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Leagues and Governing Bodies

MLS Deputy Commissioner Abbott Says Expansion Fee Could Be Raised To $200M

Once seen as "one of the last affordable investments in pro sports," MLS Deputy Commissioner Mark Abbott said that his league is "preparing to nearly double expansion fees" to about $200M, according to Scott Soshnick of BLOOMBERG NEWS. The 20-team league "has already committed to new franchises" in Atlanta, L.A. and Minnesota. It is also "negotiating with David Beckham’s ownership group about putting a team in Miami." Abbott said that league officials "discussed expansion during last week's All-Star Break, though no timetable for applications was set" (BLOOMBERG NEWS, 8/1). FOXSPORTS.com's Caitlin Murray noted this is a "massive increase" from the $110M LAFC paid to "become the latest expansion team set to start playing" in '18. However, MLS "wants to add four more teams for a total of 28 in the long term." It "remains to be seen" if the proposed increase "will affect the crop of ownership groups that have been vying to be next in line." Neither Abbott nor MLS Commissioner Don Garber have publicly "shared a timeline for when the next expansion cities will be named." Sacramento "appears to be the closest to being ready" The average MLS team is now worth $157M (FOXSPORTS.com, 8/1). In Sacramento, Dale Kasler notes it is "uncertain" how a $200M expansion fee "would pencil out for owners in a small market such as Sacramento." Execs with USL club Sacramento Republic FC "declined to comment" on Abbott's statements. Consultant Andy Dolich said that he thinks Sacramento "could handle an expansion fee that high." Dolich: "There are plenty of people ... that would love to be involved in that particular franchise." Dolich added that those people "could absorb the higher price," but it is still "something of a stunner." Dolich said $125-$135M is "sort of the buzz" (SACRAMENTO BEE, 8/2).

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