There's an interesting article over on the Business Insider which explains a bit about salaries and its correlation on attendance figures in MLS. Really it's quite worth the read if you're interested in that sort of thing.
That said, the most interesting part I got out of it was that the Timbers are currently tied with Chivas USA and the San Jose Earthquakes for lowest salary amongst all its players.
Make of it what you will...
9 months ago
Geoff Gibson
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Makes sense
Consider Paulson, figuratively speaking, has a lien against the team and he paid for a lot of the upgrades to JELD-WEN I wouldnt expect them to shell out loads of cash right away. But in looking at the numbers the more successful teams have similar payroll and its not too much more than what the Timbers’ are spending. I wonder if those clubs just pay their scouting department more.
Go banana!
Take out NY and LAG
and all the other teams don’t look so comparable anymore. The TFC spends 60% more on payroll than Portland. Even if we spent a median amount we’d have a pay roll $600k bigger, that is a DP or two in extra talent.
I’d say this should give us a great deal of hope. We’re fielding a competitve team with room to spend more. Seems to me the FO is doing a pretty good job of finding value.
I wonder if it's more of a weak dollar issue
that the two Canadian teams are spending more than all the non-LAGNYRB clubs. (Do we like LAGNYRB or NYRBLAG?)
Anyway, what a lousy article. This “Cork” dude needs to read up on his NASL history. The NYRBLAGs have the luxury of following the Cosmos business model, but the long-term success of the league is going to depend on building the fan culture and improving the homegrown talent.
Speaking of which, I’m looking forward to the day when Dallas can no longer afford to pay for Brek Shea. I think he’d make a terrific Timber.
When I write, I write for the Timbers. (On Stumptown Footy)
by Andrew Wheeler on Aug 30, 2011 5:03 PM PDT up reply actions
I don't think the Timbers can outbid most European leagues for Brek.
Jag kom, jag såg, erövrade jag.
A fella can dream.
When I write, I write for the Timbers. (On Stumptown Footy)
by Andrew Wheeler on Aug 30, 2011 9:30 PM PDT up reply actions
The Canadian dollar is worth $1.02 US as of close of trading today
NY and LA also have the “luxury” of being the two biggest media markets in the US, so as in any sport, they have more advertising/sponsor dollars to spend. It doesn’t have a lot to do with the Cosmos business model – look at the DP’s employed by both teams, and that’s where your salary bump is.
It's not the market, it's the owners
Red Bulls GmbH and AEG own them. Both have billions to spend and do spend many millions on their assets. AEG is looking to spend a billion in LA for an NFL stadium. $5 million for Becks is chump change.
Jag kom, jag såg, erövrade jag.
yup.
Cosmos business model = spend a ton of money bringing in big name players from outside the country and millions of people will buy one ticket to go see them. I think we’re saying the same thing.
Meanwhile, Canadians should be flocking across the border with an exchange rate like that. Pints are like $8 there.
When I write, I write for the Timbers. (On Stumptown Footy)
by Andrew Wheeler on Aug 30, 2011 9:50 PM PDT up reply actions
Timbers being smart in their first MLS season
Since MLS is new for Paulson, GW, & Co. in the front office I’m fine with their conservative approach in year 1. Now that they know that Jeld-Wen will be sold out each game, they can draw 10,000 to a reserve match, merchandise will sell, tv deals will be good for them, and sponsorships will be good partnerships the stadium renovation will eventually pay for itself and their payroll can gradually increase. Mix this in with their emphasis on youth development and their future is very good. Eventually we may all have to pay a little more for tickets if we want to see more quality on the pitch, but I don’t mind that as long as quality does come with it.
There was no reason for them to spend wildly in their inagural MLS campaign on a roster that would consist of young players still working to prove themselves in MLS. DP’s and other international signings are crap shoots, not something a first year team should be whimsical about. Focusing on organization and building a squad in their first year is long-term thinking and the responsible thing to do. That said, I do expect more quality the next couple of years.
by yepyou'reright on Aug 30, 2011 6:24 PM PDT reply actions 2 recs
Look at the two expansion squads
Look at their results.
I’m content.
Jag kom, jag såg, erövrade jag.
funny.
after the obvious NY and LA, you have the third and fourth highest payrolls on two bottom-dwelling teams right now. both of them canadian.
Timbers Financial Summary
At the end of this year I would love to see some basic financial summary from the Timbers FO that shows total costs and total revenues (tickets, merchandise, sponsorship etc) so we can see if we are in the black or red at the end of the year. I would guess the black.
We're LIKELY
In the black, given the breakeven disclosed with the city for attendance figures was 12k a game, which we are obviously way over.
That said, I’ve heard rumors that merch isn’t quite as high as they expected, and while concessions in general are above forecasts, shockingly, beer sales, especially amongst cheap domestics are so low that Budweiser has asked questions. Our sponsors are very good, but I’m not sure if they are enough to really put us into “crazy” sponsorship money like Vancouver, Seattle to some extent, NY and LA are getting, but we’re probably beating the pants of the Columbus’ and Dallas’ of the world.
Overall, I’d say we are making money, probably not a metric ton but a healthy amount, but a financial summary can be made to look good or bad pretty easily.
I should add
Shockingly was used sarcasticly. It not surprising that Portlanders won’t drink cheap swill.
Here's the math I do in my head
Hmmmm, 7.50 for a Bud or 8.50 for a Fort George IPA…pretty sure taste is worth a buck, not to mention one 20oz FG is roughly equivalent to 3.5 cans of Bud.
Cheap beer
Yeah when I have the choice of expensive beer or cheap beer I often chose cheap because I can enjoy both so I might as well save money. But when given the choice of expensive bad beer or slightly more expensive good beer, I usually then chose the good stuff.
I just get beer'd up before the match at the BE or tailgate and then have one at halftime
Saves $ and stress
Blazers win!
I'm hoping the Timbers do what the Angels did when Arte Moreno took over
They lowered beer prices, added more options and suddenly people started drinking at the stadium again. Plus they don’t do what those silly Oakland A’s beer vendors do.
"I have something 95 percent of all those All-Stars only wish they had: a World Series ring. If I had to choose between that and being an All-Star, it would be no contest. I’d grab the gold ring and never look back." -Tim Salmon
Never heard anything about the merch, concession and beer sales.
Good to know. Source-wise, meh.
Jag kom, jag såg, erövrade jag.
Not that long ago only a couple of MLS franchises were making money at all
The Sounders and Dallas, I think (Dallas mostly because of their revenue from renting out PHP). Now I don’t think that included all the SUM $$ that MLS gets and splits between teams, so it could have been a few more teams that that, but overall, if the Timbers are making money in their first year of existence, that’s should be a big positive (though honestly not that unexpected, I think).
The stadium beer stinks, except Widmer
And it’s overpriced. I only drink Widmer at the stadium when I’m desperate and captive. If Budweiser is asking questions that means they don’t know the market very well.
The official team merch needs to get better. Nothing against kit sponsors, but should the sponsor be the focal point of the jersey?
by yepyou'reright on Aug 31, 2011 4:06 PM PDT up reply actions
They paid for it. They are the kit sponsors.
If you sample other jerseys around the world this is par for the course.
http://www.footballshirtculture.com/11/12-kits/
Jag kom, jag såg, erövrade jag.
In soccer it always is
It’s annoying but it will never change. Sponsors pay good money for that real estate.
by pdb on Sep 1, 2011 7:02 AM PDT up reply actions
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