Make no mistake; the New York Cosmos chose their path through the U.S. Soccer pyramid. Cosmos Chairman Seamus O’Brien openly discussed his club’s decision to forgo MLS for NASL, laying out a “10 year plan” to become what he calls the “best club in the United States.” “We took a simple view,” O’Brien explains. “We are prepared to invest capital and we have done that, but I would rather invest it in our own business instead of a franchise fee — for exactly the same asset. “I don’t hold myself out to be a genius,” he quips, “but that was our decision.” http://www.empireofsoccer.com/cosmos-chairman-discusses-30765/
Hopefully w/ Mr O'Brien's statement, this idea of bailing out MLS in NJ is put to bed, so the haters can now go back to hating & wishing for my club & the league they play in demise's. My NY Yankees has always been accused of buying/trying to buy the World Series, in essence buying #1, but we all know that's BS. The players has to compete for that ring. MLS is the only sporting entity (not even a league) where you can buy your #1 status. You do not have to compete. One year, you don't exist, next yr you are officially D1 & you haven't even played a game. The Pirates & Royals (MLB) as small market teams, got huge sum of revenue sharing from teams like Red Sox & Yankees. Owners for yrs pocketed the $$, instead of investing in the team. If you love soccer, then think. Think real hard.
Except it's not the same asset, that franchise fee comes with a growing number of benefits each year, SUM included.... ....and the best club in 10 years part reeks of MLS being a top league by 2022, amd the US Nat Project 2010 rhetoric. It's the proper PR thing to do from their standpoint, but reality is what it is.
To be fair, in the NASL system a team theoretically can acquire the best talent in America in a single transfer window.
Now Michael Lewis reporting new sources saying Red Bulls are for sale for $220M: http://www.bigapplesoccer.com/columns/lewis.php?article_id=39806 I mean c'mon Seamus... It is bad and sad when owners give up on a team, a team with so much promise. Hopefully, an interested buyer or two will be found and the team be pointed in the right direction.
I wonder if they will publicly say why they are doing this? Financials? Dispute with league? Other owners? Other businesses failing? It just seems strange considering all the good press that has been coming out of that area lately. Does it have anything to do with ManCity's minor league franchise?
The core business (selling a caffeineated drink) has peaked and sales are declining, rather rapidly in a number of markets. The craze is most definitely over. At the same time, the teams which play in countries that offer the (now-struggling) brand far more exposure - and can generate far more revenue in their own right - require ongoing squad investments to remain competitive. Since those leagues have no wage cost control mechanisms, wages consume circa 75% of gross revenue and their losses accumulate on top of NYRB's losses. Something has to give. NYRB operates in a country where pro soccer is still working to breakthrough, so it requires far more investment in sales and marketing to cut through the media chatter and expose the brand than is needed for RB Leipzig or Red Bull Salzburg. Quite simply, those two teams generate a lot more viral and social media brand exposure than NYRB can and for a lot less money. There's also the possibility that two years of success (SS last season, ML Cup semis this season) hasn't generated the social media chatter and indirect brand exposure that they'd expected when they bought into MLS, meaning that NYRB's as a loss-leader (Wal Mart loses $ on milk to get you through the door and spend your money on everything else) has turned into a loss-leader that just leads to more losses. Like I said, something has to give in Red Bull's football club portfolio. That something is NYRB.
Since MLS is Major league, they aren't really a minor league franchise. Personally, I call them Branch Office FC.
