MLS could be making more money or changing how they pay players?
So we have seen strikes and lockouts in almost every major sport in the US in the last two decades and often it has taken 10 years or more for them to recover. Most recent was the NHL, a sport with a horrible TV ratings, their average crowd is similar to MLS (NHL 2009 so far= 16,686, MLS 2009 = 16,037) but the NHL is struggling because of their still outrageous salaries. A team with an average attendance number the LA Kings has a payroll of over 50 million dollars, revenue of 92 million dollars according to forbes and an operating profit of 10.2 million dollars.
So what is the difference between the two leagues? Well to be honest it is TV, the NHL gets over 70 million a year from versus which averages under 250,000 viewers per match. There is a much smaller deal with NBC and their ratings are better but still under a 1 in audience ratings (about 1.1 million).
MLS on the other hand gets about 219,000 watching on ESPN2, higher when Beckham plays, but FSC hits a much smaller number about 60,000 per match. Those numbers are no surprise when you know that FSC is available in about 35 million homes, and ESPN2 reaches over 100 million. FYI, the MLS Cup got a 0.9 (about a million people) watching on ESPN. So knowing this it makes one wonder why the ESPN deal, which I believe includes the World Cup and it's large ratings, is so very, very small, I believe MLS gets about 20 million a year for all its TV rights.
So how can versus pay 70 million for the NHL (more games- 54) but still a small audience, could MLS get more shows on TV by dumping ESPN? ESPN will not run Saturday afternoon or evening matches while the NCAA is playing basketball or football, heck they even will stay with NCAA baseball over MLS. Could MLS look other places for revenue? Could a Versus or SpikeTV be part of the answer, maybe extending the partnership with Fox to include FX?
So that could bring more money in, but how about a revolution in how professional athletes are paid?
What if MLS proposed something really new to the players in their CBA negotiations? What about a performance based pay system?
Say each of the players on the roster makes a base of 40,000 per year, then they each get a 10% bump for each year they are in the league to that base. Then you pay them both a team and individual bonus for performance, let's look at what some of them might be:
Team based bonuses:
- 1,000 for each player in the 18 for a win (win 12 games a year get $12,000 more to your base = 52,000)
- 500 for each player in the 18 for a tie (get 10 ties a year and a $5,000 more = 57,000)
- Make the playoffs $10,000 per player (= $67,000)
- $2,500 per playoff win, $1,250 for playoff tie (for RSL that would be $7,500 more =$74,500)
- Win a conference another $10,000 per player ($84,500 for RSL players)
- Win MLS Cup $15,000 per player ($95,500 for RSL players)
- Other tournaments, other goals all could be negotiated
- Since each position would have different goals it is hard to set up but
- Say $2,000 per goal, $1,000 per assist, $1,000 for clean sheets
- Fitness goals- set by team
- Make All Star team $5,000)
OFF MY SOAPBOX
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Don't forget the Comcast/NBC merger
That would mean that Versus, NBCUniversal Sports and Comcast SportsNet will all need more content, and be much more available around the country.
I am not a Supporter
I am not a Fan
I am a Sounder
Sounder At Heart
True
I did forget that meger. I just think ESPN has BS’ed MLS into thinking their product has a lower value than it does, and then they treat the league like crap. It is clear with other sports and in other nations that TV revenue is one of the cornerstones of finances for the teams, and unless “the Don” is getting paid under the table I can’t see how there is such a huge gap between MLS and NHL.
Imagine what each team could do if they got 5 million in TV revenue vs. the 800,000 they recently got? Hmm could the salary cap go up with that increased revenue stream, meaning better players and that would lead to higher TV ratings and better sponsorship deals. I get that MLS is a young league but the model is there for it to follow perhaps instead of hiring people from the NFL world all the time, we might consider bringing in someone who knows soccer better?
The league changed from 1996 to 2004 and a lot of those changes were dealt with by the CBA and new rules but the changes in the league since 2004 with 5 new teams, soccer specific stadiums, and the DP’s has been huge and to me it seems like MLS is struggling at ways of thinking of new ideas.
When I sit in a room and hear people worried about how to monetize twitter feeds, I know that they are missing the big picture.
I do know that ESPN feels that MLS is not National
Not at this time. They feel that there must be a number of teams “in the low 20s” for them to treat it as a national sport.
It is part of why I think MLS will not be stopping at 20 teams. Currently there are large swaths of land and population that have no reason to watch an MLS match, as there isn’t a team within 200 miles. That has to change, and honestly, supporters of teams in MLS actually have to start watching the other MLS games that are televised in a given week.
Denz, you are making me mad that I couldn’t make the Roundtable.
I am not a Supporter
I am not a Fan
I am a Sounder
Sounder At Heart
Don't be mad
It was a bit entertaining but I have to say I was more than a little miffed afterwards. I love that they did it, but it wasn’t a real productive thing (in my mind). I have very different ideas on how the league should be dealing with social media, I actually am writing a rant about it, for later this week (giving myself almost a month to calm down).
I would agree about ESPN, but consider they are willing to show Burnley matches without hesitation. I think TV could be a huge key in getting MLS into the mainstream of soccer fans in the US, and reaching out to overall sports fans. It would be a perfect opportunity to use the matches before the World Cup to educate people about the rules of soccer and then build off the World Cup matches to up the viewership of MLS.
I do think ESPN is very lackluster in their support, moving it to different nights only wanting to show Beckham, Seattle, or Blanco as much as they can. I think a partnership with Fox to leverage perhaps to FX (in HD), or Universal, but someone who will show more matches and in HD (which is a huge difference maker), I also think better broadcast teams on ESPN would be nice. I love the FSC guys because they at least have some passion for what they do.
I think every MLS fan needs to find a way to become a Nielsen family, not all will succeed but just 50-100 could really make an impact on the ratings.
interesting quote
Meanwhile, the already global game of soccer, er, football, for most of the world, is poised again to drive towards its final frontier: the United States. On top of the stateside MLS, the British Premier League and the Champions League are now available to watch in the U.S. With the American team qualifying for the World Cup, soccer seems poised once again to make a run at mainstream American popularity. Lower ticket prices, a futbol-loving Hispanic population that’s growing in the U.S., and a young generation raised on soccer, are other trends that bode well for the sport.
from Nielsen.com
It is clear that one of the issues MLS must address is getting a better TV deal.

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