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.”

— Lovejoy Tabeth Munamati, FirstTouch Africa

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.

Is FIFA's planned $1 billion investment enough for women's soccer?

Soccer, just like most sports has been a "male domain" for a long time. Over the years women have been working to make their mark in the sport and we have noted a remarkable rise in the recognition of women soccer. Women from all walks of life view the game as a tool for cutting across all boundaries in terms of society, race, religion, ethnicity and socio-economic circumstances.

Ashlyn Harris, Alex Morgan, Megan Rapinoe, and Allie Long celebrate during the U.S. Women's National Soccer Team Victory Parade and City Hall Ceremony on July 10, 2019 in New York City.

(July 9, 2019 - Source: Getty Images North America)

The introduction of the pinnacle of women soccer, FIFA Women’s World Cup in 1991 and subsequently the FIFA U-20 and U-17 Women’s World Cup in 2002 and 2008 respectively was a major milestone. Investments at the grassroots level increased. The FIFA Forward program has made the genesis of new leagues and competitions possible with increased funding. The level of play has dramatically improved, media attention has increased exponentially, and the game has grown in popularity. However, there is no denying the fact that soccer is still a male-dominated sport. The question now becomes how do we make women soccer just as big?

Why women soccer is still not as big as the men's

One of the reasons why women soccer always seems less exciting lies in the media itself. Quality media coverage plays a major role in the prominence of a sport. While the common perception is that if women soccer was worthy of more coverage they would have it, what is apparent is the fact that the popularity of the game comes from the media itself. Men’s soccer is definitely going to seem more exciting since they have higher production values, higher-quality coverage, and higher-quality commentary. In contrast, there are fewer camera angles, fewer cuts to shot, fewer instant replays when we watch women’s soccer, so hell yeah, it’s going to seem to be a slower and less exciting game.

Perhaps we do look at soccer as a feminist issue, but that is because it is. Some argue that women soccer is less prominent than men's soccer because of the gap in physical strength and athleticism lying between genders. However how sure are we that it is a good enough reason to push men's soccer into prominence over their female counterparts? Is it not just us being a chauvinistic society? I am sure a lot will agree with me that one of the best soccer games that they have ever watched regardless of gender was the Canada vs USA Olympic match in 2012. Canada’s Christine Sinclair put her team on her back and almost carried them into the gold medal match, only to be thwarted by questionable officiating. Sinclair displayed great athleticism that some of her male counterparts have never been able to display. That game represented the beauty of athletic competition.

Fans of Canada before the match between Canada and Zimbabwe womens football for the summer olympics at Arena Corinthians on August 6, 2016 in Sao Paulo, Brazil.

(Aug. 5, 2016 - Source: Alexandre Schneider/Getty Images South America)

However, if female fans cannot consistently support women soccer in order for the teams to remain solvent, why should men suffer a gender inequality stroke? Women themselves tend to be enemies of the game for not rendering enough support to their kind, the way males do.

Lack of proper support and funding resulting in lower salary rates and revenue obviously makes the women's game less appealing to young girls and less lucrative to investors.

The much needed intervention

Over the years, women have treated soccer as more than just a game, playing with passion (whether it's in the stadium or on village fields, with world-class gear or hand me downs). This drive to take the game to the next level has also been noted. This hasn't gone unnoticed as various sponsors began to see women's soccer clubs as lucrative investments. Consequently, media coverage increased and so did the fan base. However, the competitive and commercial success women soccer has attained over the years stands in stark contrast to the underlying challenges that face the game and its leaders when it comes to development from the grassroots – which represents the future of the game away from the spotlight.

FIFA has done a great job investing in women's soccer through various programs such as the FIFA Forward program that has made funding at the grassroots level possible. Resultantly, new leagues and competitions have been created awarding a lot of women the chance to play the game on a higher level.

Apart from financial investments, FIFA’s Women’s Football Strategy also outlines how the governing body plans to work with confederations, member associations, clubs and players, the media, fans and other stakeholders to confront and surmount the challenges faced in the game.

FIFA's recent contribution has made huge waves, at the FIFA Football Conference in Milan in September 2019, soccer’s supreme promised to invest $1 billion in the women’s game over the next four years. (2019 to 2022). “We need to be a little bit brave and a little bit bold if we want to move women’s football onto the next level – we need to stop copying what we do in the men’s game,” said Infantino (FIFA president).

South Africa line up prior to to the Women's Group E first round match against China PR on Day 1 of the Rio 2016 Olympic Games at the Olympic Stadium on August 6, 2016 in Rio de Janeiro, Brazil.

(Aug. 5, 2016 - Source: Harry How/Getty Images South America)

Aside from the billion-dollar funding, Infantino plans to launch a Women’s Club World Cup within the next two years (2020 and 2021) and revive his idea for a Women’s World League, mimicking a Nations League on a global scale. In addition to the above, during the June annual congress of the world federation, Infantino earmarked $500 million for the women’s game in the 2019-2022 cycle. This was in response to criticism over the minimal prize money on offer at the Women’s World Cup in France. After the success of the competition, that plan was quickly revised. The tournament’s expansion to a 32-team format for the 2023 iteration got fast-tracked so as to exploit the game’s new success.

There is no denying that FIFA is indeed doing a great job in supporting the women's game. However, the two burning questions are: "who benefits from this funding?" and "is it enough"?