The Cosmos themselves seem to be the biggest bottleneck to this. They seem determined to go it outside of MLS and challenge the league. It's ballsy, but as a fan I want to see them both successful and sustainable so I like the idea of buying Red Bull, RBA, the academy and the training facility for this steep discount
Steep discount? Only a few months ago the Cosmos rejected the "opportunity" to spend $100 million for the MLS expansion team that the Man City / Yankees partnership later bought. So why would they spend more than double now? Yes, they'd get a stadium and an academy thrown in. But the stadium is outside New York City; and the Cosmos still haven't given up on playing within the City limits (or, if it happens at Belmont Park, just a few yards away from the City limits). Most important, the Cosmos' major objections to paying the $100 million for the expansion team are still in place: if they joined MLS by buying the Red Bulls, they would no longer own their team's name, logos, and other marks; and they wouldn't be able to buy and sell their own players. These are fundamental features of the way MLS operates. As long as MLS's business model is in place (and, due to its unfortunate -- nay, scandalous! -- approval by the courts, that looks like forever), and as long as the Cosmos are owned by their current ownership group, there is no chance that the Cosmos will be a part of that league. The Cosmos walked away from MLS because they didn't like the conditions of joining. They made their decision, and they're sticking to it. I will say that I hope that NYC FC will succeed; and I strongly suspect that they will. (The shrill goofballs who are freaking out about the Lampard situation will have to calm down eventually; they will be comforted by Lampard's quality, just as Beckham's play won over the ninnies who whined over his extended loan to Milan.) But I really admire the Cosmos for deciding that the cons of joining MLS far outweigh the pros; and I don't want to see them go back on that decision.
Then they should change the name to Minor LEague Soccer - I mean with Chivas and ManCity Puppy they have two more minor league teams than major league teams.
NOT FOR SALE SIGN Red Bulls' de Grandpre: 'We have received offers, but the club is not and will be not for sale' “As we’ve stated over the last several months, the club is not for sale. We have received offers, but the club is not and will not be for sale. We have 100 percent commitment and backing from our board and owner and we are now more than ever aligned with the global soccer group,” Red Bulls general manager Marc de Grandpre told BigAppleSoccer.com. http://www.bigapplesoccer.com/teams/redbulls2.php?article_id=39827
Translation: "Nobody has made a good enough offer yet. As much as we want out and our supporters are done with us, we have season tickets to sell. We can't just seem completely checked out or profits will go down. Plus Don Garber doesn't want us to sell until after the season, lest we steal City Football Group's thunder. Please don't bring this up again, unless you have $220M handy. In that case call me ASAP."
I don't think MLS would stand in the way of a sale for the sake of NYFC...or the start ofthe season at tgis point. It comes down to your first line IMO.
Since RB is more concerned with their German and Austrian teams, does that make NYRB another minor league entry into the league? I get what you're saying, and it is well laid out and explained. But I haven't seen anything online to endorse the idea that Red Bull itself is having financial problems. Do you have any sources for the position?
Good job by the Five Points Press taking the question to Stover: http://www.thefivepointspress.com/news/2015/1/9/cosmos-coo-speaks-about-rbny Too bad really. They choose the harder, riskier path. That being said, I am heartened by the growth of NASL and the great moves these clubs have made this offseason. The league keeps getting better. The Cosmos actually need to make a few more moves to keep up, which they failed to do last year. I will say this though: if someone else buys the Red Bulls and re-brands them to the MetroStars, that team will be a far tougher competitor for hearts and minds in NY than either NYRB or NYCFC.
I don't know man, as long as they're in NJ and their are teams in NYC I don't see them getting much traction - look at the Nets and Devils, clearly playing second fiddle in the metro area. Not saying that is fair, especially with the Devils who have been pretty successful in stretches. (and yes, Nets are in Brooklyn now). I was wondering, what do you think if a team like NYRB re-branded to something like the Hudson River RB - or something more regional like that? Sort of like NE Rev?
The harder, riskier.........much, much, much, much, much, much longer path. While NASL growing and solidifying it's postion is excellent to see....the growing into the team it was in the late 70's and early 80's simply will not happen without large, radical changes to both leagues.
Pele says the Cosmos need to play in the top league: http://nypost.com/2015/04/16/pele-on-what-cosmos-must-do-to-become-relevant-again/
Champions League is what the NY Cosmos typically have referred to as being the top league they wish to reach. The writer of the article mentions mls but not Pele.
I think it's honest answers on the part of Pele... Regardless if people like MLS or not it is the top league in the USA and unless there are major changes to the landscape in the next few years that is ultimately where the Cosmos should be striving to be.