MLS might sell a piece of SUM
Soccer United Marketing handles all of the MLS, US Soccer, Mexican National team, and other soccer marketing efforts in the United States. Essentially, it's a hugely profitable venture by MLS...
The sale of even a part of it would generate enough cash to seriously infuse the league with some cash. No word yet on what this could mean, but some have suggested that it could be used on a higher salary cap in the future.
Regardless, this potential sale has huge implications for the league.
8 months ago
Geoff Gibson
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Soccer is getting close to being valued in billions, not millions.
The talks have been going on for several weeks and those close to the discussions say that Providence is interested in obtaining up to a 25 percent stake in SUM for $125 million to $150 million. Such a deal would value SUM at between $500 million and $600 million.
The WC TV contract is already the world’s most valuable. SUM-aka-MLS is trying to find a way to parlay USMNT and WC revenue success to benefit MLS teams more directly. At least that is how I understand it on a nascent level.
Jag kom, jag såg, erövrade jag.
*Should
that is the key word there. Don’t know if that will be the case.
Contributing editor to Stumptown Footy the Portland Timbers SBN blog.
Expansion fee
I have read that the transfer fee that the 20th team will have to be is rumored to be around $75 million up to even $100 million. I thought Merritt payed $30-$40 mill and if that is correct MLS is definitely moving in the right direction. Add this expansion fee to the number you report above and MLS has some serious cash to play with.
$35 million for Merritt
But understand SUM, while the board of directors are the MLS owners, is a separate LLC to handle all marketing of nearly every significant soccer property in the US.
Jag kom, jag såg, erövrade jag.
I'm confused
MLS owns the company that markets MLS, and the Mexican National Team? and the US National Team?
Isnt that sorta like gettin paid by Pepsi and Coke and………… Something thats similar to the first two, but takes a slightly different form.
Say it ain't Cho
by Sean in Vancouver on Sep 12, 2011 11:40 PM PDT reply actions
Actually it is a little more than that
They hold the rights to setting up the venues for the USNT and the MNT in the United states. They also have the broadcasting rights in the US for both teams. Added on top of that they are the ones who set up the huge friendlies that take place (Barcelona vs Man U). In essence it is a way to ensure the owners of the MLS clubs actually make money and are able to stay afloat.
Contributing editor to Stumptown Footy the Portland Timbers SBN blog.
Providence Equity knows how to get good TV deals
They were able to work the most lucrative TV deal for the YES network. If they can do the same magic there for the MLS, look for a substantially increased TV deal in 2014. If they invest now, they can position MLS to be even a more valuable property, thus getting them better value for the 25% equity stake.
They wanted in on MLS before by exploring owning the Union. Now they’re looking at the larger pie.
Jag kom, jag såg, erövrade jag.
To answer directly your question
Being an MLS owner means you are a stakeholder in the single entity LLC of MLS. Being an MLS stakeholder also means gaining access to owning shares and being a board member of SUM.
SUM payouts don’t directly go to MLS the corporate entity itself, but the actors are nearly one and the same so the money gets into owners’ pockets anyway. [My word is not gospel, but that is how I understand it]
Jag kom, jag såg, erövrade jag.
I know that MLS has a unique business structure, relative to other American leagues
But I’ve never heard it described like that before, quite interesting.
Say it ain't Cho
by Sean in Vancouver on Sep 13, 2011 4:25 PM PDT up reply actions
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