I think this is the largest amount they have received at one time (Beasley 2.5, Convey 1.5). So, how does this money get used? Does someone actually know?
Basically to improve the bottom line. If they can show with the sale of players that the league can make a profit that will impress potential investors.
These aren't the first transfer fees. They'll probably just cover the costs for the league in general, which IMO is just fine. It's awesome proof of the talent factory function of MLS. Pay scales for these guys as they develop are so low relative to the fees. Compare the value of these transfers to the cost of a new team, and you can see what a boon they are.
This is part of MLS' business plan; MLS is a developmental league. Hopefully the league will plow the money into getting other players or will use the money for other league improvements. But I'm not holding my breath that we'll see anything tangible come out of this. However, these sales do improve the overall viability of the MLS business model. And that's a good thing.
Last season the Galaxy pulled a small profit, the only team to do so. I wonder if MLS can pull a "profit" while its teams are still in the red. Like in this case. We get 4mil. Most of which goes to MLS, not the teams. Otherwise the teams would be in better shape for pulling out of the red. How would the single entity system work with this kind of money? How is it used? Easy. Cover existing players salaries and our huge debt. We still hemmorage money, so don't get too excited about new developments.
MLS is getting out of the Meadowlands, so one of MLS's biggest cash drains is going to dissapear. The bottom line switch in NY is probably the biggest news of the season. When all the SSS in the pipeline are done a 4 million dollar cash influx each year might even balance the books.
I hope this money is use to buy some common sense, MLS need to revise the foreing player hiring policy and realize that so far the 50 buck american kids are doing a better job that the so call experience foreign players .....
A stock index mutual fund or inflation protected Treasury bond. From a soccer business standpoint, I'd take the money and turn it around for player acquisition. Like reinvesting your dividends.
At halftime today Stone and Wynalda joked that the money made from the Convey/Beasley deals could help "pay for Utah." What the hell does that mean? Checketts just paid MLS $10,000,000 to get team in SLC, right? Admittedly I am not savvy to all the financial ins and outs, so what were Stone and Wynalda talking about?
10 mil each from chivas and slc for expansion, 15 mil from veragara to let him be in LA and then the 2.5 mil for beasely and 1.5 mil for convery
Garber had an uncle who died. In his will, he stipulated that Garber had a month to spend 30 million with no assets... if he did so MLS would have 39 million dollars to spend. If he had any assets let after a month, Garber would get squat. He spent all 30 million on ... drugs, hookers and fire engines.