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Competition Strategy: The Case of Major League Soccer The ‘American Way or the European Highway’. Whitworth, L. Submitted version deposited in CURVE July 2016 Original citation: Whitworth, L. (2015) Competition Strategy: The Case of Major League Soccer The ‘American Way or the European Highway’. Unpublished MSC by Research Thesis. Coventry: Coventry University Copyright © and Moral Rights are retained by the author. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. Some materials have been removed from this thesis due to third party copyright. Pages where material has been removed are clearly marked in the electronic version. The unabridged version of the thesis can be viewed at the Lanchester Library, Coventry University.

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CompetitionStrategy:

TheCaseofMajorLeagueSoccer

The‘AmericanWayortheEuropean

Highway’

LukeWhitworth

AthesissubmittedinpartialfulfilmentoftheUniversity’srequirementforthedegreeofMScR

AppliedManagement&Strategy

CoventryUniversity

September2015

Thecandidateconfirmsthattheworksubmittedishisownandthatappropriatecredithasbeengiven

wherereferencehasbeenmadetotheworkofothers.

I

Acknowledgements

Firstly,IwouldliketoexpressmygratitudetomyDirectorofStudies,Dr.

SamanthaGorse,forhercontinuedsupportandexpertguidanceoverthecourse

ofthisMastersdegree.Secondly,IwouldliketothankProf.SimonChadwickfor

hisadditionalsupport,especiallyatthebeginningofthisprocess.Ihavebeen

fortunatetohavebeenadvisedbytwoexpertsinthesportsindustry,andIhope

toworkalongsidethesetwooutstandingacademicsinthefuture.

AdditionalappreciationsmustbegiventotheFacultyofBusiness,Environment

&SocietyatCoventryUniversityforprovidingmewiththemeanstofinalisethis

study.

Iwouldliketopassonmysincerethankstoallthepersonnelwhotookthetime

tobeinterviewedthroughoutthisproject.Theirparticipationwascrucialtothe

completionofthisstudy.

TomyfriendsandcolleaguesathomeandatCoventryUniversity,thankyoufor

allthesupportoverthecourseofthisresearch.Inparticular,gratitudetoMatt

Taylorforallyourhelpoverthelastyear,Icertainlywillnotforgetit.Iwishyou

allthebestforthefuture.

And,finally,Iwouldliketoextendmyheartfeltthankstomyfamily,inparticular

myparentsRussellandKaren,andmysisterLucy,fortheiroverwhelming

supportoverthepastyear.Ihopeallthehardworkanddedicationthroughout

thisMastersdegreehasmadeyouproud.

II

Abstract

Therehasrecentlybeenanoticeableincreaseinthenumberofarticlesandblogs

surroundingthecaseofMajorLeagueSoccer.Thisriseisdowntotheenhanced

interestinfootballthroughouttheU.Sandtheirnationalleague,theMLS.Despite

theevidentgrowththeleaguehaswitnessedsinceitsintroductionin1996,the

governancestructureoftheleaguecontinuestobedeliberated.Thisstudyhas

beendesignedtoevaluatethedifferencesinsportingcompetitiondesign,

betweenfootballintheUnitedStatesandEuropeanfootball.Toaidthis

evaluation,MLSandtheEPLwillbeemployedascasestudiesforcomparative

analysis.ThefocusofthisresearchinvestigationistohighlighthowtheMLScan

becomemorecompetitiveontheinternationalstage.Theleaguehasreceived

variedviewsregardingthefutureoftheMLS,withcertainstakeholdersbelieving

thatMLSshouldlooktoconformwithitsEuropeancounterparts,whereasother

personnelholdtheviewthattheleagueshouldmaintainitsalreadyestablished,

conventionalNorthAmericanmodel.

Consequently,thisthesisexaminesthedifferencesincompetitiondesign

betweentheEPLandMLS,inwhichthefindingswillbeparalleledalongsidethe

MLS’currentdesigntoinitiatepotentialalternatives.Toaidtheanalysesofeach

competition’sstructure,in-depthsemi-structuredinterviewhavebeen

conductedwithmultiplestakeholderswithinthefootballindustry.These

interviewswererecorded,transcribedandanalysed,searchingforthe

emergenceofkeythemesandresponsestohowMLScanflourishinthefuture.

Analysisofdataindicatesthattherecontinuestobeadivideamongst

stakeholderssurroundingthecompetitiondesignoftheMLS.Basedonthese

findings,theconsiderationshavebeenconceptualised,allowingtheresearcher

tomakerecommendationsastohowMLScanbeconsideredamajorplayerin

thefootballindustry.

III

TableofContentsAcknowledgements...........................................................................................................I

Abstract................................................................................................................................II

TableofContents............................................................................................................III

ContentsofFigures..........................................................................................................VI

Abbreviations..................................................................................................................VII

1.Introduction...................................................................................................................1

1.1ChapterOverview......................................................................................................1

1.2IntroductiontoStudy................................................................................................1

1.2.1NorthAmericanvs.EuropeanSportsLeagues..............................................3

1.2.2MajorLeagueSoccer:AnIntroduction............................................................5

1.2.3TheEnglishPremierLeague...............................................................................7

1.3RationaleForStudy...................................................................................................9

1.4ResearchAims&Objectives.................................................................................10

1.5OverviewofResearchDesign..............................................................................11

1.6StructureofThesis..................................................................................................12

2.TheoreticalBackground..........................................................................................14

2.1ChapterOverview....................................................................................................14

2.2CompetitiveBalance...............................................................................................14

2.2.1AspectsofCompetitiveBalance.......................................................................17

2.3GovernanceInSport................................................................................................20

2.3.1DefiningSportGovernance...............................................................................22

2.4.1SportFranchiseOwnership..............................................................................24

2.4.2StructureofMajorLeagueSoccer...................................................................25

2.5GovernanceofEuropeanFootball......................................................................27

2.5.1GovernanceStructureinEnglishFootball...................................................30

2.6CompetitionDesigninFootball...........................................................................32

2.6.1CollectiveBargainingAgreements(CBA).....................................................33

2.6.2PlayerTradingInOpenandClosedSportingLeagues.............................34

2.7SummaryofTheoreticalBackground...............................................................36

3.ResearchDesign..........................................................................................................38

IV


3.2ResearchPhilosophy&Design............................................................................38

3.2.1GroundedTheoryApproach.............................................................................39

3.2.2Inductivevs.DeductiveApproaches..............................................................41

3.2.3ResearchDesign....................................................................................................43

3.2.4Single-EmbeddedCaseStudyApproach.......................................................45

3.2.5InterviewDesign...................................................................................................46

3.2.6Sampling..................................................................................................................47

3.2.7Reliability&Validity...........................................................................................50

3.3DataCollection&Analysis....................................................................................52

3.4MethodologicalConclusions.................................................................................54

4.ResearchFindings......................................................................................................56


4.2CompetitionDesign:TheAmericanWay.........................................................56

4.3 Competitive Balance: A Thing of The Past?.........................................................61

4.3.1TheSalaryCap.......................................................................................................62

4.3.2RevenueSharing...................................................................................................65

4.4TheDraftDynamic...................................................................................................67

4.4.1TheDraftInTheBigFour..................................................................................69

4.4.2TheNotSoSuperMLSSuperDraft...................................................................73

4.5AEuropeanisedMLSorAnAmericanisedEPL?.............................................81

4.5.1AEuropeanisedMLS............................................................................................81

4.5.2AnAmericanisedEPL..........................................................................................90

4.6TheUltimateLeague...............................................................................................93

4.7IsAEuropeanModelofGovernanceTheFutureforTheMLS?...............96

5.Conclusions&Recommendations......................................................................103

5.1ChapterOverview.................................................................................................103

5.2ResearchConclusions..........................................................................................103

5.3ContributionToKnowledge..............................................................................106

5.4FutureResearch....................................................................................................108

References......................................................................................................................110

V

APPENDIXA....................................................................................................................124

APPENDIXB....................................................................................................................155

APPENDIXC....................................................................................................................159

VI

ContentsofFigures

Figure1:TheDifferenceinCompetitionDesignBetweenU.S&EuropeanSports

Leagues………………………………………………………………………………………..4

Figure2:DrivingForcesBehindTheEmergenceofGovernanceWorkIn

EuropeanFootball………………………………………………………………….........18

Figure3:TheTop10WageBillsinTheEnglishPremierLeague…………………..29

Figure4:TheDifferencesBetweenTheDeductiveandInductiveApproach…..43

Figure5:InterviewRespondents………………………………………………………………..49

VII

Abbreviations

AFL–AustralianFootballLeague

AFLPA–AustralianFootballLeaguePlayers’Association

ASC–AustralianSportsCommittee

CBA–CollectiveBargainingAgreements

ECJ–EuropeanCourtofJustice

EPL–EnglishPremierLeague

EU–EuropeanUnion

FA–FootballAssociation

FAPL–FootballAssociationPremierLeague

FFP–FinancialFairPlay

FIFA-FédérationInternationaledeFootballAssociation

GSO–GlobalSportOrganisations

MLB–MajorLeagueBaseball

MLS–MajorLeagueSoccer

NASL-NorthAmericanSoccerLeague

NBA–NationalBasketballAssociation

NCAA–NationalCollegiateAthleticAssociation

NHL–NationalHockeyLeague

NFL–NationalFootballLeague

PBA–ProfessionalBasketballAgreement

UEFA–UnionofEuropeanFootballAssociationsUSL-UnitedSoccerLeague

1

1.Introduction

1.1 ChapterOverview

ThisresearchprojectexplorestheimplicationsofMLStransformingtheir

governancestructure,aligningmorecloselywiththatofEuropean

football.Thepurposeofthischapteristoinvestigatethecontextual

backgroundofthisstudy,aswellasspecifyingwhythisresearchhas

importanceforfootballintheUnitedStatesofAmericaandthewider

footballindustrymovingforward.Theintroductionsectionwillbeginby

justifyingtherationaleforthisresearch,thenintroducingbothNorth

AmericanandEuropeanSportsLeagues, followedbyamoreindepth

focusontheMLSandtheEPL.Theelectedmethodologicalconceptsare

accompaniedbydetailedaimsandobjectiveswithinthischapterto

demonstratetheresearcher’sgoalsandhowtherelateddatawillbe

collected.

1.2 IntroductiontoStudy

Thisresearchinvestigationwillseektoanswerthefocalresearch

question:‘ShouldMajorLeagueSoccerAdoptAMoreEuropeanStyle

ModelofGovernanceInOrderToBeMoreCompetitiveOnThe

InternationalStage?’Afterexaminingextantliterature,thisstudy

assessestheimportanceofgovernanceandcompetitiondesigninthe

footballindustry,withafocusonMLSandtheevidentdifferencesin

competitiondesignbetweenitandEuropeansportsleagues.Theconcepts

ofbothMLSandEPLleague’sstructuresarecriticallyanalysedandthen

appliedtotheMLSasacase,attemptingtocreateacompetitiondesign

thatwillallowtheleaguetobecomecompetitiveontheinternational

stage.Theresearcherhasdecidedtoplacealargeremphasisonthe

adoptionofthecollegedraftsystemthroughoutthedatacollection

process,thusofferingfurtherproposalsinthelatterpartofthis

2

study.CollegedraftsarehighlyregardedintheU.Sasitisthe

transformationfromtheamateurgameintoprofessionalsport.ForMLS,

thedraftencourageshome-growntalent,somethingwhichisbecominga

escalatingissueinEuropeanfootball.Therefore,itwillbestimulatingto

examinehowthedrafteffectscompetitioninMLScomparedtotheEPL

specifically.

InevaluatingtheopinionsofkeystakeholdersdirectlyrelatedtoMLS,this

researchwillanalysetheresponsesofthesepersonnelinrelationto

potentialmodificationstothegovernanceofMLS.TheMLSisahottopic

withinthefootballindustry,asshownbythesignificantincreasein

academicliterature;(Fort,R.2000;Szymanski,S.&Valletti,T.2005;

Kesenne,S.2006)theleaguehasseenincrediblegrowthoverthelast

twentyyears,fromjusthavingtenteamsandthreeowners,Morrell

(2013)emphasiseshowtherearenow19teams,withtheadditionof

furtherfranchisesonthehorizon.Additionally,‘’averageattendancehas

surgedto18,600,amorethan35%increasefromthe2000nadirofjust

over13,700’’(Morrell,2013).DespitetheevidentgrowthMLShas

witnessed,manyacademicsandsportsprofessionalsbelievethatthe

league’scurrentgovernancestructureisnotaviablepropositionifthe

leaguewantstochallengethepowerhousesinEurope.Rosen&

Sanderson(2001)providethefollowingargumentthatisof

fundamentalimportancetothisinvestigation,regardingthesemajor

differencesincompetitiondesign.

‘’AllschemesusedintheUnitedStatespunishexcellenceinonewayor

another.TheEuropeanfootballapproachpunishesfailurebypromoting

excellentminorleagueteamstothemajorsanddemoting(relegating)poor

performingmajorleagueteamsbackdowntotheminors.Therevenueloss

fromapotentialdemotiontoalowerclassofplayisseverepunishmentfor

lowquality-severeenoughthatsalarytreaties,leaguesharing

arrangements,andunifiedplayerdraftsaresofarthoughttobe

unnecessary,eventhoughstarsalariesareenormous.Itisaninteresting

3

economicquestionastowhichsystemachievesbetterresults’’(Rosen&

Sanderson,2001:66)

1.2.1NorthAmericanvs.EuropeanSportsLeagues

Manyacademicshaveinvestigatedthestructureandperformance

oftheseparticularsportingcompetitions(Fort,2000;Zimbalist,

2002;Andreff,2011),whichhasresultedinmultitudesof

opinionsaroundwhichframeworkissuperior.Szymanski&

Valletti(2005)describehowU.Smajorleaguesarewellrenowned

forbeingperfectexamples ofbusinesscartels,asprofitabilityis

theprimaryaimoveronthefieldsuccess.Europeansporting

contestsare recognisedforbeingquitetheopposite.European

teamstypicallyfocusonresultsonthepitch,ratherthanoffthe

pitchactivities.Gardineretal(2012)explainthedifferences

betweenwinandprofitmaximisation,inwhichtheydescribethe

Europeanmodelassolelyfocusingonsportingsuccess,whereas

Americanteamsportsfocusonthegenerationofprofit.The

Europeanstrategyhashaditsdownfalls,asseenbyseveralteams

inEnglandfallingintoadministration,somethingthathassince

receivedextraattentionfromEuropeanfootballs’governingbody

UEFA,inthewayofFFP.

ItisevidentthattherearevariousdifferencesbetweenU.Sand

Europeanleagues.Thusfar,previouspapershaveconcentratedon

theimpactofimplementinganopenleaguedesignwithinMajor

Leaguesports(Noll,2002)and(Ross&Szymanski,2002).Other

academicpapershavehighlightedthecomparativeeconomics

withinthesesportsleagues(Andreff,2011)and(Buzzachietal,

2003).Despitethisresearch,thereisapaucityofacademic

researchbetweentheseinstitutionaldifferencesbeingappliedto

MLS.TheMLScurrentlydoesnothavethesameestablished

reputationasotherMajorLeaguesports,whichisperhapsan

4

explanationastowhyresearchintoU.Sfootballisnotasprevalent.

UnlikeotherMajorLeaguesports,footballisaglobalgame,hence

whythecomparisonbetweentheMLSandtheEPLislogical.

Figure1:TheDifferenceinCompetitionDesignBetweenU.S&EuropeanSportsLeagues

Thedifferencesaretheoreticallydescribedasbeingeitheropen

(European)orclosed(NorthAmerican).TheconventionalNorth

Americanmodelrepresentsafixednumberofmembersthatcan

bealteredthroughaplannedleagueexpansionprogramme

NorthAmericanModel

EuropeanModel

LeagueDesign

Closed:SingleLeague

Competition/NoPromotion&Relegation/League’s

ExecutivesGrantPermissionforEntry.

Open:Promotion&Relegation/TeamsAlsoCompeteinOther

EuropeanCompetitions.

LeagueFunctions

TVRightsNegotiated

Collectively/ImplementationofCentralisedMarketing

TVRightsNegotiated

Collectively

PlayerMarket

UniversityCollegeDraft/CollectiveBargaining

Agreements/SalaryCapRestrictions

TransferMarket:Off-Season(July-September)/WinterWindow(January-February)

PlayerDevelopment

UniversityCollegeProgrammes

/AcademySetup(MLS)

AcademySetup

Pro-CompetitionMeasures

RevenueSharing(TelevisionIncome/GateReceipts/

Merchandise)/CollegeDraft\SalaryCap/Playoffs

RevenueSharing(TelevisionIncome)

5

currentlyseenintheNHL,wherebypermissiontoentertheleague

isdecidedbyitsexecutives.Anopenleaguestructureisextantin

Europeanfootball,inwhichaprocessofpromotionandrelegation

isoperated.

Thisresearchintendstocriticallyanalysethenoteworthy

differencesincompetitiondesign,inwhichthefindingswillthen

beappliedtotheMLSinordertodeterminethebestdesignforthe

leaguetodevelopfurther.Footballexpertshavemixedviewsont

heMLSadoptingconventionalNorthAmericanmeasuresina

globalgame,butbyexaminingtheopinionsofkeystakeholders

operatingwithintheU.Sfootballindustry,thisresearchwillseek

toprovideanumberofrecommendationsapplicableforMLS’

futuredevelopmentinordertodeterminehowMLScanbe

determinedasa‘superleague’.

1.2.2MajorLeagueSoccer:AnIntroduction

TomostAmericansportsfans,MajorLeaguesportforyearshas

revolvedaroundfoursportingcompetitions(NFL,NBA,MLB,

NHL),commonlyknownasthe‘BigFour’.‘’In2014,35percentof

fanscalltheNFLtheirfavoritesport,followedbyMajorLeague

Baseball(14percent),collegefootball(11percent),autoracing(7

percent),theNBA(6percent),theNHL(5percent)andcollege

basketball(3percent)’’(Rovell,2014).Incomparisontotheother

‘BigFour’leagues,theMLSisstillinagrowthphaseof

development(althoughfootballdoeshaveasomewhatchequered

historyintheU.Ssportsmarket,withpastcreationsoffootball

leaguesprovinglessthansuccessful).Theleaguewaslaunchedin

1996(MLS,2014)andcurrentlyincludes20teams,butithasbeen

welldocumentedthattheleaguewillincreaseinthenearfuture

withtheadditionoffranchisesfrom;Miami,Orlando,Atlantaand

anotherteamfromLosAngeles.Thereputationoftheleagueis

6

certainlyinagrowthperiod,withmanywellrenownedplayers

joiningtheleagueoverthelastfewyears.

InpreviousyearstheMLShasexperiencedfinancialbattles,which

resultedinanumberofteamsfoldingduetoalackofspectator

interest.Despitethischallengingbeginning,MLShassincethrived,

asshownbythecontinuationofnewfranchises andtheoverall

profitabilityoftheleague.Asmentionedpreviously,theleague

operatesasasingleentity,inwhichtheteamsownersarealso

involvedintheleague’shierarchaldecision-makingprocesses.

OperatingaclosedleaguesystemmakestheMLSuniqueinthe

globalfootballindustry,asitisoneofaverysmallnumberof

footballleaguesthatimplementthisstrategy.

Theleague’splayingschedulerunsfromMarchtoOctober,

followedbyaNorthAmericantraditionofplayoffs.Teamsare

dividedintotwoconferences(East&West)dependingontheir

geographicallocations.

AmajordevelopmentintheMLSwastheintroductionofthe

DesignatedPlayerDevelopmentProgrammein2007.Theleague

‘’decidedontheconceptof"DesignatedPlayers"toallowcontrolled

expansionabovethesalarycaptoallowmajorsigningstocometo

MLSevenwithourrelativelylowsalarycap.MLSdecidedthateach

teamwouldgettwooftheDesignatedPlayerslotswhereonlyafixed

portionoftheirsalarywouldcountagainstthecap;’’(Calvert,

2014).ThisrulinghasallowedthelikesofDavidBeckham,Thierry

HenryandJermainDefoetoplayintheMLS,andfranchisestobe

abletospendmoremoneythantheirlowrewardsalarycaps,

somethingwhichishavingapositiveeffectonspectatornumbers

andmerchandisefigures.

