Contraction Can Help MLS Achieve Its Goals

by Soccertes

I really don't think contraction is as bad as some people are making it out to be.

MLS is 6 years old and it's still losing money. I think what took investors by surprise was the significant drop in attendance from 96-00 and the current state of the economy. These guys are probably losing money across all their businesses and they're feeling the hurt. I'm sure that they are looking for ways to save money and cut costs in all their businesses, including MLS. The fact that Subotnick and Kluge jumped ship only adds hurt to the current economic conditions MLS is facing.

I think the investors are at a point now where they have to evaluate what they have and what it will take to achieve their goals, two of which are most important: increase attendance and break even (if not make a profit).

While attendance did go up this year it is nowhere near the surprising levels of what it used to be in 1996. What will it take to get back to those levels? There are definitely soccer fans in this country. Enough, I believe, to support MLS; but the trick is to get to them interested in MLS. MLS should continue to improve its fan base on the grass roots level. Go after these young kids that play soccer and go after their soccer mom/dad. Give them discounted tickets; hand out MLS/team bumper stickers and T-shirts, make special player appearances. Get them interested and make it easy for them to get involved. Much like teaching a kid how to ride a bike. You give him the initial push and then watch him ride the rest of the way. He may fall off his bike and you may have to start again, like so, not every kid and family you give these promotional items and offers to will embrace MLS right away. There'll be those kids that will like MLS right away, and thus go to games every year, and there are those that may need another year's worth of promotional deals to get them into MLS. The question the owners have to ask themselves is how much will this cost? Are they willing to fork over that kind of cash? My advice to them is don't make conservative estimates. Expect the worst and see if you can deal with it, because who knows what the future may hold. You either give 100% or give nothing at all. It's the only way MLS will make it.

With regards to profitability, I think it should be pretty obvious to the investors now that the only way MLS can make money is by building soccer specific stadiums. Football stadiums are leaching off of MLS. MLS is giving them another source of income for an otherwise dormant 8 months and rather than conjuring up a lease that is favorable and balanced between the league and the stadium, the stadiums want it all. They will rape and pillage the league, until there is nothing left to take. The construction of the new sports complex and the Galaxy's stadium in LA is good news for the league. Now the league will have 2 soccer specific stadiums. But their true value will only be recognized when the teams begin to attract enough attendance that they will be breaking even, if not actually making a profit (I'm disappointed that Columbus has yet to reach this point). Only when Columbus and LA reach those attendance figures will investors truly see the financial benefits of having soccer specific stadiums. Until then they're no more than theories of what the future might be like. Nothing concrete to lead they way and show them where they need to be heading. Sort of like driving down a foggy road pretty sure you're heading in the right direction, but not 100% certain. To me it seams like the investors are testing the waters. They've got one stadium in Columbus, but they still haven't noticed financial improvements for the team or league. Another stadium is now being built in LA, hopefully that will show the kind of financial returns investors are looking for. Until positive results are seen I think investors will be slow to build soccer specific stadiums because, again, they're not 100% sure that they can be profitable. But coupled with a drive to increase attendance, MLS can reap some serious financial benefits from stadium construction. But again, the question the owners have to ask themselves is how much will this cost? Are they willing to fork over that kind of cash? Again, the investors either give 100% or give nothing at all. It's the only way MLS will make it.

Keeping these goals in mind, and the current state of our economy, I think contraction will only cause the league to strengthen itself. It will reduce some of the costs investors are currently incurring so that the league can live long enough to hopefully ride out this economic condition and see improvements in attendance and financial improvements for Columbus and LA. All the while working towards building stadiums in existing markets, like Dallas and NY/NJ, and new markets. MLS has stated that the investors are committed until 2006. While that's encouraging, I would prefer that they say something more towards the effect of, "We're committed to 2006, and during that time we're committed to building new stadiums in Dallas, DC and NY, expanding to new promising markets with investors and stadium initiatives in place, and increasing our attendance through grass roots programs." Maybe people feel that's a given, but I would still like to hear them lay out those goals rather than just mention a year. It shows me that they know what they have to do and that they're going for it. And I'm sure that such goals and financial commitment from the investors would turn things around for MLS.

Again, I've stated this in articles before, there is no doubt in my mind that MLS can be a successful league, it all depends on how much cash investors are willing to commit to attract the fans and build the stadiums MLS needs to survive. If contraction will help eliminate the markets that have yet no hope of attracting fans and strengthen the financial stability of MLS, then so be it, contract away. But investors need to be clear on the goals they need to achieve, the time frame they have to achieve those goals, and the financial commitment that will be required from them. If they're not ready to spend that kind of cash then they might as well contract all 12 teams now. A half @$$ job will only cause investors to lose money and gain nothing.