MLS & Adidas Apparel Deal Extension

[LionNYC]

With MLS All Star Game, all the big MLS and soccer executives are in Chicago for the game but also the Board of Directors meeting held today. One of the bigger talking points on the internet now is Adidas extending their kit deal with MLS through the 2024 season.

First we heard $30M year, then $90M per year, now it's looking like $116M per year. Wow.

https://finance.yahoo.com/news/adid...ponsorship-6-years-700-million-152955630.html

 

[LostAnvil]

then they better start designing some unique jerseys

 

[Ulrich]

At $116M/year with 26 teams, that's $4.46M/team each year.

Time to raise the salary cap substantially by allowing more DP/Tam players. Do it now!

 

[JGarrettLieb]

That's an extra $3.4mm per team in revenue, since the original deal was $1.5mm per team in revenue. So after taxes its probably going to be like $2.5mm in extra revenue, which means that TAM/GAM is now a sustainable revenue expenditure and not a capital expense!!!

So TAM probably goes up to like $2mm next year and the league can show a positive net income if it wants to.

On another note, this deal jumps MLS way closer to the Championship in terms of revenue and starts putting some serious distance between MLS and 2. Bundesliga from a league wide revenue standpoint. Looking at everything on a per team revenue basis, MLS is now probably very competitive with the Championship and 2. Bundesliga and will likely surpass the Turkish SuperLig. We're close enough now to be well within the margin of error for public numbers.

https://en.wikipedia.org/wiki/List_of_professional_sports_leagues_by_revenue

For Don Garber his task is now
1. Start getting some separation between MLS and the best secondary leagues in Europe in terms of revenue.
2. Try to make ground on the real top flight leagues.

Btw in writing this post I realized that MLS must spend a significantly smaller proportion of its revenue on player salaries than most other leagues. Since technically as of that older revenue list MLS and Liga MX had functionally the same revenue per team, with Liga MX slightly edging out MLS on a per team basis.

 

[mgarbowski]

So after taxes its probably going to be like $2.5mm in extra revenue,

Assuming that MLS tax accounting shows taxable income greater than expenses and this additional revenue is simply layered on top as additional taxable income..

 

[JGarrettLieb]

Assuming that MLS tax accounting shows taxable income greater than expenses and this additional revenue is simply layered on top as additional taxable income..

Now thats a question, how does the league treat its disbursements of cash for player salary and allocation money to the teams? Because that seems like a great way to make sure expenses are exactly what you need them to be.

 

[EganSoccerWords]

That's an extra $3.4mm per team in revenue, since the original deal was $1.5mm per team in revenue. So after taxes its probably going to be like $2.5mm in extra revenue, which means that TAM/GAM is now a sustainable revenue expenditure and not a capital expense!!!

So TAM probably goes up to like $2mm next year and the league can show a positive net income if it wants to.

On another note, this deal jumps MLS way closer to the Championship in terms of revenue and starts putting some serious distance between MLS and 2. Bundesliga from a league wide revenue standpoint. Looking at everything on a per team revenue basis, MLS is now probably very competitive with the Championship and 2. Bundesliga and will likely surpass the Turkish SuperLig. We're close enough now to be well within the margin of error for public numbers.

https://en.wikipedia.org/wiki/List_of_professional_sports_leagues_by_revenue

For Don Garber his task is now
1. Start getting some separation between MLS and the best secondary leagues in Europe in terms of revenue.
2. Try to make ground on the real top flight leagues.

Btw in writing this post I realized that MLS must spend a significantly smaller proportion of its revenue on player salaries than most other leagues. Since technically as of that older revenue list MLS and Liga MX had functionally the same revenue per team, with Liga MX slightly edging out MLS on a per team basis.

https://twitter.com/x/status/892804403568181248

https://twitter.com/x/status/892765333387452416

 

[adam]

And right before the revamp of the CCL and maybe a new MLS-Liga MX SuperCup. Talk about juicing up before the big game.