‘’In2011,averageMLSattendancehit17,872tosurpassboththe

NBAandNHL,andithassinceincreasedto18,611fanspergame.

Moreimpressively,theaveragefranchiseisnowworth$103million,

7

upmorethan175%overthelastfiveyears;’’(Smith,2013).

AlthoughtheMLSisarelativelynewventure,itisobvioustosee

thatfootballismakinganimpressionintheUnitedStatesand

withinthefootballindustry,‘’MLShasexperiencedenormous

growthinitsseconddecade,doublingthenumberofteamsto20,

expandingtosixstatesandthreeCanadianprovincesandmoving

into11newsoccer-specificstadiums.Lastseason,average

attendancetopped19,000forthefirsttime’’(Baxter,2015).

1.2.3TheEnglishPremierLeague

Asalreadyhighlighted,therearemanydistinctdifferences

betweenanAmericansportingstructureandthemodelsadopted

byEuropeanSport.AsthisparticularresearchfocusesuponMLS

asaleaguewithinthesportingindustry,itisimportanttolookat

thecomparisonsinEuropeanLeagues,astheseleagueshavebeen

aroundformanymoreyearsandhaveestablishedidentities.‘’The

23rdeditionoftheAnnualReviewofFootballFinanceshowsthatthe

totalEuropeanfootballmarketgrewtoarecord£17.1billion

($28.65billion)in2012-13;’’(Masters,2014).Amajorpartofthe

Europeanfootballmarket’ssuccessistheEPL,thereforetheEPL

willbeusedasacasestudyasabenchmarkforrecommendations

andconclusionsthatwillbepresentedlaterinthisreport.

TheEPLconsistsof20clubs,whichoperatesarelationshipwith

theFootballLeague,toactivatethestrategyofpromotionand

relegation.The20memberclubsoftheEPLactasrolling

shareholders.Onceateamisrelegatedfromthe league,theypass

overtheirsharetoanewlypromotedside.Theleagueisthemost

watchedintheworld‘’theTVaudienceforPremierLeaguegames

is4.7bn,andthenumberofhomesreachedlastseasonincreased11

percentto643m.Intotal,theLeagueclockedup185,000hoursof

TVcoveragein2010/11,anincreaseof65percentontheprevious

8

campaign’’(PremierLeague,2012),amajorcontributiontothis

achievementisthehighlevelofcompetitiontheleagueoffers.The

globalinterestintheEPLhasseenbroadcastingrightsskyrocket

andcommercialbusinessflourish,makingtheleaguethemost

financiallysuperiorworldwide.Gibson(2015)summariseshow

broadcastersSkyandBTwillpayonaverage£10mpermatch,a

significantincreaseof70%.

TheEPLishighlyregardedasthebestfootballingleagueinthe

world,ashighlightedbythestatisticspublishedby(Premier

League,2015)above.Thispopularityispredominantlyduetothe

highlevelofcompetitionwithintheleagueandthepassionate

natureofsupporters.Withregardstothefinancialpowerofthe

PremierLeague;‘’Englandhassixclubsinthetop20(Richest

footballclubs).Thisislikelytoincreasenextyearwiththelatest

lucrativePremierLeaguetelevisioncontract’’(Deloitte,2014).Itis

RealMadridhowever,whoarestatisticallythemostpowerful

footballclubintheworld,asDeloitte(2014)statehowthisisReal

Madrid’sninthconsecutiveyearatthetopofthemoneyleague.

isRealMadrid’sninthconsecutiveyearatthetopofthemoney

league.

AnexampleofthefinancialpowerofthePremierLeagueisthe

expenditureofEnglishclubsduringthe2015SummerTransfer

Window;‘’playertransferspendingbyPremierLeagueclubsinthe

summer2015transferwindowreachedanewrecord,accordingto

analysisbythebusinessadvisoryfirmDeloitte.Grossspending

totalled£870m,4%uponthepreviousrecordof£835msetlast

summer’’(Deloitte,2015).Thesefiguressuggestthatthefinancial powerandpopularityofthePremierLeaguemayverywell

continueinthefuture,duetoincreasedcommercialactivities.

Theleaguehasaworldwidereputation,whichcanattractthe

world’sbiggestnames,andmaybeasuggestionastowhyrevenue

streamscontinuetoriseasaresultofmerchandising.‘’Inasummer

9

wheretheworld'sbestplayerswereonshowattheWorldCupwe

haveagainseenhowPremierLeagueclubsareabletosuccessfully

competeonaglobalstageintermsofattractingtalent;’’(Jonesas

quotedbyWilson,2014).TheMLSisinferiortotheEPLregarding

footballactivity,thereforeemployingtheEPLasacasestudyisa

suitablewayofanalysingtheMLS’positionwithintheindustry.

1.3 RationaleForStudy

Variousacademicshaveconductednumerousamountsofresearch

aroundMajorLeaguesports(Buzzachietal,2003;Pivovarniketal,2008;

Taylor,2011)relativetothediversityofcompetitionstructure,in

comparisontoEuropeansport.Themainconceptacademicshavefocused

uponpreviouslyisthetopicofcompetitivebalance(Rothenberg,1956;

Kesenne,2006;Borooah&Mangan2012),however,thereisashortageof

literatureintoanalysingthecompetitionandgovernancestructure

adoptedbyMLSspecifically,andtheeffectsaEuropeanmodelcouldhave

onthecompetitivenatureoftheleague.

Furthermore,despitefootballbeingaglobalgame,MLScontinuesto

implementaNorthAmericanmodelofcompetition,whichfocuses

heavilyoncompetitivebalanceandprofitmaximisation.MLSisthe

onlyfootballleaguethatembracesthefranchisephilosophywhichasks

thequestionwhetherthesuccessofaMLSfranchiseisdeterminedbyon-

fieldsuccessortheamountofprofitonthebalancesheet.MLS

commissionerDonGarberwasquotedstatingthat;‘’We’vegottobeina

situationwhereourclubsaremakingmoneyandnotlosingmoney,so

thatwecancontinuetoinvestinthisbusiness’’(GarberviaSzymanski,

2015).

DespitethisquotebyCommissionerGarber,MarkAbbotttheDeputy

Commissionerexplained;“Onacombinedbasis,MLSanditsclubs

continuetoloseinexcessof$100millionperyear”(AbbottviaSzymanski,

2015).Thisstatisticinitselfposestherationaleforthisstudy.TheNorth

10

Americanconceptlookstoincreasespectatorentertainmentthrough

equalityofcompetition,whilstallowingfranchisestogenerateprofit.

Evidently,thisisnotoccurringwithintheMLS,asshownbythequote

above;thereforeshouldMLSadoptamoreEuropeanstylemodelof

governanceinordertobemorecompetitiveontheinternationalstage?

WouldreplacingaspectsoftheNorthAmericanphilosophybyimitating

EuropeanfootballgivesMLSthebestopportunitytobecomemore

reputable,increasethechanceofformulatingprofitandcontinueto

meettheneedsofspectatorsthroughentertainmentandincreasedlevels

ofcompetition?

Thefocusofthisstudyprovidesanopportunitytomakeastrong

contributionwithinthesportmanagementfieldexploringtheacademic

theorysurroundingfootballbyhighlightinganumberofactionsthatMLS

canadopttoincreasetheoverallqualityoftheleague.Primarily,by

analysingtheresponsesofindustryprofessionalstoMLS’configuration,

theoreticalviewssurroundingtheleague’smechanismsaredeveloped

andcontextualisedindeterminingpositiveornegativeoutcomes.

1.4 ResearchAims&Objectives

Inordertoanswerthecentralresearchquestion:ShouldMajorLeague

SoccerAdoptAMoreEuropeanStyleModelofGovernanceInOrder

ToBeMoreCompetitiveOnTheInternationalStage?–andthe

evidentdeficiencyofacademicliteraturerelatingtoMajorLeagueSoccer,

itisimperativetohaveasetofclearaimsandobjectivestosuccessfully

answertheofficialresearchquestion.

Theaimsofthisinvestigationare:

• Toconceptualisecompetitiondesigninfootballandidentifykeyaspects

ofwhatmakesaleaguesuccessful

11

• Toevaluatetheopinionsofkeystakeholdersastotheimpactofeither

implementinganAmericanisedorEuropeanisedmodelofgovernance,

throughconductingsemi-structuredinterviews

• ToanalysewhetherimplementingaEuropeanisedmodelofgovernance

wouldpotentiallyimpacttheprofileofMLS

Furthermore,basedontheseaims,theobjectivesofthisresearchare:

• Todevelopanoperationaltemplateofwhatan‘UltimateSportingLeague’

shouldincorporate

• Tocriticallyanalyseaspectsofcompetitivebalance,thuscontextualising

thesekeyconceptsandprovidingaclearunderstandingoftheir

importanceinsportingcompetition

• Tointerviewindustryprofessionalsontheiropinionsofmechanisms

incorporatedintoMLS’competition

• Toevaluatetheopinionsofkeystakeholdersastotheimpactofeither

implementinganAmericanisedorEuropeanisedmodelofgovernance,

throughconductingsemi-structuredinterviews

• ToexamineinmoredetailtheimportanceofthedraftsysteminMajor

Leaguesports,incomparisonwithacademysetups

• ToassesswhichmethodofcompetitiondesignismostsuitableforMLS’s

futureoperations

• ToenvisagehowMLScanimproveinthefuture

• Toexploreextantliteraturesurroundplayertradingininbothopenand

closedsportingleagues

1.5 OverviewofResearchDesign

Thisstudyadoptsanexploratory,qualitativeapproachtoresearch

methodology,illustratingthemajorpreceptsofthegroundedtheory

approach(Glaser&Strauss,1967;Clamp&Gough,1999;Paterson,2013).

DuetothescarcityofspecificacademicliteratureintoMLS,anapproach

focusinguponthegenerationanddiscoveryoftheorywillprovide

12

considerationsfortheleagueanditsstakeholdersmovingforward.The

methodsappliedinthisstudyincludesingle-embeddedcasestudiesand

semi-structuredinterviews,whichwillprovideathoroughanalysisof

MLSandthemechanismstheyadoptfortheircompetitiondesign.The

methodologychapterofthisthesis(Chapter3)alsoanalysesdifferent

samplingtechniques,aswellasindicatingtheresearchapproach,to

ensuretheresearchisclearinitsdesign.

1.6 StructureofThesis

Evolvingfromtheevaluationofthetheoreticalbackgroundofthis

research,thechaptersofthisprojectreviewandanalyse;previous

theoreticalliterature;themethodologicalconsiderationsforthe

investigation;andfinallytheanalysesofthestudy’sfindings,

accompaniedbyfinalconclusions.

Thisthesisisstructuredasfollows;

• ChapterTwo:criticallyreviewsliteratureintheareasof;Governance In

Sport, Governance in Football, Competitive Balance and Competition Design,

assessingconceptsofMLSandEuropeanFootballtogiveawider

understandingoftheleaguesanditsnotions

• ChapterThree:outlinesthechosenmethodsofresearchdesignforthe

study,includingmethodsofdatacollectionandstrategiestoensureas

muchrichdataasispossible,giventheconstraintsofthisresearch

• ChapterFour:presentsthefindingsofthisresearchandtheimplications

ofthesefindingsarediscussed

• ChapterFive:presentstheconclusionsandrecommendationsdrawn

fromthisstudy

1.7 Conclusion

Therelativelyuniquefocusofthisstudyhasnotseentheacademicfocus

theareawarrantstodate,insteadmanyblogsandexpertopinionshave

13

beenalteredaroundthesubjectarea.Despitethecontinuedgrowthin

footballliterature,inparticularthefocusonbusinessandfinancial

activitiesassociatedwithfootballinEngland,MLSandtheircontinued

developmenthasperhapsnotreceivedasmuchacademicconsideration,

asitremainstobeassociatedasamoreinferiorleaguewithinthefootball

industry.Byconcentratingontheaspectsofcompetitiondesignand

governanceinfootball,thisstudyaimstomakeasignificantcontribution

tomanagementpractice,aswellasacademictheory,byevaluatingthe

responsesofkeystakeholderstowhetheranAmericanisedor

EuropeanisedmodelofgovernanceisbestsuitedforMLS’futuresuccess.

Overallthischapterhasbeencreatedtointroducetherationaleand

contextforthemotivationofthisinvestigation.Thefollowingchapter

highlightsthetheoreticalandacademicprinciplesofwhichthisstudyis

basedupon.Academicliteratureintogovernance,competitivebalance

andcompetitiondesigninparticularareevaluatedinthefollowing

chapter.

14

2.TheoreticalBackground

2.1 ChapterOverview

ChapterOneofthisthesishasidentifiedtheresearcharea,with

contextualbackgroundandjustificationfortheresearchhasbeen

provided.ThepurposeofChapterTwoistodevelopatheoretical

structurebasedonacriticalreviewandsynthesisofliteraturecreated

aroundtheconceptsofAmericansportandmorespecifically,football.

Thisparticularreviewofliteraturefocuseson;

• CompetitiveBalance

• GovernanceInSport

• GovernanceinFootball

• CompetitionDesign

2.2 CompetitiveBalance

Smith&Stewart(2010)statethatsportcanoftenbecomplicatedbythe

existenceofboththecommercialandnot-for-profitforms,however

despiteitsgrowingcommercialisationitostensiblypossessesmany

specialfeatures.Oneofthesespecialfeaturesistheneedtobe

competitivelybalanced.

‘’Theimportanceattachedtocompetitivebalanceispredicatedonthebelief

thatitisuncertaintyabouttheoutcomesofsportingconteststhatattracts

spectatorsandsponsors.’’

(Borooah&Mangan,2012:1093)

Theconceptofcompetitivebalanceinsportfirstbecameapparentwithin

NorthAmericanLeagues,andhasbeenamajorfactorofthesuccessof

AmericanSportssincethe1930s.First,itisimperativetogainanaccurate

understandingofthedefinitionofcompetitivebalancethroughthework

15

ofacademicexperts.Manyacademicshavediscussedthetheoryof

competitivebalance,‘’accordingtotheuncertaintyofoutcomehypothesis,

competitivebalancehasapositiveimpactonfaninterest’’(Rottenberg,

1956inPivovarniketal2008:76).Pivovarniketal(2008)continueto

discusshowcompetitivebalanceimpliesequalcompetition,emphasising

uncertaintyoftheoutcomeandproducingdrama.Manasisetal(2014),

theresearchersemployasimilardefinitionofcompetitivebalanceto

Pivovarniketal(2008)bystatingthatthenotionis,‘’reflectedbythe

uncertaintyofoutcomeinsportingevents,’’(Michie&Oughton2004via

Manasisetal2013:363).Thethreeacademicpartiesusedtoexplorethe

definitionofcompetitivebalanceallseemtobeincommonagreement

thatthetheoryofcompetitivebalanceisallrelatedtotheuncertaintyof

outcomeinsport,andadditionallymakestheviewingmuchmorethrilling

forspectators.

Rottenberg(1956)highlightshowtheabsenceofparticularlabour

policieswouldallowthelargerteamstoobtainthemostcapableplayers,

makingthecompetitiontoopredictable.ItiswellknownthatAmerican

Sportshaveintroducednewconceptsandregulationssuchassalarycaps,

revenuesharinganddraftsystemstocombatpredictability.Borooah&

Mangan(2012:1093)statethat‘’inaperfectlybalancedcompetition,each

teamwouldhaveanequalchanceofwinningeachmatchand,therefore,of

winningthechampionshiportheleague.’’TheNFLisagreatexampleof

thisquoteabovebyBorooah&Mangan(2012)as14teamshavewonthe

SuperBowlsince1992.Onthecontrary,onlyfiveteamshavewontheEPL

inthesametimeframe,suggestingthatthelevelofcompetitivebalancein

EnglishFootballisextremelylow.Additionally,itisimportanttostate

thattherearemajordifferencesbetweenNorthAmericanandEuropean

sportsleagues.Kesenne(2006:39)suggestthat‘’theUSleaguesareclosed

monopolyleagueswithnopossibilityofrelegationorpromotionandwitha

more-or-lessconstantsupplyoftalentatanygivenmoment’’.Kesenne

(2006)alsoexplainshowNorthAmericansportsdonotorganise

InternationalChampionshipsforthewinnersoftheirnationalleagues,

16

unliketheChampionsLeagueortheUEFACupinEuropeanfootball.

Furthermore,Europedoesnothaveanykindofdraftsysteminplace.

DespitetheEnglishPremierLeaguebeingcategorisedasan‘open’

sportingleague,wherebyteamscanbepromotedandrelegated,with

competitivebalancecharacterisedasbeinglow,theleagueisstillthe

mostwatchedaroundtheworld.Pudasaini(2014)stateshowthe

EPLwasthethirdhighestattendedsportsleaguewith35,931pergame,

sittingbehindtheBundesliga(42,421)andtheNFL(68,397).Thehigh

attendanceswithintheEPLcouldbedescribedasbeingsomewhat

bizarre,astheleagueismuchlesscompetitivebalancedthanothers

aroundtheworld.ItisnosurprisetoseetheNFLoccupythetopspot

regardinghighestleagueaverageattendances,astheleaguepresentsthe

biggeststadia,aswellashigherlevelsofcompetitivebalance;‘’together

withthedraftandsalarycap,revenuesharinghaskepttheNFLastrulya

sportthatcanbewonon"anygivenSunday."Anyteamcanbeatanyother

team,andmostteamshaveashottomakeittotheplayoffsiftheymakethe

rightoffseasonmoves’’(Schottey,2013).TheEPLcanalsobelabelledasa

‘freemarket’whereby,‘’teamswithgreaterfinancialresources(e.g.,due

tolocationinlargerpopulationcentres,morelucrativesponsorshipdeals

orlargersharesoftelevisionbroadcastingrights)canhirebetterplayers,

improveteamperformanceandincreasetheirdominance’’(Owen&King,

2013:1).Theideaoffreemarketisacompletecontrasttowhat

Rottenberg(1956)explainedwhendiscussingbaseball,asAmerican

sportsbelievetheconceptsincludedinEnglishfootball’sfreemarketare

classedasimbalanced,purelybecausethefinanciallysuperiorteamshave

norestrictionstopreventthemsigningplayers.Owen&King(2013)

discussthatthecharacteristicsofthefootballmarketinEngland

underminescompetitivebalanceandhencecertaintyofoutcomewhich,

inturn,canthreatenthesustainabilityoftheleagueduetotheexcessive

predictabilityofoutcomes.ThecharacteristicsconsideredbyOwen&

King(2013)regardingthepredictablenatureoftheEuropeantransfer

market,remainsanissueforthesport,thereforeuntilanysignificant

17

changesaremadebyfootball’sgoverningbodies,therewillbeavacancy

ofcompetitivebalanceinEuropeanfootballfortheforeseeablefuture,as

thecurrentguidelinesregardingthetransferofplayerscontinuesto

favourtheteamswithmorefinancialpower.Onthecontrary,governing

bodiesoperatinginNorthAmericansportshaveidentifiedthesematters,

andbyincorporatingregulationssuchassalarycaps,revenuesharingand

thecollegedraftaspartofbargainingagreements,havebeenableto

controltheseimbalances.

2.2.1AspectsofCompetitiveBalance

Thetheoryofcompetitivebalancehasbeenvitaltotheimportance

andsuccessofNorthAmericanSportsfordecades.Themost

popularaspectsofcompetitivebalancetobeintegratedby

AmericanSporthierarchiesare,salarycaps,revenuesharingand

drafts.(Masterson&CobyJr.,2013:36)statethat‘’oneofthetools

theNFLhasusedtopromoteparitybetweenthefranchisesisthe

salarycap.TheirCollectiveBargainingAgreementintroducedthis

capin1994withtheintentionofdestroyingthe“dynastyteams”and

tospreadtheleaguetalentaroundmorefrequently’’.Thethinking

oftheNFLwastoensurethatallteamshavethesameamountof

moneytospend,thereforehavethesameopportunitytosignthe

sameplayers.Perritano(2014:1)statesthat‘’thesalarycaponly

appliestoplayers,notcoaches,trainersorotherpersonnel.Each

seasonallteamscombinedmustspendonaverage95percentofthe

capormoreonsalaries,’’However,thevalueofthesalarycap

continuestogrowyearonyearduetotheincreasein

broadcastingrightsandcommercialisationinthesport,meaning

thatmorecapitalisavailableforNFLclubstospendonplayer

contracts.Breer(2014)explainshowtheNFLhavesetthisyear’s

salarycapatanalltimehighof$133millionforeachteam,and

eachteamislegallyobligedtostaybelowthisnumber.Thisisa

18

completecontrasttowhatisoccurringwithinthePremierLeague

regardingteamexpenditure.

