Article: Soccer Gamble: Can MLSE Make It Work?

[Metro]

[:0][:0][:0] Be still my beating heart...the Star's Cathal Kelly has actually written on article on canadian soccer. And what's a Canadian soccer article without inaccuracies? See if you could spot them...

Kelly/Gamble/MLS

Soccer gamble: Can MLSE make it work?

History shows Toronto fans prefer top European leagues and not local product

CATHAL KELLY

SPECIAL TO THE STAR

Professional soccer has a long and inglorious history of failure and fan apathy in Toronto. Why, then, do the owners of the Maple Leafs and Raptors believe they can make it thrive?

"This is Major League Soccer," said Maple Leaf Sports and Entertainment president Richard Peddie. "The soccer that has been tried in this city in the last 20 years, I would not class as `major.'"

But Major League Soccer, after 10 years on the fringes of American pro sport, is itself not quite "major." Its play is considered to be on par with the First Division in England, a large step below the Premiership.

It is, in some ways, what the American Hockey League is to the NHL. And that means Toronto fans won't warm to the game — at least not right away — says the man who ought to know best.

"For most Toronto fans, the focus is on the very best soccer in the world — European soccer," said Bruno Hartrell, co-owner of the Toronto Lynx, the city's 9-year-old United Soccer League franchise. "The North American product is so far down the ladder to those fans, you're very hard-pressed to attract them."

Maple Leaf Sports is betting millions that Hartrell is wrong.

It has agreed to pay more than $10 million (U.S.) for the first MLS franchise based outside the United States. The team will start play in April, 2007, in a new $63 million soccer stadium at Exhibition Place that was approved by Toronto city council this week. Maple Leaf Sports is contributing $10 million to the cost of the stadium.

"We feel very strongly about Toronto," MLS chief operating officer Mark Abbott said from the league's New York headquarters. "It's a tremendously diverse city ... We think there's a hunger there for high-level soccer."

But the city has had a professional team before — the Toronto Blizzard of the North American Soccer League went under in 1984 after more than a decade in operation. And the city has a professional team now — the Lynx, which struggles to draw 2,000 spectators per game and loses roughly $400,000 per year.

So who is right? Hartrell and history or Maple Leaf Sports and MLS?

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The creation of a high-level American professional soccer league was a condition imposed by FIFA for granting the 1994 World Cup to the U.S.

MLS began play in 1996 and, buoyed by post-World Cup enthusiasm and featuring recognizable national team players, the league made a modest splash. But most clubs were forced to play in unsuitable venues — football stadiums, often with artificial turf and visible yard markers. Interest soon levelled off.

Published reports put the league's losses over 10 years at $300 million (U.S.) or higher. MLS officials won't discuss exact figures, but they don't deny substantial losses.

"There has been an investment made in stadiums and in players to get us where we are, which is on firm footing," Abbott said of the losses.

Any firm footing MLS has comes from its two core investors — billionaires Lamar Hunt and Phil Anschutz, who at one point held eight franchises between them and still control six.

Hunt is a brash Texas oilman who was a pioneer in professional football and basketball. Aside from MLS franchises in Dallas, Kansas City and Columbus, Ohio, he also owns the NFL's Kansas City Chiefs.

Anschutz is a media-shy telecommunications baron whose $5.8 billion (U.S.) makes him the 78th richest man in the world, according to Forbes.

Even with such wealthy backers, by 2001 the struggling league contracted to 10 from 12 clubs.

However, strict budgetary controls prevented the kind of wild spending on international stars that sank the NASL. Also, the league's corporate set-up ensured cost consciousness during lean times. MLS is organized as a single-entity ownership, which means "investor-operators" buy a share of the league and are a given a licence to field a team.

Drawing on revenues it takes from national sponsorships and a percentage of ticket sales, the league pays players' salaries. Team owners cover all other costs.

The strong central control ensured survival.

Today, the league stands at 12 teams once again after expansion in 2004 to Salt Lake City and a second Latino-flavoured team in Los Angeles. Recently, MLS signed a $150 million (all figures U.S.), 10-year marketing deal with sportswear manufacturer adidas.

That's the good news.

Troubling is the fact that MLS never seemed to catch the imagination of the American fan. TV viewership on ESPN2 has never surpassed the average of 200,000 households reached in 1996.

And, after a bulge in its inaugural year, league attendance has steadily averaged around 15,000 per game for the next nine seasons.

The top-drawing L.A. Galaxy lure about 24,000 fans a game, while the Dallas franchise routinely brings up the rear.

"If you don't have your own building, it's very difficult," said John Wagner, president of the Hunt Sports Group, which manages Lamar Hunt's franchises, including Dallas.

