Teams like the LA Galaxy, which played in Europe in 2015, can try tapping into a soccer-crazed part of the world.Courtesy of MLS
Major League Soccer is now allowing clubs to sell international sponsorship rights outside of the U.S. and Canada beginning with the 2020 season, the league confirmed, making it the second major U.S. professional sports league to do so.
In April, the NBA granted teams the ability to sell global marketing rights as part of a three-year pilot program. Sources characterized the MLS decision as a beta program, one that opens up incremental revenue opportunities for all clubs. The new initiative was approved at a board of governors meeting in December.
A source with knowledge of the MLS situation said that there are some international restrictions, including brands not being competitive with current league sponsors. Additionally, future sponsors with an international component cannot be a gambling or sports betting company, this person said. At this time, there are no restrictions in place around markets or territories.
“The MLS needs to be super clear about who their audience is, because the recipe for disaster is trying to target everybody,” advised Tim Crow, an independent sports marketing expert.
Some sources said not to be surprised if there’s a minimum spend threshold for brands wanting to leverage international as part of a club relationship. Like with all club sponsorship deals, those including international rights will have to be approved by the league office.
Crow called the decision “a smart move” as the league and its clubs attempt to create further relevance outside of the North American borders, especially leading up to the 2026 FIFA World Cup. He highlighted two of the biggest soccer-playing continents — Europe and South America — and said that there was “total penetration” in terms of World Cup viewership. That may be a starting point for some clubs, he said, but there are other global opportunities, too.
“It all depends if you want to take MLS somewhere that’s ripe for growth, and the biggest region for that in terms of soccer is Asia, or whether you take it to big regions where saturation is already there,” added Crow of the international opportunities. “It’s a pretty wide menu that you can choose from.”
