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Billionaires, celebrities, and CEOs like Bob Iger are investing in U.S. soccer—and the beautiful game’s American gold rush is just beginning
2024-10-11
The Meteoric Rise of U.S. Soccer: A Billion-Dollar Bonanza for Billionaires, Celebrities, and Sports Enthusiasts
The world of professional sports is undergoing a seismic shift, as private equity firms, billionaires, CEOs, and Hollywood celebrities race to capitalize on the explosive growth of Major League Soccer (MLS) in the United States. With attendance figures rivaling the NFL, billion-dollar media rights deals, and franchise fees soaring to unprecedented heights, the U.S. soccer landscape has become a prime target for savvy investors seeking the next big opportunity.Unleashing a Tidal Wave of Wealth in American Soccer
The MLS Juggernaut: Shattering Records and Defying Expectations
The MLS has emerged as America's fastest-growing professional sports league, defying the long-held perception that soccer has been an afterthought in the country's sports landscape. The league's remarkable rise is fueled by a confluence of factors, including booming attendance, lucrative media rights deals, skyrocketing franchise fees, and insatiable fan demand.MLS games are now drawing an average of 23,000 fans per game, surpassing the attendance figures of the NBA, NHL, and even rivaling Major League Baseball. Some MLS season games have even managed to draw crowds of 72,000 to 82,000, eclipsing the attendance of the last 10 NFL Super Bowl championships.The league's media rights have also seen a staggering surge, with Apple acquiring the MLS rights for a staggering $250 million per annum, nearly three times the previous deal of $90 million per annum. The MLS Season Pass, launched by Apple, has already amassed over 2 million subscribers, outpacing the NFL's Sunday Ticket on YouTube, which has 1.3 million subscribers.Franchise Fees and Valuations Soaring to New Heights
The rapid growth of the MLS has also been reflected in the skyrocketing franchise fees and team valuations. In the past two years, the league has welcomed 10 new teams, with the most recent expansion franchise, San Diego FC, paying a record-breaking $500 million fee – nearly three times the $200 million paid by St. Louis City FC just a year earlier.The average MLS franchise value has climbed at a rate five times faster than other U.S. professional sports leagues, with several teams now valued at over $1 billion. This remarkable appreciation has even led to some MLS franchises surpassing the valuations of teams in the NHL, English Premier League, Serie A, and La Liga, a feat that was unimaginable just a few years ago.The Messi Effect: Inter Miami CF's Meteoric Rise
At the forefront of the MLS's meteoric rise is the story of Inter Miami CF, a team that has captured the attention of the global soccer community. The arrival of soccer superstar Lionel Messi has single-handedly transformed the fortunes of the franchise, nearly doubling its valuation in just the past year.Inter Miami CF is now the third most valuable team in the league and is widely expected to overtake the top spot by next year. The team's managing owner, billionaire entrepreneur Jorge Mas, has ambitious plans to elevate the club to the ranks of the world's top soccer teams, stating, "Our aspirations go beyond just being the best club in the United States. With our global vision, we've elevated our Club to stand among the top fútbol clubs in the World."The "Messi Effect" has been nothing short of extraordinary, with the team shattering dozens of records in the past year, including the highest valuation growth rate and revenue growth rate of any U.S. sports team across all leagues. Inter Miami CF's Instagram following has skyrocketed from 1 million to 17 million, making it the third most-followed U.S. sports team on the platform, surpassing even the NFL's most popular teams.The Rise of Women's Soccer: Angel City FC's Billion-Dollar Ambitions
As the MLS continues to captivate the nation, the National Women's Soccer League (NWSL) has also emerged as a prime investment opportunity for savvy investors. The league has witnessed a surge in team sales, with the Portland Thorns FC selling for $63 million, the Seattle Reign FC acquired by Carlyle Group for $58 million, and the San Diego Wave fetching a staggering $120 million – a 60-fold increase from its $2 million franchise fee.The valuation champion, however, is LA's Angel City FC, which has become the most valuable women's sports franchise in the world. In 2024, Disney CEO Bob Iger and his wife Willow Bay invested more than $50 million in the team, propelling its valuation from $180 million to $250 million overnight – surpassing the $140 million valuation of the Las Vegas Aces, previously the most valuable women's sports team in the U.S.Angel City FC's president, Julia Uhrman, is confident that the team's growth trajectory will continue, stating, "It's no surprise valuations in women's football (aka soccer) are growing. Angel City drives real value and revenue…we will be the fastest women's club to reach a billion-dollar valuation."The Billionaire Boys Club: Investing in the Future of U.S. Soccer
The surge in MLS and NWSL valuations has attracted a diverse array of high-profile investors, from billionaire businessmen and CEOs to Hollywood celebrities and sports icons. These titans of industry and entertainment have recognized the immense potential of the U.S. soccer market and are racing to secure their stake in the game's explosive growth.The list of MLS franchise owners reads like a who's who of the business world, including the likes of Bob Iger (Disney), Satya Nadella (Microsoft), Alexis Ohanian (Reddit), Masayoshi Son (SoftBank), and a host of other prominent figures. These investors are not only drawn to the league's financial prospects but also the prestige and global reach that comes with owning a professional soccer team.The international billionaire contingent is equally impressive, with names like Robert Kraft (Kraft Group), Jorge Mas (MasTec), Mohamed Mansour (Mansour Group), and David Blitzer (Blackstone) among the high-profile owners. These global investors understand the universal appeal of soccer and the untapped potential of the North American market, positioning themselves to capitalize on the sport's growing popularity in the region.San Diego FC: The Next Frontier in U.S. Soccer
The MLS's newest franchise, San Diego FC, is poised to make a significant impact on the American soccer landscape. Backed by British-Egyptian billionaire Mohamed Mansour, the team is set to debut in 2025 and is already generating immense excitement.San Diego is widely regarded as the epicenter of American soccer, boasting the nation's highest youth soccer participation and being the top contributor of talent to the U.S. professional soccer ranks. With a thriving soccer culture and a passionate fan base, San Diego FC is well-positioned to capitalize on the growing interest in the sport and further fuel the MLS's remarkable rise.Mansour, in his autobiography "Drive to Succeed," expressed his confidence in the future of soccer in America, stating, "We are hugely optimistic for the future of the sport in America—the sky truly is the limit—and we think the club's valuation will soar."As the MLS continues to shatter records and attract a diverse array of high-profile investors, the future of U.S. soccer has never been brighter. From the "Messi Effect" at Inter Miami CF to the billion-dollar ambitions of Angel City FC, the American soccer landscape is poised to become a global powerhouse, captivating fans and investors alike.