Figure2:TheTop10WageBillsinTheEnglishPremierLeague

(Arshad,2013)

WhilsttheNFL’ssalarycapofferssignificantcontrolonplayer

salaries,thetable(figure3)createdbyArshad(2013)is

verificationofthecompleteimbalanceinplayerwagesinEnglish

Football.TheopportunityforthelikesofAstonVillaandEverton

tocompetewithManchesterCityforplayersigningsisimbalanced

This item has been removed due to 3rd Party Copyright. The unabridged version of the thesis can be found in the Lancester Library, Coventry University.

19

becausetheycannotaffordtopay‘topdollar’fortheirservices.

Thedifferenceinwagebills,betweenthelikesofChelseaand

Newcastleisastonishing,andeventhoughtheinclusionofFFPto

someextentistocontrolfootballfinances,FIFAasagoverning

bodyarestillstrugglingtocontrolthefinancialpowerofthe

moderndayfootballclub.

ThedraftsystemadoptedinNorthAmericansportshasalready

beentoucheduponwithinthisthesis,howeveritisimportantto

furtherinvestigatethismechanismduetoitsimpacton

competitivebalance.Bradbury(2010:1)statesthat‘’theamateur

draftgiveseveryteamintheleaguerightstovaluableplayer-

assetsthatteamscanusetobuildwinners.Thismechanismisfar

moreeffectiveatpromotingcompetitivebalanceanditlacksthe

disincentivesofrevenuesharing.Onlyteamswhodraftwiselyand

properlydeveloptheirplayersarerewarded’’.Ontheotherhand,

Gordon(2013)believesthatinactualfactthatthecollegedraftis

notapivotalmechanismtoencouragecompetitivebalance,but

insteadsuggeststhateventhoughdraftsrelocatetalent,teams

alwayshavethechoicetosellthatplayerforotherprospects

suchasdraft picksandoppositionplayers.Wehaveseena

numberofsuccessstorieswithregardstothedraft,particularlyin

theNFL.Itisalsoaconceptthatpromotesgreatmediaattention

andanexcitementamongstMajorLeaguefans,areasonwhythis

mechanismcontinuestobeincorporatedinCBA’sinNorth

Americansport.

Thethirdideaofcombattingcompetitiveimbalancethatis

importanttounderstandisrevenuesharing.Revenuesharingisas

itsounds,clubswithinleaguessuchastheNFL,NHLandMLBsplit

therevenuestheygenerateeachyear.Palomino&Rigotti(2002)

statethatrevenuesharingisacontroversialtopicwithinmany

professionalsportsleagues,anditsimportanceduetothelarge

paymentsteamsreceivefromTVbroadcasters.Revenuesharingis

20

anefficientconcepttocounteractcompetitivebalance,agreat

exampleofrevenuesharingisapparentinMLB.Forbes(2014)

statesthattheNewYorkYankeesrevenuegeneratedfor2013was

$461million,whereastheTampaBayRayswasconsiderablyless

with$181million.ObviouslythiswouldgiveTampaBayamassive

disadvantageifitwasn’tfortheinclusionofrevenuesharing.

‘’UnderthecurrentCBA,34percentofnetlocalrevenueisretained,

placingwhateverisleftintoafunddistributedtothesmaller-market

teams,’’(Bloom,2014).Theideaofrevenuesharinggivesmuch

smallerteamstheopportunitytoatleastcompete,unlikein

footballwherebythelessfinanciallysuperiorteamswillmorethan

likelybeinvolvedinarelegationdogfight.

Footballisgovernedinanumberofways,inapursuitof

encouragingcompetitivebalanceanduncertaintyofoutcome.The

followingsectionwillevaluatethestructuresofthefootball

leaguesinquestion,andshowsomeofthemechanisms

incorporatedintheirgovernancestructurestocombatcompetitive

imbalance.

2.3 GovernanceInSport

Governanceisanextremelywellknownaspectwithinthebusiness

industry;additionallyitisaparticularlyimportantconceptinthesporting

world,Hoye&Cuskelly(2012)statethatassportcontinuestogrow,

changestothemanagementofsportorganisationsarenecessary.Asthe

artofgovernanceisanimperativetopicwithinthisthesis,duetothe

organisationalstructuresoftherelevantsportingleagues,itisimportant

tohaveaclearandconcisedefinitionofgovernance.Rosenau(1995,in

Ferkins&Shilbury,2015:93)suggeststhat‘’governanceistheprocessin

whichasingleorganization,oranetworkoforganizations,steersitself,

allocatesresources,andexercisesco-ordinationandcontrol’’.Kempaetal

(2005)ontheotherhand,suggestgovernancemaybedefinedasefforts

21

organisedto manageon-goingswithinasocialsystem.Furthermore,

Kempaetal’s(2005)definitionsdoconcurwiththatofRosenau(1995)

byexpressingthatthemajorattributeofgovernanceisefficient

organisationandcontrol.

Itisessentialtoinvestigateextantliteratureinthisfieldtoofferawider

understandingtogovernanceandstructuresinsport,particularlygiven

thenatureofthisstudy.

Henry(2007)adoptstheopinionofHenry&Lee(2004)whodiscusshow

perhapstherearethreeparticularconceptsofgovernance;systemic,

corporateandpolitical.Beech&Chadwick(2004)coincidewiththe

opinionsofHenry&Lee(2004)thattherearethreeinterrelated

approachestogovernance,beingthatofsystemic,corporateandpolitical.

AsthisstudyanalysesthestructuresandcompetitiongovernanceofMLS

andtheEPL,thethreeconceptsputforwardbytheseparticular

academicsaregoingtobevaluedintheevaluationprocess.Henry(2007)

suggeststhatsystemicgovernanceconcernsthewaysportisgoverned

throughtheinteractionbetweengoverningbodiesandothermajor

stakeholders,butbelievestheconcernwithadoptingsystemic

governanceisthedifficultyunderstandingthestakeholdersandtheir

processofinteraction.Beech&Chadwick(2004)ontheotherhanddefine

systemicgovernanceasamovementawayfromthegovernment,which

hasbeenaffectedbythereflectionofglobalisingtrendsofsport.

Corporategovernanceisalsorenownedas‘goodgovernance’.Beech&

Chadwick(2004)explainhowthenotionofcorporategovernanceissaid

tobebaseduponsevenkeyprinciples;transparency,accountability,

democracy,responsibility,equity,effectivenessandefficiency.Beech&

Chadwick(2004)alsobelievethatforcorporategovernancetobe

successful,alargeemphasisonfairtreatmentofstakeholdersisan

imperativepartofthisnotion.Henry(2007:8)offersaslightlydifferent

descriptionofcorporategovernancebysuggestingthat,‘’thisrelatestoa

concernwiththeethicsofmanagementandpolicy’’.MoreoverDenis&

22

McConnellvia(Farquharetal2005:330)definecorporategovernanceas,

‘’thesetofmechanismsbothinstitutionalandmarket-basedthatinducethe

self-interestedcontrollersofacompanytomakedecisionsthatmaximise

thevalueofthecompanytoitsowners’’.

Thefinalconceptofgovernanceispolitical,‘’politicalgovernancerelates

totheachievementofgoalsthroughstrategiessuchasregulationand

inducementratherthanthroughthedirectactionandcontrol,’’(Beech&

Chadwick,2004:34).Henry(2007)emphasisesmoreonthefocusof

governments,andhowtheyseektoachievetheirobjectives.Beech&

Chadwick(2004)alsohighlightanexampleofpoliticalgovernance

betweentheEuropeanUnion(EU)andfootball’sleadinggoverningbody

FIFA,regardingtheBosmanrulingandfootballtransfersystem.TheEU

wasrequiredtointervenebyquotingthat,’’thusrestraintonout-of-

contractplayers,ornationalquotasonEuropeanplayersinnational

leagues,weredeemedtobeillegal’’(Beech&Chadwick,2004:34).

Asthesportindustryhasgrownandflourished,governanceinsporthas

becomemoreofafocusforacademicresearchandcontinuestobean

areaofinterestinacademicandmanagementpractice.

2.3.1DefiningSportGovernance

Sport governancehas beendefined as; ‘’networksof sport-related

stateagencies,sportsnon-governmentalorganisationsand

processesthatoperatejointlyandindependentlyunderspecific

legislation,policiesandprivateregulationstopromoteethical,

democratic,efficientandaccountablesportsactivities’’(Chaker,

2004:5).Ferkinsetal(2009)suggestthatsportgovernanceis

theresponsibilityforfunctioningageneraldirectionforthe

organisationandisamajorcomponentofallsportcodesfromclub

leveltoprofessionalteamsaroundtheworld.Bothacademics

discussthewiderapproachtosportbythecreationofpoliciesfor

alllevelsofcompetition.Hoye&Cuskelly(2012)explainhow

23

thereisnouniversallyagreeddefinitionspecificallyforsport

governance,butusethedefinitionproposedbytheAustralian

SportsCommission(ASC)whodefineitas‘’thestructuresand

processesusedbyanorganizationtodevelopitsstrategicgoalsand

direction, monitor its performance against these goals and ensure

thatitsboardactsinthebestinterestsofthemembers’’(ASCvia

Hoye&Cuskelly,20012:9).

2.4 GovernanceStructureofNorthAmericanSportsLeagues

AspreviouslyhighlightedinChapterOne,thereareanumberofdistinct

differencesbetweenthegovernanceofthesportsleaguesinquestions.‘’In

U.S.majorleagues,allstrategicquestionsofleague-widerelevanceare

decidedbymajorityvoting.Theonlyassociatesentitledtovotearethe

participatingclubowners;’’(Dietletal,2011:5).Dietletal(2011)also

discusshowEuropeanteamsportsincontrast,arehistoricallyrunby

nationalandinternationalassociations,whichisthecompleteoppositeto

thegovernancestructureinU.S.sportsleagues.MoreoverAndreff

(2011:6)maintainthat;‘’aNorthAmericanprofessionalteamsportsleague

isanindependentorganizationwhichisclosedbyanentrybarriercreated

byfranchisesales,entryinaclosedleagueisonlypossiblebythepurchase

ofanexpansionfranchise.’’Altstadt(2015)suggeststhatlegauesshould

allowforindependentownership,ratherthanindependentorganisational

decisions,thusallowingownerstoinvestin.Dietletal(2007:2)statehow

NorthAmericanprofessionalsportsleaguesadoptacooperativeformof

governance,whichhasnowbeenadoptedbyothersportingleagues

aroundtheworld.‘’Inacooperativesetting,club-ownersretaintheir

independenceonthelevelofindividualteam-productionandareableto

actdiscretionarilygivenleaguerestrictions’’.U.S.sportsleaguesarealso

relatedtocorporategovernanceastheirleaguestructuresarebased

aroundthepolicyofethicsandequalityofsport,whichitcouldbeargued

isareasonwhytheorganisationsoperatinginNorthAmericaadopt

strategiesthatencourageparity.

24

Fort(2000)explainshowthereisnorealsimilaritybetweenNorth

AmericanleaguesandFIFA,football’sworldgoverningbody,sincethere

isnointernationalchampionshipsinrelationtoNorthAmericansports

suchasAmericanFootball.Onemajorsimilarityistheadoptionof

bargainingagreements(discussedinsection2.4.1)inmajorNorth

Americansports.Fort(2000:435)employshisknowledgeofMajor

LeagueBaseballbyclarifyingthat‘’theProfessionalBaseballAgreement

(PBA)governsthecompleterelationshipbetweenalllevelsofbaseball,from

thelowest‘rookieleagues’allthewayuptoMLB’’.Theuseofbargaining

agreementsaidsthesettlementofdisputes,unlikeEuropeanfootball

wherethemajorityofdebateswillbedealtwithbynationalassociations.

InadditiontotheviewsofFort(2000),Noll(2003:7)highlightsthe

structureofNorthAmericansports,‘’intheUnitedStates,universities

functionasanimportantsubstituteforlowerminorleagues,sothatthe

hierarchyofprofessionalteamsisshallowerthaninEuropeanfootball’’.

TheNCAAisresponsiblefortheorganisationandcontrolofuniversity

andamateursport,beforestudent-athletesmakethemovetothe

professionalscene.AsthefocusofthisresearchissurroundingMLS,itis

pivotaltoevaluateandexplorepreviousliteratureintotheleague,which

canbeusedforcomparativeanalysislaterinthisinvestigation.

2.4.1SportFranchiseOwnership

Researchintosportfranchiseownershiphaspresentedanumber

ofinterestingdiscussions,particularlyaroundthecorrelation

betweenteamperformanceandprofitmaximisation.Quirk&Fort

(1999)suggestthatprofitabilityisthemajormotivatorfor

franchiseownership.Harveyetal(2001:436)statethat‘’sport

franchisesarenolongermarginalassets,noraretheyassetsthat

standinisolationtotheindustriesthatsurroundthem’’.Amajor

reasonastowhyliteraturesurroundingfranchisesinsporthas

beenintegratedintothisresearch,isduetothecontinuedincrease

inforeignownership,particularlyinEnglishfootball.Cornwell

25

(2011)suggestthatfranchisesinNorthAmericaexisttoplease

fansandprovidealevelofentertainment,butaboveeverything

theprimaryaimistomakemoney.Therefore,franchisesinNorth

Americacouldbedescribedasbeingabusinessmorethan

anythingelse.ThisisstarkcontrasttotheEuropeanmodelof

sport,inwhichonthefieldsuccessoutweighsofffieldactivities.

BillShanklyfamouslystatedthat‘’footballisnotamatteroflife

anddeath,it’sfarmoreimportantthanthat’’.

Evidenceprovinghowprofitmaximisationishighontheagendaof

AmericanfranchisesisforalltoseeintheUSAbythenumberof

franchsiesthathaverelocatedtodifferentmarkets.Cornwell

(2011:1)usestheAtlantaThrashers(NHLfranchise)asaprime

exampleofrelocation;‘’theThrashersleftforWinnipeg,tobe

reincarnatedastheJets.Winnipeggotitshockeyteamback;in

partthankstofandemand,tobesure,butalsobecausetheriseof

theCanadiandollaragainstitsUScounterparthasmadethecitya

muchmoreappealingmarketthanafewyearsback’’.Activities

suchasrelocationareprettymuchnon-existentinEuropean

football,duetotheestablishedfanbasesandrelationshipwiththat

particularlocation.Baade&Dye(1990)botharguethattheonly

waytoevaluatefranchisesistocomparetheeconomiesofthe

citiesorregionstheyareoperatingwithin.Thereisanobvious

correlationbetweentherelocationoffranchisesandtheeconomic

opportunitywithinthenewmarket.Thisisacurrenttopicinthe

NFL,asthreeteams(Chargers,Raiders,Rams)areseekingto

relocatetoLosAngeles(seemorein2.6),astheirstadium

economicsarepoor,meaningtheirabilitytocompeteishindered.

2.4.2StructureofMajorLeagueSoccer

TheMLSisaninterestingexampleincomparisontoothermajor

sportingleaguesinNorthAmerica.TheMLSisalotyounger,

26

thereforehashadtheassistanceofotherleaguestodevelopa

modelfortheircompetition.‘’Inmanyways,theMLShas

developedcomparablytotheNFL,NBA,MLB,andNHL.These

similaritiesincludeimplementingaplayoffsystem,membershipof

teams,andscheduling;’’(Taylor,2011:2).Atthispresenttime

thereare20teamscompetingintheleague,FIFAontheother

handarefootball’sleadinggoverningbodyhaveasetlimitof20

fortheamountofclubspresentinaleague.Taylor(2011)

quotesMLSCommissionerDonGarbersurroundingthe

structureofMLS.‘’Ourleagueincludestwocountries,massive

landmassacrossfourtimezones,andIhavenodoubtourleaguewill

belargerthan20teamswhen(weare)fullyexpanded;’’(Garberas

quotedinTaylor,2011:7).Taylor(2011)alsodiscussestheroleof

theco-ownerofRealSaltLake,DaveCheckettswhoseeksto

educatefootballfansthattheNBA,NHLandNFLhaveperfectly

definedmodelstohost30-32teams,thereforeofferasolid

foundationforthepotentialexpansionoftheMLSinthe

future.WhetherFIFAagreetothisinthefutureisanothermatter.

NorthAmericansportleaguesarebuiltuponthenotionof

competitivebalance,‘’Competitivebalancereferstotherational

expectationsoffansaboutwhowillbethewinners.Inaperfectly

balancedcontest,eachparticipantstartswithanequalchanceof

winning,sothattheoutcomewillbecompletelyuncertain’’

(Szymanski,2001:1).Thethoughtprocessistodistributeplaying

talentasevenlyaspossiblethroughouttheleague,topreventthe

morefinanciallypowerfulteamsfromdominating;‘’American

professionalteamsportshaveemployedwidearrayofregulationsto

safeguardagainstthisdanger.Reserveclauseslimitingthefree

agencyoftheplayers,thereverse-orderrookiedraftandrevenue

sharingarrangementsarewell-knownexamplesinthiscontext;’’

(Dietletal,2011:8).

27

SincetheformationoftheMLS,theseasonhasrunfromMarchto

November,whichcomparedtoEuropeanfootballisanobvious

modification.Taylor(2011:9)explainshowtheMLSschedule

avoidsconflictwithAmerica’smostpowerfulsporttheNFL;‘’The

MLShadtochoosebetweenatraditionalscheduleandaconflict

withtheNFL,NBA,andNHLoranon-traditionalscheduleand

competitionwithonlytheMLB’’,in responsetothescheduling

structureoftheMLS,FIFApresidentSeppBlatterquotedthat,‘’this

isnottherightsolutionfortheMLS,theyhavetoplayandtoadapt

themselvestotheinternationalcalendar.Iftheydothat,theycan

havesuccess,’’(Blatter,inLewis,2009).

‘’SuchanalysishasviewedAmericanSporttobeabranchofthe

entertainmentindustry,withaprofit-makingimperative,andwith

elitesportdetachedfromgrassrootsandamateurparticipation.This

isincontrastwiththeEuropeanmodel,characterisedashavinga

broadersocialandculturalelement’’(Holt,2009:10).

2.5GovernanceofEuropeanFootball

WithinEuropeanfootball,clubsaregovernedbynationalassociations

suchas;theEPLbeingadministratedbytheF.A.Holt(2009)continuesby

clarifyingthatnationalassociationsaremembersofUEFA,wholeadthe

organisingofclubandnationalteamcompetitions,whereasFIFAregulate

thegameonagloballevelandarrangecompetitionswithregardsto

nationalteams.

Geeraertetal(2013)discussexamplesofpoorgovernanceinfootball

withregardstoGSOsUEFAandFIFAbylistingissuessuchas;casesof

corruption,bribery,gambling,moneylaunderingandproblemswith

playeragents.‘’Mostrecently,FIFAcameunderfireaftersomesenior

officialshadbeenaccusedoftakingbribes’’(Gibson,2010inGeeraert,

2013:114).Geeraertetal(2013)complementthisquotefromGibson

28

(2010)byindicatingevidentfailureofgoodgovernancewithinthesport,

aswellassuggestingthatfootballistreatedwitheconomicandlegal

exceptions.‘’Byafailureingovernancewemeansomeorallofthe

following:afailureofcoordinationbetweensportingandotherrelevant

sportingbodies;afailureofgovernmentstoregulateorcontrolpotentially

harmfulactivities;andafailuretoestablishdecision-making,ortocontrol

procedures,whicharefairly,transparentlyandefficientlyimplemented’’

(Beech&Chadwick,2004:26).FIFAiscurrentlyunderinvestigationfor

numerouscountsofintegrity,butinthepasttheeconomicpowerofFIFA

hasallowedittobypassaspectsofcorporategovernance.Whatisalso

importanttostate,isthatduetothecontinuedincreaseofTVmoneyinto

thegameoffootball,clubsaremovingintoanewphaseofsystemic

governance.