In August, Dallas moved out of the cavernous Cotton Bowl into Pizza Hut Park, an $80 million, 21,000-seat stadium in suburban 'Frisco. Attendance jumped to 13,000 from lows of 7,000.

Today, four MLS clubs play in three soccer-specific stadiums. Three more buildings are in the works.

The league promises that no new franchise will be permitted without its own stadium.

Toronto satisfies that requirement. So will it make money?

"Not from the get-go," Peddie acknowledged. "But we have the expertise and the wherewithal to take this on. If it's not doing well in the first few years, we'll stick with it."

Initially, Maple Leaf Sports is hoping to draw crowds in the "low teens" to 16 home games in its 20,000-seat stadium. However, Hartrell believes "on a consistent basis, I think they can draw six to eight thousand."

Tickets to see Toronto's MLS team will be "one of the cheapest sports propositions in the city," Peddie said, without giving specific figures.

Plus, the economies of scale that make soccer such a tough business for Hartrell aren't as hard on a company like Maple Leaf Sports.

"If they lose $2.5 million a year, that's one (Leafs) playoff game," Hartrell observed.

MLS has already given Toronto something with which to feather its new soccer stadium. The league's 2008 all-star game is to be held in Toronto. And an MLS championship game will be held here no later than 2012.

Add in the likelihood of the new stadium raising soccer's profile by hosting more international friendlies — and perhaps the Lynx, which Hartrell is determined to keep operating — and it means professional soccer may well be getting its best chance at thriving in Toronto.

Still ...

"Major League Soccer isn't going to make it in Toronto in five years," Hartrell said. "You have to look longer than that. But if anyone can do it, (Maple Leaf Sports) can."

[Gian-Luca]

Well the big one is that the Blizzard "went under in 1984" - that's a huge mistake to make for anyone arguing that history is against the MLS team. I would also dispute that the English first division is a "large step down" from the EPL (its a step, but a large one?) and he should know it isn't called the first division anymore - unless he's referring to League One.

I'll be writing a nice polite email to Mr. Kelly thanking him for writing about Toronto's new team, but also pointing out that huge mistake about the Blizzard.

There are other things I disagree with (Bruno Hartrell may be the best person who ought to know if an MLS team would work in Toronto, but he clearly isn't) but that's more of a difference of opinion than a factual error.

There is also a short interview with Yallop in another article and yet another article from Perkins whining about the stadium and MLSE.

[Andrew W]

I don't find this one too bad, other than some of the pointed out errors. As a writer I believe he's found both sides of the arguement which is always a plus. I also don't mind the guarded approach over whether this will succeed because it will keep MLSE on their collective toes. I believe MLSE is showing guarded enthusiasm as well and I am somewhat relieved to hear them suggest they will stick with it because they will not make money off the hop.

A few points however. The league negotiates contracts on behalf of the teams, however, the teams do indeed pay those salaries. The league sets the salary cap, but from everything I understand, what teams pay players is for them to determine within that structure. Obviously there are salary exceptions.

(see this link about salaries.)

As well, reporters often make the mistake about how the league covers its losses. If the entire league loses, say, $2 million, they make a cash call from all the owners to cover those losses. So what MLSE potentially loses (or makes) on their franchise could be mitigated if all other franchises are strong. Needless to say, they are in a solid financial position to do this.

As for Hartrell. Obviously he's going to play up the "tough nut to crack" arguement to augment his case for why the Lynx are a non-factor. Attendance will vary depending on promotions, price, day of the week, etc. Most important will be competitiveness. While it is standard fare for expansion teams in any sport to want to be "competitive right away," this is something MLSE has suggested right away and has even let nuggets slip as how they plan to do this (ie. foreign content of up to 10 players; increased salary cap to start).

Other thoughts: Comparisons between leagues are always tough and rediculous, so I'll leave that one alone .... The thought about consistent crowds is fair enough, but every team in MLS (save the Galaxy, DC United and Fake Salt Lake) has games below 10,000 in paid attendance. Toronto will have a few of those especially when KC rolls into town with big names like Jack Jewsbury etc. .... I think it's important that Toronto hangs in there and makes a decent account of themselves until 2009 when Vancouver (and maybe Montreal) can potentially enter the league. My thinking is while New York, Boston and others make great rivals, once there is a Canadian derby it will add spice .... Until then, a great saying to remember is "there's no such thing as bad press."

[Daniel]

Can someone edit the URL so the page doesn't span sideways?