Who benefits from the billion-dollar deal?

Details on how the $1 billion will be funded, distributed and audited to ensure that it reaches women and girls at the grassroots and truly grows the game, remain vague. However, it is apparent that much development will be considered at the top of the pyramid, further elevating leagues that are already established and have guaranteed lucrative charts. This will indeed increase the popularity of women soccer and guarantee better salaries and benefits for players who already belong to certain leagues. This is an awesome deal, but what happens to the rest of the girls playing soccer in village fields, with great passion but zero opportunities?

"A change made to the top layer of the pyramid will always be short-lived until a change is made to the base." - Lovejoy Munamati

Is the billion-dollar funding enough?

Increasing funds in women soccer will undeniably lift the game's influence to an unimaginable level. FIFA's billion dollars will go a long way in further improving the game's influence. However, is money the ultimate solution? Will it solve the various problems that lead to the women's game being less influential than their counterparts? Will it really bring the change we are looking for?

Well the simple answer to all these questions is NO. Of course we need funding to move forward and to ultimately change the game. However, to help everyone involved, be it an established player or a simple girl with nothing but passion and dreams of brighter days playing somewhere in a village we will need more than just funds.

The long-standing lack of women in positions of responsibility in the football community has led to limited voices to advocate for change. Years of institutional neglect and a lack of investment have prevented girls and women from playing the game and from assuming roles in technical, administrative and governance functions. Honestly only a woman can understand the pains and needs of another, a man in power can try to but never pinpoint the actual problem women are facing. In 2016, the FIFA Congress made the first steps to rectify this problem by approving some landmark decisions for women’s football and the representation of women in football. Realizing that funds alone will not solve this issue, FIFA football strategy has put a plan forward to include women in administrative roles and correct historical errors.

As much as we want funds to keep pouring in, the truth is funds don't just pour into washed-out associations. To receive the maximum amount of funding, federations must meet certain criteria including investment in women’s soccer, according to FIFA’s Forward 2.0 program.

These criteria include:

a) Organizing a regular, nation-wide women’s competition that lasts over a period of six months, involving at least ten teams, and playing at least 90 matches

b) Having an active women’s national team that plays at least four official or friendly matches in one calendar year

c) Having active girls’ national teams in at least two age categories who play at least four games per calendar year.

However not every association can manage to meet the above conditions as roughly a quarter of FIFA member associations simply don’t field senior women’s teams. A good example is Pakistan’s women’s national team which last played a game in 2014, the year the national league became defunct. Pakistan is not a loner, after participating in the 2015 Women’s World Cup, Colombia barely played competitive soccer. So in essence funding alone is a good solution for well-established associations that can easily sustain their influence, of which many teams struggle to do that.

“Over the years, women have treated soccer as more than just a game, playing with passion (whether it’s in the stadium or on village fields, with world-class gear or hand me downs). This drive to take the game to the next level has also been noted. This hasn’t gone unnoticed as various sponsors began to see women’s soccer clubs as lucrative investments. ”

— Lovejoy Tabeth Munamati, FirstTouch Africa

FIFA can do much more

Apart from providing funds FIFA can do so much more for women's soccer. The FIFA women's football strategy has outlined its objectives as part of the FIFA forward 2.0. The objectives illustrate support that goes beyond funding and includes:

Megan Rapinoe receives The Best FIFA Women's Player of the Year award from FIFA President Gianni Infantino during The Best FIFA Football Awards 2019 at Teatro alla Scala on September 23, 2019 in Milan, Italy.

(Sept. 22, 2019 - Source: Emilio Andreoli/Getty Images Europe)

Growing participation

Increasing the level of female participation in football is central to the organization’s ability to reach the goals and objectives outlined in FIFA 2.0: The Vision for the Future. This will allow FIFA to reach both communities where soccer is not well established and those where women grace the pitch every day. The non-profit organization will work diligently to ensure that more women have increased access to football in regions all over the world while supporting its member associations in achieving their own women’s football objectives.

Enhance the commercial value

FIFA's effectiveness to commercialize its competitions and events determines its ability to develop the game. With tremendous opportunity to expand its development efforts by creating new revenue streams from its women’s competitions and events, the organization will optimize existing competitions in order to maximize their quality.

Build the foundations

Building upon the current foundations to effectively govern and regulate a more sophisticated women’s football ecosystem is one of FIFA Forward 2.0's goals. The organization will further develop leadership training platforms designed to attract women to the upper ranks of the football industry. With the knowledge that increasing female participation in football will play a major role in realizing the organization’s larger goals of growing the game, FIFA is pretty keen on women's soccer development.

The goals of the FIFA Forward 2.0 for women’s' soccer are to be achieved using a 5-pronged strategy. The strategy involves developing and growing the game, showcasing, communication and commercialization, governing and leading, education and empowerment.

With all the above interventions along with the billion-dollar investment, women's soccer should be good to go. However infrastructural development is another issue to contend with. Infrastructure development at both club and national team level is one sector FIFA can venture into. With state of the art infrastructure comes great passion, skills in the game. Hence FIFA's 1-billion-dollar investment might still not be enough to ultimately develop women's soccer. However, the investment will go a long way in changing women's soccer as we know it. As FIFA's president, Infantino stated while speaking about the investment:

"There will be a before, and an after, the Women’s World Cup 2019, in terms of women’s football,”