Who were MLS’ Most Valuable Teams in 2019 and Why?
American football is the definition of sports in the USA, baseball is the national pastime and basketball lands itself a place as the nation’s third most popular professional sport. Now, this absolutely leaves our dear old soccer in a difficult position when it comes to finding its place in the American psyche. However, soccer is not the world’s number one for nothing, the legendary sport is slowly creeping into the hearts of the American audience and it just might have finally found its place in the world’s largest economy.
President and CEO of AEG Dan Beckerman looks on as team President of the Los Angeles Galaxy Chris Klein hands Zlatan Ibrahimovic #9 his jersey during a press conference at StubHub Center on March 30, 2018 in Carson, California.
(March 29, 2018 - Source: Jayne Kamin-Oncea/Getty Images North America)
History of soccer in America
The world’s game graced American soils from as early as the late 1800s. However, the first professional league of note was formed in 1921 and was referred to as the American Soccer League (ASL). The league thrived for about a decade, attracting European talent and scooping third place at the 1930 World Cup. However, as of 1931, in-house fights between the league and its member teams led to the ASL’s collapse and soccer in America fell off the map for 4 decades.
The USA did manage to gain a memorable victory over England at the 1950 World Cup in Brazil. However, soccer was still less prominent compared to the days of the ASL until the 1960s when the National Professional Soccer League (NPSL) was formed (1967 to be exact). Sadly, the NPSL only managed to last one season.
When NPSL went up in flames, its ashes gave birth to North American Soccer League (NASL). The NASL managed to change the way people viewed soccer in the USA especially when the great Pele` joined New York Cosmos after his retirement. When the Cosmos signed Pele` who is arguably the greatest player in the history of the game, soccer was catapulted into the mainstream in the USA. Every fan wanted to touch Pele` and shake his hand and Cosmos drew large crowds to stadiums to watch their games. However, Pele` retired from the NASL in 1977 and took the league down with him, fans started to lose interest in the league and by 1984 the NASL had hit the ground.
It took 10 years to get soccer back to the scene in the USA. FIFA decided to host the 1994 World Cup in the USA and interest in the sport was awaken but most Americans were still a bit skeptical. However, efforts to convince Americans too fully like soccer continued to be made and this led to the formation of the famous Major League Soccer, simply known as MLS. Unlike the previous leagues, MLS has endured and managed to change the way soccer is viewed in the USA. MLS has led to a couple of national successes.
In 1999, the USA managed to win the Women’s World Cup and in 2002 the men’s team progressed to the quarter-finals in Brazil. Apart from those two, in 2010 the USA team made it through to the knockout stages when Landon Donovan scored a goal in the group match against Algeria. Finally, with MLS in the picture, the FIFA World Cup began to make sense to Americans. MLS has continued to make soccer a big part of the social and economic circles of America as a whole and the various teams that are part of the league have contributed to its success.
MLS’s most valuable teams 2019
Ranking MLS’s most valuable teams for 2019 can be summarized into a list of the top 9 according to revenue generated and value in dollars as below:
RANK TEAM VALUE($M) REVENUE($M)
1 Atlanta United 500 78
2 LA Galaxy 480 64
3 LA FC 475 75
4 Seattle Sounders 405 47
5 Toronto FC 395 43
6 Portland Timbers 390 47
7 New York City FC 385 45
8 Chicago Fire 335 23
9 DC United 330 41
Carlos Vela #10 of the Los Angeles Football Club dribbles down the field during action against the Portland Timbers at Banc of California Stadium on July 15, 2018 in Los Angeles, California.
(July 14, 2018 - Source: Katharine Lotze/Getty Images North America)
Atlanta United
Atlanta United found itself in pole position for the second time in a row. The team was worth $500 million at the end of 2019. They also generated $78 million worth of revenue. Apart from financial value, Atlanta United has notable on-field success which include winning the 2018 MLS Cup and making the playoffs in each of its three MLS seasons. This on-field success has increased the team’s fan base and their average home-game attendance of 52,000 fans per game ranks among the top soccer teams in the world. Atlanta United is also a leader in attracting cash flow from Europe’s top leagues, the most notable example being the sale of star midfielder Miguel Almiron to Premier League’s Newcastle United for $27 million, a transfer fee that no other team has ever received before.
LA Galaxy
The team fell second to Atlanta with a value of $480 million. Galaxy has been MLS’s model of success since the league’s genesis in 1994, generating $5.5 million from local media rights. It’s the famous MLS team that never ranks outside the top 6 in average home game attendance. Among all the MLS teams, Galaxy has been the most preferred landing for international stars from the likes of David Beckham to Zlatan Ibrahimović.