[Gian-Luca]

Okay, get a load of this. Bruno Hartrell states in the Star article that MLS will draw 6 to 8 thousand fans in Toronto. Look at his wife's prediction for Lynx attendance in the new stadium in this Toronto Sun article:

Sat, October 29, 2005

Stadium won't sit stillMLSEL wants a busy building

By MIKE GANTER, TORONTO SUN

Now that Maple Leaf Sports and Entertainment Ltd. has approval for a building for its soon-to-be named Major League Soccer team, it foresees no problems keeping that building buzzing.

A day after city council approved a deal which will see a $63-million stadium built at the CNE, MLSEL president and CEO Richard Peddie was already onto the next task: Getting the building started.

"Our focus right now has to be construction," Peddie said yesterday.

Peddie did not say how the building will be utilized by MLSEL and the city.

"We've done the model on (limited) dates," Peddie said. "We'll be the lead tenant with over 40% of the attendance and 40% of the events."

Somewhere in the neighbourhood of 100 days will be taken up by community usage while there also will be concert dates, perhaps a handful of visits by the Canadian National Rugby team and a minimum of 21 events by the Toronto Lynx and the Lady Lynx of the USL.

Nicole Hartrell, the owner and chief operating officer of the Toronto Lynx Soccer Club said yesterday she has a "written and verbal agreement that we will be a major tenant" at the new stadium.

Hartrell said she believes her organization can average 6,000 fans a night in the new building which will seat upward of 20,000.

Peddie said concert dates should help round out the stadium schedule but he believes the options for the facility are limitless.

"It is really a city building that will have the flexibility for us to be creative," Peddie said.

There was plenty of concern that this deal was rushed through the approval process. Peddie said it would not have been completed otherwise.

"There was a lot of talk Thursday about deferring it," Peddie said. "If they had deferred it, it would have been over. Major League Soccer was not waiting and we could not have guaranteed it would have been built on time if it went past (Thursday)."

Peddie and MLSEL chairman Larry Tanenbaum will be heading south to Dallas on Nov. 12 for the MLS board of governors meetings.

"There's still a ton of paper work to be done, but (the franchise) was all contingent on getting a (stadium) deal done," Peddie said.

According to Peddie, the first shovel must be in the ground by January to ensure an opening date of June 2007.

That will give MLSEL a few dates to test the facility before playing host to the 2007 World Youth Soccer Championship beginning July 1.

[john tv]

quote:Originally posted by Gian-Luca

Well the big one is that the Blizzard "went under in 1984" - that's a huge mistake to make for anyone arguing that history is against the MLS team. I would also dispute that the English first division is a "large step down" from the EPL (its a step, but a large one?) and he should know it isn't called the first division anymore - unless he's referring to League One.

I'll be writing a nice polite email to Mr. Kelly thanking him for writing about Toronto's new team, but also pointing out that huge mistake about the Blizzard.

It seems so much shorter.20 years looks like a lifetime.

In those days we had no internet and no e-mails etc.

Certainly no chat lines and this is I believe our weapon to fight those yo yo's while at the same time we can unite and organize if necessary.

Our challenge is to make sure that we get the proper exposure just for our players alone. I heard it so many many times from our players,playing abroad and not getting one word in the media.Many parents were very frustrated and sometimes very discouraged.They would blame the various organizing bodies while I saw the media releases going to these yo yo's.

So these Cathal's are hired with I believe a set of instructions or guide lines which shows time and time again.

Thanks you know who,when I went to visit David Miller in 1997 I came away with the feeling that this councilor was going a long way,while at the same time he was proud to have been a soccer player.

He has been a very strong supporter of our game ever since.Well there is some food for thought what can we do to maintain this interest and what can we all do to elevate it to higher levels,how can we use the internet and should we get the women involved on this level.The female voice has not been heard nof but they can also open up these heavy doors.Maybe we should invite the the girls to this do as well.

I don't know who to contact but for the internet guys they may know.

Combining these two groups is a hell of a nut to crack by the media.

in fact this may very well be a first come to think of it,invite the girls!

There are other things I disagree with (Bruno Hartrell may be the best person who ought to know if an MLS team would work in Toronto, but he clearly isn't) but that's more of a difference of opinion than a factual error.

There is also a short interview with Yallop in another article and yet another article from Perkins whining about the stadium and MLSE.

[trueviking]

i think comparing first division level to MLS is a stretch as well, but that is another debate.

i am really excited about this, but i am also skeptical...i would be much more confident of success in montreal or vancouver.

the honeymoon period should sustain the team for a while, by then maybe there will be a couple other canadian teams in the league to help set up rivalries and push it forward.

