Alex Abrams’ Post

The dichotomy of #sportbusiness in a nutshell. The lack of #prorel in MLS has certainly increased franchise valuations at times-revenue must faster and higher than anyone expected. De-risking may not be a word but it certainly is a concept for MLS franchise operators that don't have to worry about poor performance as much as clubs do in the best football leagues in the world. The risk of relegation (ie. league wide revenue streams) does not exist. Promotion-relegation is better as a sporting concept and better for communities on the outside looking in. Do we do what is better for the sport or what is better for the business.

Would you rather own Austin FC or Newcastle United? Ponder that while you read Sportico's ranking of the 50 Most Valuable Football (soccer) teams in the world. Manchester United being at the top gives off a very "Dallas Cowboys" vibe, doesn't it? I did a little number crunching on this data, and here's an interesting tidbit: MLS teams got a valuation multiple of almost 10 to 1. The rest of the top 50 got an average of 4.4 to 1. Even the Premier League came in at 5.7 to 1. What do you think? Is it confidence in the American commercial model or an American franchise bubble? https://lnkd.in/g-BqH2W3

With the 2024 MLS season giving way to the Leagues Cup schedule, we have taken the time to understand the evolving strategies that define successful team management in today’s competitive landscape. Our latest article offers an in-depth analysis of MLS roster strategies for 2024. Discover the critical factors influencing team performance and the strategic adjustments teams are making to stay ahead. Explore the full insights here: https://lnkd.in/etcwwDnn #mls #roster #strategy #cap

So much potential in this area where I grew up. Many options for urban renewal.

Another brilliant breakdown by the fantastic Brendan Coffey at Sportico. Highlights include the big winners in the minority shareholding sale by the Manchester United owners! 💰 The numbers are staggering. The Glazers have earned approximately $2.31 billion in cash, which includes proceeds from all sales thus far, along with the 25% stake sold to Jim Ratcliffe. This is from a club that the elder Glazer acquired for $1.4 billion in a leveraged buyout (LBO), a model where owners purchase a target company using debt financing, with the loan secured against the existing assets of the target entity. ⬇ The drawbacks of such a model can be substantial. Firstly, it's often viewed as a predatory approach for business owners seeking to acquire target companies. 🏦 Securing additional financing proves challenging due to the scarcity of assets available to guarantee the loan. The existing assets are typically pledged at the outset of the transaction, rendering it nearly impossible to secure additional funds. It remains uncertain whether, in the future, club owners will continue to pursue similar models of acquiring clubs to generate astronomical profits. #manchesterunited #leveragedfinance https://lnkd.in/gmHifEqp

Sport as a new economy. Since 2005, the value of sports franchises in the United States has significantly exceeded the S&P 500 index. Of the four major North American sports leagues, the NBA currently has the highest average price-to-earnings ratio at around 9. The average NBA team's revenue is $310 million, and the average club's value is $2.6 billion. #sport #economy #US #NBA #revenues

Calling all club managers, sports executives, and finance professionals! Looking to level up your club's financial game during the off-season? Last weekend, I had the incredible opportunity to abseil down the iconic Anfield stadium, home of Liverpool FC. As I descended, I couldn't help but consider the endless revenue generating potential of football stadiums. Let's explore some exciting revenue streams clubs can implement during the off-season, beyond the usual match day income. 🎮 How about hosting adrenaline-pumping e-sports tournaments at your stadium, tapping into the booming gaming industry? 🧺 Or host a picnic on the pitch? Imagine fans, families and friends basking in the sunshine, soaking in your club's legendary atmosphere. What unique and exciting revenue streams have you considered or implemented during the off-season? Are there any success stories, inspirations, or out-of-the-box ideas you'd like to share? Let's exchange insights below! 👇 Don't miss out on the opportunity to consult with Goal Assist for expert advice on navigating football finance successfully. Reach out today and let's unlock the full potential of your club! #GoalAssist #FootballFinance #InnovativeIdeas #RevenueStreams #OffSeasonOptimisation #FinancialSuccess 

Led by Toronto billionaire Larry Tanenbaum’s Kilmer Sports Venture, the team will begin play in 2026. It will use the 8,000-seat Coca-Cola Coliseum as its home arena. The Toronto franchise will be the WNBA’s first based outside of the United States. The league has played exhibition games in Canada in the past two seasons, including in Toronto in 2023. WNBA commissioner Cathy Engelbert called the exhibition a “seminal moment” for the league in its desire to expand a global platform. A WNBA franchise has been a thorny issue inside Maple Leaf Sports and Entertainment, the multi-pronged ownership group that runs the Toronto Maple Leafs, Toronto Raptors, Toronto FC, Toronto Marlies, Raptors 905 and Toronto Argonauts of the Canadian Football League. The expansion into the Canadian market also comes amid a period of significant growth in the WNBA. As viewership numbers are skyrocketing to record highs and a new crop of potential stars enter the league, the WNBA announced that it would be instituting a full-charter program beginning this season. Philadelphia, Portland, Ore., Denver, Nashville, Tenn., Charlotte, N.C., and South Florida are other places the league is exploring as options for expansion. #DrexelSBIZ #SportBusiness #WNBA #Toronto #TorontoRaptors #NBA #Basketball #CaitlinClark #AngelReese

⚽️ At the start of season, 10star Strategic advisor Simon Trim discussed the challenges in setting odds for The Premier League - and how operators can successfully separate the signals from the noise. 🗣️ "In today’s industry, signals are hard to come by. Operators have outsourced large parts of their trading operations to supply chains that have no experience of constructing prices without a market to copy from. "The result is that most prices are blindly following market moves, in a belief that 'staying in line' means staying away from bad business. It doesn’t matter if you don’t know what the price to lay should be on an outcome, if your business model is built around restricting access to customers that show they know more about betting than your supply chain does. "The only long-term sensible answer for operators is to find a way to buck this trend. Read more at iGamingBusiness ⬇️ #sportsbook #data #football #soccer #premierleague