By Ben Nicholson
August 21 – Forbes has published estimated values of MLS teams, showing an average increase in value of around 50% since 2013.
Forbes cites the increased levels of attendance at MLS games, rising from an average of 18,600 in 2013 to 21,100 in 2015, the building of multiple soccer-specific stadiums and the improved revenue from TV deals as contributing to the rise.
Seattle Sounders, who consistently see over 40,000 pile into their stadium for home games, are the most valuable team, with a net worth of $245 million. They also win on the most positive financials in terms of operating income, which is $10 million in the positive.
LA Galaxy trails as second most valuable team by just $5 million, and then there is a large drop off to Houston Dynamo in third, valued at $200 million.
At the opposite end of the scale rest Colorado, valued at $105 million, less than half the value of their top of the table competitors in the Western Conference.
Canada-based Toronto FC is the most valuable team in the Eastern Conference, but only the fifth most valuable MLS team altogether.
The total value disparity between teams in the Western Conference and Eastern Conference is a stark $505 million. The Western Conference’s teams’ values tally up to $1,667 million, whilst the Eastern Conference only gets as far as $1,162 million.
Newcomers Orlando City FC and NYC FC, who both play in the Eastern Conference, do not appear on the list because the figures were calculated using 2014 financial data, of which there is none for both of these clubs.
Both clubs would be expected to fair on the higher valuation side. Orlando City FC because of their stalwart Kaka and having sold all of their 18,000 season tickets for the 2016 season, and NYC FC because of their heavy investment into Lampard, Pirlo and David Villa in conjunction with their prime location.
When accounting for the two fewer teams in the Eastern Conference included in Forbes’ list, the average value in the Western Conference amounts to $166.7 million whilst in the Eastern Conference it amounts to $145.25 million.
Worryingly is that only eight of 18 teams have a positive operating income (calculated by subtracting operating expenses from operating income.)
Cumulatively the operating income for all teams in the league is – $6million. This goes some way to corroborating the statistic released at the end of 2014 that the MLS made a net loss around $100 million.
The Western Conference teams made a net gain of $14million whilst the Eastern Conference teams suffered a net loss of $20 million.
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