by Matt Acconciamessa - US Soccer Daily


Though I am a diehard USMNT fan and all-around obsessive follower of the international game, I have not yet had the opportunity to see the World Cup in person. Needless to say, I've been eying up South Africa ever since Germany '06 came to a close. But thanks to some inept measures from FIFA, this World Cup has priced out many fans, including yours truly.


The Telegraph is reporting what we all suspected; overseas World Cup tickets sales have been disappointing. There are so many things here that FIFA didn't seem coming that have contributed to the issue. It's pretty baffling that they had so little foresight, but then again it's understandable for a Sepp Blatter-led administration that has been criticized for just looking for the quick buck.


Let's take a look at the circumstances surrounding this tournament. Ticket sales began in the midst of one the deepest global recessions since the Great Depression, and they have continued with the world still far from its former level of output. Couple that with the fairly common security concerns surrounding a nation where violent crime is a problem, and anyone who has taken a basic economics course to tell you that you should expect a decrease in demand.


For a moment, let's all take a little return to the classroom for a little Econ 101. How should a market adjust to reach equilibrium if demand is much less than supply at a given price level? By lowering the price; if this isn't done, there's an excess supply of tickets that will go unsold (see: FIFA's current dilemma). This is such a simple, simple model that carries a pretty common sense recommendation: if sales are below expectations, adjust the pricing. It just boggles me that FIFA has only really taken notice of this and made an effort to correct it until now. Really, these people have to be somewhat educated to get in these high ranking positions, right? Right?


Yes, FIFA general secretary Jerome Valcke's announcement today that ticket categories would be downgraded in order to make them much more affordable to South African residents so as to sell out every game falls into the "better late than never" category. But the fact that FIFA waited until this long to make any kind of move now dampens the effect that hosting this global spectacle can have on the South African economy. Instead of those extra tickets going to foreigners who will spend their money on hotels, food, and memorabilia, they will stay in the hands of South Africans, removing that extra injection of outside income from the picture. If this tournament was really about South Africa, FIFA would have made more of an effort to get tickets sold to fans around the world.


Instead, they pretty much did the exact opposite. They gave Match, an agency conveniently led by Sepp Blatter's nephew (as Pitch Invasion astutely pointed out), exclusive rights to sell ticket and travel packages. Essentially, they gave this agency a monopoly on hotel rooms in the various host cities. And, back to Econ 101, what usually happens with a monopoly? Higher than normal prices, which in turn leads to a drop in demand. Couple that with the well-publicized price gouging that has been going on with flights to South Africa, and demands drops even further. Seriously, NO ONE SAW THIS COMING?


As much as I'm sure FIFA likes to think that the draw of the World Cup can allow them to charge a pretty hefty premium, they're learning now that that simply is not the case. Though footy fans across the globe spend nearly four years excitedly looking forward to the next tournament, there is a limit at which they just won't pay to see it in person. Hopefully, Sepp Blatter and company aren't so inept that they repeat these mistakes in 2014 (a tournament for which Match also has exclusive rights. Doh.). At this point, however, I wouldn't put it past them.


As if all this wasn't bad enough, there's the whole matter of FIFA holding down entrepreneurship with its rigid stance on merchandise and World Cup business ventures. Another measure doing its part to hinder the growth of the local economy.


Though it can't stop this company from making a splash. Heck, even though it’s in poor taste, at least their taking some of the surrounding market circumstances and concerns into consideration. That's a lot more than FIFA can say.

Cross-posted to US Soccer Daily

This week on MFUSA, Jason and Zach discuss the playoff system in MLS, talk to Ben Berger of Footie Business about MLS in the poor economy, bring in Sean Wheelock to cover the state of the game, and hit some news and notes.

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For all of its flaws, there are a few things that Major League Soccer does right; the game is the healthiest and most financially viable on the professional level it's ever been, soccer-specific stadiums are going up all over the country, and young MLS players are going on to careers in the more lucrative environs of Europe.

The economic crisis that hit the US last year threatened to derail all of that. The league, just as with any entertainment product, faced an uncertain 2009 as the expendable income of millions of Americans disappeared. While the bargain-nature of soccer in the US was viewed as a strength that might mitigate the economic effect, no one knew for sure.