Geeraertetal(2013)adoptthethoughtsofSugden(2002)whereby,in

recentyearsfootballhasbecomemorecommercialised,‘’sincethe

PremierLeaguewascreatedwe’vehadcommercialforcesrunningriot

acrossourgame’’(BurnhamviaBBCSport,2010),withtheintegrationof

transnationalbusinessinterests.Astheincreaseofcommercialisationhas

becomesosevere,ithascreatedacomplexbetweenfootballandbusiness

interests.Geeraertetal(2013)highlighttheemergenceofgovernance

networkinEuropeanfootball,payingparticularattentiontohowthe

political,economicandlegaldrivingfactorshaveaffectedthegovernance

styleofEuropeanfootball(figure3).

Beech&Chadwick(2004)suggestthatEuropeanfootballisaneffective

exampleofsystemicgovernance.‘’Thenotionofsystemicgovernance

underlinesthenatureofakeyshiftinthewaythatsportisorganisedand

controlled-ashiftthatisawayfromthegovernment,ordirectcontrol,of

sport’’(Beech&Chadwick,2004:27).Henry&Lee(2004)operateavery

similardefinitiontosystemicgovernance,byarguingthat‘’aprofound

shifthastakenplaceinthewayinwhichasportismanagedinthenational

andinternationalcontext.Thisshiftisencapsulatedinthemovefromdirect

controlorgovernmentofsporttoagovernanceofsportapproach’’(Henry

29

&Lee,2004:38).AdditionallyBeech&Chadwick(2004)believethatthis

shiftinstructuralgovernanceisrelatedtotheglobalisingtrendsinsport.

Figure3:DrivingForcesBehindTheEmergenceofGovernanceWorkInEuropeanFootball(Geeraertetal,2013)

Footballhastransformeddramaticallywithregardstosponsorshipdeals,

theemergenceoftheEuropeanUnion’sBosmanRuling,aswellasthe

addedpoweroffootballclubsthroughtheG14(14leadingfootballclubs

joinedtoprovideaunifiedvoicewhennegotiatingwithFIFAandUEFA)

organisation.TheBosmanruling(seeAppendixC)revolutionisedplayer

movementandthewaycontractnegotiationsarenowhandled,butthis

topichasnotbeendiscussedindepthasthefocusofthisstudylies


30

elsewhere.TheideaofcreatingG14wastoprovideacombinedvoiceof

negotiationsbetweenEuropeanandglobalfootballgoverningbodies

UEFAandFIFA.Beforetheseissuesbecamemoreinfluentialwithinthe

sport,Beech&Chadwick(2004)describehowFIFAhadtheultimate

authorityinworldfootball.ThereforeEuropeanfootballhaswitnesseda

masschangeingovernanceinthelast20years,wherebyfootballclubsin

particular,havebecomemoreauthoritativeandpowerfulto

organisationssuchasFIFAandUEFA.

2.5.1GovernanceStructureinEnglishFootball

‘’TheF.AisthegoverningbodyoffootballinEngland.Itactsasthe

regulatorandpromoterofEnglishfootball,bothattheprofessional

andamateur level,andrepresentsEnglishfootballonthe

internationalscale;’’(Stock,2013).AforementionedbyHolt(2009)

insection2.3,theprimarycharacteristicofanationalassociation

istheorganisationofthegamefromgrassrootsupto

professionalstatus.Morrow(inGammelsæter&Senaux,2011)

maintainthatthenationalassociationhastheresponsibilityforthe

organisationofthegameasawholeinitsrespectivecountry,as

wellashavingadirectresponsibilityfornationalcupcompetitions

andtheirownnationalside.Morrow(2011)clarifieshowtheFA

stilloperatewithaboardwhorepresentdifferentstakeholders

withinthegameoffootball,howeversomemaybelievethatthe

inclusionofboardsinanorganisationsuchastheFAcanbe

describedasdysfunctional.Thisisastarkcontrasttoorganisations

operatinginNorthAmericansports,wherebyteamseachfollow

strictguidelinesthathavebeenagreed,withintheirspecific

bargainingagreements.TheF.Acanbedescribedasanon-profit

organisation,whereasNorthAmericanorganisationsplacemore

attentiononprofitabilityandsustainabilityoftheirfranchises.

TosupportthiscontentionMorrow(2011)highlightsthat

Englishclubsoperatingincorporatedstructuresdonotmakeand

31

havenotmadeprofits,eventhoughtherehavebeenhuge

increasesinrevenues.Szymanski&Kuypers(1999inMorrow,

2011:51)suggestthatco-existenceofon-fieldandoff-fieldsuccess

donotgohandinhand,andevidencesupportsthat‘’tomaximise

onfieldperformanceclubsneedtospendsignificantsumsonplayer

remunerationcosts,yetthisexpenditureinevitablyweakensthe

clubsreportedfinancialperformance,’’.Moreoveritistheopinion

ofMorrow(2011)thatfinancialinstabilitywithinEnglishFootball

isdowntotheabsenceof‘good’orcorporategovernance.

TheFAhasbeencentraltosomemajorchangeswithinthe

structureofEnglishfootball,especiallywiththeinceptionofthe

PremierLeaguein1992.Morrow(2011)emphasisesthatthe

formationofthePremierLeaguewasdrivenbyadesirebymajor

clubstomoveawayfromtheconceptofincomesharing,aswellas

theincreasingimportanceofbroadcastingrevenue.Onthe

contrary,incomeorrevenuesharingcontinuestobea

fundamentalaspectofU.Ssport.‘’Revenuesharingreducesthe

incentivesforclubstoinvestinplayingtalentbecauseeachclubhas

tosharesomeoftheresultingmarginalbenefitsofitstalent

investmentwithotherclubsintheleague’’(Dietletal,2010:3).

ThecreationoftheFAPL,hasledtotheF.Ahavinglesscontrolon

theday-to-dayoperationsofclubs,howevertheF.Aisaspecial

shareholderofthisorganisationwhenissuessuchascontractual

arrangementsarise.Chadwick&Hamil(2010)clarifyhow

organisationallyspeaking,theFAPLisanindependentgoverning

bodyaffiliatedwiththeFA,whichconsistsof20shareholders,who

aretheclubsthatareparticipatinginagivenseasonandchange

dependingonperformance.Chadwick&Hamil(2010:188)argue

that‘’TheFAPLoperatesasystemofrelegationandpromotionwith

theFootballLeague,andwhenateamisrelegatedfromtheFAPL,

theclubgivesupitsmembershipandvotetothepromotedclub’’.

TheycontinuebyexplainingthattheUKgovernmenthasnodirect

32

sayinthegovernanceoftheF.A,anditistheF.Aboardwho

concludethedecisionmakingprocess.

2.6 CompetitionDesigninFootball

Thebasicdesignincompetitiveteamsportsisthecontestbetweentwo

teams,whichwillbeorganisedwithinaparticularsportingleague.

Barnard(2006:435)suggestthat;‘’thesportingleaguehasresponsibility

forthedesignandmanagementofthecompetition,wheredesignisthe

institutionsandrulesthatgoverntheprocessbywhichplayersandsporting

clubscometogethertocompeteasteams’’.Borland(2006)further

discusseshowanimportantexampleofcompetitiondesignisinthe

comparisonbetweenthemodelstructureofEuropeanleaguesinto

divisions,applyingpromotionandrelegationasanopenentrybetween

divisions,comparedto‘’the‘NorthAmerican’modeloforganisationintoa

singleclosedleague’’(436).Thestructureofasportingleaguecanbe

definedbybeingeither‘openorclosed’.Openleaguesadoptpromotion

andrelegation,whereas‘’intheUnitedStatesmajorleaguesareclosed,

havingafixedmembershipthatcanonlybechangedbyformallyvotingto

expand’’(Noll,2003:15).Andreff(2011)alsostatesthatentryintoa

closedleagueisonlyachievablebypurchasingafranchise,aswellas

gainingtheapprovalbyaleaguecommissionerwhowillassessthe

profitabilityofthelocationandmarket.

Noll(2002)observeshowanopenleagueliketheEnglishPremierLeague

forexample,willtendtoraisetheperformancelevelwithinateamas

thereisagreatermotivationtogainpromotionorreducethechanceof

relegation.Sloane(2006:15)suggeststhattheconceptofanopenleague,

canincreasefaninterestasahighproportionofgamesovertheduration

ofaseasonhavesignificance,statingthat;‘’promotionandrelegation

mayforceadeparturefromtheoptimaldistributionofteamsacross

divisionsassuperiortopdivisionteamsarereplacedbylowerinferior

divisionteamsintermsofgatedrawingpotential’’.Buzzachietal(2003)

33

believethattheU.Sconceptofaclosedleaguemakesthecompetition

muchmorebalanced,whichisdowntothefactofcompetitiverestrictions

suchasrevenuesharing,draftsandsalarycaps.

Andreff(2011)alsoindicateshowteamsoperatinginaclosedleague

haveexclusivityoveranurbanarea,whereitistheonlyone,thuseach

teamhasamonopolyinthelocalmarketenhancingthechancesfor

profitability.Thisexclusivityisleaguebasednotsportwide,forexample

NewYorkhasmultiplesportsteamswhoarefromdifferentleagues.

Additionally,Andreff(2011)givesexamplesof48teamsupuntil2005in

NorthAmericawhohaverelocatedtoothergeographicallocations.There

isacontemporaryexampleofgeographicalmobility,wherebySt.Louis

Ram’sownerStanKroenkeisconsideringrelocatingtheNFLsidetoLos

Angelestoutilisethesitetoconstructan80,000-seaterstadium.‘’Thereis

neitherterritorialexclusivitynorlocalmonopolyofateaminagivensport:

inmostEuropeancapitals,morethanoneteamplayinthefirstsoccer

division,’’(Andreff,2011:7).OnemajordesignofNorthAmericansports

istheusageofCBA’swhichareemployedtoaidthegovernanceofthe

professionalleagues.

2.6.1CollectiveBargainingAgreements(CBA)

‘’Collectivebargainingagreementsarewritten,legallyenforceable

contractsforaspecificperiodoftimebetweenthemanagementof

anorganizationanditsemployeesrepresentedbyanindependent

union’’(Smith,2012:1),Wachutka(2007)supportsthisby

affirmingthat‘’therespectiveplayersassociationnegotiateson

behalfoftheplayers,withrepresentativesofleaguemanagementor

leagueowners,toestablishthetermsandconditionsoftheplayers’

employment’’(Wachutka,2007:1).Parlow(2010)statesthatCBA

arethe‘supremegoverningbody’concerningemployment

withinAmericanprofessionalsportsleagues.Themajorsporting

leaguesinNorthAmericaeachhaveatailoredCBA,createdbythe

34

players’unionsandteamowners.ItistheopinionofDryer(2008)

thatcollectivebargaininghasbeenagreatadditiontocalculating

theinterestsofteams,playersandfans,whilstcarryingsports

forwardtoprofitableends.Althoughoneofthemainobjectivesof

CBAsistocontinuetocombatcompetitiveimbalance,Epps(2009)

however,highlightsacaseintheNBA,wherebythecollective

bargainingagreementinplacehadweakenedthecompetitiveedge

thattheNBAhadinplace.Epps(2009)discusseshowthe2008

freeagencyperiodexposedamajorweaknessintheCBA,whereby

youngupandcomingAmericanplayerscanmoveabroadandearn

substantialsumsofmoneywhilstwaitingfortheNBAdraft.Thisis

turnhasthepotentialtoincreasethelevelofcompetitionin

Europesignificantly.‘’Euroleagueteamswilllikelytargetmore

talentedNBAfreeagentsasthebudgetarygapbetween

Euroleague’stopteamsandtheirAmericancounterparts

narrows’’(Epps,2009:378).

ItisnotonlyNorthAmericansportsthatadoptCBA’s,theconcept

isverymuchpresentintheAFL‘’TheAFLandtheAFLPAhaveused

collectivebargainingagreements(CBAs)from1993onwards

followingathreatbytheAFLPAto seekanawardinthethen

AustralianIndustrialRelationsCommission’’(Smith&Moore,

2014:10).MacDonald(2012)suggeststhattheintroductionof

collectivebargainingwasameansofovercomingwhatwouldhave

beenlegalrestraintstothemovementofplayers.

2.6.2PlayerTradingInOpenandClosedSportingLeagues

AstheconceptofplayertradinginMLSandEPLfootballisafocal

pointofthisresearch,exploringextantliteratureinthisfieldof

academicstudyisimperative.Andreff(2011:7)suggeststhata

closedleague,operatedinNorthAmericansports‘’canrestrict

players’mobilitysinceitenjoysamonopsonypowerinthelabour

35

marketfortalent.’’Inordertoallowforthisplayermobility,oneof

themechanismsusedinNorthAmericanleaguesisthe

recruitmentsystem knownasthedraft.Everyyearthedraft

focusesonyoungplayersmakingthemovefromamateurstatusat

college(oruniversity)totheprofessionalstage.As

aforementioned,thedraftisaconceptof competitivebalanceto

distributeplayersacrossallteamsinaleaguetoprevent

dominance.Grier&Tollison(1993:293)suggestthateven

thoughtheworstteammaydraftthebestplayeravailable,‘the

player’smarginalproductishigherinlargermarketsoftheleague,

andtheplayerwillthusbetradedorsoldtoteamsinlarger

markets’’.Althoughtheconceptofthedraftistryingtoensurethat

competitivebalanceisinplacewithinclosedleagues,themodel

hasbroughtaboutadverseincentives.Tanking,aformofmatch

fixing,hasbecomeahugeprobleminallNorthAmericansports.

ForexampleTaylor&Trogdon(2002)discoveredthatteamswho

couldnotparticipateintheplay-offsduetotheirleagueposition

sawhowperformancesalteredincorrelationtodraftpicksand

leagueposition.Thisiswheretheissueoftankinghasaroseinthe

past,asteamshavebeenfoundguiltyofunderperforming,

allowingtheseteamstofocusonhavingthebest

opportunitytomakethebestdraftpickforthefollowing

campaign.

Therearenosuchthingsasa‘rookie’draftinEuropeanfootball

openleagues,Andreff(2011:8)explainshow‘‘theBosman

deregulationofthelabourmarkethastriggeredhighplayer

mobility’’(seeAppendixCforfulldescriptionontheBosman

Ruling).Andreff(2011)stateshowplayermobilityinNorth

Americanleaguesdoesnotincludecashfortradingofplayers,asit

isforbidden,whereasEuropeanopenleaguestransferringof

playersisusuallycompletedbycashormonetarytransactions.

Dobson&Goddard(2001)concurwithAndreff(2011)by

36

explaininghowthereisanevidentcontrastbetweenNorth

AmericaandEuropeanfootballwithregardstothetradingof

playersforcash,asitisverymuchafundamentalaspectoffootball

inEurope.TheopinionsofAndreff(2011)mayofferan

explanationastowhythefinancialstabilityofEuropeanfootball

hascomeunderseverescrutiny.Transferfees,aswellaswages

continuetoriseyearonyearwhichsuggeststhateventually

Europeanfootballneedstochangetoasimilarmodeladoptedin

theUnitedStates,foramoresustainablefuture.Footballhasseen

theintroductionofFFPasastrategytotryandcontroltheincrease

ofexpenditurebyfootballclubsaroundEurope,butthispolicyhas

alreadyseenclubsabusethisrulingthroughanumberof

loopholes.

2.7 SummaryofTheoreticalBackground

Thissectionofthethesishasexploredthekeytheoreticalconcepts

importantinthisresearchproject.Withtheinvestigationtakingplace

aroundMLSandtheEPL,itwasimperativetostudythegovernance

structuresthatarecurrentlybeingimplementedintherespectiveleagues.

ThewelldocumentedcomparisonsofgovernanceinNorthAmericaand

Europeisavitalaspectofthisstudy,andusingotherNorthAmerican

sportssuchas;Americanfootballandbaseballclearlydemonstratethe

distinctdifferencesbetweentheleagues.Competitiondesignhasbeen

highlightedtoshowperhapsthemostsignificantdifferencebetween

EuropeanandNorthAmericanleagueswiththeexplanationofopenand

closedleagues.Thistopicisessential,asNorthAmericanassociations

believethatclosedleaguesarethebestwaytokeepequalitywithin

sports.Eventhoughthereisaperceivedlackofcompetitivebalancein

Europeanfootball,leaguessuchastheEPLcontinuetoboastsomeofthe

higherattendancesandviewingfigures,whichsuggestthatthetheoryof

competitivebalancemaynotbethekeyingredientofasuccessful

competitionstructure.Theliteratureanalysedinthissectionofthethesis

37

willallowtheresearchertoconductcomparativeanalysesintoMLSand

theconceptsthathavebeenincludedintheirleaguestructure.

38

3.ResearchDesign

3.1 ChapterOverview

Inchaptertwoareviewofgovernanceinsportandspecificsporting

leagueswasaccompaniedbydetailedevaluationsintocompetitive

balanceandcompetitiondesign.Chapterthreepresentstheresearch

design,accompaniedwiththeselectedmethodologicalapproaches

employedforthisparticularstudy.Thissectiondiscussesresearch

philosophies,methodologicalapproachesandresearchdesign.These

methodsarepivotaltotheefficiencyofthisstudyandthesuccessofdata

collection.

3.2ResearchPhilosophy&Design

AsMLSisacontemporarysportingleague,withthefirstofficialmatch

beingplayedin1996,therehasbeenariseofacademicresearchinto

footballintheUSA.However,alargeemphasisofresearchintothistopic

surroundsthenotionsofbrandingandmarketingandnotinto

mechanismsoftheleaguesuchas,thedraft.Hence,thisstudyhasbeen

conductedtofocusonthisgapinacademicliteraturebyansweringthe

researchquestion:‘ShouldMajorLeagueSoccerAdoptAMore

EuropeanStyleModelofGovernanceInOrderToBeMore

CompetitiveOnTheInternationalStage?’Agroundedtheoryhasbeen

adoptedasamethodologicalapproach,includingtheanalysisoftheEPL

andMLSascasestudies,thisresearchwillevaluatewhetherMLSshould

modifythemodeloftheirleaguetoasimilarconfigurationadoptedin

Europeanfootball.

39

3.2.1GroundedTheoryApproach

‘’Groundedtheoryisaninductiveapproachtoresearch,inwhich

hypothesesandtheoriesaregeneratedfromthedatacollected.Itisa

meansofsystematicallycollectingandanalysingthedatato

generatetheory.’’

(Paterson,2013:37)

Thisparticularresearchadoptsagroundedtheoryapproach,

focusinguponthecreationoftheory,derivingfromthecollection

ofdata.Themajorityofacademicsthatexpresstheterm‘grounded

theory’highlighttherelationbetweenthismethodological

approachandtheinductivemethod.Muchlikethedefinitionused

byPaterson(2013),Oates(2003:513)employsasimilar

explanation,suggestingthatthereisstandardisationaroundthe

definitionofthismethodologicalapproachandstatingthat

‘’Gouldingdefinesgroundedtheoryasaninductivemethodology

developedbyGlaserandStraussusedtogeneratetheorythroughthe

systematicandsimultaneousprocessofdatacollectionand

analysis’’.Tan(2010)suggeststhattheapproachtogrounded

theoryindataconteststhegeneraltenetsofquantitativeresearch,

whichaimstoverify,orconfirm,theorythroughthetestingof

hypotheses.

Groundedtheoryasameansofqualitativemethodologyis

normallyemployedtogainafurtherunderstandingofthesocial

phenomena(Clamp&Gough,1999).Goulding(2001)highlights

oneofthemajorcriticismsofgroundedtheory,statingthismethod

canbeperceivedoveremphasisoninduction.Nonetheless,

‘’Groundedtheoryistranscendinginthesensethatitconceptualises

thedata,thusraisingthelevelofthoughtaboutittoahigherlevel.It

alsotranscendsbyinclusionandintegrationatahigher-level

previousdescriptionsandtheoriesaboutanareaandusesthemto

40

createadenseintegratedtheoryofgreaterscope,’'(Glaser1978in

Goulding,2001:24).

