ALIVE AND KICKIN': MLS TO RECEIVE $100M IN ADDED INVESTMENT
Despite an MLS season marked by "flat attendance and
ratings" and another $20M loss, league owners next week
"will stake $100 million more to keep the MLS kicking,"
according to Terry Lefton of BRANDWEEK. Clark Hunt, an
Investor/Operator of the Wiz and the Crew, said, "Our
perception of the league's upside hasn't changed since the
league was formed. My family, having been part of new
sports leagues for more than 40 years, knows they are really
measured over longer periods of time." While MLS owners
originally invested $5M for franchise rights in '96, Lefton
notes the Miami expansion franchise went for $20M and the
San Jose franchise for $25M in '98. Lefton: "Look at the
MLS on that basis and you can see why even men with 10-
figure bank accounts are impressed." MLS Commissioner Doug
Logan told BRANDWEEK that the "asking price" for four new
expansion teams the league hopes to add by 2002 will be $25-
30M. Revolution Investor/Operator Jonathan Kraft: "We're
looking to build an asset. The big hit for us is getting
the national footprint, creating a league that has really
young and growing appeal and then our software becomes
valuable." Lefton writes that the MLS "has done a major-
league job of attracting corporate sponsors" and will
announce a MasterCard renewal that, along with its recent
Yahoo! deal, gives the league "more than" $100M in sponsor
dollars "committed to the contract." MasterCard Senior VP/
U.S. Marketing Nick Utton said of the league: "Their front
office is as good as any and their hearts and heads are both
in the right place" (Terry Lefton, BRANDWEEK, 10/21 issue).
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