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More details about what was discussed by the MLS Board of governors at the All Star Game, continue to emerge. In a sign of the continued growth and viability of the league,
MLS bosses considered raising expansion fees to $50 Million. A 400 percent increase from when Toronto FC joined the league for a mere $10 Million.
An excerpt from the Sports Business Journal follows:
"Just three years after adding an expansion team in Toronto for $10 million, MLS may raise expansion fees to $50 million.
The possibility was one of several discussed at MLS’s board of governors meeting July 24 in Toronto. League owners discussed expansion for two to three hours but left the meeting ambivalent about how many teams to add, what expansion fees should be, and how additional teams might affect the league.
MLS announced last week that it will accept applications for expansion teams until Oct. 15 and announce two expansion cities in the first quarter of 2009, but MLS owners say several issues around expansion remain unresolved.
“There’s a lot of people who want to get in this league, which is good,” an owner said, speaking anonymously because the meeting was confidential. “We’ve just got to figure out the right way to do it.”
At the meeting, MLS Commissioner Don Garber listed eight markets interested in potential expansion: Atlanta, Las Vegas, Montreal, a second team in the New York area, Ottawa, Portland, St. Louis and Vancouver."
More here after the jump.
Okay, so a would-be MLS franchise holder is expect to pay $50million before a ball is kicked? Really? Perhaps foreclosures, lay-offs and the rest haven't reached the rarified atmosphere these people breathe, but some of us are certainly tightening our belts and the leisure spend is getting cut back big time. Pay £50million for a franchise if you like, just don't expect the plebs to walk in lockstep and bail you out.
someone from sweden named ljunberg may go to LAG hint hint
I think $30-$40 million is completely realistic.
In all fairness $50 million now, is equal to the $10 mill. that TFC paid. It's not the price of a franchise that has risen but the price of the dollar that has sunk.
Consider this:
in 2000 the franchise fee to join the NHL was $80 million
in 1999 the franchise fee to join MLB was $130 million
in 2001 the franchise fee to join the NFL was $700 million
in 1995 the franchise fee to join the NBA was $125
A league that has seen their attendance and TV ratings climb is a bargin at $50 million. When you have 8 serious cities bidding for two available franchises, I am surprised that the fee is not higher.
Sorry man, but the dollar is not 20% of what it used to be. The only relation a sinking dollar would have to this is if the investor has his money in something other than the dollar, which is unlikely. Maybe you're getting the sinking dollar mixed up with inflation, but then again, there hasnt been a 500% inflation in 2 years. So in all fairness, you're wrong.
Yet they can't raise the salary cap...
I hope they raise the expansion fee and MLS does well... just as long as they start raising the Salary Cap to go along with the added revenue.
Now they need to raise the salary cap to bring in more talent from around the world.
It's not really adding up at this point for 50M a shot. Half this league is still in the economic dumpster, which does not justify such a huge increase.
These owners are letting their greed get ahead of common sense.
If MLS is so successfull that they want to raise the expansion fee to 50 mil. They should raise the salary cap by 65% from what it is right now. They can raise the fee from 30 mil to 50 mil, but the salary cap only goes up by a small percentage.
I bet they can get it. Amazing that 10 years ago the league contracted to eight teams.
They can't just riase the salery cap to whatever they want, whenever they want. It has to be collectively bagained! By the way, when does the MLS' CBA expire?
At least someone around the league is getting paid....
I think too many of you have no clue about the CBA that exists for MLS. I think you need to go to the players union website, and do some research into the salary cap.
MLS expansion spots are being fought over by cities, and the reality is supply and demand. Two slots in 2011 and 8 cities with legit chances, why would the league not raise the expansion fee?
This league is in for major changes over the next couple of seasons, the CBA expires in 2010, so the salary cap, international spots, and many more issues will be dealt with shortly. I think we will very soon see the league change from being the controlling power of league decisions (this was very necessary when the league started), and more power will transfer to the actual team owners. Everyone has to remember this is a very young league and while not perfect it has outlasted the predictions of most critics and cynics who figured the league would fold in under 10 years.