MLS Single entity (and all other league structure talk) Part II

Don't get me wrong. He was a big time lawyer (I knew some people from Manatt, Rothenberg, et al, who had their offices in West LA and those guys were major power brokers in California and with both political parties) and his Single Entity concept is really very clever and proved to withstand legal challenges. The problem for those who ran the league was more in the execution of their original business plan rather than falling into a legal trap, as it were.

So, indeed, the SE idea was based on containing the labor costs. What it left up to management was to figure out the breakeven point. In retrospect and accounting for inflation over the last 20 years, the "sweet spot" would have been around $2.5M-$3M in team payroll instead of ... $1.3M (IIRC). Without the 5-foreign player rule, that would have made a spectator sport worthy of spectating. As it were, the quality of play was a disaster and the repercussions off it are still felt.

BTW, I am not sure many folks remember here but the league's first season accidentally coincided with the Bosman Ruling (officially, Bosman came out at the end of 1995, just prior to MLS's first season), which changed the face of the global soccer market and it took MLS a very long time to adjust to it.

PS. On Eredivisie (I am sure you've seen this) with whom MLS is trying to - wink-wink - catch up with an average wage given as $445,000 for that season.

Key Figures - Eredivisie 2011/12

• The operating result in the Eredivisie was a deficit of €15.1 million, representing a 57% improvement in relation to season 2010/11.
  
• The number of spectators has slightly risen, to an average of 19,511 spectators per match.
• Stadiums are among the most occupied in Europe with a 90% attendance rate.
• Total turnover in Eredivisie is €433 million (0.6% more than in 2010/11).
• Revenues out of participation in European club competitions have dropped from €33
  million in 2010/11 to €20.7 million EUR in 2011/12.
• Total costs have been reduced thanks to a decrease of 6.8% on players’ salaries and wages.
• The players’ transfer trade has left a positive balance of €12.8 million to Eredivisie clubs

https://ebv.knvb.nl/uploads/LG/qG/LGqGTJDKo19o_rUD9_gsQg/Het-Seizoen-in-Cijfers-2011-12.pdf

 

???

In a typical US franchise, the president's job is to make money. It's the GM's job to win games. So unless you can show how the Clippers were money losers, this aside makes no sense.

 

I believe the relevant labor laws are for where the employee is employed, not where the company is HQed.

 

Because under American law, you can't treat Canadians different from how you treat Armenians or Arubans or Azerbaijanis.