Theprocessofgroundedtheoryhasinfactbeendevelopedfurther

sinceitsinceptionbyGlaser&Strauss(1967),wherebythe

purposeofthemethodwasto‘’organisemanyideasfromanalysis’’.

Strauss&Corbin(1990)expandedupontheoriginalideaof

groundedtheory,bysuggestingthatthepurposewasactuallyto

buildatheory‘’thatwasfaithfultoandilluminatedtheareaunder

study’’(Strauss&Corbin,1990:24).

Groundedtheoryisofmostusewhenaresearcheraimsto

investigateareas,whichhaveasufficientlackofliterature.

Goulding(1999)impliesthatresearchingorevendevelopinga

newresearcharea,whichdoesnothaveconsiderableliterature,

providesapositivemotivetoembracethisapproach.Heath&

Cowley(2004)suggestthatcentraltogroundedtheory

isthebeliefthatknowledge“maybeincreasedbygeneratingnew

theoriesratherthananalysingdatawithinexistingones”(142). Itisimportanttostatethatutilisinggroundedtheory

requiresfrequentattentiontodeveloptheory,thiscanalsobe

summarisedastheiterativeprocess,repeatingtheprocessof

datacollectionwillleadtoanimprovementoftheendresult.

Myers(2013)statesthatgroundedtheoryrelatestotheory

developmentthroughthecontinuouscollectionandanalysisof

data.Theiterativeprocesspositivelycorrelateswiththeadoption

ofsemi-structuredinterviews,whichtheresearcherhas

implementedtoallowtheadaptationofquestionstoarisein

relationtotheanswersgivenbypreviousparticipants.Thisshould

thenhaveaknock-oneffectonthequalityofdatabeingcollected.

Duetothisstudyutilisingthequalitativeapproachto

methodologythroughtheuseofsemi-structuredinterviews,a

groundedtheoryapproachismostsuitableinattemptingto

41

answertheresearchquestion.Theresearcherhasutilisedinter-

coderreliabilitytoaidthedevelopmentofcorrelations,alongsidea

specificsamplingstrategytoensuretheresearcherhasthebest

opportunitytocollectthedatarequiredtomakethisstudya

success.

3.2.2Inductivevs.DeductiveApproaches

Themethodologicaldesignofanystudyisimperative,asthese

methodsof researchareapplied tomeet theaimsandobjectives

thathavealreadybeenestablishedandallowsforreplicationofa

study.Gill&Johnson(1997:46)poseasuitablequestionwhen

identifyingthecorrectresearchmethods,‘’inotherwords,whatare

thesourcesofsuchtheoriesandhypotheses,andhowdoweset

aboutjudgingrigorouslywhetherornotthesetheoriesand

hypothesesare‘true’andhenceappropriateforouruse?’’Gill&

Johnson(1997)believethatitispivotaltounderstandthe

differences between those methods that are both inductive and

deductive. Partington (2000) suggests that a lot of research into

managementinparticular,hasfocusedupondeductivereasoning,

asopposedtoaninductivemethodology.

Beginningwiththedeductiveapproach,DeGraciaetal(2014)

rationalisehowdeductionbeginswithatypicalpremise,following

thesededuces,stemsspecific instances.Whereas, inductionisthe

oppositetodeductioninthewaythatconclusionsaredrawnfrom

thecasesthathavebeenexperimented.Additionally,Thomas

(2006)offersaslightlymoredetaileddescriptionofboththe

inductiveanddeductiveapproach,butoverallcorrelateswiththe

wordsofDeGraciaetal(2014).Thomas(2006:238)statesthat

‘’deductiveanalysisreferstodataanalysesthatsetouttotest

whetherdataareconsistentwithpriorassumptions,theories,or

hypotheses identified or constructed by an investigator’’. Thomas

42

(2006:238)furtherinsinuatesthattheprimarypurposeof

employingtheinductiveapproachisto,‘’allowresearchfindingsto

emergefromthefrequent,dominant,orsignificantthemesinherent

inrawdata,withouttherestraintsimposedbystructured

methodologies’’.Asbeforementioned,Partington(2000)discusses

howhebelievesalargeamountofresearchintomanagementhas

relatedtodeductivereasoning,ratherthantheinductiveapproach.

Connoretal(2009)challengesthiscommentbysuggestingthata

shiftinresearchmethodsiscurrentlybeingundertaken,asthe

inductiveapproachallowsfor furthercontextualisation.Saunders

etal(2007)conductedafigurehighlightingthemajordifferences

betweenthedeductiveandinductive approaches (figure 4), has

beenincludedbelow.

Asthisstudyisbaseduponagroundedtheoryapproach,the

inductivemethodofresearchisthemostrelevanttobeappliedto

thisstudy.Glaser&Strauss(1967)demonstratehowtheinductive

approachrelateswithgroundedtheoryandhowthedata forthis

researchwillbegatheredanddeveloped‘’aninductive,theory

discoverymethodologythatallowstheresearchertodevelopa

theoreticalaccountofthegeneralfeaturesofatopicwhilst

simultaneouslygrounding theaccount inempiricalobservationsor

evidence’’(Glaser&Strauss,1967inPathirageetal(2008:5).

Itiscrucialtounderstandthedifferencesbetweentheseresearch

methods.Manyacademicshavediverseviewsonresearch

approaches,methods andphilosophies. Knox, 2004 (in Pathirage

etal(2008:8)maintains,‘thisnonrationalalignmentbetween

positivism, quantitative methods and deduction and the opposing

alignmentofsocialconstructionism,qualitativemethodsand

inductionlimitsandconfusestheresearchprocess’’.

43

Figure4:TheDifferencesBetweenTheDeductiveandInductiveApproach

(Saundersetal,2007)

Anyresearchthatimplementsaninductiveresearchmethod

accompaniedbyagroundedtheoryapproachheavilyreliesupon

developingtheoriesbasedupontheinterpretationofdatathathas

beencollected,whichiswhytheseconceptshaveadirect

relevancetothisresearchinvestigation.

3.2.3ResearchDesign

Thisstudyhasbeenconductedduetoanumberofmodern

dynamicswithinthesportandmanagementfield.Firstofall,given

thescarcityofacademicliteraturesurroundingMLSandits

competitiondesign,theaspirationtounderstandthisinan

academiccontexthasbeen clearlydefinedwithintheaimsand

objectives(1.4ResearchAims&Objectives)ofthisresearch

investigation.Secondly,thisstudyincorporatestheviewsand

opinionsofprofessionalsworkingwithinfieldofMLSintheUSA,

inwhichthefindingswillofferrelevancetotheirindustry.Thirdly,

thisstudyhasimplementedaninductivemethodology,

complementedwithagroundedtheoryapproach,inwhichtheuse


44

ofconvenientsamplinghasbeenappliedtoaidthecollectionof

contextualandqualitydata.Thisstudycanbedefinedashavinga

dynamicapproach,allthedatathathasbeencollectedthroughout,

hasbeencontinuallyanalysed,ensuringthestudyhassufficient

depthfordiscussionandevaluation.

Thisresearchinvestigationadoptsasingle-phaseresearchdesign,

whichtakesintoconsiderationmixedmethods,eventhoughthe

majorityofthisstudytransmitstoqualitativedatacollection.

Semi-structuredinterviewswereorganisedwithindustryexperts

withintheMLSfield,togainfurtherinformationsurroundingthe

competitiondesignoftheleagueandthepotentialchangesthat

couldenhancetheprofileoftheleague.Thissimplisticapproach

stillmeetstherequirementsofthestudybeingvalidandreliable,

duetotheinclusionofsemi-structuredinterviews.Gratton&Jones

(2004:273)outlinethedefinitionofvalidity,bystatingthat

validity;‘’istheextenttowhichmeasurementsactuallyreflectthe

phenomenabeingstudied’’.Zachariadisetal(2014)believethata

studywithgreatervaliditytendstosignifythelevelofqualityand

rigour,havinganimpactonthequalityofconclusions,whichis

whyconveniencesamplinginparticular,hasapositive impacton

thevaliditywithinstudies.

Asmentioned,theinterviewswerepreparedusingconvenience

sampling,‘’inwhichindividualswhofitthecriteriaofastudyare

identifiedinanywaypossible’’(Emerson,2015:166).Thisallows

theresearchertofocusuponaspecificgroupofprofessionals,who

haveastrongknowledgeoftheresearchtopic.Ifrandomsampling

wasemployedforexample,theresearchercouldendupwitha

highproportionofdata,whichhasnorelevancetothestudy,asthe

participants’knowledgeisscarcecomparedtothatofa

professional.

45

3.2.4Single-EmbeddedCaseStudyApproach

MLSasasportingleagueisbeinganalysedasacasestudy,andwill

becomparedtotheEPLastheEPLasaleagueisthemarketleader

(see1.2.3)inEuropeanfootball.Mariottoetal(2014:359)suggest

that‘’casestudiesconstituteanimportantresearchtoolinthefield

ofmanagement’’.AccordingtoYin(2003)utilisingacasestudy

approachshouldbecontemplatedwhen: ‘’(a)thefocusofthe

studyistoanswer‘’how’’and‘’why’’questions;(b)youcannot

manipulatethebehaviourofthoseinvolvedinthestudy;(c)you

wanttocovercontextualconditionsbecauseyoubelievetheyare

relevanttothephenomenonunderstudy;or(d)theboundariesare

notclearbetweenthephenomenonandcontext’’(Yin,2003via

Baxter&Jack,2008:545).

Theuseofasinglecasestudy,embeddedwithsub-unitsisan

efficientwayofilluminatingthesinglecaseasawhole.Baxter&

Jack(2008)proposethatlookingatsub-units,whichare

positionedwithinalargercase,ispowerful,asthedatacanbe

analysedwithinthesub-unitsseparately,betweencasesorasa

cross-caseanalysis.Thus,allowinggreateranalysisofthecasein

questionandin-depthcomparativeanalysisfromthesub-units.

Theselectionofsingle-embeddedcasestudiescorrelatessuitably

withthegroundedtheoryapproach,inwhichtheoriesor

conclusionscanbedevelopedonbehalfofthedatacollected.

Therefore,forthepurposeofthisresearchthesinglecaseisMLS

asthisisthesportingleague,whichisbeingcriticallyanalysed.

Thesub-unitsembeddedwithinthisresearcharetheEPLand

Europeanfootball,allowingthedatarelatedtothemaincasetobe

comparedandcontrasted.

Theroleofcasestudiesinthisfieldofstudyistofullyunderstand

themajordifferences,whichareapparentbetweenMLSand

Europeanfootball,andwhethertheMLScouldbecomeafurther

46

reputableleagueadoptingtheconceptsusedinEuropeanfootball.

Semi-structuredinterviewsbeingtheprimaryphaseofthis

researchdesign,willthenallowthedatatobeexaminedinline

withtheselectedcase.Gilgun(1994)believesthattheinclusionof

casestudiesoffersanumberofpositivesforthefindingsof

academicresearch,‘’well-describedcasestudiescanbeaneffective

meansofcommunicatinginformationandarichsourceof

hypothesesforotherpracticesituations’’(Gilgun,1994:374).Dueto

thelackofspecificacademicliteraturesurroundingthistopicarea,

utilisingcasestudiesisanefficientwaytocompareandcontrast

theelementsinquestion.

3.2.5InterviewDesign

Theschedulingofinterviewsistheprimarymethodofthedata

collectioninthisresearchinvestigation.Thesemi-structured

interviewshavebeenorganisedtogainrichdataforcomparative

analysisofthecasestudiesmentionedintheprevioussection.

Thisstageofdatacollection,consistsofsemi-structured

interviewswithprofessionalsfromthefootballindustryinthe

USA.Thekeyaimofthesescheduledinterviewswastogainamore

in-depthunderstandingoftheconceptscurrentlyestablishedin

MLS,aswellasreceivingdetailedqualitativedatathroughviews

andopinionsoftherespondents.Afteranalysingtheleaguesas

casestudies,thisphaseintheresearchprocesswasusedto

discoverwhetherinfacttheMLScouldflourishinthefuture,by

makingchangestotheirleaguemodel.

Aqualitativeanalysisforthisstudywasthemostsensiblemethod

toemploy,becauseofthelackofacademicliteraturerelatedtothis

topic,meaningmorecontextualisationwasrequiredinorderto

meettheaimsandobjectivesstatedbytheresearcher.Ithasbeen

arguedthatqualitativeresearchdoestoacertaindegreelackin

47

thefieldofgeneralisabilty,howeverasmentionedbyJohnson&

Harris(2002)thequalitativeapproachdoescoincidewiththeory

generalisabilty,wherebytheoriesandfutureworkisgeneralisable.

Althoughquestionscontinuedtobeaskedabouttheissuesof

reliabilityandgeneralisabiltyinqualitativeresearch,Gratton&

Jones(2004)addthatqualitativeresearchisbecoming

increasinglyimportantwithinsportingstudies,asthedesireto

highlightmorefeelingsandexperiencesisparamount.

Amixedmethodsapproachcouldpotentiallyhavebeen

integrated,howeverthecollectiveofquantitativedataisnota

crucialaspectofachievingtheaimsandobjectivessetforthe

investigation,wherebyqualitativedatacollectionviasemi-

structuredinterviewsisfundamentalwhenengagingin

comparative analysis.AsdiscussedbyGorse(2013)theuseof

semi-structuredinterviewsallowstheresearchertogatherviews

andopinionsandunderstand‘how’and‘why’,withregardstothe

researchquestion.Quantitativeanalysiswouldhavesufficedfor

closedanswers,butasbeforementioned,thelackofacademic

literaturerelatedtothistopicwouldmakethisprocess

problematic,hencetheadoptionofinterviewsasaqualitative

methodtoallowtherespondentstoexpresstheirknowledgeof

U.Sfootball.

3.2.6Sampling

AsthetopicofMLSisaveryspecificcasewithaperceivedlackof

knowledgewithinthisacademicfield,thesamplingprocessofthe

researchdesign required careful consideration.Gaining access to

industryprofessionalsinthisfieldcouldhavebeenpotentially

problematic,asthemajorityofindustryexpertsoperateinthe

USA.Someoftheaspectsbeingresearched,suchascollective

bargainingagreements,couldbeseenassensitiveandconfidential

48

informationtotheleagueanditspublics.Nonetheless,an

AmericananalysisonMLSwasvital,eventhoughconcernssuchas

travel costs and access to respondentswas probable.With these

potentialissuesbeingtakenintoconsideration,theresearcher

implemented a grounded theory strategy (asmentioned in 3.1.1)

withconveniencesamplingasthechoiceofsamplingmethod.

Conveniencesamplingwasthemostbeneficialrouteinrelationto

data collection, due to the specificityof the researchexploration.

ProfessionalsoperatingintheindustryofAmericanfootballwere

targeted;accessingtheirknowledgeoftheprocessesbeing

researched would prove decisive. Many academics would prefer

the adoption of random sampling,whereby ‘’a randomsampleof

peopleisextractedfromthepre-definedpopulationofinterest’’

(Johnson&Dodds,2002:104),however, thisprocess isextremely

timeconsumingandcostly.Althoughconveniencesamplingcanbe

subjecttoalackofrepresentation,thistypeofsamplingwould

provemorebeneficialtotheresearcher,astherespondents’

conceptual understanding and knowledge would be far greater

thanrandominterviewees.

In designing the interview agenda for this phase of the research

investigation,anumberofkeyissueswereidentifiedthatwouldbe

crucialwhencommunicating with the respondents. The issues

highlighted are in relation to specificmechanismsof competitive

balance;whether the respondentsbelieved thatMLS could reach

thepotentialwiththecurrentcompetitionstructureinplace;what

changes, if anywould the respondentsmake; the implications of

anychangesandfinallywhethertherespondentsagreethatforthe

MLStothrive,theyshouldconformtoEurope.

The researcher identified a clear rationale for the interviewees,

whichspannedacrossfiveseparateindustries.Thisvarietyof

insightsfromdifferentfieldswouldaidthegeneralisabilityofthe

49

study,gainingwiderperceptionsonthefutureofMLSto

becriticallyanalysed.Thefiveindustriesareasfollows;MLS

specifically,broadcasting,sportslaw,amediaoutletandNorth

Americansportingeneral.Thethoughtprocessbehindthis

rationalewastoensurethatanyelementofbiaswasremoved,

which couldhavebeen apparent usingnumerousMLSpersonnel

andtogatherawiderunderstandingofthethoughtssurrounding

MLSasasportingcompetition.

Figure5:InterviewRespondents

Specificsubjectswereconvenientlyselectedasamore

efficientwayofrecruitmentforthestudy,additionallyitis

important to state that representation to an entire population is

not theprimaryaimof thisstudy.Theparticipantswereselected

asdifferentstakeholderswithinavarietyof fields (figure5).The

approach to sample selection included; contacting personnel at

MLS teams via email, researching the official broadcaster ofMLS

andsportslawconsultanciesthroughtheuseofLinkedIn,to

congregatespecificqualitativedatasurroundingthedraftprocess,

exploringthewebsitesofmediaoutletstogathertheinsightsofan

Respondent

RoleInTheFootballIndustry

R1

SeniorVicePresidentofanMLSfranchise

R2

MLSanalystforawell-knownbroadcaster

R3

SportsConsultant

R4

PhDcandidate–MajorLeagueSportsexpert

R5

MediaColumnist

50

MLSexpert.TheinsightsgatheredfromaMajorLeaguesports

expertwerecompiledafter theresearcherattended thisperson’s

seminaratareputablesportsmanagementconferenceinthe

UnitedStates.Theresearcheridentifiedthatthestrengthof

knowledge the individual possessed would offer an all rounded

approachtoNorthAmericansport.

3.2.7Reliability&Validity

Reliability:‘’Theextenttowhichresultsareconsistentovertimeand

anaccuraterepresentationofthetotalpopulationunderstudyis

referredtoasreliabilityandiftheresultsofastudycanbe

reproducedunderasimilarmethodology,thentheresearch

instrumentisconsideredtobereliable’’

Joppe(2000viaGolafshani2003:598)

Reliabilityisakeyaspectinanyresearchinvestigation,relatingto

thetransparencyoftheentireresearchprocedure,which

consequentlyallowsforreplication.Toensurereliabilityis

coveredwithinqualitativeresearch,considerationof

trustworthinessisacrucialcomponent.Seale(1999:266)

discussesthatestablishingagoodqualitystudythrough

reliabilityandvalidityinqualitativeresearch,isthe

“trustworthinessofaresearchreportthatliesattheheartofissues

conventionallydiscussedasvalidityandreliability”.

Guba&Lincoln(1981)statethatwhileallresearchinvestigations

mustcontain‘‘truth-valueapplicability,consistency,and

neutrality”inordertobecontemplatedasmeaningful,thenature

ofknowledgewithintherationalistic(orquantitative)paradigm

differsfromtheknowledgeinrelationtothenaturalistic

(qualitative)paradigm.Theacademicsproposethattheprinciples

51

withinthequalitativeparadigmtoensure“trustworthiness”are;

credibility,fittingness,auditability,andconfirmability.

Inthisparticularstudy,theprocessofanalysingthecollecteddata

hasbeencomprehensive,incorporatingtherecordingand

transcriptionofsemi-structuredinterviews,ensuringthatthis

investigationmeetstherequirementsofthequalitativeparadigm,

asmentionedabove.Toalsocombatanyissueswiththereliability

ofthestudy,meticulousrecordkeeping,certifyingclarificationsof

dataistransparentandacknowledginganybiasinsampling,

resultinginmeetingtherequirementsofreliabilityinqualitative

research.

Validity:‘’Theextenttowhichmeasurementsactuallyreflectthe

phenomenabeingstudied’’.

Gratton&Jones(2004:273)

Validityisusuallybrokendownintothreeaspects;construct

validity,internalvalidityandexternalvalidity,alsoknownas

generalisabilty.Joppe(2000)statesthatvaliditydetermines

whethertheresearchtrulymeasureswhatwasintendedorhow

truthfultheresultscollectedwererecorded.

Constructvalidityisclassicallyachievedinresearchinvestigations

throughthenumberofdifferentresearcherstakingpartinthe

study, to combat any potential bias thatmay occur. In achieving

this,theresearcherhasutilisedavarietyofdatasourceswith

regards to personnel taking part in semi-structured interviews,

subsequentlyimprovingthegeneralisabilityofthestudy.