Kristian Dyer at Soccernet did a little research, talked to some people, and wrote an excellent piece on the situation; MLS seems to be doing okay, and remains well positioned despite the downturn.

Yes, attendance is down. But in relation to more established sports products, it hasn't really been a bad year for MLS. Cost-cutting measures, no matter how much we despise them (remember the reserve league?) do help.

MLS can't stand still, of course, and will need to be proactive if they hope to come out strong on the other side. The argument could be made that expanding during the bad economy actually makes sense; the league pockets the expansion fees as a buffer against their losses, the new teams build the league's brand in new markets, and the fans have a new cheaper pro sports alternative in their cities.

Raymond Sauer, a professor of economics at Clemson and the man behind The Sports Economist blog, is quoted by Dyer in the story and gets to the heart of the matter by summing up MLS' dilemma going forward:

"MLS will have to spend more on talent if they are to build a generation of fans for their own home-grown teams. There are plenty of challenges ahead."

The economy is now showing slow signs of recovering, and with the World Cup likely to raise soccer's profile considerably in 2010, Major League Soccer should stand to reap the benefits if they continue to do (more) things right.

According to a report on the Kanasas City Star website, the Wizards are pursuing a new site for their proposed soccer specific stadium.

The economy has seriously affected efforts at the original site, the Bannister Mall area in south Kansas City. The new site, which would place the stadium in Kansas' Wyandotte County near the Kansas Motor Speedway rather than in Missouri, would move the team west. A $400 million dollar development plan has been proposed by the Wizards owners, OnGoal LLC, which would include youth facilities and office space for a medical software company owned by members of the club's ownership group.

The Wizards fan blog Down the Byline includes a drawing of the newly proposed stadium.

With the Wizards continuing to place in the tiny Community American Ballpark that is ill-suited to soccer (still waiting for a player to tear every ligament in their knee on the pitcher's mound), getting them into a soccer specific stadium as soon as possible is crucial to their success in the market. The Bannister Mall plan seemed solid and the artist's renderings were intriguing; the team shifting their focus to a new site is disheartening, although it is encouraging to see them exploring alternative possibilities. As we've seen in San Jose and DC, getting one stadium plan together is tough enough.

The shift to a less-centralized location could be a problem for some of the Wizards' fan base, so it will be interesting to see what the reaction might be from their supporters.



Down the Byline also reports that the Bannister Mall site is not completely dead yet, and that OnGoal pursuing another site may be a way to prompt renewed movement at that location.

I'd pay to see him play

Michael Hitchcock is in trouble in Dallas, says Buzz Carrick at the 3rd Degree. His responsibilities have been taken away one by one, with the latest being ticket sales. Only 5,000 tickets have been sold to this point for Dallas' home opener at Pizza Hut Park.

On the surface, this seems like just another instance of a professional sports executive failing at his job. In almost every case in almost every sport, the offending executive would fired or demoted; Hitchcock has had his duties reduced, effectively a demotion.

The question becomes, as the economy continutes to falter and even more established pro sports leagues are feeling the hit, how much does FCD's poor ticker sales number rest on the shoulders of Hitchcock, and how much is beyond his control?

Being unfamiliar with Hitchcock's track record myself, I'm relying on more-knowledgable people to give me some context (i.e. Ginge Talks the Footy). It seems things haven't been going well in Frisco for some time, so it's unclear how much of the blame can be placed on economic factors. Regardless, the issue of the economy's impact on MLS ticket sales bears watching: while the price point of the league's product is a major advantage in the current climate, poor or nonexistent marketing will negate it.

I've said it before, and this news only reinforces it: the rose-colored glasses are off, and I'm becoming more and more convinced that MLS attendance will decrease sharply without a serious effort on the part of clubs to fill the seats (i.e., New England's Defend the Fort campaign).

Hopefully the situation in Dallas is an aberration, and not the beginning of a rash of poor ticket sales news. Although focusing on the positives of Toronto, Seattle, and a few others mitigates my despair, I'm still wary of a financial hit for the league, the resulting soccer-hater commentary, and the potential setback to MLS becoming a fully competitive force for player services.

