Exploring the High Price Tag of MLS Team Ownership: What You Need to Know
Major League Soccer (MLS) is the top-tier professional soccer league in the United States and Canada. As such, it should come as no surprise that owning an MLS team is a highly sought-after opportunity. However, the cost of buying an MLS team can be prohibitively expensive for many potential owners, with the average team costing hundreds of millions of dollars.
When considering the cost of buying an MLS team, there are several factors to consider. First, the buyer must purchase the team's rights from the league. This cost is typically a one-time fee, but can range from $50 million to $200 million, depending on the team's market size and popularity. Once the MLS rights are secured, the buyer must then build a stadium, which can cost anywhere from $50 million to $400 million depending on the size and quality of the venue.
In addition to the cost of purchasing the team and building a stadium, the buyer must also pay for the team's players, staff, and other operating expenses. Player salaries alone can cost tens of millions of dollars per year, and team staff can also add significant costs to the bottom line. Finally, the ownership group must ensure proper financial management of the team, which can include marketing, sponsorship, and ticket sales.
All in all, the cost of buying an MLS team is a huge financial commitment. It requires a great deal of research, planning, and capital. However, for those who are willing to take on the challenge, owning an MLS team can be an incredibly rewarding experience. After all, there is no better feeling than being part of a successful sports franchise and helping to build a winning team.
Breaking Down the Costs of MLS Team Ownership: What You Need to Know
Owning an MLS team can be an exciting and rewarding experience. But it’s not cheap. Depending on the team and the current market, it can cost anywhere from $150 million to upwards of $500 million to buy a Major League Soccer (MLS) team.
If you’re looking to buy an MLS team, it’s important to understand the financial costs involved. Here are some key factors to consider when determining the cost of buying an MLS team.
The Franchise Fee
The first cost to consider is the franchise fee. This is the fee paid to the league for the right to own an MLS team. The league sets the fee, and it’s based on the team’s market size and other factors. For example, the Cincinnati FC franchise fee was set at $150 million when they joined the league in 2019.
The Stadium
The second major cost to consider is the stadium. Many MLS teams play in their own stadiums, which can cost anywhere from $50 million to $250 million to build and maintain. For example, the LA Galaxy’s new home, Dignity Health Sports Park, cost an estimated $150 million to build.
Player Salaries
Finally, you’ll need to budget for player salaries. Each MLS team is limited in the amount they can spend on player salaries, but these costs can still add up. The salary cap for the 2020 season was $4.9 million, so you’ll need to factor in that cost when calculating the overall cost of buying an MLS team.
Overall, the cost of buying an MLS team can vary significantly depending on the team and the market. But if you’re willing to invest the time and money, owning an MLS team can be a rewarding experience.