Thisstudyalsoconcernsinternalvalidity,referringtothe

constantcomparison,typicallyassociatedwiththeimplementation

ofgroundedtheoryresearch.Toimprovethelevelsofinternal

validityduringthisinvestigation,theresearcherhasplaceda

52

strongemphasisonthesamplingprocess,byvaryingthe

personnelwithinthesample,allowingforconstantcomparisonto

beinstigatedthroughout.‘’Proponentsofpositivistquantitative

researchregularlyimplythatqualitative,especiallyinterpretivist,

approachestohumaninquiryaresorifewiththreatstovaliditythat

theyareofnospecificvalue’’(Angen,2000:378).Qualitative

investigationsareperceivedtolackthelevelofacademicvigor,but

duetothepaucityofacademicliteraturesurroundingMLS,this

methodofdatacollectioniscrucialtogainaclearunderstandingof

thesubjectarea.Thefindingsofagroundedtheoryinvestigation

tendnottobehighingeneralisabilty,butinsteadfocuson

providingacontextualunderstandingofsuchissues.

Thefinalaspectofachievingvalidityistheconceptofexternal

validity,alsoreferredtoasgeneralisabilty.Aspreviously

mentioned,qualitativeresearchisoftenassociatedwithlacking

generalisabilty,howeverfurtheracademicresearchintothisarea

hashighlightedthetopicofanalyticalgeneralisation,which

supportsthedevelopmentoftheory,allowingastudyofthis

naturetobecomemoregeneralisable.

3.3 DataCollection&Analysis

Followingtheprocessofcollectingdatathroughtheutilisationofsemi-

structuredinterviews,theamasseddatamustbecriticallyanalysedto

distinguishrelevantthemes.Thedataprovidedbythespecific

intervieweesisanalysedthroughtheuseofcoding.Codingallowsthe

researchertointerpret,recordandclassifythedatathathasbeen

collected.Kvale(1996viaBryman&Bell,2003)suggeststhatnine

differentquestionsmaybeusedinaninterview,including

introductory,follow-up(e.g.‘basedonexperience,canyougivean

example?),probing(askingforclarificationorfurtherexplanation),direct

(questionsrequiringyesornoanswers)andinterpreting(e.g.asking

53

questionsinadifferentwaytoensurefullunderstandingforthe

interviewer)questions.

Asbeforementioned,theinterviewsforthisstudytookplacebetween

FebruaryandJune2015.Duetothespecificityoftheresearchareaand

theon-goingMLSseason,attractingparticipantsprovedtobea

challengingprocess.Priortoeachconductedinterview,confidentiality

andanonymitywereassuredandhighlightedoncemorebeforethe

officialinterviewtookplace.AsdescribedbyHealey&Rawlinson(1994),

assuringtheintervieweeconfidentialitytendstoimprovethe

trustworthinessoftheinterviewer,thereforeencouragingamoreopen-

ended,honestdiscussion.Thetimeofeachinterviewwasdeterminedby

theexperienceofthespecificstakeholderandqualityofconversation.

Theresearcherusedacombinationofthesespecifiedquestionswithin

theinterviewprocess,withobviousdistinctionsregardingtheanswers

givingbytherespondentandthegeneralnatureoftheinterview.The

interviewerhadaspecificdesignedinterviewscheduleavailabletothem

throughouttheprocess,howeverthiswasusedsolelyasaguide.As

mentionedbyGoulding(2002),inrelationtothegroundedtheory

approachtomethodology,dialoguesarepermittedtoflowintoother

topicareas,perhapsnotconsideredpriortothebeginningofthe

interview.

Regardingthecodingofcollecteddata,Myers(2013:167)proposes‘as

soonasyoustartcodingapieceoftext,youhavealreadystartedto

analyseit.Codingisanalysis.Youareassigningalabeltoachunkof

textualdataandclassifyingthatchunkintoacertaincategory’’.Saldana

(2012)suggeststhatbeforethecategoriesarecompiled,thedata

mayhavetoberecodedanumberoftimesduetotheinclusionof

moreaccuratewordsortermsdiscoveredfromoriginalcodes.

Thisinturn,willhaveapositiveinfluenceonthereliabilityandvalidityof

thestudy,duetoqualitativecodingtakingalongerperiodoftimeto

54

perfect.Theaspectof‘opencoding’runsparalleltotheimplementationof

agroundedtheorystudy,whichacknowledgesthecategorisation,

descriptionandidentificationofdifferentphenomena’swithina

particularresearchinvestigation.

Theresearcherconductedresearchalongsideanotherprofessional

conductinginvestigationsaroundtheaspectsoftheNorthAmerican

model,bothwereinvolvedinthecollectionandanalysisprocess,thus

havingapositiveeffectonthereliabilityofthestudy.This

specificallyisreferredtointer-coderreliability,asinthecase,two

researchersanalysedthedata,leadingtotheoutputofequivalent

conclusionsregardingthehighlightingofkeythemesandtrends.

3.4 MethodologicalConclusions

Thischapterhasofferedathoroughdiscussionaroundthe

methodologicalprinciplesimplementedwithinthisstudy.Thisstudyhas

beendevelopedtoallowforabetterunderstandingonthepotential

futureforMLSthroughtheviewsofavarietyofstakeholders.As

mentionedwithinthissection,theextantliteraturesurroundingMLSasa

sportingleagueinrelationtocompetitiondesign,identifiesalackof

understandingfromacontextualpointofviewwithinthisfield.

Duetothespecificityofthisstudy,anddetailedapproachtosampling,the

generalisabilityofthisinvestigationmaybeconsideredlackingdepth.

Despitetheresearchemployingavarietyofstakeholdersoperating

withinarangeoffields,thespecificnatureofthestudystillbegsthe

questionofgenerlisability.

Anotherpotentialconsiderationforthisstudyistheoverlookingof

quantitativedatacollection.Implementingamixedmethodsapproach

wouldhavecontributedtothegeneralosabilityofthestudy,aswellas

havingamorepositiveeffectonachievinginternalvalidity,duetothe

aspectofrepeatingcertainmethods.Thisisturnwouldhaveadomino-

55

effectonthereliabilityofthestudythroughreplicationofthedata

collectionprocess.Duetothestricttimeconstraintsandextant

knowledgesurroundingthisissueasawhole,theresearchertookthe

decisiontofocusondevelopingtheoryandtrends.However,applying

quantitativedatacanbeanadditionalaspecttothisstudyinthefutureas

trendsandtheoryhavenowbeendevelopedthroughthecompletionof

thisstudy.

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4.ResearchFindings

4.1 ChapterOverview

Thischapterpresentsandexaminesthemainfindingsofthisresearch

investigation.Inrelationtotheanalysisofsemi-structuredinterviews

conductedwithpersonnelfromwithintheindustryofMLS,thissection

analysestheopinionsandresponsestothedifferences betweenNorth

AmericanandEuropeansportsleagues,andwhetherfortheMLStobe

recognisedasafrontlinesportingleague,arechangestotheir

competitivebalancemechanismsvitalforfuturedevelopment?

4.2 CompetitionDesign:TheAmericanWay

ItisimportanttostatehowtheMLShasexperiencedgreatsuccessinits

relativelyshortexistence.Somewhatsurprisingly,theMLSranks3rdin

theaverageattendancelistofsportsintheUSA,whichisa

remarkablefeatconsideringitsimmaturity.Despitetheevidentincrease

ininterestofthesport,thesustainabilityoftheleague’scurrentoperating

structurehasbeenapopulartopicofdebate.AsmentionedbyBeech&

Chadwick(2004:27)‘’systemicgovernanceunderlinesthenatureofakey

shiftinthewaythatsportisorganised’’,theresearcherbelievesthatMLS

mayneedtoperformthisshifttobecomegloballyrenowned.

AsmentionedbyBorland(2006)thenotabledifferencebetweenthe

structureofEuropeanFootballandMLSistheleague’scompetition

design.ThroughoutAmericansportsthereisahugeemphasisonsingle

closedleaguesfortheincreaseincompetitivebalanceasshowninallof

thetopfourleaguesinNorthAmerica.Itisimportanttostatethatthe

developmentofclosedleaguesintheUSAhasbeensuccessful,asit

encouragescompetitivebalanceandsupportsincentivesforinvestment

duetominimalriskregardingfinances.Thesamecannotbesaidin

57

Europeasmanyteam’spriorityissurvival-theirabilitytoinvestisnot

onlyhinderedbyFinancialFairPlayregulationsinitiatedbyUEFAbut

alsobythefearofrelegationhavingdetrimentalimpactsonfinances

throughbroadcastingandprizemoney.Manyindustryexpertshave

contrastingviewsonthecompetitiondesignoftheMLS,someare

callingfortheadoptionofanopenleaguestructure,whereasothersfeel

thattheclosedsystemistheAmericanway,whichshouldbemaintained.

R2‘’SomefootballfansarecallingfortheMLStoadapttotheEuropean

modelsofpromotionandrelegation’’

Fromtheperspectiveofstakeholders,openleaguestructuresappeal

morethanaclosedcompetitiondesign,particularlyduetothepro

competitivenatureofopenleaguemakeups.Theresearcheragreeswith

theviewsofSloane(2006)thatthemainreasonforthispointofview

appearstobethatmoregameshavehighersignificance,wherebyteams

arebattlingtopreventrelegationandotherteamsarefightingfor

promotion.AspreviouslymentionedbyBuzzachietal(2003)this

configurationalsoencouragesbalanceandfurtheropportunitiesforso-

called‘lesser’teamstocompeteatthehighestlevel.Althoughleague

designssuchastheMLScreatemeaningfulcompetition,thisisonlyseen

atthetopoftheleaguetable.Maintainingcompetitioniswhatinspires

spectatorstowatchandattendgames,whichperhapsisastrongreason

forthesuccessoftheEPL.Theclosedleaguemodelhas broughtabouta

majorintegrityissueinNorthAmericansport,alsoknownastanking.

Teamswhoarenotcompetingforplay-offpositionshavebeenknownto

underperformandloseonpurposetoensuretheygainabetterdraftpick

intheupcomingoff-season.Itisironicthatamechanismofpromoting

competitivebalanceisactuallybeingabusedfor anunfairadvantagethe

followingcampaign.

Generallyspeaking,competitionpromotesentertainmentandfurther

interestforconsumers,suggestingthatstakeholderswillbenefitmore

58

fromadesignemployingpromotionandrelegation.FortheMLSthis

couldseeamajorincreaseincommercialactivities,aswellashigher

spectatorattendances.

R3‘‘Personally,IwouldliketoseeMLSbringitselfmoreinlinewiththerest

offootball.’’

ThegeneralconsensusamongstrespondentsappearstosuggestthatMLS

shouldredesignitscompetitionstructureparalleltothemakeupof

Europeanfootball.ItwastotallyunderstandablefortheMLStooriginally

proposeaclosedleaguestructure,asthismodelhasprovedasuccessin

the‘BigFour’.Themainissuesurroundingthismatteristhatunlikethe

NFLforexample,theMLShasworldwidecompetitionandisnot

operatinginamonopolisticmarket.Theinitialdecisiontoemploya

closedleagueconfigurationseemedalogicaldecisiontomakethesport

moreattractivetoAmericans,butnowtheleagueisestablishedandhasa

solidframework,thequestionlies‘isittimeforMLStoconformwith

Europeanfootball?’,thusjustifyingthefocusofthisstudy.

Withtheleaguecontinuingtoexpandatarapidrate,promotionand

relegationisarealisticfuturepropositionduetotheupsurgeinthe

numberoffranchises.Altstadt(2015)suggeststhattoassimilatewiththe

Europeanplan,theMLSneedstomakewaywiththeinvolvementofthe

conferenceandplay-offsystem,tomaketheMLSfeellikealegitimate

footballleagueandnotananomaly.Theresearcherechoesthesentiments

ofAltstadt(2015)asthiscouldhaveapositiveeffectonthelevelof

competition,thereforequality.Altstadt(2015)alsoproposesamajor

changeinthereconfigurationofownershipwithintheleague.‘’By

creatingindependentownership,theleaguewillbecomemorecompetitive

because,insteadofmakingleague-orienteddecisions,teams’ownerswillbe

abletomaketeam-orienteddecisionsthatimprovetheirteams.’’Though

makingchangestoownershipregulationscouldincreasecompetition,

ownerswouldstillbeunderstrictguidelinesaslongassalarycapsexist

59

undertheCBA.Thecompetitivenatureofthegamewillnotreachthe

heightsdesiredbystakeholderssuchassponsorsandsupporters,unless

topqualitytalentisoperatingintheleague,and unfortunatelythe

financialrestrictionsforownerswillhaveadetrimentaleffectonthis

process.Ontheotherhand,Europeanfootballcanbeclassifiedasa

successstoryasprovenbyMasters(2014)in1.2.3.Academicshowever,

havesuggestedthatthereisahigherprobabilityofaEuropeanleague

implementingaclosedleaguestructurethanMLSadoptinganopen

leaguedesign.

R2‘’ItmakesmethinkthatinEuropewemightgothesameway.Owners

wouldlovetohavealeagueliketheMLSwithnopromotionandrelegation’’

WiththecontinuedgrowthofforeignownershipinEuropeanfootball,

thereseemstobeahigherimportanceonprofitability,amodelthatis

apparentinNorthAmericaatthismomentintime.Asmentionedin2.3.2,

currentlyNorthAmericanorganisationsplacemoreattentionon

profitabilityandsustainabilityoftheirfranchises.Aspreviously

mentionedbySmith&Stewart(2010)therearetwoformsofsport,

commericialandnot-for-profit,NorthAmericanfranchisescertainlyfocus

heavilyoncommercialisationovernot-for-profit.Butcouldwebeabout

towitnessachangeoverinthedesiresofowners?Theresearcherbelieves

thatthisishighlyunlikelytooccur.Oneoftherespondentsharmonises

thisviewpointbystatingthat;

R3‘’ThePremierLeagueisaveryattractiveproducttomarkettotheglobal

fanbase,whichmeansmoremoneyforeveryone’’

Therefore,whilsttheEPLcontinuestobeapowerfulbrandwithinthe

globalfootballmarket,significantchangesarenotrequired.

Americanisingcouldstripclubsoftheircompetitivenatureandpromotea

profitmaximisingphilosophy,aswellasgivingownersandtheirboards

negativeincentivestospendmoneyandlookforprogression.TheEPL’s

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uniquesellingpointisitscompetitivenature,implementingaclosed

competitiondesignwouldhaveanegativeimpactontheleague’s

competitiveproduct,thustheoverallplayingqualityoftheleague.

TheresearcherconcurswiththeviewsofSloane(2006)thatconsumer

interestisofhighimportanceforanysportingcompetition.Althougha

closedsystemasamechanismofcompetitivebalanceiscommendable,

areconsumersreceivingthehigherlevelofcompetitiontobe

entertained?FortheMLStobecomemorecompetitive,itistheopinionof

theresearcherthatchangesarerequiredtothecompetitiondesignofthe

leaguebyimplementingpromotionandrelegationandtheplay-offsneed

toberemovedtoencouragehigherlevelsofcompetitionineverygame.

Atthismomentintime,theteamtopofeachconferenceaftereverygame

hasbeencompletedcanstillnotwintheMLSCupduetotheinductionof

theplay-offrule.Abolishingtheplay-offruleplacesmoreimportanceona

highernumberofmatchesthroughouttheseason,howeveritisimportant

toincludethatforthisstructuretoworksuccessfullyallMLSteamsneed

tobemembersofasingleleague,meaningthecombinationoftheEastern

andWesternConference.

Whatisalsoimportanttostateistheeffectanopencompetitiondesign

couldhaveonthecommercialaspectoffootballintheU.S.TheEPL,which

ishighincompetition,butlackscompetitivebalance,hasjustrecorded

recordrevenuesandprofitsfromthe2013/14season.Revenuesinthe

leaguesoared29%toastaggering£3.26bn,whichismorethanthe

revenuesinSpainandItalycombined.

R1‘’Soccerintheunitedstatesisthefastestgrowingsportandyoutakea

lookatwhat’shappeningonthecommercialsideofthebusiness,withthe

partners,notonlyattheclublevel,butattheleaguelevelandthey’re

breakingintothispropertyendofthesportanditsgrownimmensely’’

Withtheextremelevelsofcorporatesponsorshipalreadyevidentinother

Americansports,amorecompetitiveMLShasthepotentialtofurther

61

attractahostofhighprofilesponsorsandtheoverallawarenessofthe

league.Sponsorswanttobeassociatedwiththepinnacleofthatsport,

wherebythequalityofplayandentertainmentforspectatorsisatits

highestpoint.TherespondentsuggeststhatthecommercialsideofMLS

hasgrownimmensely,however,theresearchercannothelpfeelthat

Europeanisingwillaidthegrowthofthecommercialsideofthegame

evenfurther.

4.3 Competitive Balance: A Thing of The Past?

Amongstmanyacademics(Rottenberg,1956;Zimbalist,2002; Pivovarnik,

2008) competitivebalanceisanessentialfeaturetoimprovethe

attractivenessofsportingcompetition.Aspreviouslymentionedby

(Rottenberg,1956&Pivovarniketal,2008),theconceptofcompetitive

balanceencouragesaperfectlybalancedcontestbetweenteams,giving

themanequalchanceofwinning.Havingnocompetitivebalancesuggests

theoutcomecanbecometoopredictable,resultinginstakeholderslosing

theirinterestinthesport.Thisconceptismostcertainlythe‘American

Way’,asitissomethingthatisnotasapparentinEuropeansportand

footballinparticular.Thepolicyofcompetitivebalancehaspaidits

dividendsasnineteamshaveliftedtheMLSCupovereighteencompleted

seasons.Thisbusinessmodelhasallowedtheleaguetogrowslowlyand

thoroughly,withastrongfocusonsustainability.Theinclusionofasalary

cap,arevenuesharingmechanismandthepresenceofthedrafthaveall

contributedtothesuccessoftheleague’sequality,butnowtheMLShas

anrespectablereputationinthefootballindustry,ithasbeenhighlighted

thattheideaofcompetitivebalanceisrunningitscourse.Thelandscape

oftheleagueseemstobechanging,wherebyequalopportunityislooking

likeathingofthepast.IfMLSwantstoreachitsobjectivebybecoming

oneoftheworld’sforemostleaguesby2020,itmayhavetoresignitself

tosubstitutingitsfoundingvaluesofcompetitivebalance.Schaerlaeckens

(2014)discusseshowstatisticalanalysishasproventhattheheightofthe

teamspayrollhasastrongcorrelationwiththepointsaccruedduringa

62

season,thisisaperfectexampleofwhatishappeningintheEPL.

MichaelBradleyaUnitedStatesInternationalhassupportedthetalkof

radicalchangestotheMLS’scompetitivebalancephilosophy;

‘’Fortheleague,youhavetoletteamsthatwanttospendmoneyspend,and

letteamsthatthinkit'simportanttohaveabudgetandwanttofindsuccess

thatwaydothat.Youcan'thavealeaguewhereeveryteamspendsthe

exactsameamountofmoney,doeseverythingtheexactsameway.That's

notreality’’(BradleyviaSchaerlaeckens,2014:1).

Asshownbythequoteabove,playerscompetingintheMLSbelievethat

economicjustificationwillhaveadominoeffectontheleague’squality

andexposure.Furthermore,itseemsthattheMLShierarchyare

beginningtotakenoticeoftheseviewsandopinions,asshownbythe

changestotheleague’ssalarycapatthebeginningofthe2015campaign.

Tohelpanalysetheconceptofcompetitivebalancemorethoroughly,itis

importanttoevaluatethesephilosophiesindividually.

4.3.1TheSalaryCap

AllMajorLeaguesportsoperateunderasalarycap,whichis

integratedwithintheleague’sCBA.Cohen(2015)explainshow

thesalarycap’sintentionistolimitthecompensationclubsare

abletopaytoitsplayers.AsmentionedbyMasterson&CobyJr.

(2013)thesalarycappromotesparitybetweenfranchsies,aswell

asthis,thecaphasalsopromotedequalitybetweenplayersand

stabilityforMLSclubsbykeepingfinancesundercontrol,

somethingthatisarealconcerninEuropeanfootball.Although

thereisahigheremphasisaroundthedraftthroughoutthis

investigation,theinvolvementofthesalarycaphasbeen

highlightedasamechanismwithequalimportance.

