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re: Major losses in excess of $2 Billion for MLS

Posted on 2/17/21 at 11:34 am to
Posted by pvilleguru
Member since Jun 2009
60453 posts
Posted on 2/17/21 at 11:34 am to
quote:


Just sucks the clubs don't get all the money from the transfer fees in MLS

The clubs get > or = 95% of the transfer fee.
Posted by I Bleed Garnet
Cullman, AL
Member since Jul 2011
54846 posts
Posted on 2/17/21 at 11:34 am to
quote:

yup the Brazil type of league is what we should strive for, creating strong national team players and then selling them off.

Agreed bruv
quote:

Just sucks the clubs don't get all the money from the transfer fees in MLS

That’s a damn shame
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
125416 posts
Posted on 2/17/21 at 11:42 am to
quote:

The clubs get > or = 95% of the transfer fee.




Thats good change unfortunately the money still doesn't trickle down. Like it should to any other club that helped develop a player.

Also take this into account

quote:

Investor-operators share 30% of ticket sales and between 25% to 44% of money earned through player transfer fees


So they get the money and have to throw it back into the collective pot. Thats bullshite.

LINK
This post was edited on 2/17/21 at 11:55 am
Posted by pvilleguru
Member since Jun 2009
60453 posts
Posted on 2/17/21 at 2:38 pm to
quote:

So they get the money and have to throw it back into the collective pot. Thats bullshite

The cited source they got those numbers from was written in 2017. The rules changed in early 2020.

The league kept ~25% of most transfers prior to 2020.
This post was edited on 2/17/21 at 2:41 pm
Posted by SirWinston
PNW
Member since Jul 2014
81810 posts
Posted on 2/17/21 at 4:00 pm to
I wasn’t being a dick bag - I genuinely laughed.
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
125416 posts
Posted on 2/17/21 at 5:33 pm to
quote:

The cited source they got those numbers from was written in 2017. The rules changed in early 2020.

The league kept ~25% of most transfers prior to 2020.




It’s a recent study so I would think they took the rule change in their study

They could be saying the league doesn’t take money directly from transfers like they used to but instead at the end when it’s time to revenue share every team has to contribute a % of their money made off transfers

That’s bullshite they have to do that
Posted by pvilleguru
Member since Jun 2009
60453 posts
Posted on 2/17/21 at 5:42 pm to
quote:


It’s a recent study so I would think they took the rule change in their study

You can literally look at the citation. They took it directly from THIS article, which was written in June 2017.

quote:

Certain items require the Investor-Operator to send a portion of their revenue to MLS, like 30% of ticket sales and between 25% and 44% of money earned through player transfer fees.
Posted by pvilleguru
Member since Jun 2009
60453 posts
Posted on 2/17/21 at 5:47 pm to
This is the 2017 MLS roster rules LINK

quote:

The revenue share from transfers or loans for clubs is as follows:

-A club shall receive two-thirds (2/3) of the corresponding transfer or loan fee revenue (including agent fees and other expenses), from any transaction involving a player that is NOT a Homegrown Player, Generation adidas Player, or player acquired via the MLS SuperDraft.
-If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue until it has recouped all of the out-of-pocket cash payments made by the club in connection to that player prior to any sharing arrangement with the league. After such recoup, the transfer or loan of the Designated Player shall be treated as any other transfer with the club receiving two-thirds (2/3) of the corresponding transfer or loan fee revenue.
-A club shall receive three-fourths (3/4) the corresponding transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Homegrown Player (regardless of service years).
-A club shall receive the transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Generation adidas Player or player acquired via the MLS SuperDraft based on the number of MLS service years


This is the 2020 MLS roster rules LINK

quote:

The revenue share from transfers or loans for clubs is as follows:

-A club shall receive 95% of the corresponding transfer or loan fee revenue (including agent fees and other expenses), from any transaction involving a player that is NOT a Homegrown Player.
-If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue until it has recouped all out-of-pocket cash payments made by the club in connection to that player prior to any sharing arrangement with the League. After such recoup, the transfer or loan of the Designated Player shall be treated as any other transfer with the club receiving 95% of the corresponding transfer or loan fee revenue.
-A club shall receive 100% of the corresponding transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Homegrown Player.
-All remaining portions of the transfer or loan revenue fees are retained by the League.
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
125416 posts
Posted on 2/17/21 at 5:56 pm to
I’ve read both of those

Which I already said about MLS no longer taking a huge cut off the top when the fee comes in.

That still doesn’t address the overall revenue sharing teams must take part in having to contribute to the collective

Read over what I said again

You are posting about roster rules and CBAs

I’m talking about revenue sharing as whole. Teams are still obligated to contribute something

We don’t know exactly bc MLS doesn’t release its financial reports
This post was edited on 2/17/21 at 6:00 pm
Posted by pvilleguru
Member since Jun 2009
60453 posts
Posted on 2/17/21 at 6:00 pm to
quote:


I’m talking about revenue sharing as whole. Teams are still obligated to contribute something
But you are using an outdated study to do it.
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
125416 posts
Posted on 2/17/21 at 6:03 pm to
quote:

But you are using an outdated study to do it.


That study is still recent, that one source should be updated

The rest of the study is spot on
This post was edited on 2/17/21 at 6:03 pm
Posted by pvilleguru
Member since Jun 2009
60453 posts
Posted on 2/17/21 at 6:05 pm to
quote:

That study is still recent, that once source should be updated
And that is the only part that I am disputing. The part about how much teams have to share the money from transfers is flat out wrong.
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
125416 posts
Posted on 2/17/21 at 6:24 pm to
Ok and we are in agreement on that change

What I’m saying is we don’t know the overall revenue sharing bc MLS doesn’t fully release what is required from what club at what % of revenue

We know MLS doesn’t take as much money off the top for transfer fees
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