November 17, 2007
Saturday Interview
Hoping (Dreaming?) of Soccer as National Pastime
DON Garber became the commissioner of Major League Soccer in August 1999, after the league lost $250 million over its first five seasons and shrank by two teams to 10. At the time, it appeared to be the latest failure of a soccer league in North America.
Instead, Mr. Garber, a native of Queens and a former executive with NFL International, has helped to transform the soccer landscape with a growth plan that has included public-private partnerships; the construction of seven soccer stadiums (with several more being built); diversification of ownership; expansion (14 teams for 2008, 16 for 2009 and 18 for 2010); the creation of a powerful marketing company, Soccer United Marketing; and a modest infusion of international star players.
With the addition of players like David Beckham in Los Angeles, Cuauhtémoc Blanco in Chicago and Juan Pablo Ángel in New York, M.L.S. teams had an average attendance of 16,770 in 2007, up from an average of 15,509 in 2006.
The league is also completing its first season of long-term agreements with ABC/ESPN, Fox Soccer Channel and Univision that for the first time bring the M.L.S. significant rights fees.
Adidas is paying the league $150 million over 10 years to outfit all its teams, and companies like Pepsi, Panasonic and JPMorgan Chase have become sponsors, attracted by the league’s fans, many of them Hispanic and young.
The league’s 12th championship game, the M.L.S. Cup, will be played tomorrow in Washington.
Following are excerpts from an interview with Mr. Garber:
Q. The obvious first question is about the impact, on and off the field, of David Beckham?
A. Without doubt, M.L.S. has more global awareness than at any other time in our history and has more legitimacy in the United States because of David. Every measure of our business has grown because of him.
But the real value we’ve yet to realize is the impact David will have on the field. He’s been injured, but we look forward to him having another first year in M.L.S. in 2008.
We have sold more than 300,000 Beckham Los Angeles Galaxy jerseys, which was 700 times the number of Galaxy jerseys sold in 2006. Merchandise sales over all have gone up two or three times. International TV sales have gone up from next to nothing to distribution in 100 countries, with live games in Asia and Mexico.
But please don’t forget that we signed 25 players from Argentina, Brazil and Colombia. They are all young, crafty, stylish, and that has allowed us to connect with a community of 40 million Hispanics in the United States.
The Mexican player Cuauhtémoc Blanco is to 40 million Hispanics what Beckham is to the rest of the world.
Q. A few years ago, the league had 10 teams and 3 owners. There are now 14 teams, with more on the way, and multiple owners. What has changed?
A. A big part of it is the seven stadiums built for soccer. And where once we had an ownership group that started with Phil Anschutz, Lamar Hunt and Robert Kraft, we now have a 32-year-old guy, Andrew Hauptman, part of the Bronfman family, buying Chicago for $35 million.
A new ownership group in Kansas City; the Gap family and Lew Wolff in San Jose.
Over all, this sport has a real foundation that allows us to have a league that David Beckham wants to play in. And that’s only the beginning.
With TV rights fees, new investors and stadiums, we have a credible sports league. Not the N.F.L., not the N.B.A., but in 12 years we’re further along than those leagues in the early stages of their development. And we have our growth in front of us.
A few years ago Chivas USA and Real Salt Lake paid $10 million to enter the league. Last year, Toronto paid $30 million. Chicago was just sold for $35 million. Houston will soon have a new owner.
The asset continues to grow in value, which speaks to the investor community that believes soccer has a long-term value as a sports investment.
Q. You were the driving force behind the founding of Soccer United Marketing in 2002 because no broadcaster had bought the English-language rights to the World Cup that year. Recently, SUM engineered TV rights deals with ABC/ESPN, Fox Soccer Channel, Univision and HDNet that brings the league $30 million a year in rights fees. Did SUM save the league?
A. SUM has allowed us to execute a strategy to be a one-stop shop for soccer in this country. It has raised the overall commercial value of our sport, and our teams have benefited as the investors in SUM. Yes, it is a profitable company that owns most, if not all, of the dominant soccer content in the country.
Q. A number of Americans — Malcolm Glazer, Tom Hicks, Randy Lerner — have invested in teams in England. Why don’t they buy into M.L.S. instead?
A. There is no shortage of wealthy people who have an interest in M.L.S. My only concern would be if we had a shortage of investors.
The best thing that could ever happen for soccer in this country is to have people invest in soccer, whether in the United States, England or Spain. But one would argue there’s less stability and logic to the English football system than all would hope.
Beckham scoring for MLS even without playing 
LinkBacks (?)
Linear Mode
