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re: Designated Player in MLS

Posted on 8/7/14 at 2:22 pm to
Posted by Dalosaqy
I can't quite re
Member since Dec 2007
12307 posts
Posted on 8/7/14 at 2:22 pm to
No one is suggesting that expanding salary caps will result in an immediate migration of world talent to the MLS. Of course not. But until the MLS allows its clubs to materially compete with "the biggest leagues in the world," there is no chance of parity. DPs and their unrestricted salaries are simply an admission of this reality.
Posted by thenry712
Zasullia, Ukraine
Member since Nov 2008
15795 posts
Posted on 8/7/14 at 2:35 pm to
quote:

there is no chance of parity.



...in domestic leagues in Europe.


MLS understands that each club can survive financially if the league operates as a single entity where every club is competitive each year.

The salary caps in both the NFL and NBA have created two leagues way more profitable than any soccer league in the world.
Posted by kilo
Member since Oct 2011
27424 posts
Posted on 8/7/14 at 2:46 pm to
quote:

there is no chance of parity.
quote:

...in domestic leagues in Europe.


MLS understands that each club can survive financially if the league operates as a single entity where every club is competitive each year.

The salary caps in both the NFL and NBA have created two leagues way more profitable than any soccer league in the world.



Exactly. Hell, UEFA is trying to rein things in in Europe because of the ever widening gulf between the haves and have nots. There isnt one of the top 4 (Bundesliga,Serie A, LaLiga and EPL) that have any real parity and that is a direct result of of the unlimited salary and spending. The Bundesliga was settled two whole months before the season ended. I understand the champions league aspect that drives these big clubs to spend in a never ending arms race but its making the domestic leagues suck after the top 1/4 of the table.

With no relegation aspect and Concacaf champions league not very compelling if the MLS were to mimic the Euro leagues it would be disastrous. Who is going to care about this league when its NYCFC Redbulls Galaxy and Seattle vying for the title year in and year out with everyone else just happy to get into the playoffs. Heed the warning set by the old NASL and its model. MLS should stay the course and fill its niche.
This post was edited on 8/7/14 at 2:49 pm
Posted by kilo
Member since Oct 2011
27424 posts
Posted on 8/7/14 at 2:53 pm to
quote:

But until the MLS allows its clubs to materially compete with "the biggest leagues in the world," there is no chance of parity.


Why does the MLS have to have "parity" with the big Euro leagues? Are folks going to spend money in Columbus, or KC or Salt Lake, Orlando, Atlanta etc when they know from day 1 that there is no hope for competing for the title because they cant mach the revenue and spending of the Clubs in the ultra big markets?
Like I said before, reading up on why the NASL imploded and failed is worth the time for the those that want to try and mimic and compete with 100+ year old Euro leagues.
This post was edited on 8/7/14 at 2:55 pm
Posted by Dalosaqy
I can't quite re
Member since Dec 2007
12307 posts
Posted on 8/7/14 at 3:55 pm to
quote:

Are folks going to spend money in Columbus, or KC or Salt Lake, Orlando, Atlanta etc when they know from day 1 that there is no hope for competing for the title because they cant mach the revenue and spending of the Clubs in the ultra big markets?
I may be misreading your post, but I agree that unrestricted or no salary caps in the MLS would be suicide. I'm merely suggesting that the caps be increased to allow all MLS clubs to attract a wider array of talent domestically and abroad. It doesn't take a mathematician to calculate the average salary of an MLS player under the current cap structure. Please tell me how increasing the cap by say 10% per year over five or six years would not equitably benefit the player pool and the league.
Posted by kilo
Member since Oct 2011
27424 posts
Posted on 8/7/14 at 4:10 pm to
quote:

Please tell me how increasing the cap by say 10% per year over five or six years would not equitably benefit the player pool and the league.


Its all about revenue. TV revenue to be precise. There is a breaking point. Most all said revenue comes from local TV contracts right now. Some teams are not even making money right now as is (7 teams I think are in the red) 13 teams are under $25 million in revenue, 6 under $20 million.

The revenue numbers just are not there to even think about increases like that. People have to start watching the sport for the TV contracts to go up and right now, there just isnt the ratings. Its improving but its going to take time. The MLS is doing things right as is IMO
Posted by Downtown Devin Brown
New Orleans, LA
Member since Sep 2013
1523 posts
Posted on 8/7/14 at 4:18 pm to
quote:

Please tell me how increasing the cap by say 10% per year over five or six years would not equitably benefit the player pool and the league.


They've increased the salary cap the last 2 seasons by 5% each year. I understand that they will continue this.

quote:

Some teams are not even making money right now as is (7 teams I think are in the red) 13 teams are under $25 million in revenue, 6 under $20 million


Where are you getting this information? I'm not being sarcastic, genuinely want to go read it.

It's prob pretty easy to guess the failing clubs. I would guess the worst is Chivas.
Posted by kilo
Member since Oct 2011
27424 posts
Posted on 8/7/14 at 4:52 pm to
quote:

Where are you getting this information? I'm not being sarcastic, genuinely want to go read it.


Sure, sorry about that, I thought I had linked the article. Here you go.

LINK

Its slightly dated, November last year so there is a new national deal that isnt worked into that which is in the neighborhood of 80 million i think, up from 40 million previously but will also have to figure into the equation the loss of MLS Live and Kick numbers.

This post was edited on 8/7/14 at 4:55 pm
Posted by Dalosaqy
I can't quite re
Member since Dec 2007
12307 posts
Posted on 8/7/14 at 6:17 pm to
Good read. Pretty surprised at the DC United numbers. Seems to me that any MLS team should be able to free up $250-350K annually to buy or sustain talent. Maybe I am working from an unrealistic NY/LA model. But how would a team like KC not be able to build a +10% business plan annually?
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