LAFC
Galaxy’s rivals have completed only 2 seasons but already finds itself in Forbes’ top 3 and is valued at $475 million. LAFC is reportedly worth annual payments of $6.7 million of naming rights and $6 million of jersey sponsorship. The team has sold out every one of its home games despite having the highest ticket prices in MLS history and ranks eighth in home-game attendance. Both LAFC and Galaxy drew an audience of nearly 900,000 viewers when they faced off in the 2019 semi-final playoffs.
“A good example of that investment is the purchase of Chicago Fire by billionaire Joe Mansueto. In September, the Morningstar Founder Joe Mansueto acquired 100 % ownership of Chicago Fire at $400 million valuation, a huge amount that is worth a value of more than 4 NHL teams.”
Stefan Frei #24 of Seattle Sounders FC 2 grabs the ball in front of Josef Martinez #7 of Atlanta United and Jordy Delem #21 of Seattle Sounders FC 2 during the game at Mercedes-Benz Stadium on July 15, 2018 in Atlanta, Georgia.
(July 14, 2018 - Source: Michael Chang/Getty Images North America)
Seattle Sounders
The league’s fourth most valuable team and the current MLS Cup champions are worth $405 million and comes second after Atlanta United in average home game attendance.
Chicago Fire
Forbes values the team at $335 million ranking it at number 8 in the list of MLS’s most valuable teams. The team has struggled to find its footing in terms of relevance and financial status for a long time, constantly being ranked in the bottom 5 in home game attendance since 2013. However, investors are looking for a possible bright future for MLS teams and USA soccer as a whole by investing large sums of money. A good example of that investment is the purchase of Chicago Fire by billionaire Joe Mansueto. In September, the Morningstar Founder Joe Mansueto acquired 100 % ownership of Chicago Fire at $400 million valuation, a huge amount that is worth a value of more than 4 NHL teams.
The average MLS team is now worth $313 million, which is up to 30% from last year’s value. The year over year growth in MLS teams far outpaces the rising team values in NBA (13 %), the NFL (11%), MLB (8%) and the NHL (6%). MLS’ average attendance of 21,358 from 2013-2018 has been ranked number 8 in the world. In addition, Atlanta United, the MLS team which only joined MLS in 2017 has the tenth best average attendance of 51,547.
How soccer growth in the USA is impacting business decisions
Professional soccer at all levels is thriving in the USA with increased average attendance and media coverage and this is, in turn, attracting many markets to support MLS. Many businessmen are turning to MLS as a lucrative goldmine and are pouring in investments into the league. Most MLS teams are running at a loss but investors continue to pour in because they believe the future of USA soccer is getting brighter by the day.
“Expansion during the last 15 years has been enormously successful and the key driver behind the league’s continued rise, and we are pleased that some of the top business and community leaders representing great markets in North America are aggressively pursuing MLS expansion clubs,” said MLS commissioner Don Garber.
The question on people’s minds could be “is soccer powerful enough to create employment opportunities and restore the economy in the presence of NBA, NFL, and MLB? “
(L to R) DC United Managing Partner and CEO Jason Levien, Wayne Rooney #9 of DC United, and DC United General Manager Dave Kasper pose with a jersey during his introduction press conference at The Newseum on July 2, 2018 in Washington, DC.
(July 1, 2018 - Source: Patrick McDermott/Getty Images North America)
The answer to the above question is that it is indeed possible for soccer to be part of the driving force for a successful economy in the USA if serious reforms and investments are pushed towards the sport. This will guarantee the future growth of soccer in the USA to come close to the European level.
Huge investments are already being pulled into the Major League soccer for expansion teams. Joe Mansueeto’s purchase of Chicago Fire is a good example of a major investment by notable businessmen and billionaires. Regardless of the MLS team ranking eighth in the list of MLS’s most valuable teams, Mansueto purchased the team at a $400 million valuation. In July 2019, NBA star James Harden invested $15 million for a small stake in the Houston Dynamo. In August, Microsoft executive Terry Myerson led an ownership group that includes celebrities Ciara, Macklemore and Russell Wilson in buying a stake in Seattle Sounders. Another notable purchase was that of 9% of Orlando Sports Holding by Hedge fund manager Albert Friedberg.
In conclusion MLS and soccer in the USA, in general, is finally finding its place in the social and economic circles of Americans punctuated by increasing numbers of fans and investor. Soccer might just be the new goldmine for businessmen in the USA.