Money Talks
There’s been something eating at me for a while and I was finally able to put it together in this article. This could probably be classified as a whole “Angry Man Yells at Cloud” piece but everything I have to say is, in my opinion, true.
$1,025,000,000…. One billion and two hundred and fifty million dollars. Yes, you read that right. ONE BILLION DOLLARS! That’s the combined amount paid in reported expansion fees for the last five expansion MLS teams (excluding Austin). When I read that, my jaw hit the proverbial floor. While I wish this were just a blip on the screen, it really isn’t. This has become the modus operandi for as long as Major League Soccer has been around. Couple that with a perceived serious conflict of interest among the ranks of US Soccer and you begin to see a pattern.
However, attacking US Soccer and MLS is not where I’m trying to head with this article. Instead, I want to focus on what that one billion dollars could do if it were pumped into the entire structure of US Soccer.
Let’s begin with the actual pyramid itself. As it stands now, there isn’t a traditional soccer pyramid. The reasoning given by an overwhelming majority of MLS fans and higher ups is that owners wouldn’t want to risk their investment into something that could diminish in value should the team be relegated. If that were the case, why has there been such a large influx of American owners in European clubs that run a higher risk of relegation than clubs like Arsenal, Manchester United or Liverpool?
Admittedly, I understand why fans and higher ups say this kind of stuff. They have all focused on the wrong part of what happens in a relegation. They’ve focused on the lost revenue and lower attendances due to being down a level. However, what they either don’t look at or willfully ignore is the fact that there are positives to being relegated. Yeah, hard to believe, but hear me out.
The first positive is that while there may be lost revenue, parachute payments help offset that loss. If you don’t know what parachute payments are, they are payments made to relegated clubs to soften the drop to the next division. In the Premier League (where this is most evident), the first year payment is 55% of the broadcasting slice each club receives. Year two sees another 45% go to the club unless they make promotion again. While I understand this may be a difficult thing to introduce, I think it could potentially be welcomed in by the owners. By taking a portion of that one billion dollars and putting it toward these payments, it would keep teams from essentially dying off should promotion/relegation ever occur.
The other positive of relegation is that it allows for clubs/teams to reorganize themselves to allow for a better future business path. Without the threat of relegation, clubs often fall into bad habits and faulty approaches. It’s not hard to see that sometimes reorganization and restructuring is a necessary evil within a business, so the same could be said about a soccer organization. Relegation would allow for a hard reset for clubs on the wrong path.
Granted, most of this article has focused on things at the top of the pyramid but what about the bottom of it? Well, the influx of a sizable portion of that money would improve the quality of a lot of clubs as well as incentivize them to keep pushing for bigger things.
As I stated previously, if promotion/relegation were to occur clubs would die off if they were relegated (or so say the anti-pro/rel crowd). However, over the last five years alone, there has been a large amount of clubs in the amateur levels close up shop due to the ever-rising costs put on them via the Federation or leagues they’re in. By providing these clubs with the funds to cover these costs, it would allow for them to maintain a level of sustainability for a longer period of time.
In addition to this, it would give clubs the opportunity to buy land and build small stadiums instead of getting gouged by local public parks organizations. And for those clubs lucky enough to own their own ground, this money would allow for necessary upgrades to be done to keep the fan experience at the highest level possible. We have often pointed out the lack of soccer infrastructure, particularly in the lower levels, and this helps rectify this situation.
Another pressing need that the money could be put toward is fanwear. Most amateur clubs currently outside of USL League 2 or NPSL don’t have much apparel to sell. This shortage is due to the clubs trying to keep costs low in order to carry over to the next year. There are some clubs that buck that trend from my point of view, like Providence City FC, but those are few and far between. Having clubs get a portion of money that can be spent on shirts/scarves/replica jerseys would allow owners to stress less and focus more on putting together a solid product on the field.
I also feel that putting some of this money into the coaching and referee programs will help elevate the level of knowledge and improve performance in both areas. I mean, when we watch soccer in this country, what do we see generally? Constant long balls down the pitch. Rarely do we see different tactics brought in to a team. I’m not saying that there is an underlying issue in the social paradigm but when you see a team playing a “Tiki Taka”, possession-based style, how many people bash it because of their preconceived notions? It’s ridiculous and needs to stop because, to put it simply, most people enjoy watching clubs like Barcelona or Manchester City or Bayern Munich and guess what? All three of those were/are coached by a man whose system and ideas are based in possession and Tiki Taka, but I digress. That’s something for another discussion completely. However, the underlying point is that investing money in programs that help develop creative coaches would yield great results for the entire pyramid and the players that fill every level.
Lastly, but probably most importantly, by taking that billion dollars and putting it into the lower leagues, those clubs would be able to found youth academies and help open the game to those who otherwise wouldn’t be able to afford it. Yes, that’s a shot at the current pay to play scheme we have in this country but it’s a necessary one. It’s beyond time we have a youth setup that isn’t catered solely to the suburban kids. The amount of talent being ignored simply because those kids live in the inner city or whose parents can’t afford the ever rising costs is astronomical. I understand other countries still have some type of pay to play in their youth set up but it in no way approaches the level of costs that our setup demands.
I admit I tend to live with my head in the clouds with this type of stuff but I needed to get it off my chest. And while this may sound like the rant of someone who is unhappy with the entire setup in this country (which is true), these are also things people need to understand could come from the influx of over a billion dollars that was paid to Major League Soccer. And the biggest group that NEED to hear this are MLS fans If we want to become a soccer powerhouse on the international level, we have to invest money into the pyramid from top to bottom. We can be better but we have to get out of our own way if we want to move forward.
- Shawn Laird