Don Garber (Commissioner of MLS) was in Kansas City for a meeting yesterday. His interview in the KC Star included this paragraph: "It's no secret that, since forming in 1995 and playing its first season in '96, MLS has lost tens of millions of dollars, and Garber is realistic that it could take several more years before the league turns a profit." What does this say about WUSA? MLS has been operating since 1996 and still is not profitable. They've been playing for 6 years and WUSA for 2. We can't expect WUSA to be profitable yet--and maybe not for a long time. Let's hope the owners have deep pockets and equally deep commitment. Their original goal was to be breaking even (making money?) in 5 years. Perhaps that was unrealistic. It certainly hasn't worked for MLS. It also looks like it was a good idea, both for MLS and WUSA, that they didn't join forces. Let's hope they can learn from each other as to what tactics are the most successful in getting to break-even.
Unfortunately the present owners don't have deep enough pockets and the deep commitment. They made a big mistake about what the costs would be also and so they are much further in the hole now than they expected to be. We have to hope that there is a big enough bump upward this year to make them hang on. And outside investment would be wonderful (think China.)
2003-1996 = 7. WUSA, as currently structured, faces more impediments to profitibility than MLS does. It cost the Freedom the same to open RFK as it does for DC United. With far less gameday revenue. Few games per season also mean fewer revenue generating possibilities -> but less expense if the league is not breaking even on game day. That's the rub. If the league is losing money holding games, then it is doomed to failure. Both MLS and the WUSA have incurred their huge startup losses. At some point, losses need to be contained to 1) league overhead operating expenses, 2) non-game related, non-revenue travel and play (preseason, scrimmages, player movement), 3) and future looking marketing expense (like paying to be on TV now in the hopes of cultivating next year's consumers). MLS has basically achieved break-even for game related expenses. Possibly not at Giants Stadium, but New York is a "necessary" market for a league with "Major League" national-sized designs. The big question is whether the money runs out before WUSA can stop the bleeding. The continuing roster cuts are a bad sign. WUSA would almost certainly be better off as a regional league with bus travel and such, but I'm sure the demands of being a "FIFA sanctioned division one pro league" greatly impact that. I suspect that WUSA has to get out of the big stadiums like RFK and Spartan. Possibly move some teams to revenue friendly venues like Blackbaud and such. If the Carolina Courage break even on game related expenses, then there is hope for the league. Anyone know? If so, that would be the model for other successful teams.