R1‘’Becauseofthesalarycapparameters,itcreatesalotof

competitionamongstalltheclubsintheleague.That’swhatwe

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callanevenplayingfieldwhenitcomestomakingcompetitive

clubs’’

Theintroductionofasalarycapiscertainlyapositivemechanism

toencourageequalcompetition,asitwouldbefartooeasyforthe

powerhousesinMajorLeaguesportstoattractthebestplayers,

leavingthelessfinanciallypowerfulteamsunabletocompete.As

seenbytheastronomicalwagesinEuropeanfootballandthe

severelackofequalcompetition,itisunderstandableastowhy

thisnotionwasimplementedintoMLS’competitiondesign.

However,astheleaguehascontinuedtogrowandbroadcasting

revenuescontinuetorise,thesalarycapwhichissetata

relativelylowamounthascomeunderseverescrutinyamongst

playersandindustryprofessionals,whounderstandthe

implicationsofthisfinancialmechanismbeingcappedtoolow.

Geographically,America’sbiggestrivalswithregardstofootballis

theMexican’sLigaMX,whohavenorestrictionsontransferfees

andwages.TheMexicanleaguehasdominatedtheCONCACAF

ChampionsLeagueinrecenttimes,whichhasledtonegative

opinionssurroundingtheMLS’salarycap,assupportersand

playerssuggestthatthismechanismonalargerfootballing

scale,isinfactanti-competitive.Thereisnoshortageofmixed

viewsinrelationtothesalarycap,somepersonnelbelievethatitis

the‘AmericanWay’andpromotesfinancialstability,whereas

othersbelievethatthecurrentregulationsareamajorcontributor

toalackofplayingqualityandthepresenceofhigher-class

players.

R1‘’ThereasonwhyIthinktheleaguehasbeenabletogrowis

becauseofthesalarycap’’

R3‘’Iftherewastruefreemovementandnosalarycaps(and

instead,amoreequitablesystemlikethePremierLeague's

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FFPregulations),playerswouldearnmoremoneyandhavemore

controlovertheircareers.’’

Theresearcherapprovesbothofthecommentsabove.Adoptinga

salarycaphasbeenasuccessfulmechanismtoensurethestability

ofMLSclubsintheleague’searlylifespan,butnowitistimefor

changetoensureMLScandeveloptothenextlevel.Forthis

changetooccur,theMLShastomakefootballinAmericamore

attractiveforoverseasplayers,whoatthiscurrenttimecanplayat

asimilarlevelofqualityandearnmuchmoremoney.Americaisan

attractiveplaceforprofessionalsportspeople,butattheendof

thedayfootballerscareersareshortandmoneytalks.

R1‘’Ifwedon’tmakethosechanges,youcouldpotentiallyimpactthe

abilitytogetthetoptalentfromaroundtheworldtocomeoverand

playhere,becausetheyaregoingtofeelliketherearelimited

resourcestobeabletocapitaliseon’’

Thequoteabovesummarisesthisissueperfectly.Thefinancial

aspectoffootballerisahugemotivator,consequently,aligningthe

regulationswithEuropeanfootballbymakingpositivechangesto

theMLS’salarycapwillseeamajorshiftinthequalityofplayer,

andsubsequentlytheoverallstandardof football.Currently‘’the

leagueisnotveryefficientatidentifyingandpayingaverageleague

players,buttheypayagooddealmoreatthetopofthequality

spectrum’’(Young,2014).Wehavealreadyseenasmallshiftinthe

rightdirectionaschangeshavebeenmadeinrelationtofree

movementandthesalarycap.Playersthreatenedtostrikeif

changeswererefusedtobemadetotheleague’sCBA,which

consequentlywouldhaveresultedinalockoutatthebeginningof

theseason.Thisthreatensuedapositiveoutcome,butthisis

onlythebeginningregardingsalarycapsandplayersalaries.The

MLSissimplynotanattractiveventureforhighprofileplayersat

thepeakoftheircareers,asthemoneyandqualityoffootballis

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currentlylacking.‘’IfMLSreallywantstobringthebesttalent

playingintheUnitedStatesintotheleague,theyneedtomakefair

contractoffers.Aslongasthey’relowballingthemosttalented

playerscomingoutofcollege,toptalentisgoingtokeepleaving’’

(Walcott,2015).

4.3.2RevenueSharing

Revenuesharing,muchlikethesalarycapisanothervital

mechanismofMLS‘structuraldesign.Dietletal(2010)explain

howinsport,so-calledweakerteamsproduceanegative

externalityonmuchstrongercompetitors,thereforerevenue

sharingmeasureshavebeenintroducedtoimprovecompetitive

balancebyinternalisingthisexternality.AstheMLShasaunique

businessmodel,alltheclubsarepartofasingle-entity,whereby

theleagueessentiallyownstheclubs.Revenuesharingisan

obligatoryrequirementoftheMLS;incomeissharedequally

amongstalltheteamsintheleagueinrelationtobroadcasting,

sponsorship,licensingandmerchandising.Alongsidethesalary

capthishasbeenaneffectiveconceptasitlimitsthesuper-rich

teamswithahigherreputationfromdominating.

Theideaofrevenuesharinghasbeenahottopicofdiscussionin

theEPL,asmentionedbyPalomino&Rigotti(2002)revenue

sharingisbecomingevenmoreimportantduetothelarge

paymentsteamsreceivefromTVbroadcastersintheU.S.Clubsin

EuropehavetomeetFFPrequirements,whichstateeachteamis

notallowedtospendmorethantheybringinthroughrevenue,but

sofarthismodelhasproventobeanti-competitiveasitisjust

makingtherichevenricher.Yesitishavingapositiveeffecton

clubsustainability,butFFPisinfactpreventingteamsfrom

investingtoimprove.Forexample;ManchesterUnited’sincome

for2014wascalculatedat£433.1mcomparedtothatofBurnley,

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whichwas£19.6m.Thegulfinfinancialpowerissovastthatthe

gapbetweentheestablishedEPLsidesandthenewlypromoted

teamsisincomparable.Howaretheseteamssupposedto

challengeandimprovewiththeimmensedifferentiationsin

revenue,aswellasaligningwithFFP?Thecompetitiveimbalance

andpredictabilityoffootballinEuropewillcontinuetostaythe

same,unlessasimilarconcepttorevenuesharinginMajorLeague

sportsisadopted.

R3‘’Oncethebroadcastingdealsstartbecomingcollectively

negotiated,we'llseethesmallerclubsstartmakingenoughmoneyto

keepsomeoftheirtopplayersandperhapsstartbuyingtopyoung

playersfromotherleagues’’

Itistheopinionoftheresearcherthatrevenuesharingisan

effectivemethodofencouragingcompetitivebalance,which

shouldbemaintainedwithanumberofminorimprovementsto

allowteamstoinvestmoreinyouthdevelopmentandencourage

betterplayerrecruitment.Gordon(2013)believesthatthecollege

draftisnotapivotalmechanismtoencouragecompetitivebalance.

Asmentionedabove,theresearcherbelievesthatthedraftisn’t

pivotal,butwiththerightmodificationstocollegeprogrammesit

canbepivotaltotheMLS.Itisimportanttostatethatastheleague

continuestogrowclubswillreceivemoremoneyfromthe

league,buttheincomewillstillnotenoughtomakesignificant

improvementstotheleague’sstature.ItisthethoughtofSmith

(2015:1)that‘’withsomuchrevenueshared,itishardtoseeeither

howinvestorsmaketheirmoneybackorwhytheywouldtrytomake

theirclubsanythingotherthanasgoodaseveryoneelse.Thesystem

failstoencourageexcellence’’.Itwouldberefreshingtoseea

revenuesharingtypemodelemployedinEuropeforpro

competitionasthepredictabilitylevelsareatanalltimehigh.Now

thattheMLShasachievedastableposition,theleaguecanlookat

thelikesoftheNFLwhohaveapositiverevenuesharingstrategy,

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totailortheirowntogiveteamsthebestchancetoinvestand

encourageoverallcompetitiveness.Atthismomentintime,there

isafeelingthathavingasingle-entityallianceisgivingtheleague

toomuchcontrol,leadingtoamorecautiousapproach.This

strategywouldbeunderstandableatthebeginningoftheleague’s

existence,butitisnowtimetosupporttheleagueinorderto

continuetogrow.TherehasbeenmixedviewsonhowtheMLSis

beinggoverned,alargepercentageofstakeholdersarecallingfor

thebusinessaspectoftheleaguetotakeastepback,inorderto

improvetheleagueonthepitch.

4.4 TheDraftDynamic

AsthisprojectplacesmoreemphasisontheadoptionofthedraftinMLS,

theresearcherhasdecidedtoevaluatethisismoredepthcomparedto theothermechanismsofcompetitivebalance,whichhavebeendiscussed

above.Asmentionedin1.5,thedraftisaprocesswherebyteamssign

playerswhoarecomingoutofcollege.Theclubsareallocated theirdraft

picksdependingonwheretheyfinishedintheleaguestandingsthe

previousseason.Theconceptofthedraftisanothereffectivestrategyto

combatcompetitiveimbalance,asmoreoftenthannot,theteamwho

finishedbottomoftheleaguewillpickthebestavailableplayerinthe

draft,thusimprovingtheirteamfortheupcomingcampaign.Ifthedraft

wasnotinplace,thewealthier,morereputable teamswouldhavemore

bargainingpowertosignthebestyoungtalent,havingananti-

competitiveeffectontheleague.

R3‘’Ifthedraftdidn'texist,thebestplayerswouldlikelywanttoplaywith

whoeverwasofferingthemostmoney,orifalltheofferswererelatively

equal,maybeNewYorkorLosAngeleswouldhaveanadvantageover

Sandy,UtahorColumbus,Ohio’’

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R4‘’IwouldsaythedraftinAmericansportsisofparamountvalueto

competitivebalance.Eachleagueutilizesitinordertogivethebad

teamsachancetoriseupeachyear.Becauseofthis,especiallyintheNFL,

weseeteamsgofromworsttofirstonafairlyregularbasis’’

ThedrafthasbeenanintegralpartofMajorLeaguesportssinceitwas

firstintroducedbytheNationalFootballLeaguein1935.However,there

havebeenopinionssurroundingtheMLS,whetherthedraftisbeingas

effectiveasitisintheotherMajorLeaguesports.

R2‘’TheDraftidea,especiallywhenyouhavesomanykidsgoingtoplayin

College,isstillveryspecialforalltheAmericanfansandalsogivesachance

toelaborateanevent,whichcapturesthemediaattention’’

Thereisnodoubtingthespecialnatureofthedraftasitpromotesthe

successfuljourneycollegeathleteshavehadinordertobecomefull-time

professionals.Ashighlightedbelow,thedraftprocessbringsamassof

mediaattention,asitbroadcastswhichyoungstarsfanswillsee

representingtheirteamgoingforward.Themajortalkingpointisthatdue

totherelativeimmaturityoffootballintheUnitedStates,thedraftisn’t

producingthequalityofplayerconsistently,somethingthatisnota

probleminthelikesoftheNFLandtheNBAwhohavebeenaroundfor

decades.

R1‘’DoIthinkthecollegedraftisimportant?Yes,intermsofbalance,again

thetypesofplayersthatarecomingoutofthattalentpool,yestherehas

beensuccessfulstories’’

Thedraftisapro-competitivemethodsupportingcompetitivebalancein

NorthAmericansports.InEuropethereisnosuchthingasadraft,clubs

adoptacademiesastheirwayofdevelopingyoungtalent,ratherthan

utilisingcollegeanduniversityprogrammes.Thisprocesshasitsissues,

asthesuperiorteamsstilltendtoprizeawaythebestyoungplayersfor

69

minimalfees,thushavingananti-competitiveimpactonthesportasa

whole.Anothermajorconcernwiththismodel,infootballespecially,is

thatyoungplayersoftencomethroughtheacademiesbutarereleased

whentheygetto18-21yearsofage.Thetopicofnurturinghomegrown

playersintofirstteamsisarealproblemduetotheincreaseinforeign

imports.ThisislessofanissueintheUnitedStatesduetothe

implementationofthedraft,whichpromotesyoungtalenttoplayatthe

highestlevel.

Gardner(2008)discussestheintroductionofthedraftintheMLS,in

comparisontotheNFLandNBAspecifically,bystatingthattheyarethe

sameinappearancebutdifferentinpractice.AmericanFootballand

Basketballhaveawealthoftalentedplayerstochoosefrom,someeven

enterthegameimmediatelyasworld-classindividuals.Theresearcher

supportstheviewsofGardner(2008)thatthedraftisaneffective

strategyinpromotingyoungtalent,aswellasencouragingcompetitive

balance.However,itisevidentthatthedraftiscurrentlyfunctioningmore

efficientlyinthe‘BigFour’thantheMLS.Thequotebelowhighlightsthe

majorissuecurrentlyoccurringinMLS,suggestingthatthecollegedraft

inactualfactdoesn’tmakemuchsense.

R1‘’Idon’tthinkthatcollegefootballprogrammeshavetheultimate

resourcesthattheyneedtoreallydeveloptheplayersattherightlevel.If

you’renottrulydevelopingthetoptalentthenthereisprobablycompetitive

imbalanceright?’’

4.4.1TheDraftInTheBigFour

Aspreviouslymentioned,allMajorLeaguesportsincludingthe

MLSmimicthesamecompetitiondesign,withregardstoaclosed

leaguesystemandthemechanismsintegratedtopromote

competitivebalance(salarycaps,revenuesharingandadraft).

Afterconductingvariousinterviews,themajorityofthe

participantsbelievethatthedraftisofmajorimportanceinthe

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‘BigFour’andcanbehailedasaresoundingsuccessinrelationto

makingtheleaguespro-competitive.Therearehoweversome

slightdifferencesregardingthemakeupofthedraftinthe

respectedleagues.

TheNFLdraftconsistsofsevenroundsofdraftingplayers,in

whichoneplayerischoseneachround.Aspreviouslystated,

teamsareplacedinorderofworstregularseasonrecord,

ascendingtotheSuperBowlchampions.Thereareotherrulesand

regulationsintegratedintothedraftprocess,teamscanalsotrade

playersforacertaindraftpick,tradeplayerslikeforlikeor

evenacombinationofthetwo.Thisisstarkcontrasttothetrading

processseeninEuropeanfootball,whereplayersaretransferred

formoney.AsmentionedbyAndreff(2011)closedleaguesrestrict

playermobility,thereforeplayersareobligedto jointheteamthat

haspickedthem,butthereisacatch.Regularly, playersdonot

actuallysignofficialcontractsuntilafterthedrafthasbeen

completed.Thistimeperiodissetasideforcontractnegotiations,

ifacertainplayerdoesnotwanttosignacontractwitha

team,otherNFLsidescantradepresentplayersandfuturedraft

pickstosettlethedeal,asseenwiththecaseofEliManningin

2004.Ifaplayerisundrafted,theycanfindthemselvesontheNFL

rosteriftheyimpressduringtry-outs,stillgivingthemthe

opportunitytosignacontractagreement.TheAmerican

FootballcollegeprogrammesthroughouttheUnitedStatesare

wellestablished,meaningthereisaconstantinfluxoftalented

playerscomingthroughthesystemeachyear.Thedraftisacrucial

aspectofcompetitivebalanceandhasbeenextremelysuccessful

throughoutthehistoryoftheNFL.Therehavebeeneightdifferent

winnersoftheSuperBowlintenyears,thedrafthascertainlyhad

apositiveeffectontheequalityoftheleague.Ifthedraftwasn’t

implemented,itwouldbefartooeasyforthefinanciallysuperior

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teamstopoachthebesttalentmorefrequently,leavingtheless

successfulsidestrailingbehind.

TheNBAliketheNFLhasadraftimplementedinitscompetition

design,butdecidingtheorderofdraftpicksisdistinctive.TheNBA

hasasystemcalledtheDraftLottery,wherebythe14teamsthat

missedoutontheplayoffplacesareorganisedbasedontheir

seasonrecord.TheNBAuseping-pongballs,whicharedistributed

totheteamsatthebottomofthestandings.Theworst teamis

presentedwiththemostping-pongcombinations,thisprocess

continuesuntileachteamhasbeenallocatedtheirarrangements.

Fourteenballsarethenplacedinthelotterymachine,whichthen

randomisesafour-ballcombinationtodecidewhowillearnthe

numberonepick.Runningalongsidethelotteryisthemore

recognisablecollegedraft,inwhichallthirtyteamsareinvolved.

Collegeplayerswhohavecompletedtheirfour-yearprogrammeat

aninstitutionareeligibleforthedraft,alongsideInternational

playerswhohavetobeatleasttwenty-threeyearsold.Theactual

draftprocessismuchshorterthanotherMajorLeaguesports,asit

onlyconsistsoftworoundswithsixtyplayersbeingallocated.Due

tothepopularityofbothbasketballandAmericanFootball,the

draftisnowbroadcastedeachyear.Sixdifferentteams havewon

theNBAchampionshipsoverthelasttenyears,whichstillshowsa

positiveinfluencethedrafthashadoncompetitivebalance.

ThedraftinMajorLeagueBaseballisalsoknownastheFirst-Year

Playerdraft.TheMLBemploysthesamerulesregardingthe

selectionofplayers,wheretheclubsareplacedinreverseorder

dependingontheirwin-losspercentagethepreviouscampaign.

UnlikemostdraftsinNorthAmerica,theMLBdrafttakesplace

mid-season,whichincludesanotheruniquefeatureinwhichthe

draftprocesslastsfortyrounds.ThisismainlyduetothefactMLB

teamscandraftplayersfromcollege,highschoolsandother

amateurclubs.Freeagentsarealsoeligibletobedraftedthrough

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compensatorypicks.LiketheNBA,MajorLeagueBaseballhas

recentlyaddedalotterydrafttotheirrecruitmentdesign.Theten

smallestmarketteamsandtenlowestrevenuemakingteamsare

eligibleforthelottery,givingthemachancetowinoneofsixextra

picks.Thelotteryhasbeendesignedtoaidthesmallermarket

teamstogainmoretalent,asthereisahugedifferencein

revenuescomparedtothe largermarketteams.Ifitwasn’tfor

theinclusionofthedraftandrevenuesharingregulations,teams

suchastheNewYorkYankeeswoulddominatetheleagueyearon

yearduetotheirfinancialsuperiority.

TheNHLentrydraftisanannualevent,whichtakesplacetwo

monthsfollowingtheconclusionoftheseason.Teamsareallowed

todraftplayersfromcollegiatelevel,highschoolsorEuropean

leagues.Theselectionorderofthedraftisdeterminedbythefinal

regularseasonstandings,combinedwith playoffresultsandthe

lottery,whichisutilisedinthesamewayastheNBAandMLB.The

weightedlotteryconcernsthefourteenteamsthatdidnot

qualifyfortheplayoffs,whichisthenfollowedbytheremaining

teamswhoarerankeddependingontheirStanleyCupresults.The

entrydraftistelevised,provingthatthedraftdoesnotjust

encouragecompetitivebalance,whichoffersawealthof

commercialactivitiesandmediaincentivesforstakeholders.

OverallthedraftsystemsimplementedinMajorLeaguesports

carrysimilarcharacteristicstooneanother,whichhave

undoubtedlyhadapositiveoutcomeontheequalityofcompetition

inalltherespectedleagues.Rosenthal(1995)clarifiesthatthe

majorpositiveofadoptingadraftistodistributetalenttoteamsto

maintaincompetitivebalance.Despitethepositiveeffectofthe

draft oncompetitivebalance,thedraftdoesdistortfree

movement,whichdoesposeproblemsforplayersandtheir

careers.Theresearcherbelievesthatthedraftinthe‘BigFour’has

tobecategorisedasasuccess.Theprocesshasallowed teamsto

73

improveandkeeptheleaguecompetitive,somethingthatisvacant

inEuropeanfootball.

