Forbes Annual MLS franchise valuation - 2019

[LeHab]

The average MLS team is now worth $313 million, up 30% year-over-year. The 23 teams that played in 2018 generated more than $800 million in revenue.

Major League Soccer’s Most Valuable Teams 2019: Atlanta Stays On Top As Expansion Fees, Sale Prices Surge

This average valuation is higher than NHL average just before last lockout.

Source is Forbes, a lot value based on speculation.

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[David Dennison]

So the average team is worth 9-10x their annual revenue? That seems high, 30% y/y growth because of what, 1 time expansion fees (or are they expecting more expansion)? Maybe the US team TV revenue they share isn't included? I thought TV ratings weren't great this year either.

 

[eddygee]

So the average team is worth 9-10x their annual revenue? That seems high, 30% y/y growth because of what, 1 time expansion fees (or are they expecting more expansion)? Maybe the US team TV revenue they share isn't included? I thought TV ratings weren't great this year either.

This doesn't include TV revenue Payout as MLS has a separate media Marketing wing called SUM that operates Media deals. Forbes doesn't include that because it doesn't fall under MLS LLC. You can open source this info but MLS has collected$1.5bil(1.495b) in expansion fees the past decade 2009-2019. With 29 teams scheduled to be playing by 2022, MLS will add 3 more teams to get to 32. The article says MLS confirms the next spots will go for $3oom+. While TV numbers weren't great this year, the MLS Cup Playoffs were up 36% and the previous TV numbers saw 7 straight years of growth. All this combined with the upcoming TV deal after the 2022 season and the US hosting the 2026 WC means investors are very bullish on MLS and are looking to get in now to cash in down the road.

 

[GindyDraws]

The important thing is that the Colorado Rapids remain the least valuable team, many years running.

 

[eddygee]

The important thing is that the Colorado Rapids remain the least valuable team, many years running.

Ahhh the Crapids Inside running joke among soccer circles.

 

[Voight]

In January, Atlanta sold star midfielder Miguel Almirón to the Premier League’s Newcastle United for an MLS-record $27 million transfer fee. No other team has ever received even half that amount for a player.

Alphonso Davies' transfer fee from VAN to Bayern was 13.5 million which is literally half of that.

As for expansion fees, wow Simon Fuller did Beckham a huge favor. His LA contract stipulated that he would have to pay a mere $25 million expansion fee if he chose to form a team. Compared to the 150-200 million fee some of the new teams are going to pay, he's laughing. Hopefully he can get his Miami team going.