MLS to expand to 30 teams. $200 Million expansion fee.

Discussion in 'MLS: News & Analysis' started by CMeszt, Apr 18, 2019.

  1. 007Spartan

    007Spartan Member+

    Mar 1, 2006
    Scottsdale, AZ
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    Phoenix.
     
  2. firefan2001

    firefan2001 Member+

    Dec 27, 2000
    Oswego, Illinois
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Neutral site (Warm city or dome), like NFL. Don is after all a NFL guy.
     
  3. Baysider

    Baysider Member+

    Jul 16, 2004
    Santa Monica
    Club:
    Los Angeles Galaxy
    Absolutely and that's why I'm against expansion. The only teams who are going to generate enough new TV viewers to justify the split are maybe (1) the largest remaining cities (Detroit, Phoenix) and even there I'm not sure since they are also splitting the neutral national TV fans, and (2) teams that can generate national buzz like Atlanta.

    Sacramento, Charlotte, etc. just don't seem to have enough upside. Expansion at this point is about treading water and generating some cash (although not even that much in the big picture). Moving forward involves improving the teams currently in the big cities.
     
  4. GlennAA11

    GlennAA11 Member+

    Jun 12, 2001
    Arlington, VA
    gotta keep collecting those expansion fees to stay in business. I disagree with Garber's/MLS's assessment that that level of play has continued to improve (overall). More teams will further dilute that. I also agree that the schedule will obviously be even more uneven.

    TV ratings have never been any good. I don't see that changing when all sports are seeing ratings go down.
     
  5. gunnerfan7

    gunnerfan7 Member+

    San Jose Earthquakes
    United States
    Jul 22, 2012
    Santa Cruz, California
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Phoenix is an awful sports town. They don't really support the D-Backs, the Coyotes, Cards, or Suns. 'Course, being terrible at all of those sports is certainly a contributing factor.

    Not sure MLS is going to like quarter-filled 120-degree stadiums in Spring/Summer. At night it sometimes doesn't get below 100. It's from all the concrete and asphalt radiating heat after baking during the day.
     
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  6. 007Spartan

    007Spartan Member+

    Mar 1, 2006
    Scottsdale, AZ
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    #81 007Spartan, Apr 19, 2019
    Last edited: Apr 19, 2019
    I don't think MLS ever goes beyond 32 teams. They'll follow the same formula as the other major leagues in the US; 30-32 teams. Sure they'll leave potential entrance fees, but those are one time fees and the owners have to think about revenue sharing over decades. The NFL, MLB, and NBA could easily get 10 figures for an expansion franchise in some of the same cities that are now clamoring for MLS teams. They don't because the economics of revenue sharing stop working at a certain point. Besides that I think you need some open markets to continue to push the values of franchises up. If you can simply buy into a new market vs purchase an existing team, that devalues those teams and also drives down entrance fees. The supply can not be infinite. Supply and Demand applies.

    Then you also have to think about watering down the talent pool. MLS is perhaps more immune to that than the other domestic pro leagues because there is a far larger pool of foreign talent, however, domestic talent only stretches so far.

    I think 32 teams is the ultimate number, though I expect a pause at 30. The new investors MLS is bringing in are truly impressive, but they could also use some of that money to flow into existing markets to rejuvenate some of the more moribund teams in the league.
     
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  7. GunnerJacket

    GunnerJacket Moderator
    Staff Member

    Sep 18, 2003
    Gainesville, GA
    Club:
    Arsenal FC
    The talk about TV money needing to be worth the addition is correct, but to that end I feel very safe in assuming that Garber and Co. have been communicating with their broadcast partners about the potential additions. This isn't a conversation MLS does over drinks at Applebee's. (Though I do enjoy cheap long islands.)
     
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  8. Pack87Man

    Pack87Man BigSoccer Supporter

    Sep 1, 2001
    Quad Cities
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    I don't agree with you or @superdave, though I do see your points. There is more to the revenues than just the fairly simple add and subtract here. You also have player pool reach and engagement locally and a bunch of other things that add to the value of a new team.