[Franky]

yah, the Blizzard folding is wrong, ask Clive Toye. The Blizzard and the Cosmos were the only ones standing, while the remaining clubs jumped ship to the MISL then late the Cosmos followed suit. The Whitecaps, Roughnecks and Earthquakes all folded. the following year they were called INEX!!! not APEX as i speculated earlier.

The Hartrells know the writing is on the wall and i predict this may be their last season, maybe two, tops. Remember, the Colorado Foxes tried to make a go of it, when the Rapids came to town and then moved on to San Diego as the Flash.

6,000 to 8,000, the Lynx!!! yah right!!!!!!!!!!!!!!!!!!!!!!!!!!!!! what for maybe a school day or two, can't have a school day all season long, LOL!!!! even though they may attract, possibly double the size 3000 to 4000, it is more for the novelty of the stadia and for some die-hard Lynx fans.

[Guest Jeffery S.]

My personal opinion is that the Hartrell's and the Lynx have one more year of existence.

They cannot continue in Toronto. They should be thinking about moving, say to Hamilton or Ottawa.

They will lose approximately 90% of their fans. I don't even think that more than a thousand would come out to see Vancouver or Montreal, MLS kills all of that, sad but true.

It also takes a bit out of the Voyageurs Cup, though we will simply make it Mtl vs. Vancouver when the time comes. So be it. It is really too bad that the CSA, or maybe the rich owners, could not be convinced to put up the money to sponsor a Canadian Cup, along with some friendly sponsor.

In any case, the Lynx cannot continue with their current owners if they are to be the reserve team. The MLS team should simply run its own reserve team. Maybe they should play in a smaller, more intimate location. Is there any place with a decent field and five hundred seats in TO?

[Daniel]

The Canadian national rugby team won't play on Fieldturf.

[G-Man]

I doubt a MLS team in TO will draw 8k a game.

[G-Man]

I doubt a MLS team in TO will draw 8k a game.

[Daniel]

You doubt a lot of things without reason or explanation. That doesn't make them valid.

I doubt that the Maple Leafs will attract 12k. See, I can do it too.

[Daniel]

You doubt a lot of things without reason or explanation. That doesn't make them valid.

I doubt that the Maple Leafs will attract 12k. See, I can do it too.

[dbailey62]

quote:Originally posted by Franky

yah, the Blizzard folding is wrong, ask Clive Toye. The Blizzard and the Cosmos were the only ones standing, while the remaining clubs jumped ship to the MISL then late the Cosmos followed suit. The Whitecaps, Roughnecks and Earthquakes all folded. the following year they were called INEX!!! not APEX as i speculated earlier.

Not quite Frank. INEX were a company that funded a soccer team that just happened to hire much of the old Blizzard.

They weren't the Blizzard. York Hanover bought Dynamo Latino of the NSL, changed their name to Toronto Dynamo during the 1985 season and then to Toronto Blizzard for the 1986 season and obviously, as we all recall, took them to the CSL in 1987 as a charter member.

quote:Originally posted by Franky

The Hartrells know the writing is on the wall and i predict this may be their last season, maybe two, tops. Remember, the Colorado Foxes tried to make a go of it, when the Rapids came to town and then moved on to San Diego as the Flash.

6,000 to 8,000, the Lynx!!! yah right!!!!!!!!!!!!!!!!!!!!!!!!!!!!! what for maybe a school day or two, can't have a school day all season long, LOL!!!! even though they may attract, possibly double the size 3000 to 4000, it is more for the novelty of the stadia and for some die-hard Lynx fans.

Ya, I believe that too. Perhaps, with no competition from MLS and with a total revamp of the organization (new president and so on ...), the Lynx could get up to the 6k that Nicolle talks about but without those changes and with MLS, they really do have to smell the coffee.

Give it a go and perhaps make a deal as a farm club, as has been discussed here before, but be realistic about things.

As for Bruno's comments, I don't think you must take his comments with a grain of salt. He's still pissed off and far from nuetral on the issue of MLS.

The Hartrell's dont want MLS here, we know that. Do they want it to fail? It wouldn't surprise me but I'm certainly not going to put words in their mouths.

I think the key point may be, do they want others to succeed where they clearly have not?

db

[Ivan]

quote:Originally posted by G-Man

I doubt a MLS team in TO will draw 8k a game.

How many times are you going to say this, over and over and over again?

G-ackass.

[Leafs]

quote:Originally posted by Daniel

The Canadian national rugby team won't play on Fieldturf.

Who cares about the rugby team. I dont.

[G-Man]

quote:Originally posted by Daniel

You doubt a lot of things without reason or explanation. That doesn't make them valid.

