When the MLS Goes Bankrupt...

The league will leave behind 15 CFL sized stadiums that are new and almost perfect for the CFL. Obviously, Montreal at 3million people would be a good location for a second team. The team may have to appeal to a certain suburb to become relevant..
The scarry part of this certain future is that a long sought after US spring league would suddenly become viable. MLS stadiums inthe US would provide the CFL with an instant rival league. Would the CFL not be wise to instead set up its own league in the US. Whether or not you could fit a CFL field into these venues is another question.
The MLS will go bankrupt quickly. Once investors realize that the teams will NEVER draw TV revenues, to support their luducris franchise valuations the league will colapse like AFL did ... Basicly overnight.

Yaawwwnnnn! :roll:

delete this thread

How can the league go bankrupt when the league is operated to how the rest of the majors operate but can get away with calling itself "major" and people buy into it? It's fixed and that's why investors love it, they don't have to worry about it running like a normal major league. MLS actually is very smart. Ponzi scheme that works.

Every city in North America now thinks it can have an MLS team, okay?

[url=http://www.fieldofschemes.com/2014/02/17/6837/every-city-in-north-america-now-thinks-it-can-have-an-mls-team-okay/]http://www.fieldofschemes.com/2014/02/1 ... team-okay/[/url]

Ok, found it - single-entity, no true individual owners like other major leagues. Investors love it,

MLS Primer: Your Guide to Major League Soccer's Rules, Regulations, and General Shenanigans

[url=Http://www.themaneland.com/2014/12/24/7444473/mls-primer-guide-major-league-soccers-rules-regulations]Http://www.themaneland.com/2014/12/24/7 ... egulations[/url].

It will be announced very shortly the CFL will be launching a new Canadian Soccer League. This new league will absorb the existing NASL teams in Canada with new franchises playing out of CFL stadiums. These soccer teams will be owned and operated by their local CFL team. The CFL plans to honour the NASL agreement not to encroach on existing MLS territory (Toronto, Montreal and Vancouver)...for the time being.

Within a few years, the Canadian MLS teams would likely merge with the expanding NASL in Canada. If the MLS were to fail, then TFC, Whitecaps and Manics would be absorbed into the NASL under the Argos, Lions and Alouette ownership. This soccer merger would likely happen in the U.S. also, with the NASL expanding and the MLS retracting.

The only thing currently propping up the MLS is their huge expansion fees (but that will soon run out) and corporate sponsorships (which is also declining, as shown with BMO's withdrawal from TFC, with the new sponsorship projected to earn much less revenue.)

NASL has a greater chance of folding than MLS. Theres a reason owners are lining up to pay the high expansion fees… They want a piece of the pie.

The Canadian soccer league will have a new name (not NASL) and will operate in conjunction with Soccer Canada...along with the Canadian National Team. This new league has the advantage of having all their infrastructure already in place, modern 24,000+ seat stadiums, offices, staff and expertise from the football side. The MLS has none of that and any new teams would have to start from scratch, building a stadium, etc.

The MLS expansion "bubble" will soon burst, they can't keep adding on new teams forever. MLS will need to prove they can operate successful franchises in the entertainment business...relying on gate receipts, TV revenues and sponsorships to pay the bills...not just new investors.

The MLS is going to fail for one reason and one reason alone. That reason is that no one.. And I mean no one watches their games on TV. These franchise evaluations are based solely on future television growth that simply does not exist. If the franchise evaluations were based on attendance, then each CFL team would be worth 100 million dollar.
CFL teams are worth 20 to 30 million because the TV contract that they currently hold may double or triple in the near future, but it will not go up 100 times the amount. MLS franchises have the current evaluation that they currently have because owners are betting on the chance that the MLS will some day sign a billion dollar contract... Sadly, all indicators I see, tell me that this will never never happen. When it becomes obvious that The MLS will never sign a major league contract then the valuations will fall to 10% of their current value... Thus the teams that had for years justified losing 5 million every year because the franchise valuations had gone up so much, will literally throw the keys in and call it a day.
On the other hand.. The NASL is a realistic league that jas realistic franchise values.. I say the MLS is much much more likely to go tits up.

