This is on the difficulty of getting new owners into MLS, as I stumbled into "Roberto", an old family friend w/ whom I'd grown up, as he was good friends w/ my oldest brother. We used to watch the World Cup w/ his family. Both his family and my family were hard-core futbol families, a rarity back in the day. On Saturday last, I had tix to the Galaxy- Colorado game. As usual, I sent word out to my family that I would be in town and was going to the game. My brother called me up at the last minute and said that he would like to go along w/ my 12 year old niece, but he might need more tix b/c my niece was w/ our family friend Roberto and his 12 year old daughter. No problem, as we were able to get tix. I had heard that Roberto had made a decent killing in real estate. So when I saw the stretch limo pull-up, I felt really embarrassed that we had cheap seats in the upper deck. And then I realized that this guy easily could have reserved us seats in one of the luxury boxes, not just because he had BANK!! but b/c he had heavy contacts in AEG. But we all enjoyed the game nonetheless. Neither the girls nor the dads had been to The Cathedral despite being Galaxy fans, and they were impressed. Anyway, we went back to the limo and drove around for awhile. As I was spending quality time w/ my niece, my brother and Roberto were talking about sports and Roberto's desire to own an NFL team. Then he busts out w/ how he had been approached to buy a hockey franchise at a bargain price, but he didn't want to do it b/c he would need that money for an NFL franchise, which is his life goal, kind of like a harley Davidson was for him when he was in his early 20s and dirt poor from stupid business mistakes. The NFL franchise for him would be more status than anything, and kind of a toy to make money. So, this guy's 1st generation Latino. He's done well for himself. He comes from a futbol family, and yet MLS doesn't even enter the equation for him. (I didn't even ask him, as it was clear that he had other goals. Plus I felt a little awkward talking business w/ an extremely successful business man.) But I wouldn't say that he would never consider it. The guy has a knack for making money, so maybe after he buys an NFL team he would be interested in expanding his holdings into MLS. His kids love soccer and he truly does follow it, as during the game we had an in-depth discussion of the infamous 3-6-1 alignment in WC '98. My questions/observations are the following: 1. I understand how Glazer (?) owns a good chunk of ManU but wouldn't even entertain owning MLS 2. The HDC is as much about attracting potential investors as it is the home of the Galaxy. Plus, HDC is really equipped to handle a high-end clientele. I had no idea to what degree until Saturday. 3. If carlos-of-the-ucla-kind is just 2 degrees removed from a possible owner, then grass-roots efforts like what we see w/ San Jose's fan club branching out into the community and actively advocating for the franchise, has much potential. As do the efforts in Detroit. 4. As MLS comes closer to financial solvency w/ its SSS throughout the league, I think it will be easier and easier to find investors. I'd truly would be willing to bet that "Roberto" would be interested in developing his childhood sport for the benefit of the country. He's idealistic that way. But after he reaches his goal. I doubt he'd entertain losing money for several years until the ship gets in order. 5. Harrison must come off as big-time in order to attract media and fan interest in NY and w/ investors. Harrison prolly should try to outdo HDC. And if it does, more power to them and more power to MLS and soccer in this country.
Oh my gosh, Carlos old buddy, I read your post and I have to agree with everything you say. When has that ever happend before? One disadvantage for MLS is that most sport team owners are motivated by ego, just like your friend. He wants to show off his success by owning a NFL team. Ah well, give us a few years. When the league starts showing a profit there will be potential ownership groups coming out of the woodwork. And most will not be motivated by a love of the sport, but by the almighty dollar. Some day we might miss having a small group of owners dedicated to building the sport on all levels.
That's one of the more interesting posts I've read in a while on a number of levels. (1) The US soccer community is small-- but there are people flying under the radar. Some of these people could really help. (2) Perception of prestige (obviously) plays a role in investing. But your post underscores that in a pretty visceral way. (3) I have to get into real estate.
Good stuff; still looking forward to attending the HDC, i havent' been back down to LA since it opened. In my dreams i'd like to see a similar facility up here in the bay area. re comment no. 1: My understanding from what I've read about Glazer (a fair bit) is that his sports franchise investment strategy is strictly bottom line ROI. He's not into the premiership because he loves soccer or is a ManU supporter; he is pursuing the business opportunities. And, IMO, that is exactly the type of investor you would want in MLS, a serious businessperson looking to develop and grow a solid long term franchise, not someone looking for an ego stroke or toy to take off the shelf and play with.