 

[413Blue]

Great deal, but not likely to be completely in cash terms. A good portion is in equipment supply. Still, a massive cash increase!

 

[Angela Miller]

Even though my Andrea is a 100% Nike guy through and through . There can be no doubt ADIDAS rules the soccer apparel market . This is what and why of many reasons for the collapse of The Sports Authority . They could Never See soccer appeal or soccer period as important ! Very Bad and totally Fkd up !! You have no idea the shit i get from management and upper management whenever i brought the subject up . F ALL YA'LL DUMB ASSES !! Look what happen to your Damn stores ! Gone by by Bankrupt . We'd get a ton of people coming in for stuff there never was for them . Here I am all AC MILAN and i have to say I'm sorry we don't have what your looking for folks . How Fkn embarrassing was that?. It made me sick .

But Sports Authority thought Golf was the only game in the world . Customers would shake their heads and say "This is a sports store and you have little or no real soccer appeal just shorts and tops to play in ?" It got even worse towards the last couple years . I can spot a soccer person in a hot minuet by what they wear and that's no matter where I'm at . It mostly is ADIDAS . I 'll always get the ping in my heart for them and Puma since this is what i was introduced to at the time . Much to the shrugs to the Nike people including You Know Who ???

 

[sbrylski]

https://twitter.com/x/status/892804403568181248

https://twitter.com/x/status/892765333387452416

Now this is exciting. Let's basically buy up Argentina. Win two CCLs. Then buy up Mexico. Things are snowballing!

 

[EganSoccerWords]

Even though my Andrea is a 100% Nike guy through and through . There can be no doubt ADIDAS rules the soccer apparel market . This is what and why of many reasons for the collapse of The Sports Authority . They could Never See soccer appeal or soccer period as important ! Very Bad and totally Fkd up !! You have no idea the shit i get from management and upper management whenever i brought the subject up . F ALL YA'LL DUMB ASSES !! Look what happen to your Damn stores ! Gone by by Bankrupt . We'd get a ton of people coming in for stuff there never was for them . Here I am all AC MILAN and i have to say I'm sorry we don't have what your looking for folks . How Fkn embarrassing was that?. It made me sick .

But Sports Authority thought Golf was the only game in the world . Customers would shake their heads and say "This is a sports store and you have little or no real soccer appeal just shorts and tops to play in ?" It got even worse towards the last couple years . I can spot a soccer person in a hot minuet by what they wear and that's no matter where I'm at . It mostly is ADIDAS . I 'll always get the ping in my heart for them and Puma since this is what i was introduced to at the time . Much to the shrugs to the Nike people including You Know Who ???

AMAZON.COM SELLS SPORTS EQUIPMENT AND APPAREL

 

[Angela Miller]

AMAZON.COM SELLS SPORTS EQUIPMENT AND APPAREL

OK what's your point ?? I don't need that info . Like Donald Trumps fat ass that misses the point ! Read what i post it was to support the Adidas Brand and how important it is as it relates to soccer and what happen with my X employers opinion's were . I know where to shop whenever i need something . WTH ?? By the way you might like to know Sports Authority no longer exist all the stores have been closed for good for 2 years ,

 

[LostAnvil]

Even though my Andrea is a 100% Nike guy through and through . There can be no doubt ADIDAS rules the soccer apparel market . This is what and why of many reasons for the collapse of The Sports Authority . They could Never See soccer appeal or soccer period as important ! Very Bad and totally Fkd up !! You have no idea the shit i get from management and upper management whenever i brought the subject up . F ALL YA'LL DUMB ASSES !! Look what happen to your Damn stores ! Gone by by Bankrupt . We'd get a ton of people coming in for stuff there never was for them . Here I am all AC MILAN and i have to say I'm sorry we don't have what your looking for folks . How Fkn embarrassing was that?. It made me sick .

But Sports Authority thought Golf was the only game in the world . Customers would shake their heads and say "This is a sports store and you have little or no real soccer appeal just shorts and tops to play in ?" It got even worse towards the last couple years . I can spot a soccer person in a hot minuet by what they wear and that's no matter where I'm at . It mostly is ADIDAS . I 'll always get the ping in my heart for them and Puma since this is what i was introduced to at the time . Much to the shrugs to the Nike people including You Know Who ???

