Thursday, May 14, 2009

MLS Team Expansion


The MLS has recently announced the expansion of the league from 15 to 18 teams, with the addition of a team in Philadelphia (2010), a team in Portland (2011), and a team in Vancouver (2010). When looking ahead toward MLS expansion, the two most important factors to understand are profit ability and quality of play.

In order for the league to stay financially stable, these new teams need to be able to sell tickets. From the past two additions to the league, it is evident that new teams can succeed. These new teams were Toronto FC in 2007 and Seattle Sounders FC in 2008. Both teams have sold out their home stadiums to passionate fans, who are led by great ownership groups. The league commissioner Don Garber has done a great job at targeting future MLS cities that have a passionate fan base already set-up.

When the league started in 1996, they did not understand what they were getting themselves into. They had no soccer specific stadiums set up, and the league relied on the honey-moon effect. The honey-moon effect is when a new phenomenon occurs in sports and there is great popularity because it is new, but after the beginning years it begins to fade in popularity. The league experienced successful attendance numbers in the beginning years. The MLS had a league attendance average for its first 3 season (96'-98') of 15,445. Then in the middle years of the league (01'-03') the league experienced an average attendance of 15,227. Finally, over the course of the final 3 seasons (06'-08') the league experienced an average attendance of 16,224. It seems as if the league is on solid footing from a tickets standpoint, but there are many other profit variable in MLS business.

Many opponents of MLS expansion say that this quick expansion will hurt the quality of the league. I believe that MLS fans do not set the bar that high to the quality of soccer that they need to see. Most fans are American soccer fans who are happy that we have a league. Majority of the players in the league come from outside of the United States, this means that we do not have to worry about developing our US players as much, because we can choose players for our league from around the world. Also, the league has done a great job at identifying cities that will succeed in the MLS. All of the new teams have great playing venues, great fan base, and a solid ownership group.

The MLS will never be the EPL, but the league has done a great job of understanding where their markets need to be. The new teams are in cities that create rivalries with current teams. Soccer specific stadiums (SSS) are the future of the MLS, and SSS will lead the MLS to a brighter future. These new stadiums will finally let fans believe that they have a stadium to their own, and not have to borrow it from the major 3 leagues in North America. Finally, individual team profit success will ultimately come down to having a winning team.

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