The potential for international prestige is greater with MLS than the NFL --but right now the key word is 'potential.' As MLS improves in quality and solvency, and gains respect overseas and to the south, and begins to acquire --for want of a better word - sexy talent from abroad (the Beckhams, et. al.) then investing in MLS will be the most attractive option in US pro sports. We began with deep-pocket visionaries, now far-sighted investors and 'players' are entering the scene. In time, those who want in mainly for the glamour will come knocking on our door. All in good time.
Totally agree. I must say, though, that in a pm to another poster, I mentioned that I wouldn't be surprised if "Roberto" were to get interested in MLS (way down the road) for the sheer challenge of it. And then look out, cuz when he gets into something, he produces results.
I find this kinda sad. Seriously. On a basic level, fans should go to games. Regarding ownership - I'm not privy to any power players or their motives. My standpoint is that of the simple fan - and I'm puzzled as to why anyone who claims fanship would not go to games. Ownership, shmownership, MLS will live and die with the fans and their dedication. Or lack thereof.
SEM is a sticking point with a lot of potential owners (and a bonus to a few others). Now Garber, being the sharp guy that he is, managed to convince the league to de-centralize a lot of the business aspects of running the teams but there still is a rather substantial portion of your investment that is under the effective control of someone else, and that tends to scare folks away.
(They've been going through a divorce. B4 that, they used to drive over an hour 2-3/yr to the Rose Bowl.)
I don't believe this is true. I believe he was close to taking on the Mutiny before they folded but could not get an attractive enough lease to make money on it. If he could have, he would have been an MLS owner.
Wrong. He is the one who was not giving an attractive lease offer. He controls the operations of Raymond James Stadium. Glazer showed only a passing interest and most of his interest was a design to spawn other parties in getting interested so that he could continue to lease RJS to the Mutiny on good terms for himself. George Steinbrenner's son was interested but didn't see how the finances could work. There were a few other people who showed a bit of interest (including Robert Namioli - the owner of the Devil Rays).
Note on the side note: It took me forever to get to a game. I think my first game was in 2001. Since 1996 I had been following the team through newspapers and the very limited TV coverage. I remember traveling to different cities with my college crew team and comparing each city's MLS team to the Galaxy, all well before I had been to a game. I was in high school when the team started, and there wasn't enough interest to get a trip (ride) together.
Due respect, if you don't feel comfortable having a discussion about business with an old friend just because he's so successful, you really shouldn't be trying to determine business motives these successful people may have about our beloved league. Your ideas about what the motives might be are great conversation, and are fun to discuss. However, to us poor-house-compared-to-Roberto MLS crazies, this discussion just that - FUN. I'm not uncomfortable discussing business, and have done some pretty big deals (that my employers have profited from.. not me), so I'll try to clarify with an opinion... The real motives behind why someone would spend $10 MM just to get into the league, plus another $10 - $25 MM in financing expenses, expected losses, and loss of opportunity to do something else profitable with their money (and more importantly - loss of their time) while their MLS team looses money for the first five years+, are all unique to each individual. It's not about any one person deciding "I want an MLS team". It's about what just happened in Salt Lake... There is a COMMUNNITY that is need of something to focus on, that will identify them as "major league", and that will bring together a diverse populace. There are 50 people rich enough in at least 20 cities that are larger than Salt Lake that don't yet have an MLS team. However, the team would flop without the community ingredients that a Salt Lake has. In Salt Lake, the marriage of a community in need with arguably the best known and respected sports business person in that community just happened to meet and fall in love with each other... It was LUCK as much as anything. There is nothing specific any one person did or said, it was just love at first sight because it just makes sense. Let's hope it's a successful marriage and not something that goes south after the honeymoon. Trust me, MLS may not be the best in the world at "prospecting" for owners and sponsors, but there really isn't a science to it. I kind of like the slow-growth approach that requires us to prove our WORTH before everyone comes running to own a part of it. Look at the ownership problems in MLB and the good old boys club (willing to let in any spoiled brat with enough money) in the NFL. At least from here on out (Denver, LA, and Salt Lake included), our owners will be here because the numbers and the moral commitment to community just make sense!!! This new ownership means more for the future of MLS than the philanthropy of Hunt, AEG, and Kraft (thank you Hunt, AEG, and Kraft!!!!!). These new owners are going to save the original owners financial arses (or at least their children’s, because they won't get their lost $300 MM back in their lifetime). If we stay on track, MLS will be THE SYMBOL of what a good sports league really means to a community as opposed to ego-tripping entrepreneurs just looking to exploit our passion for a $7 Pepsi. Great discussion. But be careful what kind of owners you wish for... you just might get them!