The Major League Soccer league-wide TV broadcasts rights are up at the end of the 2014 season. Unfortunately for the MLS, the NBA is on the same schedule. The MLS' viewer numbers have been flat to down over the past two seasons. There are many factors at play, including the loss of David Beckham and the unpredictable TV schedule that forces viewers to guess when they can watch their favorite teams play. But the sad reality is that the MLS suffers from a lack of product quality which can be explained by its low salary numbers relative to the other soccer leagues world-wide. The average MLS team spends approximately $5mi dollars annually on its players. This puts it line with the third-tier leagues world-wide. Some of the top tier leagues, such as the English Premier League and the Germany Bundesliga are being shown on US TV every weekend. According to some estimates, there are 60 million knowledgeable soccer fans in the US who follow the US National Team. Of those 60 million, 55 identify as fans of the EPL, while 5 identify as fans of the MLS. While some might argue that this creates a massive opportunity for the MLS, I would argue that this is a very scary reminder that consumers can not be tricked into consuming a lesser product, in this case, the MLS. If given the choice of where to spend their soccer-TV viewing hours, the US consumer has gone for quality. What does this all mean, and how does it fit in with this class? I believe that the MLS will not be offered a substantial TV deal for 2015 and beyond. This will mean that the league will have two options: 1) take a lesser deal with a traditional broadcaster or 2) go rogue and do a deal with a Youtube or Youtube competitor and put the majority of their games online. This would be revolutionary but could create a massive opportunity for the MLS and pave the way for the future of live-TV.
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