- MLS would join MLB and NHL in allowing private equity ownership
- Teams set to lose ‘US$20m to US$30m’ from Covid-19
- Franchises announce new commercial partnerships to offset loses
Major League Soccer (MLS) is nearing a change to its ownership rules, allowing investment funds to take minority stakes in clubs, according to Sportico.
The move would enable teams in North America’s top soccer league to have better access to funds at a time when revenue is down as a result of Covid-19.
Sportico’s report says the change is ‘expected’ to be ratified, which would see MLS join the National Hockey League (NHL) and Major League Baseball (MLB) in allowing private equity ownership.
Limitations will reportedly be imposed on how much of a given club can be owned, as well as how many teams can be included in a portfolio.
Typically, MLS owners have been wealthy individuals, while franchises eyeing extra cash have traditionally had to source more minority investors or perform capital calls on existing partners. The option of allowing investments funds to come on board would provide a third option amid the current financial uncertainty.
The league returned to action last week with the MLS is Back Tournament at Disney’s Wide World of Sports Complex in Orlando. Notably, Orlando City’s 2-1 win over Inter Miami in the opening game averaged 464,000 viewers on ESPN, making it the US pay-TV network’s fifth most-watched regular season broadcast in five years.
Despite being one of the first major leagues to resume in the US, the lack of ticket sales – accounting for approximately 40 per cent to 50 per cent of teams’ revenues – means clubs stand to lose US$20 million to US$30 million this year in uncaptured income, Sportico reports.
That said, the MLS’ return to play has ushered in a slew of commercial deals recently. Los Angeles FC (LAFC) have announced a multi-year partnership with Truly Hard Seltzer, which becomes the franchise’s official hard seltzer.
The Colorado Rapids have added two partners, financial services firm Western Union and multi-level marketing company World Financial Group, both of whom have secured sleeve deals on the team’s shirts. Western Union’s agreement will continue beyond the MLS is Back Tournament through the remainder of the 2020 season.
Columbus Crew named Scotts Miracle-Gro, the lawn, garden and pest control products manufacturer, as their sleeve partner for the duration of the tournament.
In addition, Seattle Sounders have expanded their relationship with WaFd Bank, the club’s exclusive banking partner since 2018, to become their first sleeve patch partner for the campaign.
Business service company Cintas and First Financial Bank will be sleeve partners for FC Cincinnati, with the latter’s continuing for the remainder of 2020.
Atlanta United have expanded their partnerships with Truist and NAPA Auto Parts, who will feature on the club’s left sleeve and shorts respectively.
Ford and AT&T will feature on the sleeves of New York City Football Club’s (NCFC) shirts, with Gillette and Santander securing the same designation with New England Revolution. Philadelphia Union have also followed suit through deals with Subaru and Bimbo Bakeries’ Thomas brand.
Furthermore, the San Jose Earthquakes have filled their full allotment of wearable sponsors for this season. As well as Intermedia serving as the club’s main jersey partner, Clover and Wells Fargo have been added as sleeve partners. Sutter Health will also feature on the team’s training top.
MLS initially opened the left jersey sleeve for sponsorship patches beginning in 2020. Ahead of its resumption, the league subsequently allowed clubs to secure additional partners for both sleeves and, in select cases, club shorts.
Major League Soccer (MLS) is nearing a change to its ownership rules, allowing investment funds to take minority stakes in clubs, according to Sportico.
The move would enable teams in North America’s top soccer league to have better access to funds at a time when revenue is down as a result of Covid-19.
Sportico’s report says the change is ‘expected’ to be ratified, which would see MLS join the National Hockey League (NHL) and Major League Baseball (MLB) in allowing private equity ownership.
Limitations will reportedly be imposed on how much of a given club can be owned, as well as how many teams can be included in a portfolio.
Typically, MLS owners have been wealthy individuals, while franchises eyeing extra cash have traditionally had to source more minority investors or perform capital calls on existing partners. The option of allowing investments funds to come on board would provide a third option amid the current financial uncertainty.
The league returned to action last week with the MLS is Back Tournament at Disney’s Wide World of Sports Complex in Orlando. Notably, Orlando City’s 2-1 win over Inter Miami in the opening game averaged 464,000 viewers on ESPN, making it the US pay-TV network’s fifth most-watched regular season broadcast in five years.
Despite being one of the first major leagues to resume in the US, the lack of ticket sales – accounting for approximately 40 per cent to 50 per cent of teams’ revenues – means clubs stand to lose US$20 million to US$30 million this year in uncaptured income, Sportico reports.
That said, the MLS’ return to play has ushered in a slew of commercial deals recently. Los Angeles FC (LAFC) have announced a multi-year partnership with Truly Hard Seltzer, which becomes the franchise’s official hard seltzer.
The Colorado Rapids have added two partners, financial services firm Western Union and multi-level marketing company World Financial Group, both of whom have secured sleeve deals on the team’s shirts. Western Union’s agreement will continue beyond the MLS is Back Tournament through the remainder of the 2020 season.
Columbus Crew named Scotts Miracle-Gro, the lawn, garden and pest control products manufacturer, as their sleeve partner for the duration of the tournament.
In addition, Seattle Sounders have expanded their relationship with WaFd Bank, the club’s exclusive banking partner since 2018, to become their first sleeve patch partner for the campaign.
Business service company Cintas and First Financial Bank will be sleeve partners for FC Cincinnati, with the latter’s continuing for the remainder of 2020.
Atlanta United have expanded their partnerships with Truist and NAPA Auto Parts, who will feature on the club’s left sleeve and shorts respectively.
Ford and AT&T will feature on the sleeves of New York City Football Club’s (NCFC) shirts, with Gillette and Santander securing the same designation with New England Revolution. Philadelphia Union have also followed suit through deals with Subaru and Bimbo Bakeries’ Thomas brand.
Furthermore, the San Jose Earthquakes have filled their full allotment of wearable sponsors for this season. As well as Intermedia serving as the club’s main jersey partner, Clover and Wells Fargo have been added as sleeve partners. Sutter Health will also feature on the team’s training top.
MLS initially opened the left jersey sleeve for sponsorship patches beginning in 2020. Ahead of its resumption, the league subsequently allowed clubs to secure additional partners for both sleeves and, in select cases, club shorts.
Getty Images
