Has MLS set the bar too high for expansion?

Discussion in 'MLS: Expansion' started by anderson, Sep 5, 2002.

  1. Rocket

    Rocket Member

    Aug 29, 1999
    Chicago
    Club:
    Everton FC
    Nat'l Team:
    United States
    So far MLS has talked only one person into paying $20 million to become a partner in a money-losing limited partnership, and unless MLS becomes more profitable, he may be the last.

    Anschutz, I believe, paid only $5 million when the Fire joined MLS, and I think $5 million is a much more reasonable sum to ask for as a franchise fee than is $20 million.

    Provided the investor joining MLS is willing to spend his own money to build an SSS (or sweettalks a community into building it for him), the addition of the new franchise would be a plus for the league if one assumes that the expansion franchise is profitable on its own.

    But until the MetroStars, United, etc build their own SSS's or move to locales where they have better stadium deals, the league as a whole will still be losing money.

    So it's no wonder MLS is not finding any takers willing to pay $20 million for the privilege of losing money for the forseeable future, knowing at the same time that they'll be lowering Anschutz', Hunt's and the Krafts' losses by joining MLS.

    In fact a reasonable man might say to MLS, "Hey, if I build an SSS, I shouldn't have to pay a franchise fee. In fact, you guys should be paying me to join the league since my new franchise would help each of you lose less money than you're losing now."
     

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