a couple of weeks ago, I was in Denver, Colorado for an actuarial conference. The local MLS (Major League Soccer) team, the Colorado Rapids were playing at home against the Timbers from Portland.
I went to Dick's Sporting Goods Park to see the game. A look at the standings showed me both teams were at the bottom with less than 2 months to go.
When I got to the stadium, I saw a display celebrating the season when the Rapids were the Champions. It was only 2 years ago.
How could a club went from top to bottom in such a short time? was the structure of the MLS the reason?
Founded 19 years ago in 1993, the MLS operates as a single unit. Most of the financial aspects are controlled by the League. For example, the League collects all the revenues and decides how they are distributed and negotiates all the contracts with the players.
You can invest in the MLS and become an owner of a team. Actually, the MLS allows you to own more than one team. For the 2012 season, you will be given a budget of a little more than 2.8 million USD to pay the salaries of the 20 players on your team.
The minimum salary is 44,000 USD and the maximum is 350,000 USD. You are allowed up to 3 players whose salary can exceed the max. You (as the owner) are responsible for the amount over the max but this amount does not count againstyour budget.
These highly paid players are called DP, Designated Players and the rule allowing DP was introduced in 2007 when David Beckham wanted to come to the US.
I went to Dick's Sporting Goods Park to see the game. A look at the standings showed me both teams were at the bottom with less than 2 months to go.
When I got to the stadium, I saw a display celebrating the season when the Rapids were the Champions. It was only 2 years ago.
How could a club went from top to bottom in such a short time? was the structure of the MLS the reason?
Founded 19 years ago in 1993, the MLS operates as a single unit. Most of the financial aspects are controlled by the League. For example, the League collects all the revenues and decides how they are distributed and negotiates all the contracts with the players.
You can invest in the MLS and become an owner of a team. Actually, the MLS allows you to own more than one team. For the 2012 season, you will be given a budget of a little more than 2.8 million USD to pay the salaries of the 20 players on your team.
The minimum salary is 44,000 USD and the maximum is 350,000 USD. You are allowed up to 3 players whose salary can exceed the max. You (as the owner) are responsible for the amount over the max but this amount does not count againstyour budget.
These highly paid players are called DP, Designated Players and the rule allowing DP was introduced in 2007 when David Beckham wanted to come to the US.
with the DP from Portland Timbers, Kris Boyd of Scotland
In the 5 seasons since the DP rule was introduced, 5 different teams have won the Championship but only 2, Columbus Crew and Los Angeles, have won with a DP.
Colorado Rapids won the 2010 Championship without a DP. The owner of the Rapids is a rich man by the name of Stan Kroenke. And the popular belief is that Mr. Kroenke likes to win without spending a lot of money.
Mr. Kroenke is also the owner of Arsenal of London and of the Premier League.
Similar to the MLS, the Premier League was founded 20 years ago in 1982.
Unlike the MLS, the Premier League was founded because the top clubs wanted to keep most of the
revenues to themselves instead of sharing them with the teams from the lower divisions
In 20 seasons of Premier League, only 5 clubs have won the title. Blackburn and Manchester City each once. Chelsea and Arsenal each 3 times. And 12 times, that other team from Manchester has won.
There is no parity in the Premier League.
In 16 seasons of the MLS, 9 different clubs have won the titles.
The Colorado Rapids will unlikely win the title this year but when I saw them 2 weeks ago, they beat Portland 3-0 with many young and inexpensive players.
Every time the Rapids scored, a cannon at one end of the stadium went off.
I don't remember seeing a cannon at the Emirates!!!
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