More rumour than reality as club sale hype excites the MLS market

MLS

October 5 – MLS franchises continue to create heat and rumour with Red Bulls saying that any offer of $300 million for the franchise would be agreed and completed within 48 hours, while news of Chivas USA’s sale expected in the next couple of weeks has thrown up controversial Cardiff City owner, Vincent Tan,, as a potential buyer.

Both rumours have a large amount of speculation involved but they highlight the building interest and, increasingly, frenetic attention to franchise ownership the league is attracting.

Tan is infamous for his behavior as owner of Cardiff City. He changed the club color from blue to red in defiance of the fans’ wishes, he has sought to change their nickname from ‘The Bluebirds’, which admittedly now seems inappropriate, to ‘Dragons’, and he publicly hindered Malky Mackay, a manager whom he fired, from a prospective managing job at Crystal Palace FC.

Whether Tan is legitimately involved with the purchase of Chivas is yet to be confirmed. However, it would seem to follow the Chivas trend of controversial owners if he were to invest himself in the project.

Former owner Jorge Vergara contentiously employed a Hispanics only policy in the running of his club. Eventually the MLS stepped in, purchasing the franchise back.

Hypothetically speaking, Tan would have an easier time with the rebranding of Chivas. Their fan support is decidedly weak, proven by their MLS record-low attendance averages, and thus would present little obstacle to his desires for the club. Furthermore, the club lacks the tradition of Cardiff City, and would likely even welcome a change in tenor.

The rumors were fuelled by an interview Tan gave with Sky Sports, where he stated he “may invest in a club in US, in MLS”.

It appears that even if Tan is involved with Chivas, he will only be so as a minority owner, with Henry Nguyen as majority owner and Peter Guber and Tom Penn as substantial investors.

The MLS has been seeking sell the franchise for around the $100 million mark. MLS Commissioner, Don Garber, has been meeting with potential buyers in the past months but has refused to reveal any details until a deal is done.

That being said, information has leaked suggesting that, whoever the buyer is, the club will take a year or two away from the league so as to enable rebranding.

This news seals the fate for the current players at Chivas. But this poses less a problem to the club itself. In the recent release of player salaries, Chivas USA is paying the least amount of money in terms of salaries as any club currently playing in the MLS.

Since the club is paying only as much as $3.3 million per year, its liquidation will be less burdensome than conceived. Subtract another $1 million from this with Carlos Bocanegra and Eric Avila exiting the club at the end of the season, and Erick Torres too when his loan deal comes to an end.

Menwhile Don Garber has had to answer more questions on MLS club ownership as specualtion emerged that New York Red Bulls may change hands.

Marc de Grandpre, Red Bulls’ Head of Commercial Operations, revealed that while the club is not for sale, if a buyer offered $300 million then the deal would get done within 48 hours.

A harmless hypothetical is what this seems for Garber responded strongly, saying: “I can absolutely assure you that the New York Red Bulls are not for sale. Both the owner and the management team in Austria and in New York are as committed as ever to Major League Soccer, the club and their fans.”

The club itself also issued a statement: “There are no plans to sell the New York Red Bulls. While interest in soccer continues to grow in the U.S. and MLS continues to expand, Red Bull is confident now more than ever in the investment and committed to the franchise and its supporters.”

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