I always have to laugh when people say the MLS is going to fail and no one watches on TV. Yet here we are going into 2 decades now and there TV deals get better and with better networks.
As for national TV numbers the issue is that there have been no marquee time or day and often have several other matches going on in different cities. Each MLS team now has a major local network broadcast partner and all games are broadcast live, home and away. So if RSL are playing SJ as the National game and LA Galaxy are playing the Rapids and Seattle playing Portland those are 4 major markets that will not be watching the National game.
In an era where are major league sports games are broadcast live, the National game needs to be the only game on during a marquee day and time. i.e. Monday night football, added by Sunday Night football, and now Thursday Night football. NFL also having playoff games on Sat and Sunday. CFL games are all on at different times. If there were two games on at the same time one national and one local the National numbers would be down.

Now with ESPN and Fox. Sunday evening/night double headers will be the marquee only games being played.
programming built around the MLS National games will also be much upgraded by ESPN/Fox.

MLS also needs to and has now upgraded Spanish Language broadcasts with many Spanish speaking fans. In Canada French Language National sports Networks are still fairly new. With TSN adding RDS and all Montreal games certainly has made a huge difference in CFL in Quebec. The same will grow with both TVA and RDS broadcasting Impact games.

cflsteve - yes you are right, it's funny that anyone would think that the MLS goes bankrupt, especially after the huge TV contract signed last May. Huge potential for soccer especially in places like Miami that has a large Latino population. Look at the interest in Canada and the potential in our country. TFC easily outdrawing the Argos and a waiting list for tickets and an expansion of BMO to 30k. Advertisers are putting their money into soccer teams. BMO has one of the largest naming right deals in North America.

The TV ratings in Toronto itself are much higher for TFC than for CFL football. Looking at the regional breakdown, Toronto viewers make up 10% of CFL viewers, or roughly 70k. Yet TFC ratings regularly hit the 100k for the Toronto market. The CFL ratings are driven by western Canadians and viewers outside of Toronto itself.
Advertisers/sponsors have taken notice, the MLS is much more popular in Toronto itself not just in attendance but also the TV audience. It is really trending upwards.

[url=http://www.mlssoccer.com/news/article/2014/05/12/mls-us-soccer-sign-landmark-tv-media-rights-partnerships-espn-fox-univision-deportes]http://www.mlssoccer.com/news/article/2 ... n-deportes[/url]

I like how 2 million viewers that watched it in the states on three different channels, one of which has more reach then the other three major sports channels put together, is somehow put by some individuals as they hit the big time.

The Spanish channels that show this, is no different then hockey night in Punjab.

As for ESPN getting 900,000 +, you might want to shake your head. This is the states, host too 350 million people. You might want to look at that percentage.

I don’t believe any of this. Do you have a source which shows TFC ratings are “much higher” than the CFL in Toronto? If TFC ratings regularly hit the 100k mark in Toronto, how do you explain the 22,000 and 30,000 national ratings for some TFC games this season, which are trending downwards?

p.s. oops, I forget CFLGAL is Mikem’s female alter-ego…so never mind. :roll:

Can anybody on this thread provide a link to a league folding or a league starting ? Otherwise this is a garbage thread.

That business model is as crazy as the MLS. Sorry. MLS will just re-emerge with a few standing pieces. Same old, same old. Hopefully it will be much more difficult to separate suckers from their money the next time around.

This is interesting. So perhaps the No-Names are bleeding money, it makes no difference to MLSE since any losses that occur is absorbed by league whole, and MLSE still get their money...

Yup, it's an interesting model that's for sure, the risks are spread out and that is attractive. I would love to know if MLSE would like to sell TFC now or if they think it's better to wait for some day down the road.

NASL 1968-1984
Arena Football League 1987-2008

Longevity does not equal permanence. The TV deals are still being made on the basis that this will grow. This happened with the NHL and then suddenly the money dried up and the league had to partner up with NBC to get it broadcast without any guarantee of revenues. Rogers is currently is currently bleeding money on their TV deal with the NHL simply because they overbid and the expected growth turned out to be a fraction of what they projected. You can bet when the Canadian TV rights for the NHL expires, the bidding for the next contract will be a fraction of what it is now. Now overlay that deal with MLS one where there doesn't seem to be any television growth, it doesn't take a genius to figure out that the next deal will probably have no bidders, and because MLS doesn't have the same safety net that a league like the NHL has, it will inevitably collapse.

http://i604.photobucket.com/albums/tt122/EvilDoctor/TorontoNEMay3rd2014_zpsc6960ffd.png

Yeah MLSTROLL, they have such huge crowds... :roll:

Are all those red dots empty seats ? :lol:

But, but ,but it was cloudy on that day. :wink: