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Forbes offers its take on MLS finances

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Business magazine Forbes this week unveiled its first attempt at measuring the financial health of MLS franchises.

Sitting atop the Forbes list is LA Galaxy, with an estimated worth of $100 million, courtesy of its revenue-friendly Home Depot Center, the star appeal of midfielder David Beckham and its eye-popping, $4-million jersey deal with Herbalife.

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Galaxy is one of three teams with an estimated average worth of more than $40 million, according to Forbes, which pegs the average value of the 14 MLS teams at $37 million.

Galaxy also is one of three MLS franchises (the others are FC Dallas and Toronto FC) that Forbes believes are generating operating profits. Together, the magazine suggests, the three clubs generate a combined operating profit (earnings before interest, taxes and depreciation) of $6.7 million.

But Forbes also estimates that the league’s 14 franchises generate a combined $20 million operating loss on $165 million in total revenue.

Forbes sees evidence suggesting that MLS could escape the fate of such past soccer flops as NASL, WISL and USL. The average MLS team’s worth is estimated at $37 million, or more than three times what Toronto FC paid to join three years ago. Forbes also quotes MLS Commissioner Don Garber as saying that the next two expansion teams to be announced in 2009 will cost $40 million.

Forbes’ ranking of MLS franchises:

Rank Team value* revenue* profit/loss*

1 Galaxy $100M $36M $4.0M

2 Toronto FC $44M $17M $2.1M
3 Fire $41M $16M -$3.1M
4 FC Dallas $39M $15M $0.5M
5 Red Bulls $36M $10M -$4.5M
6 DC United $35M $13M -$3.0M
7 Dynamo $33M $10M -$1.8M
8 Rapids $31M $11M -$2.2M
9 Real Salt Lake $30M $7M -$2.1M
10 Revolution $27M $10M -$1.5M
11 Chivas USA $24M $10M -$1.0M
12 Crew $23M $6M -$4.5M
13 Wizards $22M $5M -$2.9M
*estimated
Source: Forbes

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