Try again and the article you posted was from?
Do you know how much San Diego paid for their franchise? 325M’s
Look at the MLS franchises values that I have posted.
Ponzi scheme? A Ponzi scheme going on since 1996. That is close to 30 years.
Speak about master thieves.
San Jose Earthquakes moved to Houston and are now the Houston Dynamo, so yes, MLS Franchises can, and if it makes sense financially (on paper), will move.
I think he means for along the lines that while that team moved their name and history stayed in San Jose. Look up both teams and you’ll see Dynamo was considered an expansion team and established date of 2005, which is not when the San Jose earthquake were formed and two years later a team returned to San Jose with the same old history and name.
What is the definition of a Ponzi scheme. A Ponzi scheme is a type of investment fraud where an organizer pays returns to early investors using money from new investors, creating the illusion of high profits with little risk, while actually generating no legitimate returns and relying on a constant influx of new investors to sustain the scheme.
They got the San Diego ownership group to pay 500 million for their franchise to start play in 2025.
When you take a close look at the model it kinda looks like one.
it relies on expansion fees that keep increasing for new franchises. Old teams are not growing their revenue organically.
At some point they will run out of markets where they will be able to sell franchises. Critics say, MLS teams use creative accounting to appear sustainable.
Their valuation of franchises has outpaced actual profitability. It starts to look like a speculative bubble where the perceived value is higher than its actual value.
Is Major League Soccer “On the Rise”? Not Quite.
"Some have taken to calling MLS a Ponzi scheme.[8] I’ll explain. MLS had 20 teams in 2016. By 2023, it will have 29. All those new clubs will have paid large expansion fees, some in the hundreds of millions of dollars. The league, through one channel or another, distributes much of those funds to its clubs to help fund their operations. At some point soon, the league will reach capacity and the expansion fees will dry up.
Consequently, I believe MLS relies on two ownership models. First, there are uber-wealthy individuals who do not mind losing millions of dollars every year on their MLS club because it likely offsets taxable gains elsewhere – this group includes individuals who also own NFL clubs, like Arthur Blank, Robert Kraft, and Ziggy Wilf. The second model is having clubs borrow considerable sums from major financial institutions, often with high interest rates, to fund operations and construction of new soccer-specific stadiums, in the hopes that the equity value of the club will rise fast enough to allow for refinancing on better terms or new investors. Some clubs are regularly selling off minor stakes in the clubs to fund the club’s operations. For example, if the club (including related entities) is valued at $500M, the club may sell a 1% stake to a professional athlete or public figure as a vanity investment for $5M. The club will then turn around and use that $5M to cover payroll and operating costs. This is not exactly a model of financial stability."
and yes, they messed up putting their games on Apple TV…easier/better for us to watch Liga MX or Premier League
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Yep. The MLS is using the PAC12 strategy with media partners making it harder to watch their games.
Mods pls move to other sports board
MLS franchises can but not other team worldwide unless they have a franchise system.
You article is dated and it contradicts Christopher’s premise.
Yes $2.5B’s.
Stakes? Let’s argue about stakes all you want. Every single sports franchise model has them. Yes baby, not only soccer but and are you ready for this? The NFL, NBA, MLB, MLS and NHL. Remember when Magic now own stakes in all sports franchises league? You probably missed that.
I believe I might have met Christopher in the late 90’s. He is really upset because FIFA, USSOCCER and MLS put their foot down against European clubs playing some game league games on American soil. Do you even know who brought up the suit? Fans from every European soccer leagues petitioned to their own F.A. and they were damn right. What should a Olympique de Marseille, Liverpool or Real Madrid play a league game on American soil? USSOCCER, MLS would love for it to happen. Why you may ask? Because with every single international game both USSOCER and MLS get a stipend. I helped hosting many international games from Pumas to Milan etc…Both benefited greatly. Many companies bring international soccer clubs to the U.S. From Interforever (no longer in business) to many others you will see friendly games here in America, again friendly games. Do you know why MLS wants soccer specific stadium? Because the fans demand it. It has nothing to do about re-financing franchise’s asset. Heck every USL franchise is putting together their own stadium. They don’t want to play in football, baseball stadiums because it is not good for fans. I helped games at the Rose Bowl from the MLS start. We had to “shrink” the stadium not even anticipating how much people wanted to attend. An hour before the game the stadium security gates were being forced. We sold officially 67k tickets when in fact we sold over 85k because the people wanting it.
Some of you think that soccer ought to be at the same level as the NFL, Even though it has many of the same owners these $Billionaires are thinking long term investment. There is another area that you fail to mention and that is critical for MLS success. MLS clubs are “producing” players that they sell to European leagues. It started even before the MLS stared. I had many discussions with sports agents about this or that player for clubs in Europe. It also happened in reverse; which, I can’t divulge names, big names wanting me to arrange a trade or a designated contract. It is a revenue steam that each club plan for with MLS. France being a top five European league is also the biggest soccer talent producer worldwide with Brazil and Argentina. France has the biggest tax system in the world with Sweden and can’t compete financially with England and Spain. They would have to pay three to four times their players to match these two leagues. MLS is going toward the French league direction with finally PDL, MLS Academies. To think that this is a ponzi scheme you have to ask all of the $Billionaire investors if they are dumb asses. I invite you or Christopher to do that I can’t wait for the answer.
That i agree with you. Apple is not the easiest form to catch a game. Time like everything will tell us if this was a dumb ass move or not. It just started. Being premature is not what we want cgrbkr.
Oh, ok…yeah ik the Mexican league uses the franchise system…
Their league structure has copied various aspects of the NFL, interestingly enough, to maximize $$$$.
It is also infamously notorious for the whims of Multi-Club Ownership, where owners often relocate their franchises, sometimes erasing decades of history by recreating their club’s entire name, colors & identity.
Fr tho…
I wanted to keep up with Dynamo this past season, but you couldn’t even find it streaming in the 
sites (allegedly).
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Liga MX has gotten a little difficult to watch in recent years. Specifically with the introduction of ViX. It used to be where the games were on Univision, Telefutura, Telemundo and Azteca America (back when it existed). Now you need TUDN, ViX, Fox Deportes/or FS1, FS2.
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For the younger generations (who I assume MLS may be targeting), I don’t think it’s a bad idea to have MLS pass (is that what it’s called?) on Appl TV. Correct me if I’m wrong, but with Aapl Tv you get to watch all of the MLS regular season games?
I follow the English Premier League pretty closely - love watching games early on the weekends.
I would absolutely follow the Dynamo if it weren’t for the MLS Season Pass requirement.
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They do not. Chivas will never leave Guadalajara same for every Mexican League team. They use a promotion relegation system too.
??? I don’t follow you.
Looks like Liga MX has eliminated relegation, and if I recall at least two teams have relocated in Mexico.
I found this.
Tiburones Rojos de Veracruz who played in the Ascenso MX moved to San Luis Potosí and became Atletico San Luis. In June 2020, Atlante F.C. football club moved back to Mexico City from Cancún. In June 2020, Monarcas Morelia, founded in 1950, moved from Morelia to Mazatlán and became Mazatlán F.C.
i think removing Promotion/Relegation has led to a decline in the Mexican National Team…too many South Americans are taking the place of younger Mexican nationals in the club teams, LigaMX pays fairly well, and inflates the prices of young Mexicans trying to get to Europe so the richer Mexican clubs are willing to pay the inflated prices for younger mexican players…its better for a European Club team to buy 3 brazilians or 3 argentinians for the price of 1 mexican player, better bang for your buck, and better odds of finding talent
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also need to add that Fubo just recently dropped Univision/TUDN
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