If you have Dallas insight, or just want to comment on the general economic situation and how it relates to MLS, please fire away.

I hate posting to the blog from work; my computer here is so slow, and I'm in such a rush to get the post up, that it's inevitably riddled with typos.

Okay, so maybe it's my mood today, but it seems my rose-colored glasses are beginning to fail me. Objectivity is tough when you invest yourself completely in something, which is what I've apparently done with soccer by writing this blog; so for the past few months, I've managed to convince myself that everything will be alright, and that MLS will thrive in 2009.

While I'm not going to back off that belief completely (Hey Ma! Watch me hedge!), I do think I need to revaluate things a little. Let me give you a brief glimpse into the processes of my brain today:

Saw Bill Simmons post on the NBA entititled "No Benjamins Association" (didn't read it, not that interested)--->
Thought about the economy's effect on pro sports in the near future--->
Wondered if MLS will fare better or worse than other leagues--->
Reconsidered my belief that MLS attendance will increase over last year

It's certainly possible that things will get better, and that the net gains made in 2009 (at least in terms of visibility and Q-rating*) will outweigh any setbacks caused by the economy; but the league will cetainly take a perception hit if attendance drops. The soccer-haters won't care that the economy is bad, or they'll ignore the fact in order to badmouth soccer again.

I'm inclined to believe that baseball will get a pass from the media (because of the economy) if their crowds shrink, but that probably isn't true in light of the most recent steroids scandal. Still, baseball acts as though it's bulletproof for the most part, and it will be interesting to see if the two factors do combine to bring attendance down.

I'm rather steadfast in my belief that MLS is prefectly positioned to take advantage of the weakened economy, although that convcition is tempered by the disheartening lack of mainstream buzz for the league. If wishes and buts were....something.

Seattle's ticket selling success only means something if it translates on a grander scale; if the mainstream media points to the Northwest and says, "Hey! Look up there! A bunch of people are excited for soccer! Maybe we should go investigate!"

Then, maybe the rest of the league, and the teams that need the help, will get a bump. I said it in my last post, and I'll say it again: people are followers, so they'll start to show up at MLS stadiums if it becomes the "in" thing to do.

Hell, forget the mainstream media, I'd take Tyler Durden and Perez Hilton writing about it at this point.

I believe that blogging is our future, let them grow and watch them lead the way...

Or something. I'm in a really weird mood today.

Lemme sum up:

I think attendance can go up this year, I'm just not convinced it definitely will anymore. But I'm hopeful. And excited for the season.

Blech. Tuesday.

*Damnit, I put the asterisk in there to follow up with a footnote, and then completely spaced on it. Let me just say that I'm not really sure what "Q-rating" means, other than that's it's some subjective measure of the popularity of a given person/product/thing. I think.

I've been told that everybody loves a list, so to that end, I've decided to take another stab at one.

With the 2009 MLS season less than a month away, I've put together the five reasons that 2009 will be the most important year for MLS.

1. It's the Economy Stupid

With the economy in the proverbial crapper, MLS must show that despite the squeeze, the league is in no danger going the way of the NASL. At the first sign of distress, the anti-soccer crowd will will jump to bury MLS and its efforts to establish soccer as a major American sport. With creative ticket plans, smaller rosters, and the suspension of the reserve league, the league appears keenly aware that pragmatism will need to win out, at least for the time being.

2. Beckham-bubble

Whether Signor Beckham returns from Milan or not, it appears that his influence on the profile of MLS has waned significantly. Without Golden Balls drawing attention from the mainstream media, awareness of the league among the general public will certainly backslide. If attendance and TV ratings take another hit, the aforementioned soccer-haters will have another reason to bash the sport. MLS must do everything they can to stem the tide, using what positives it can (expansion announcement, Seattle ticket sales, etc.)

