SBJ Analyzes

 

Tonight in Unpacks: In anticipation of Saturday’s MLS Cup in Los Angeles, Commissioner Don Garber hints that fewer MLS teams may participate in future versions of the Leagues Cup to facilitate more matches against Liga MX clubs, as reported by SBJ’s Alex Silverman.

Also tonight:

• Following a year of dodging bankruptcy, Learfield concentrates on expansion
• NFL preparing to revise the revenue-sharing model for premium seating
• Galaxy sets a growth record prior to MLS Cup showdown
• Steelers establishing foundations for success in Ireland

Tune in to SBJ’s top podcast, Morning Buzzcast, where Abe Madkour wraps up the week with updates on Las Vegas greenlighting crucial agreements for the A’s proposed stadium, the NBA making its return to China after a hiatus since 2019, and the debut of Canada’s first WNBA team, among other topics.

MLS Commissioner Don Garber indicated during his State of the League press event on Friday that modifications are forthcoming in the Leagues Cup to guarantee increased matchups between MLS and Liga MX clubs during the tournament.

On the eve of the Galaxy and Red Bulls matchup for the MLS Cup, Garber also expressed his desire to see all 30 MLS teams engaged in at least one tournament beyond league play; that a greater number of MLS teams are likely to join the U.S. Open Cup in 2025 compared to the eight that participated this year; and that “it will be nearly impossible for all teams to take part in every tournament.”

Together, these remarks imply that the Leagues Cup, entering its third season in 2025, may not feature every MLS club in future tournaments. Reducing the number of participating MLS teams could ease scheduling conflicts and foster more cross-border matchups in tournament scenarios. (The disparity in size between the two leagues — with MLS featuring 29 teams in the last two seasons compared to Liga MX’s 18 — has led to many contests between two MLS teams.) It remains uncertain if MLS would entirely suspend its regular season for the Leagues Cup should some clubs opt out of participation.

Minimal break for Club World Cup: Referring to pauses, Garber announced that MLS will halt its regular-season schedule in 2025 for a segment of next summer’s Club World Cup, set to occur in the U.S. from June 15 to July 13 and involving two MLS teams: the Sounders and Inter Miami. Garber did not specify the length of the league’s pause, but it is reasonable to assume it will coincide with the group’s stage of the tournament, where both teams are assured to play three matches. If either team progresses beyond the group stage (neither is expected to be favored), the league may need to reschedule their regular matches. MLS’s schedule release, anticipated later this month after the league’s Dec. 12 board meeting, will clarify the Club World Cup break and potentially outline plans for the Leagues Cup. The league has also indicated its intention to take a break for the entirety of the 2026 FIFA World Cup, which will take place across the U.S., Canada, and Mexico.

Apple insights: Garber additionally commented on the initial two seasons of the league’s 10-year media rights deal with Apple. He understandably refrained from disclosing a subscriber count, but Garber noted that the league is pleased that its collective Saturday night viewership across matches has surpassed “over a million viewers.” When asked if being part of the Apple ecosystem has restricted visibility to a broader audience, Garber indicated that the league must improve its efforts in communicating the availability of multiple free games each week. He also expressed hopes for enhanced access to the Apple TV platform on Android devices, which is currently only available through a web browser.

Board agenda: The upcoming meeting of the league’s board of governors is anticipated to include significant discussions, including a potential shift to a fall-to-spring (European) calendar and updates to the league’s roster regulations that could afford teams greater financial flexibility.

Regarded as a strong turnaround for Learfield over the past 15 months, the company navigated severe financial challenges, prioritized data analysis, and diversified its service offerings.

The organization completed a recapitalization in September 2023 that substantially lowered its $1.1 billion debt while infusing an additional $150 million into new investments. CEO and President Cole Gahagan devoted a significant portion of this period to traveling nationwide to restructure agreements and preserve the majority of the company’s client base while avoiding bankruptcy.

Since then, Learfield has recorded unprecedented financial growth in the past year, achieving $1.2 billion in gross revenue, although its debt still exceeds $500 million.

SBJ’s Ben Portnoy explores the future prospects for the collegiate sports giant in this Early Access preview of next week’s magazine.

One key factor suppressing inflation in NFL ticket prices isn’t merely supply and demand; it’s the league’s own revenue-sharing policies. Now, however, the league is ready to amend this, according to sources.

