Domain: tiger-web1.srvr.media3.us Major League Soccer's first billion-dollar franchise, per Forbes | Soccer Board
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Major League Soccer's first billion-dollar franchise, per Forbes

Posted on 2/2/23 at 1:45 pm
Posted by RLDSC FAN
Rancho Cucamonga, CA
Member since Nov 2008
59758 posts
Posted on 2/2/23 at 1:45 pm
quote:

Now Rosenthal has something else to celebrate—Forbes estimates that LAFC is worth $1 billion, just nine years after it joined MLS for an expansion fee of $110 million, making it the league’s first billion-dollar franchise. That’s more than double the $475 million Forbes determined it was worth in 2019, the last time we assessed North American soccer teams.

That’s an impressive return, but not one Rosenthal was banking on. “We did not do this because we thought it was the best place to put our capital,” says the cofounder of the $341 billion (AUM) Ares Management, who made his fortune finding profitable alternative investments. “We thought it could be fun and we’re making a great macro bet on the growth of the sport.”

LAFC’s ascent is the latest sign of just how much MLS has grown since it was founded in 1996. There are now 29 teams in the league—it began with 10—with St. Louis City SC set to debut this season. Since 2019, the average team valuation has climbed 85%, from $313 million to $579 million. And the price tag for the next expansion team (likely Las Vegas or San Diego) is expected to be $500 million, according to a well-placed industry source, a considerable increase from the previous record of $325 million set by billionaire David Tepper when he founded Charlotte FC in 2019.


quote:

LAFC, $1B
LA Galaxy, $925M
Atlanta United, $850M
NYCFC, $800M
DC United, $700M
Toronto FC, $690M
Austin FC, $680M
Seattle Sounders FC, $660M
Portland Timbers, $650M
Charlotte FC, $625M


LINK
Posted by S
RIP Wayde
Member since Jan 2007
171410 posts
Posted on 2/2/23 at 1:49 pm to
tBeautiful game
Posted by mattz1122
Member since Oct 2007
56107 posts
Posted on 2/2/23 at 1:57 pm to
Yeah but nobody in Youngsville likes queer arse soccer
Posted by Ancient Astronaut
Member since May 2015
37296 posts
Posted on 2/2/23 at 2:07 pm to
Based off of what?
Posted by Winston Cup
Dallas Cowboys Fan
Member since May 2016
66858 posts
Posted on 2/2/23 at 2:11 pm to
this will hurt straightcashhomeys feelings

#growthegame
This post was edited on 2/2/23 at 2:12 pm
Posted by Glorious
Mobile
Member since Aug 2014
26317 posts
Posted on 2/2/23 at 2:16 pm to
quote:

LAFC, $1B
LA Galaxy, $925M
Atlanta United, $850M
NYCFC, $800M
DC United, $700M
Toronto FC, $690M
Austin FC, $680M
Seattle Sounders FC, $660M
Portland Timbers, $650M
Charlotte FC, $625M


All started within the last 6 or so years
Posted by bad93ex
Walnut Cove
Member since Sep 2018
35661 posts
Posted on 2/2/23 at 2:20 pm to
This is really good news for the league.
Posted by UnluckyTiger
Member since Sep 2003
42758 posts
Posted on 2/2/23 at 2:30 pm to
DC United is cheap AF
-lifelong fan
Posted by WestCoastAg
Member since Oct 2012
149877 posts
Posted on 2/2/23 at 2:34 pm to
is there anything more dumb than american franchises who use United or FC in their name?
Posted by blowmeauburn
Baton Rouge
Member since Sep 2006
8057 posts
Posted on 2/2/23 at 2:37 pm to
Not sure where these numbers come from. The Chicago team sold for a valuation of $400M 2 years ago. Seems like a great investment opportunity if Chicago is valued that little.
This post was edited on 2/2/23 at 2:39 pm
Posted by AwesomeSauce
Das Boot
Member since May 2015
11309 posts
Posted on 2/2/23 at 2:41 pm to
quote:

Yeah but nobody in Youngsville likes queer arse soccer

As someone who runs by the three soccer complexes in Youngsville on my long runs I beg to disagree. I think I had someone tell me they have 40 fields between LHC, YSC, and Foster.
Posted by saint tiger225
San Diego
Member since Jan 2011
47918 posts
Posted on 2/2/23 at 2:44 pm to
Figured all those commies would love soccer.
Posted by S
RIP Wayde
Member since Jan 2007
171410 posts
Posted on 2/2/23 at 2:52 pm to
Yell practice
Posted by Lsuhoohoo
Member since Sep 2007
102173 posts
Posted on 2/2/23 at 2:56 pm to
In America, we give our teams names. Quit trying to be European with the FC mimicry.
Posted by OldmanBeasley
Charlotte
Member since Jun 2014
11119 posts
Posted on 2/2/23 at 3:35 pm to
quote:

WestCoastAg

Oldmanbeasley wishes you would fall in a hole and stay there a while.
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
126721 posts
Posted on 2/2/23 at 4:22 pm to
The lack of pro/rel

Revenue sharing so shite teams leach of the good ones is a major reason is why these probably inflated valuations are out there. That and throw in the franchise fees so of course the base valuation will be higher.

Also SUM is a huge factor in this

A majority of the league operates in the red.

Franchises that take a loss being worth more than EPL teams is just smoke an mirrors
This post was edited on 2/2/23 at 4:24 pm
Posted by Broski
Member since Jun 2011
80537 posts
Posted on 2/2/23 at 5:01 pm to
quote:

Franchises that take a loss


Regardless of what the books say, they are not taking a loss. Valuations increase exponentially each year.

For example, Miami is seriously going head-to-head with the Qataris right now for Messi.
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
126721 posts
Posted on 2/2/23 at 5:14 pm to
Well the franchises are taking losses, some of it being offset by revenue sharing

The owners on the other hand are getting paid with SUM

The value goes up bc the guaranteed stability with no Pro/Rel and the income from SUM.
This post was edited on 2/2/23 at 5:16 pm
Posted by McCaigBro69
TigerDroppings Premium Member
Member since Oct 2014
45325 posts
Posted on 2/2/23 at 5:19 pm to
Jesus, crazy that they’ve been around 9 years.
Posted by GhostofJackson
Speedy Teflon Wizard
Member since Nov 2009
7224 posts
Posted on 2/2/23 at 6:24 pm to
MLS is going to break into the top 10 leagues in the world soon and could be considered a Portugal type league where SA talent comes to get scouted for a move to one of the top 5 leagues.
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