3. TV Fallout

With the decision to "cancel" MLS Primetime Thursday on ESPN, it appears that MLS is teetering on the edge of television oblivion. If things continue to go poorly, future revenue for the league and the clubs is at risk. While the financial benefit of the current contract is minimal for teams, television exposure on a widely dispersed network like ESPN is essential to the growth of the league. Another poor year of ratings in 2009 will make it all the more difficult to convince ESPN that soccer deserves a desperately needed push across their various platforms (TV, radio, Internet).

4. Baseball's Problems

Conventional wisdom says that only sportswriters care about the ongoing steroid problems in baseball; although that may be true in a general sense, there will certainly be fallout from yet another black eye for MLB. MLS is in a position to capitalize on baseball's problems, as it is an alternative to baseball for the fan's entertainment dollar during the summer months. With lower prices and livelier atmospheres (for the most part), soccer has things to offer sports fans that baseball just can't provide; the onus to turn baseball's ills into a boon for soccer is now on both league office itself, as well as the individual clubs.

5. CBA on the Horizon

Despite the looming expiration of the current collective bargaining agreement, the soccer public has heard little about potential negotiations. While indications are that the players intend to be reasonable in their demands, several issues remain up in the air between the two sides. The new CBA could go far in bringing the league more respect among players, as well as help it hold onto young American talent (see Tracy, Marcus). A major salary cap increase is unlikely with the current economy and revenue position of the league, but concessions from MLS on minimums and player movement could go a long way towards improving overall league quality.


Feel free to share your thoughts, add you own issues the list, or pick apart my reasoning on any of the ones above.

My first attempt at a title was horrible; fixed it the best I could.

A few stadium related stories have hit the Internet, so I wanted to post a brief piece on the push for team-controlled, soccer specific stadiums across the league.

In the world of modern revenue driven sports, a dedicate single-use stadium is often essential to the success of a professional sports franchise. The era of multi-use stadiums, stadiums built to save costs by housing two teams in a space built specifically for neither, has come and gone. NFL and MLB teams have leveraged themselves into state-of-the-art facilities across America. These teams, which have strong historical connections to their communities, often build these stadiums with subsidies from the local government, which cities feel compelled to hand out when their local teams threaten relocation.

For Major League Soccer clubs, leverage is severely lacking. Playing a "second-rate" sport in a young league, MLS clubs have yet to establish the same kind of roots in their hometowns that older more established teams take for granted. Threats of relocation holds little sway over local governments that have, in many cases, recently completed the business of building stadiums for NFL or MLB teams (or both). Because MLS teams are usually the last to come calling, they bear the brunt of backlash from citizens sick of their cities spending money on stadiums for revenue-rich franchises owned by billionaires.

Forced to turn elsewhere, many MLS teams are leaving city centers and heading towards suburban areas. Chicago Fire, Colorado Rapids, FC Dallas, Real Salt Lake; all have soccer specific stadiums in suburban communities, where MLS teams have found governments willing to subsidize construction. DC United and the Houston Dynamo, two teams fighting to secure stadium deals in their respective cities, have had mixed results. A stadium in Houston looks to be a certainty, but the Dynamo have been forced to make concessions to facilitate the process. Early designs for the facility are spartan and devoid of aesthetics; with funding limited and subsidies lacking, the team is forced to choose function over form. The Dynamo will also share the stadium with the Texas Southern University football team, a nod to financial considerations, as it will bring in $2.5 million annually.

DC United have yet to make any real progress on a stadium in the District of Columbia, and things have taken a turn for the worse with the recent pullout of a major developer from the Poplar Point project (the proposed location of a United stadium). The suburbs look likely to be the team's ultimate destination, with Prince George's County (directly east of the city) actively wooing the MLS club. The Poplar Point stadium has long been the dream of United's passionate supporters, a smaller stadium which would heighten their already intense home atmosphere.

Those clubs yet to secure stadium deals will not be helped by the recent downturn in the economy, and plans already in place may have to be scaled back. Luckily for MLS, only DC United, San Jose, New England, and Seattle are without progressing projects or venues under construction. San Jose is attempting to move forward with a 15,000 seat stadium financed exclusively with private funds, while New England and Seattle have unique sharing deals that allow them to play in NFL stadiums either rent free or at a favorable rate. The league may force these teams to move to a soccer specific stadium in the future, although economic factors could serve to lessen the pressure.