I doubt that the Maple Leafs will attract 12k. See, I can do it too.

how come Paris a city of 12 million only has one real pro team? and by the way Danny, the all-blacks practice on fieldturf and the IRB allows games to be play on it.

It's just that no one has taken them up on it. ANd like I said no team in TO has drawn more than 3K qame in the last 20 years.

[Franky]

thanks db for clearing that up for me. that was one period of time, 'til this day, i had no clue what was truly orchestrated. so, the York-Hanover had the Toronto Dynamo during the 1985 season and INEX was a totally different entity that hired the most of the Blizzard. gotcha, thanks buddy.

by the way, valid points, i think you pretty much summarized what i was trying to say about the Hartrells. i like what you said there;

"I think the key point may be, do they want others to succeed where they clearly have not?" good point.

[Leafs]

quote:Originally posted by G-Man

how come Paris a city of 12 million only has one real pro team? and by the way Danny, the all-blacks practice on fieldturf and the IRB allows games to be play on it.

It's just that no one has taken them up on it. ANd like I said no team in TO has drawn more than 3K qame in the last 20 years.

Has Toronto had a real pro team since the NASL. USL DIV 1 is not pro soccer ite minor league soccer.

Guys like you from afar make me sick. Have no valid points are are negative. Get a life.

[Daniel]

You *do* realize I'm not from Paris?

And I won't mention that I went to see the local Ligue 2 side last night (Créteil), because I wouldn't want you to look ridiculous.

Rugby Canada has said "we won't play on Fieldturf". It's the same thing as the Luzhniki which was mentioned earlier. Sure, it's approved, but no one wants to play on it.

[Cheeta]

Couple of thoughts.

I'm not so sure MLSE got as sweet heart a deal as is being led on. I mean by that is this stadium management deal any better or worse than what is typical these days? I dought it. Most likely very typical fare.

So long as the CSA has protected the priority of the facility (and while MLS soccer may be an important wheel in the machine that makes the building run it isn't THE priority) let MLSE do what they need to do to hopefully make a buck for themselves and the CSA and we all get our national stadium.

For me that's where the boogey-man is hiding. In the future. In those non-football events at the Ex. which will be necessary to make the whole venture profitable.

So I guess I'm saying MLSE can make it work. Football is going to be the most important tenant in the park but certainly not the only one. They've got the entertainment infastracture to make a real go of it, and they've got the bucks to run the marathon they'll need to when the novelty factor wears off.

As to FieldTurf. With the number of available stadiums in almost every European country it's easy to black list a FieldTurf equiped venue. Quite unlikely to be the case in Canada. That doesn't change the difficultys the CSA will face in recruiting opponenets but attitudes are slowly changing as the quality continualy improves.

It's almost November. For those of us who watch EPL/SPL footie just look at the quality of those pitchs with every passing week. And these are clubs which spend millions of pounds every year maintaining their grounds, relaying fields, and having stadiums sit empty to protect their pitchs. No matter how much crying and nashing of teeth is heard FieldTurf is coming. England will be the last hold out, but FieldTurf is coming. Sooner rather than later.

[Guest Jeffery S.]

quote:Originally posted by Leafs

Who cares about the rugby team. I dont.

We have a national rugby league. It is not unattractive, in fact I think it is quite well presented. Still, only three thousand were there in Sask for the last final (think The Rock won it).

I could see the odd international friendly or a Canada qualifier for the World Cup in a "nice" stadium like what we hope to see in TO or Vancouver.

[Daniel]

Although I hate answering trolls, I've been doing a lot of it lately.

I don't care about rugby either, but one article contains this passage: "Somewhere in the neighbourhood of 100 days will be taken up by community usage while there also will be concert dates, perhaps a handful of visits by the Canadian NationalRugby team and a minimum of 21 events by the Toronto Lynx and the Lady Lynx of the USL."

[DoyleG]

quote:Originally posted by Jeffrey S.

We have a national rugby league. It is not unattractive, in fact I think it is quite well presented. Still, only three thousand were there in Sask for the last final (think The Rock won it).

The average attendance for the RCSL is about 1,000/game made up mainly of the rugby community (no much promotion in the media) and the RU's own facilities (which are difficult to get to). So were talking about a league that is at least supported by it's own community.

quote:Originally posted by Jeffrey S.

I could see the odd international friendly or a Canada qualifier for the World Cup in a "nice" stadium like what we hope to see in TO or Vancouver.

A test match in Vancouver would certainly be played in the Whitecaps stadium while TO would still see matches at York University. The Churchill Cup looks to be staying in Edmonton for the next while (No women's tournament for this year or next since Edmonton is hosting the 2006 Women's Rugby World Cup)

RWCQ's will be used to help spread the game across the country.