Major League Soccer Secures Three-Year Television Deals with ESPN and ABC

Strategic Insights -

Major League Soccer, poised to start play in April 1995, has announced a significant television agreement with ESPN and ABC. Under the terms of the three-year deal, ESPN will broadcast 10 games, ESPN2 will air 25 games, and ABC will televise the championship game. The partnership also includes a joint venture that may provide MLS with rights fees and shared advertising revenue. The league's ownership structure is notable, with a subsidiary of World Cup USA 1994 serving as the guiding force initially, before transitioning to private investors.

Key Takeaways:

  • MLS will have a significant television presence, with ESPN airing 10 games and ESPN2 broadcasting 25 games.
  • ABC will televise the championship game.
  • The joint venture between MLS and ESPN may provide MLS with rights fees and shared advertising revenue.
  • The league will own all teams, with a subsidiary of World Cup USA 1994 serving as the initial guiding force before transitioning to private investors.
  • Alan Rothenberg, chairman of World Cup USA 1994 and the league, is seeking a minimum of $60 million in investment, with a target of $100 million.
  • A general partnership run by Rothenberg will hold a 20 percent stake in the league.
  • Player salaries are estimated to average around $70,000, with the goal of attracting players from abroad.

Statistics:

  • 29 communities, including New York/New Jersey, Los Angeles, and Chicago, have been asked to submit bids by May 15.
  • Franchises will be chosen by June 15, two days before the World Cup play begins.
  • The league schedule will extend from April until early October.
  • ESPN will air four prime-time games and six Saturday afternoon games.
  • ESPN2 will schedule a weeknight prime-time game of the week.
  • ABC will broadcast one prime-time, championship game.

Sources:

  • "New York Times", with no date mentioned
  • "Los Angeles Times", with no date mentioned