    I also think part of this is perception. We in the US are conditioned to a major league having somewhere in the 30-32 teams spread across the nation (and Canada) in some fairly recognizable places. Now each league has its own quirks to those distributions, but they're there. The fastest way to be perceived as minor league is a small number of teams. Look at Major League Lacrosse, for example. It's possibly the best lacrosse league in the world, but it only has 9 teams and is completely small time. MLS wants to be one of the big boys, and in the US, this is how they do it.
     
  9. 007Spartan

    007Spartan Member+

    Mar 1, 2006
    Scottsdale, AZ
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    Phoenix is not an awful sports town. That's a fallacy. We draw 1.7 million fans for Spring Training baseball. The Phoenix Open draws more fans than any golf tournament in the country. The Cards sellout every game. The Suns and D-Backs have meh ownership and the Coyotes are located in the worst possible spot for a hockey team.

    The Rising have put together a great ownership group and an ideal stadium location that requires zero public approval and no public funding. I'm not sure what you are talking about with a quarter filled stadium, but they are proposing a 22,000 seat climate controlled stadium at a cost of $250mln with zero public funding located @ the intersection of the 101 and 202, which is about as perfect a spot as you can find for a soccer team. Besides that, you're talking about a metro area that is currently @ 4.8mln and projected to top 6 mln within 10 years.

    The same crap was said about Atlanta being a crappy sports town, how'd that turn out? I think one advantage that soccer would have is that people moving here, by and large, don't have life time allegiances to other teams (like I do, for example, with the Cubs). The Rising have excellent attendance and are a well run group already. If MLS passed us up for another stagnant Midwest market, that would be stupid.
     
  10. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    Club:
    DC United
    Nat'l Team:
    United States
    There are two ways to look at the academies. One is, hey, more players! That perspective thinks MLS will get more relevant and lucrative as the USMNT gets better.

    The other is, again, bigger pie but more pieces so do you really gain?

    In my opinion, MLS has no chance to make a meaningful move up in quality among world leagues until the US player significantly improves relative the number of teams. So adding STL and Phoenix is useful in that regard. I don’t think anyplace else is.

    If MLS has an expansion strategy more complicated than bigger is better, I don’t see it. That’s the only commonality tying together Miami AND Cincy AND Phoenix. Each has a positive, but there’s no overlap in what that positive is. Each has a unique selling point.
     
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  11. xbhaskarx

    xbhaskarx Member+

    San Jose Earthquakes
    United States
    Feb 13, 2010
    NorCal
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    #86 xbhaskarx, Apr 19, 2019
    Last edited: Apr 19, 2019
    MLS Commissioner Don Garber: League in talks with Las Vegas over expansion franchise

    When asked about a location for a possible 30th franchise, Garber mentioned Las Vegas as a possible landing spot.

    “I don't know that we have a firm handle yet on what the final number of teams in the league ought to be,” Garber said. “We of late have been in very positive discussions in Las Vegas and in Charlotte. We still believe Phoenix is a good market. We have been in discussions with Detroit. I will say that we are going to take our time on team 30.”​

    Detroit doesn't get a "very positive" or a "good market" just "also Detroit"...
    Looks like St Louis and Sacramento and then 30 could be between Phoenix and Las Vegas... (or maybe San Diego gets into the mix again, in any case all three are "southwest").

    I hope Phoenix and Vegas have plans to control stadium temperature so players don't die in that heat....

    How much would it matter if Phoenix was an awful sports town?
    Atlanta was an awful sports town until Atlanta United came along...
     
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  12. Yoshou

    Yoshou Fan of the CCL Champ

    May 12, 2009
    Seattle
    Club:
    Seattle Sounders
    Nat'l Team:
    United States
    So.. Based on people saying the same thing about Atlanta, we can look forward to Phoenix getting 40k a game then? ;)

    If only there were a way in which soccer could be played indoors.. ;)
     
  13. xbhaskarx

    xbhaskarx Member+

    San Jose Earthquakes
    United States
    Feb 13, 2010
    NorCal
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Trying to decide which of these statements is more wrong...
     
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  14. Pack87Man

    Pack87Man BigSoccer Supporter

    Sep 1, 2001
    Quad Cities
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    The first. At least the second one is debatable, though I disagree. The first one relies on the assumption that a dozen or so billionaires across a decade of time are complete idiots that keep buying into what would be a failing business without them.
     
