MLS Values: Insightful Reply

Discussion started by Jay Stuart , on Wednesday, 10 August 2016 07:57

Last week, I started a discussion about MLS team values in light of a recent story about the price of new franchises. A fascinating reply came from the States. The sender, a current league source, is unable to go on record with the viewpoint. Here’s the comment:

 

“Interesting read. From an off the record perspective, the league will rise to those valuations, however, the question might be how many clubs are truly profitable? The MLS TV deals pale in comparisons to the EPL as an example. We have some cost controls as a salary cap league which also makes the long term forecast look manageable for any new investor. As like other US leagues, this is a ‘closed club’ with only 28 teams. Once you’ve gained your ownership to this ‘club (league),’ like property or real estate, the appreciation will only rise based on such exclusivity. Make sense?”

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