Why is Major League Soccer one of the most valuable sports assets to invest in?
Well, the simple answer to this question is the demand for soccer in U.S. is growing significantly. Although American Football is still the king of sports in the U.S., Soccer, known as Football, internationally, is the number one watched sport in the world.
As the U.S. continues to grow as the worlds melting pot of cultures from around the world, the interests of the world will ultimately influence what people watch.
In June, Apple and the MLS entered into an agreement to stream all of its games on Apple TV. Furthermore, the agreement taps into the American market very well. Again, the U.S. is becoming more diverse.
54% of the soccer fanbase in the U.S. are under the age of 45 based on the Morning Consult report. Additionally, 40% of Soccer fans are considered diverse. Only the NBA is as diverse.
Major League Soccer Financials
Financially, the average value of an MLS team has risen dramatically since 2017. In 2017, the LA Galaxy were valued at $315 million based on Forbes report. higher than any other franchise in the league.
5-years later, the Galaxy is valued at $865 million; a 175% increase. Los Angeles FC is valued slightly higher at $900 million as of 2022.
With that being said, the increased value of each team also comes with the increased fees to own a team. Back in 2017 when Atlanta United became the 22nd team, the expansion fee was only $70 million. Those fees have since been increased to $325 million.
The average MLS Team is valued at $582 million. That number will continue to climb as the league continues to expand its footprint.
St. Louis City FC will be the next franchise to start its first season. The franchise has already sold over 60,000 season tickets thus far. The owners of the Enterprise Rental Car company will be the newest owners of an MLS team.
Although the fees to own a club is high, it is nothing compared to the other major U.S. sports leagues. The Denver Broncos just recently sold for $4.65 billion to one of the members of the Walton Family. Yes, the owners of Walmart.
The league is expected to grow to 32 teams sometime in the near future. For any investor looking to get into owning a major sports team, the time is now to buy.