An executive group has finalized changes to the revenue-sharing framework for club seats and suites, believing that the current guidelines discourage teams from raising general admission seat prices — counter to the policy’s initial intent to support team profits across the board.

This issue will be presented to teams at the regular owner meetings in the Dallas area this week and is likely to be approved. If adopted, it is slated to take effect in the 2025 season.

“Everyone appreciates revenue sharing, but nobody relishes sharing their profits,” a ticketing expert shared with SBJ’s Ben Fischer, who details this in an Early Access preview of next week’s magazine.

On their path to the franchise’s first MLS Cup appearance since 2014, the L.A. Galaxy achieved their highest year-over-year revenue growth in their 30-year existence, states SBJ’s Alex Silverman. According to AEG President and CEO Dan Beckerman, the team’s ticket revenue alone surged by 38% during the regular season in comparison to 2023. 

The Galaxy’s 2024 season commenced with a match against Inter Miami (featuring Lionel Messi) at an upgraded Dignity Health Sports Park, led to a first-place finish in the Western Conference during the regular season, and will culminate in an MLS Cup showdown at home against the Red Bulls. This marks an extraordinary comeback for a club that parted ways with longtime team president Chris Klein amid fan protests in 2023 — resulting in the advancement of Tom Braun (an SBJ Forty Under 40 honoree in 2023) to president of business operations and COO and Will Kuntz to GM — ultimately finishing second-to-last in the Western Conference standings.

Beckerman identified numerous possibilities for the Galaxy to further increase revenue in 2025. Concerning sponsorships, the team has an empty sleeve patch position that AEG Global Partnerships aims to sell for the 2025 season. MLS franchises typically fetch about $1 million annually for such placements, and the Galaxy could secure a significantly higher amount given their market prominence and recent success. 

An Irishman in Dublin once mentioned to SBJ’s Ben Fischer that no one in his nation would ever care about American football — until an Irish player emerges as a star, at which point the pubs would be filled with enthusiastic fans proudly wearing his jersey. This beer-fueled conversation came to mind last week when he conversed with Dan Rooney, the Steelers’ director of business development and strategy, about the team’s initiatives to cultivate a fan base in Ireland.

This week’s SBJ Football newsletter also features:

• Simpsons-themed ‘MNF’ alternate cast has ESPN, Sony, and show runners going all out
• Outgoing NFLPA spokesperson George Atallah evolved alongside the role

Boxing video games have not captured broad audience interest for an extended period, but Undisputed is making waves. Its performance on the best-sellers chart in October certainly caught SBJ’s Jason Wilson by surprise — as it did for Circana’s Executive Director/Video Games Mat Piscatella, the chart’s curator. Undisputed, produced by Deep Silver, debuted at No. 4 for PS5, Xbox Series X/S, and PC while outperforming every other sports title available.

Included in this week’s SBJ Gaming newsletter, Wilson reports on Golden Tee creator Incredible Technologies’ aspirations to develop a new sports arcade game and expand its Golden Tee competitive leagues into amusement venues or bars like Dave & Buster’s and Buffalo Wild Wings.

• The Bucks partnered with Lululemon to set up a small kiosk selling Bucks-themed or inspired Lululemon merchandise on the main concourse at Fiserv Forum this season, and the stand is rapidly selling out, with several games having already surpassed sales projections, reports SBJ’s Bret McCormick.

• Mobile game developer Aquimo has secured its first significant broadcast partner — and its first in Canada — through a deal with Sportsnet, which will integrate a mobile hockey game into Saturday’s “Hockey Night in Canada” broadcasts starting tomorrow, highlights SBJ’s Rob Schaefer.

• The F1 Abu Dhabi Grand Prix, closing out the season, has moved from ESPN2 to ESPN for Sunday morning (8am ET start), announces SBJ’s Austin Karp. This adjustment comes as ESPN aims for a viewership increase over last season (2024 has been relatively stable, following record attendance figures for the recent Qatar race on ESPN last weekend).

• MLB Commissioner Rob Manfred clarified his comments made at an event Thursday regarding the Golden At-Bat concept first mentioned on a podcast last month, emphasizing that if “you disapprove of the idea? I wouldn’t be overly worried about it right now,” according to YES Network.