe Moderator
    Staff Member

    Feb 16, 1999
    Colorful Colorado
    Club:
    FC Dallas
    Nat'l Team:
    United States
    It's not that simple.

    MLS will likely pay Anschutz Entertainment Group a small token amount of rent to use Home Depot Park (or whatever it's called) and will get nothing from parking or concessions or anything but ticket sales. They'll probably make a couple of bucks, but not too many. Heck, they might even lose money.

    Meanwhile, AEG will be getting the parking, concessions, luxury box rental money, and so on. And oh yeah, they'll be getting a couple bucks in rent. But they own a substantial portion of the league, so they'll be moving some money from one pocket to another.

    In the end, the 2003 All-Star Game will not be such a good deal for Major League Soccer, LLP, but it'll be a great deal for its biggest investor, AEG.

    This is an example of why you should believe the whole "we're losing $50 million a year" line that MLS has put out, and why you shouldn't believe a word of it. Major League Soccer, LLP has likely lost $50 million a year, but I'm pretty sure that its investors haven't lost that much money.
     
  3. kenntomasch

    kenntomasch Member+

    Sep 2, 1999
    Out West
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    Thank you, Dustin.
     
  4. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    Club:
    DC United
    Nat'l Team:
    United States
    Kenn, dude, you have GOT to switch to decaf.

    The poster CLEARLY referred to getting both the All-Star game and MLS Cup. You can tell because he wrote "and."
     
  5. soccer4ever

    soccer4ever New Member

    Jun 1, 2001
    USA
    Kenn's recent posts really surprise me.

    Something's strange is happening is his life . . . he's not the old Kenn ;)
     
  6. kenntomasch

    kenntomasch Member+

    Sep 2, 1999
    Out West
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    I stand corrected. I'd imagine you could make more off MLS Cup than an All-Star Game because I believe you'd be able to charge more for the tickets.

    Oh, it is the old me. That's the problem. That's how I got in trouble the last time.
     
  7. SoFla Metro

    SoFla Metro Member

    Jul 21, 2000
    Ft. Lauderdale, FL
    Humor
     
  8. SoFla Metro

    SoFla Metro Member

    Jul 21, 2000
    Ft. Lauderdale, FL
    We should save this somewhere so nobody has to re-type it every time ;)
     
  9. SoFla Metro

    SoFla Metro Member

    Jul 21, 2000
    Ft. Lauderdale, FL
    Bring yourself back to the happy place kenn :D
     
  10. kenntomasch

    kenntomasch Member+

    Sep 2, 1999
    Out West
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    God, I hope somebody is.

    SoFla, they kicked me out of the happy place. Some cat was out to get me. ;)
     
  11. SoFla Metro

    SoFla Metro Member

    Jul 21, 2000
    Ft. Lauderdale, FL
    Check your PMs
     
  12. ElJefe

    ElJefe Moderator
    Staff Member

    Feb 16, 1999
    Colorful Colorado
    Club:
    FC Dallas
    Nat'l Team:
    United States
    I know the feeling.
     
  13. kenntomasch

    kenntomasch Member+

    Sep 2, 1999
    Out West
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    What did you do?

    As for the All-Star Game, if you have 30,000 seats, is your average price $30? (I have no idea what the average ticket price is for this year's event). That's $900,000 in ticket revenue. Can you charge $40 a ticket for MLS Cup? That's $1.2 million. That's $2.1 million in revenue for the two games. If you think it costs nothing to put two games on, I would disagree.
     
  14. Ive been tryin to say this for a long time....they didnt lose that much, outside of startup costs. Lets just call it "creative finances"
     
  15. norfcath

    norfcath New Member

    Aug 17, 2000
    Philadelphia
    I believe they almost HAVE to put the new LA facilities on display. You wouldn't want to see Naperville get a big event, would you?
     
  16. feuerfex

    feuerfex Member

    Apr 21, 2001
    God help us, no!

    (But I'm not too worried that it will happen either.)
     
  17. GreatZar

    GreatZar Member

    Colorado Rapids
    United States
    Mar 29, 1999
    Denver, CO, USA
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    I not sure what YOU guys are arguing about. But the bottom line is:

    1) Can the event sell tickets?
    Well, the Rapids front office has shown that they can get close to 20K for home openers (not really any give-aways -- 2002 was slightly different in that is was a double w/WUSA). I would think this is the minimum. Can they sell it like the 4th of July...probably not. I'd guess 25K as a conservative guess.

    2) How much can you charge?
    Prices are currently $14 for end-line ($11 on group discount). The high is $22 for regular games. If it were up to me, I'd only put a $5 premium on tickets to get more people in the gate but I suspect they'd charge a $10 premium and have a difficult time getting to 25K in the stands. No way could they charge $30+ like the USA vs Mexico friendly (which got 50K in the stands).

    3) Can additional revenue be earned from the event?
    The Rapids new deal w/Invesco allows for something like 33% of stadium concessions and parking (I think). The other 67% goes to the Stadium Authority (a.k.a. the Denver Broncos). This would require a new contract and negotiations, but I wouldn't be surprised if they got a similar deal. Stadium rent is much more reasonable now (was something like $20K/event I think so now it might be half as much -- all just wild @$$ guesses) and the Rapids get to sell the sky boxes and club seats.

    4) Will it help sell MLS nation-wide and/or get new sponsors/investors?
    Well...I think the Rapids front office would be overwhelmed...

    I'd say we're a long shot...but it'd be fun to get it to the Mile High city...
     

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