Per the league, a concrete stadium plan is must for any city hoping to land an expansion team; Portland, Miami, Vancouver and St. Louis have all attempted to line up stadium financing or are looking renovate existing facilities to meet the demands of soccer. Portland's bid is almost certainly dependant on the ability of their investors to secure city financing for a renovation to PGE Park. The effort is a source of major debate in Portland, and the anti-stadium crowd is vocal and determined. Miami seems to have no definite plans, although the league may overlook that fact in light of FC Barcelona's association with the bid. Vancouver hopes to renovate BC Place if awarded a franchise, a plan with a fraction of the cost of constructing a new facility. St. Louis appears to have everything in place, with both a site selected and sufficient funding secured.

Dedicated, team-controlled stadiums are essential for the future growth of the league on a number of fronts. The financial benefits are obvious, as teams are able to keep revenue in house. Teams must also have scheduling control, not only for revenue reasons (games on optimal dates, weekends, etc.), but to aid in alleviating the fixture congestion that has become an issue in recent years. Stadiums built for soccer greatly aid in improving match atmosphere, something which not only begets more support, but increases the appeal of televised matches.

As Major League Soccer looks to weather the economic storm currently blowing through, it will be well-served by the soccer specific stadiums already in place. It would have been difficult to see the league surviving a similar economy ten years ago; with too many teams in cavernous football stadiums and hamstrung by poor rental agreements, the financial crisis may have done more damage than the league could withstand. The push for these stadiums must continue, despite the times, for MLS to reach the heights it and its fans believe it will.

Relevant Links:
A fantastic stadium info presentation
San Jose stadium update
Dynamo stadium update
An appeal for Portland's stadium deal
DC United stadium drama
More United stadium drama

With the MLS SuperDraft taking place yesterday, the news that the Atlanta MLS bid is no more was a bit forgotten. While I never supported an MLS team in Atlanta, the bid's retraction is important because it is another indication that the economic realities facing the league are likely to be the most important issue of 2009.

If a financially strong bid, backed by one the country's foremost businessmen in Arthur Blank, falls by the wayside because of economic factors, then things have truly gotten bad. Montreal's bid was summarily rejected by the league when the group there attempted to low-ball the expansion fee due to the economy, and St. Louis' bid has come under extra financial scrutiny despite an in-place stadium plan. From now until such time as the financial crisis is over, every aspect of the game in America will need to be viewed through that prism. Our national entities are working without a net to a certain extent; without a strong grasp of the situation, those organizations may find themselves moving backward.

Perhaps the most unfortunate part of this dilemma is the potential 2009 has for giving American soccer big headlines. I've already listed the big stories possible for '09, both on and off the field; while all of them can still happen, their effect will certainly be muted by the economic situation. How much of a hit will MLS take to their attendance numbers? How many stadium projects will be put on hold indefinitely? How many of USMNT supporters will be able to go South Africa for the Confed Cup?

We've got to take the good with the bad these days, and as optimistic as I am about the game in the US and impatient as I am for the major soccer explosion, the economy has got me down. I've personally only taken a small hit, but it's certainly affecting the amount of entertainment dollars I will have at my disposal in 2009; a plight I share with millions of others. With a crowded sports landscape dominated by the big-money boys (NFL, MLB, NBA), soccer will need to claw for any progress it can make this year. Don Garber has repeatedly made it clear that MLS is keenly in touch with the financial situation. I have to keep his words in mind when the impatient fan in me gets frustrated; none of the shackles imposed on the teams or the league itself can come off until the powers-that-be are confident we are out of the woods.

More than ever, I think creative marketing will be key in the new economy. MLS isn't going to get by with the old standards, and will need to be discerning with its marketing dollar in 2009. Inexpensive alternatives coupled with a big splash or two may be the way to go; viral marketing and subversive concepts can create buzz if used properly. I have absolutely no idea how to do those things (yet, I'm certainly going to try to come up with something), I just believe they're possible.

If anyone has any good ideas, I'd love to hear them. We might not be able to get MLS to implement them, but it's still fun to bat ideas around.