Sports Authority went bankrupt because of over-expansion

 

[Angela Miller]

Sports Authority went bankrupt because of over-expansion

OMG I was there for 15 years and Not debating this with anyone ! I know why my store and all the others failed and where to go to get the things i need ! Let's keep this thread on the Adidas Brand relating to soccer apparel and how important they are to the sport , THANK YOU !

 

[mgarbowski]

Now thats a question, how does the league treat its disbursements of cash for player salary and allocation money to the teams? Because that seems like a great way to make sure expenses are exactly what you need them to be.

Because of single entity, I think the disbursements to the teams are just a pass-through that have no legal effect. In fact I don't think teams actually do payroll for players except for DPs. Money goes straight from the league to the players. Raise salaries, raise deductible business expenses. Ownership won't want to fork over 100% of the additional Adidas money to players, but some of it will go there, and various other expenses will increase over time as well. Any tax hit will certainly be on far less than the full amount of the increase.

 

[LeeNYCFC]

In fact I don't think teams actually do payroll for players except for DPs. Money goes straight from the league to the players.

I would've had this same assumption, but looking at the retirement plan audit for MLS, the fact that the affiliates fund the employer contributions to their players makes it sound more like players are on the affiliates books and paid through their payroll.

 

[413Blue]

Sports Authority went bankrupt because of over-expansion

They had fewer locations than DSG's, which seems to be doing relatively well in the retail world. SA was such an awful store. It was like walking into a Kmart.
Angela Miller is right (you are as well) but Sports Authority was one of the most poorly merchandised retailers i've ever visited.

 

[Angela Miller]

They had fewer locations than DSG's, which seems to be doing relatively well in the retail world. SA was such an awful store. It was like walking into a Kmart.
Angela Miller is right (you are as well) but Sports Authority was one of the most poorly merchandised retailers i've ever visited.

THANK YOU 4 413Blue
Now imagine what it was like to work there ?? My first 6 years were good but when it was going down it was like being on a sinking ship . Do You People know the only time we ever received soccer merchandise was only during The World Cup . I used to hear the New York stores only in the city carried Jerseys but in limited varieties , In the last 4 years i was there until the end kids were coming in like crazy for all things ADIDAS . They wanted the whole outfit top to bottom . All we had were men's soccer shorts Golf shit basketball shorts . Tennis wear and a tank tops .

It's very clear by the look of young people i will say under 30 just how popular and important ADIDAS is now . Their look is all over the place with this generation . Nike used to be the shit . But now it's almost like this young crowd laughed at Nike as to what their parents wear . ADIDAS has the young edge to it . Soccer has a lot to do with that . NIKE should take note .......NIKE for old people yeah that sounds like someone I love !

 

[Fake Jew]

THANK YOU 4 413Blue
Now imagine what it was like to work there ?? My first 6 years were good but when it was going down it was like being on a sinking ship . Do You People know the only time we ever received soccer merchandise was only during The World Cup . I used to hear the New York stores only in the city carried Jerseys but in limited varieties , In the last 4 years i was there until the end kids were coming in like crazy for all things ADIDAS . They wanted the whole outfit top to bottom . All we had were men's soccer shorts Golf shit basketball shorts . Tennis wear and a tank tops .

It's very clear by the look of young people i will say under 30 just how popular and important ADIDAS is now . Their look is all over the place with this generation . Nike used to be the shit . But now it's almost like this young crowd laughed at Nike as to what their parents wear . ADIDAS has the young edge to it . Soccer has a lot to do with that . NIKE should take note .......NIKE for old people yeah that sounds like someone I love !

ADIDAS Soccer pants are considered stylish for Teenagers. I'm honestly so jealous of them for that. Do you guys know how comfy they are. Forget about growing up with phones and the internet. This is why i envy them