  15. 007Spartan

    007Spartan Member+

    Mar 1, 2006
    Scottsdale, AZ
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    The Rising already have the land and plans for a climate controlled stadium that is at least on par with what Sacramento and St. Louis have proposed. I honestly don't know what is holding us back. We also recently brought in another big money Chinese investor (the owner of Ligue Un's Nice). Not to mention we just secured naming rights for our existing stadium. The local ownership group (while it doesn't feature billionaires) are made up of some of the top businessman and developers in the valley. I'm not sure what box we don't check. Perhaps Garber wants to see one more more big money investor, I don't know. It's a bit disheartening, but I will say his expansion strategy resulted in far stronger situations in St. Louis and Sacramento, so.....

    https://www.azcentral.com/story/spo...ls-renderings-proposed-mls-stadium/430960002/
     
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  16. BalanceUT

    BalanceUT RSL and THFC!

    Oct 8, 2006
    Appalachia
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    But, aren't a lot of those spring training fans coming from out of town, or snowbirds who leave once it becomes seriously summer?
     
  17. 007Spartan

    007Spartan Member+

    Mar 1, 2006
    Scottsdale, AZ
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    Some yeah, but a ton of people in this town take in the games too and not just old people. The games @ places like Sloan and Scottsdale Stadium are an event. Besides that, is it a bad thing that we draw millions of tourists every year?
     
  18. Yoshou

    Yoshou Fan of the CCL Champ

    May 12, 2009
    Seattle
    Club:
    Seattle Sounders
    Nat'l Team:
    United States
    I believe his point is that tourists aren't going to be attending MLS games.
     
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  19. noel R

    noel R Member

    Nov 20, 2007
    chicago
    Location, location, location. Sports rights are starting to become Content, Content, and more Content. More teams equal more content equal more tv money. If ratings aren't great , you need volume.
     
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  20. 007Spartan

    007Spartan Member+

    Mar 1, 2006
    Scottsdale, AZ
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    I don't think we'll have problems drawing, I really don't.
     
  21. NashSC

    NashSC Member+

    Nashville SC
    United States
    Jan 3, 2018
    I have posted similar post before but...
    I am a '96er (been following the league since day one), and I have always longed for the league to grow and expand. However, as it continues to grow I find myself disconnecting more and more. I used to be able to keep up with all the teams and watch some of almost all the games. It had a close knit feeling. Now it has lost that for me.

    None of this to say they should stop growing. Just expressing my thoughts and feelings.
     
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  22. JasonMa

    JasonMa Member+

    Mar 20, 2000
    Arvada, CO
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    I don’t see the league going to 40 but I think some of the people assuming MLS will match the other leagues at 30-32 are missing some of the differences. Only the NHL has more (or even as many) Canadian teams as MLS. Also we’ve seen that smaller markets can support a MLS team, making it easier to expand. I’d expect the league to end up in the 34-36 range.
     
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  23. SierraSpartan

    SierraSpartan Member+

    Jan 25, 2007
    Placer County, CA
    Club:
    Sacramento Republic FC
    I really want Sacramento to get into MLS.

    BUT...

    I was also around in San Jose in the late 1970s and early 1980s, watching the NASL go absolutely apeshit with overexpansion, using expansion fees from non-soccer-savvy new owners to float current ops budgets, and spending lavishly on overseas players rather than developing talent here in the states.

    I do not like what's going on in MLS right now. I am skeptical that there's enough domestic talent to take on this many new teams, particularly going out to 32 teams.

    The past may not repeat itself, but it sure does rhyme.
     
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  24. NashSC

    NashSC Member+

    Nashville SC
    United States
    Jan 3, 2018
    I know MLS is a completely different animal and I will probably get roasted for saying this, but I agree. I am concerned at how fast they are doing this. It is starting to have the feeling of some who are after the quick cash of $150-200 million expansion fees.
     
    STR1 repped this.
  25. BalanceUT

    BalanceUT RSL and THFC!

    Oct 8, 2006
    Appalachia
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    Got your team and now you want to shut the door behind you?
     

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