Pitch In: The Wall Street Journal Examines Growth Of MLS

Seven Of MLS' 13 Teams To Soon Play In Soccer-Specific Stadiums

The growth of MLS during its first decade was examined in a front-page piece by Stefan Fatsis of the WALL STREET JOURNAL, who notes MLS teams are “enjoying a $700[M] stadium-building spree that will result in seven of the league’s 13 teams playing in venues designed for soccer by next year.” The league is expected to soon announce agreements with ESPN, ABC and Univision that sources said will be worth a total of $12M annually. Also, player salaries and benefits this year will total around $33M, about 20-30% of league revenue, which industry execs estimate is less than $150M. Revolution co-Owner Jonathan Kraft: “If you can own (soccer) in this country, you own something that 10 years, 20 years, 30 years from now is going to be worth a lot more.”

EMBRACE WORLD CULTURE: Fatsis noted MLS officials met in ’01 at AEG Chair Philip Anschutz’s Colorado ranch, at which time Anschutz, Revolution co-Owner Robert Kraft and FC Dallas and Crew Owner Lamar Hunt “retreated for a private meeting.” Anschutz “presented a choice: fold the league or commit even more resources.” After several weeks, MLS officials “drafted a news release announcing that the league was shutting down.” But Anschutz, Kraft and Hunt “decided to persevere -– with a new focus of strengthening the bonds between American and world soccer.” The league folded teams in Miami and Tampa and Anschutz “took over two other flagging clubs, giving him control of six of MLS’s 10 teams” at the time. Investors also “created a television and promotions arm to capitalize on growing interest among Americans in international soccer.” The inclusion of Chivas USA is the league’s “boldest gambit,” as it is co-owned by Chivas Guadalajara Owner Jorge Vergara. Vergara paid $25M to join the league — $10M for the team and $15M to Anschutz to share the L.A. market (WALL STREET JOURNAL, 6/17).