4.4.2TheNotSoSuperMLSSuperDraft

TheMLSSuperDraftimitatesthedraftsthatareincorporatedin

theotherMajorLeaguesports.Theonemajordifferenceisthe

qualityavailableinthedraft.ItisobviousthatthelikesoftheNFL

draftwillpresentteamswithhigh-classcollegeplayers,asthere

arehighlyreputablecollegeprogrammesforAmericanFootball

throughouttheUSA.Thesportisthemostpopularinthecountry,

thereforethetalentpoolisgoingtobemorewidespread,andthis

cannotbesaidforfootball.

R1‘’So,Iwouldn’tconsiderthecollegepool,theprimarypoolof

beingabletogettherighttalent,thebesttalent,that’sclearlynot

thecase.Butitisonemechanismandoneplaceclearlyclubsareable

totapinto’’

ThewealthoftalentforsportssuchasbasketballandAmerican

Footballtopickfromisvast,however,thesituationinfootballis

incrediblydiverse.Duetothesmallerreputationoffootballinthe

USA,thelevelofthesportisinferiortotheprogame,meaningthe

majorityofplayerspickedthroughthedraftarenotattherequired

leveltocementastartingplaceintheteam.

R1‘’Forinstancethisyearwedraftedfourkidsoutofthecollege

draftandactuallyallfourofthemweendedupsigningcontractsto,

butthatisararity.Youknowyou’redraftingfourorfivekidsyou

maybeonaverageyouhavetwoofthemthatactuallyendupsigning

acontract,they’rejustnotatthecompetitiveleveltoplayinthis

league’’

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Thequotesituatedabovesummarisesthemainissueswiththe

collegedraftinfootball.ItiscommendablethattheMLSsupports

collegefootballbytheinclusionofadraft,butitisnotproducing

theconsistentquantityofqualityplayerswhoaregroomedtohit

thegroundrunningintheMLS.Gardner(2008)suggeststhatthere

arenotenoughregularseasongamesbeingplayedinAmerican

colleges,additionallytheagerestrictionsandrejectionofany

professionalinputishavinganadverseeffectondevelopment.It

willtaketimeforcollegestoproduceready-madeprofessional

footballplayers.Oncethereputationofthegameincreasesand

radicalchangesaremadebytheNCAAregardingcollegefootball

programmes,wemightbeabletoseethenextLandonDonovan

comestraightoutofthecollegedraft.Untilthistransition

occurs,therewillcontinuetobeahighpercentageofplayers

draftedandnottieddowntoplayingcontracts.Thecurrentcollege

draftisalsohavingaharmfuleffectontheoverallqualityofthe

MLS.Young(2014)stateshow,60%ofplayerswithintheleague

arebornwithintheUnitedStates,with38%beingrecruitedfrom

theSuperDraft,showingtheimportanceofthedraftregarding

playerpopulation.

DespitetheevidentproblemssurroundingthecollegedraftMLS

hasstayedloyaltothedraftinanattempttoprovetotherestof

MajorLeaguesportsthatitshouldbethe‘BigFive’insteadofthe

‘BigFour’.Gardner(2008:1)suggeststhatthereisafurtherreason

astowhytheMLShascontinuedtoincorporatethedraftinits

governancestructure;‘’thepublicrelationsvalueofthedraftis

immense—itgoesoutliveonTVandlookseverybitasefficientand

meaningfulastheNFLandNBAversions.Thedraftalsoallowsthe

collegestofeelthattheyarecontributingtothegrowthofthepro

game,anditappearstooffercollegeplayersachanceofstardom’’.

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Thisautomaticallysuggeststhatthecommercialvalueofthedraft

istoovitalregardingsponsorshipfortheMLStoconsider

eliminatingthedraftentirely.Nonetheless,someacademicsand

industryprofessionalsbelievethateventhoughthedraftisn’t

producingthequantityoftalentedplayersthatisseenintheNBA

andtheNFL,theinclusionofthecollegedraftisindeed

worthwhile.

R2’’CollegeFootballdoesnothavethelevelrequiredtobea

competitiveleague,buteveryyearyousee4/5playerscomingfrom

theDrafttohaveimpactintheteams.SoIthinkthat'sworthhaving

aDraftjusttotrytogetthoseplayers’’

R1‘’Ilikeitatthispoint,becauseyouhavehadsomegoodplayers

thathavecomeupthroughthesystematthecollegeranksthathave

hadverygoodsuccessherewithinMajorLeagueSoccerand

elsewhere’’

Theresearchercompletelyunderstandstheadditionofthecollege

draftinthecompetitiondesignofMLS.TheMLS hierarchyhad

witnessedtheresoundingsuccessofthedraftinotherNorth

Americansports;thereforeitseemedareasonableconceptto

employfromtheleague’sinauguration.Duetotheleague

integratingasalarycapwithinitsCBA,thecollegedrafthas

allowedtheleaguetohavemorecontroloverfinances,asthe

playersselectedthroughthissystemearnamuchlesssalary

packagecomparedtodesignatedplayers.Thishashadahuge

impactonthesustainabilityoftheleaguefinancially,simply

becauseitaveragesouttheplayersalaries.‘’Onesmallpartofthat

istheabilityofsmallclubstoalsohavesomeofthetopdomestic

talent.Ifwedidn'thaveasystemwhereyoungelitedomesticplayers

andnationalteamplayerswereassigned,youwouldfindthatnot

manyofthemwouldgotosmallermarkets’’(DiCullo,2013in

76

Tannenwald).Itisarefreshingmodeltoincorporate,asitisa

problemthatisapparentinEuropeanfootball.Youwouldnever

seeWayneRooneyatthepeakofhiscareerturningoutfor

Sunderland.ThedraftfortheMLS’competitionstructurewasan

attractiveproposition.Drawinginfanswasalwaysgoingtobethe

firsthurdle;thereforeequalcompetitionwasanecessity.

Nonetheless,whatisamysteryiswhytheMLSdecidedto

incorporatethismechanismwithnoreputablecollegeprograms

andthatdraftsarenotemployedinanyotherfootballleague

worldwide.Asthequalityofplayerwasn’tobtainablethroughthe

collegedraft,theMLShasattemptedtoaidthedevelopment

processofaspiringfootballplayersbyaddingaprogrammecalled

Project-40,whichnowhasbeenrebrandedtoGenerationAdidas

sinceAdidas signedacontracttoendorseallofMLS’soperations.

Tunstall(2014)explainsthatthethinkingofthisprogrammewas

toallowtheMLSandtheU.Snationalteamtodevelophighquality

talentbyintroducingthemintoaprofessionalenvironmentfrom

anearlyage,asthecollegefootballprogrammewasnotaviable

model.

Conversely,thisprocessfurtherunderminesthevalidityofthe

draft,asitlookstosteerplayersfromcollegeintothisspecialised

programme.TheSuperDrafthasalsoseenitsroundpicksreduced

fromsixtofour,asthequalityandquantityofplayerssimplyisn’t

accessible.TherearesignsthataseparationbetweentheMLSand

thecollegedraftisonthehorizon,astheleaguehasrecently

announcedthateachoftheclubsistocreateitsownacademyto

improvethedevelopmentofyoungtalent.AstheMLScontinues

toexpand,theneedforalargepooloftalentedyoungplayerswill

inevitablyincrease.Thetalentedindividualscompetingatcollege

isalreadystretched beyonditslimits,thereforeatpresentthe

draftisprovingtobeineffective.Themajorityofindustry

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professionalsinterviewedinthisprojectbelievethatthe

drafthasproventobeunsuccessfulandinneedofradicalchanges.

‘There’slittleargumentthattheAmericancollegiatesystemisthe

optimalwaytodevelopworld-classtalent.WeknowthisbecauseA)

therehavebeennoworld-classplayersdevelopedviatheNCAAand

B)thefreemarketsaysso.Ifspendingfourseasonsincollegewas

thebestwaytodevelopplayers,youcanbetthefarmthatitwould

havebeenimplementedbyclubsaroundtheworld’’(Tunstall,

2014).

R4’’Itwouldseemprudenttodoawaywiththedraftandmimicthe

systemofplayerdevelopmentthatoccursintherestoftheworld’’

R3‘’Personally,IwouldliketoseeMLSbringitselfmoreinlinewith

therestoffootballanddoawaywiththedraftsystem,butitisso

ingrainedintoAmericanprofessionalsport,soIunderstandwhy

theyuseit’’

R5‘’Thedraftisusefulinothersportswhereteamsdonothave

youthsystems,butinfootball,especiallyinEurope,playersare

signedintheiryouthtoaclubandIbelievethisshouldbethecasein

theUnitedStates’’

R4‘’Inordertocompeteonaninternationallevel,U.S.Footballneeds

toadoptthesametrainingprogramsandteamsthatareutilizedin

therestoftheworld,mostnotablyEurope.Basedonthat,anMLS

draftmakeslittlesensebecauseelitesoccerplayersshouldalready

beonteamsandinprogramswellbeforetheywouldbeeligiblefor

thedraft’’

R5‘’IfeelthatitwouldbebestforMLStoeliminatethedraftaspart

oftheirconformingprocess’’

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Itiscleartoseethattherespondentsharmonisethecommentthat

thecollegedraftatthiscurrenttimemakeslittlesense,and

perhapsfootballintheUSAshoulddoawaywiththismodelall

together.Onerespondenthasaslightlydifferentopiniononthe

inclusionofthedraft.Thisparticipantunderstandsthatthedraft

isn’tthemosteffectiveprocessofbringingintalentedindividuals,

butsuggests;whyshouldtheMLSchangeitsmodel,whichupuntil

nowhasbeenviableandhasallowedtheleaguetogrow?

R1‘’Ilikeitatthispoint,becauseyouhavehadsomegoodplayers

thathavecomeupthroughthesystematthecollegeranksthathave

hadverygoodsuccessherewithinMajorLeagueSoccerand

elsewhere’’

R2‘’Thinkthatthemixtheyhave,betweenDraftandAcademy

Players,alreadysatisfiessomeoftheneedsoftheEuropeanmodel.

TheDraftidea,especiallywhenyouhavesomanykidsgoingtoplay

inCollege,isstillveryspecialforalltheAmericanfansandalsogives

achancetoelaborateanevent,whichcapturesthemediaattention’’

Rodriguez(2015)highlightshowthedraftcannotbedefinedas

worthlessjustbecauseoneortwoplayerswontmakeorbreakthe

teamsfortunes,asseenintheNBAforexample.Draftedplayers

stillhaveimportantrolestoplaywithinasquad,notjustsothe

teamcancomplywithsalarycaplimitations,aswellas

internationalanddesignatedplayersregulations.Thebottomline

isthatalthoughthecollegefootballdraftdoesn’tproducethe

qualityasseenintheNFL,NBAorNHL,itisarealcontributorto

teamrostersandhomegrownstatus,meaningthatthesekindsof

playersstillhaveacrucialroletoplaywithinateam.

Asanavidfootballfan,theresearcherisanadmirerofthewhole

conceptofadraft.Bringinghomegrowntalentthroughtheranks

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intothefirstteamisarealconcerninEuropeanfootball,butthe

draftdoeshaveapositiveinfluenceonthisissueintheUnited

States.Despitethis,theresearcherconcurswiththe

mainstreamopinionsoftherespondentsinthatthecollegedraft

doesnothavethesamepositiveeffectasseeninthelikesofthe

NFLandtheNBA.Asfootballisstillarelativelynewsportto

Americans,themajorityofcollegesthroughouttheUnitedStates

donothaverecognisableprogrammesinplacetoattractand

developaspiringfootballplayers,thereforetheyounghomegrown

playerscomingthroughthedraftsystemarenotattherequired

leveltoshineontheprofessionalstage.

Weshouldn’tdismissthedraftcompletely,asfootballandtheMLS

continuestogrow,andcollegesbegintoimplementwell

structuredfootballprogrammes,thedraftwillbecomeamuch

moreeffectivepropositionwithregardstoplayerrecruitment.At

thismomentintime,theresearcherbelievestheMLSshould

conformwithEuropeanfootballregardingthedebatebetween

draftandacademies.Therehavebeenmajordevelopmentsin

executingacademiesthroughouttheMLS,whichsurelymust

threatentheexistenceofthedraftgoingforward.Thetwosystems

wouldcauseoverlappingconflict,itisacaseofhavingoneorthe

other.

Theresearcherbelievesthatadoptingtheacademymodel,which

hasbeensuccessfulinEuropewouldimprovethedevelopment

processofyoungplayerssignificantlyduetothelargeamountof

fundingandhigherlevelof coaching.Theoverallqualityofthe

MLSwouldbenefitfromtheacademysystem,asthemosttalented

individualsfromNorthAmericaarealreadyintheranks,rather

thanspendingathree-yearlimitedfootballeducationwithina

college.TheacademyprofilealsoallowsAmerica’supcoming

talenttoworkalongsideotheryoungstersfromoverseasand

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continuetomaturetheirowngame.Whatisimportanttonoteis

thatbeingnationallyacceptedisn’tenoughforfootballanditisa

globalsportcompetinginamuchlargermarket.Therefore,

aligningwithEuropeonthismatterwouldcertainlyprovetobea

positivestrategy.

Removingthedraftprocessuntiltheleagueisfurtherestablished

wouldalsobeginpositivestepsintoalteringtherulesregarding

freeagency.ThiswasamajortopicinthelatestCBA,ascurrently

playersaretechnicallyownedbytheleagueuntiltheirrightsare

tradedaway.Thishascertainlyhadanadverseeffectonplayer

recruitment,asplayerspreferfreemovementasseenbythe

BosmanrulinginEurope(seeAppendixC).

R3‘’Mydesireforathletestoenjoythesamebasicemploymentrights

thatnearlyeveryotherworkingprofessionalenjoysdoesnotlineup

withtheMLSbusinessmodel’’

Walcott(2015)describeshowtheleaguethendecideshowmucha

salaryshouldbefortheplayer,ratherthanallowingtheclubsto

negotiatethedealsthemselves.Walcott(2015)continuesto

highlighthowactionsarecurrentlyspeakinglouderthanwords

regardingMLS’desiretogetthebestplayersfromcollegeinto

professionalfootball.NationalteammanagerJürgenKlinsmann

hasbeenquotedadvisingyoungplayersinNorthAmericatosign

forclubsinEurope,asthequalityoffootballandcoachingisfar

superior.ThismustsendalarmbellsringingtotheMLShierarchy,

asthiswouldevidentlyhaveanadverseeffectonthefuturequality

ofMLS,ifthecountriestop collegetalentmovetoforeignshores.

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4.5 AEuropeanisedMLSorAnAmericanisedEPL?

Theheadingofthisparticularsectionissomethingthatisahottopicof

conversationinthefootballworld.Bothleaguesundoubtedlyhavetheir

prosandcons,whichiswhythisissuchafascinatingsubject.Theleagues

arepolaropposites,butarebothsuccessfulintheirowndistinctiveway,

hencewhytheresearcherhaschosentocriticallyanalysethe

characteristicsofboththeMLSandEPLtoseewhichcompetitiveleague

isstructuredthemosteffectively.Firstofall,itisimportanttostatehow

MLShasdoneextremelywelltoovercomethefinancial,legalandsocial

challengesassociatedwithasportingcompetition.Itwouldbeunfairto

completelycomparetheMLStotheEPL,butitisagoodwaytoanalyse

theMLS’competitiondesignagainstanestablished,reputableleaguein

theEPL.Throughoutthissection,theresearcherwilllooktoevaluateboth

theprosandconsofbothsportingleagues,andwhatchangeswouldbe

suitabletoimprovethecomplexionoftherespectedleagues.

4.5.1AEuropeanisedMLS

MLShasexperiencedgreatsuccessinitsshortlife,butthereisan

impressionthattheleagueisnowmovingintoanotherstageof

developmentnowitisestablished,financiallystableandpossesses

asolidfanbase.DespitetheimpressivegrowthofMLS,duetoits

traditionalNorthAmericancompetitiondesign,manyarecrying

outfortheleaguetoconformwithitsEuropeancounterparts.A

majortalkingpointiswhethertheMLShasthecredentialsto

competewiththelikesoftheEPL,LaLiga,SerieAandthe

Bundesligainthefuture.Opinionsaresplitonthismatter,some

personnelbelievethatthecurrentleaguestructurehasbeen

successfulsofarsowhychangeit,whereasotheraresuggesting

tothatfortheMLStoreachitspotential,theyneedtoEuropeanise.

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R1‘’Surewithoutadoubt,againjustbecauseIthinkthereisalotof

thingsthatMajorLeagueSoccerandwhattheUnitedStatescanend

upbringingtothetabletohelptocontinuetodevelopandgrow

thingsandprovidegoodviableopportunitiesforplayersaroundthe

world’’

R2‘’Ifyou'rethinkingaboutreachingthelevelofLaLiga,Premier

League,SerieAorBundesliga,Idon'tthinkso.There'ssomuch

traditionandpoweroverothersportsinEuropethatIthinkthose

fouraretoofartobeachievable’’

R5‘’IthinkMLS'slongtermgoalshouldbetogenuinelycompetefor

viewershipamongstEurope'stopleagues(EPL,LaLiga,Bundesliga,

etc.),andthiswillonlybepossiblewithconformitytothe

internationalnorm’’

TheresearcherbelievesthatMLSdoeshavethe potentialto

flourishinthefutureandbecomeamajorplayerinthefootball

market,butthiswilltakeconsiderabletimeandsomedrastic

changestotheleague’sstructureanddesigntomakethiskeystep.

Themajorconcernsarethecapabilityoftheleaguetobeableto

holdontotheirbesttalent,thecompetitivenessoftheleagueasa

whole,thedevelopmentprocessoffutureplayersandtheinability

ofattractingworld-classplayersatthepeakoftheircareers.

Positivechangestothesethreesubjectswouldcertainlyplaya

significantroleinelevatingthereputationandqualityoffootballin

theUnitedStates.Theresearcherconcurswiththeviewsof

Altstadt(2015:1)bysuggestingthatthefirststepsontheroadto

improvingtheMLSistoconformwithEurope,regardingthe

leaguesbasicstructure.‘’Vastdiscrepanciesexistintheformat

ofMLSandotherleaguesthatarestillveryreminiscentofthe

attempttomaketheleague “American’’.Therearethreeimportant

changesrequiredtoimitatetheEuropeanmodel;1:incorporating

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promotionandrelegation,2:removingtheplay-offsystemand3:

adjustingthescheduleallowingeveryteamtoplayeachother

twiceeachseason.

Firstly,MLSshouldlooktointroducepromotionandrelegationto

itsstructure,eradicatingthecurrentclosedleagueconfiguration.

TheMLShasbeenacloseddesignsinceitsintroductionin1996,

unlikethemajorityofotherdomesticleaguesaroundtheworld

whoarenotcategorisedasfranchises.Removingthethreatof

relegationallowsinvestorstobuyintotheleaguewithlowerrisk,

butsubsequentlyhasnegativeimplicationsoncompetition.U.S

nationalmanagerJürgenKlinsmannhasstrongviewsuponthe

debatebetweenopenandclosedcompetition,suggestingthata

changetotheEuropeanmodelwouldbenefittheMLSgreatly.

‘’Thisthrilloftherelegationbattleisnon-existentintheU.S.league.

Theriskforclubinvestorstoallofasuddenplayinthesecond

leaguewouldbetoohigh.Butthesportingsidewouldbenefitfromit.

OurplayersfromEuropeknowthat.Thatfurthersournational

team.Somethingisatstakeweekin,weekout.Beitatthetoporat

thebottom,youalwayshavetoperform’’

(KlinsmannviaUersfeld,2015)

Therearehowever,threeprofessionaltiersintheAmerican

professionalfootballingpyramidNASLandtheUSL,yetthese

teamscannotmovebetweendivisions.Howare theseteams

supposedtoimproveiftheycannotplayatthehighestlevel?Itis

averybizarremodeltoemploy,butthereisoneadvantageof

havingthese leaguesintegratedinthepyramid.In2013theMLS

negotiatedadealtoallowMLSreserveteamstoparticipateinthe

respectedleagues,withtheultimategoalfocusingonimproving

playerdevelopment.Themostobviousproblemwithasingle-tier

structureisthatmanyteamshavenothingtoplayfortowards the

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endoftheseason;consequentlytheremaininggameslack

competition,thusentertainmentandfaninterest.TheEPLis

famousforhighlevelsofcompetitionrightupuntilthefinaldayof

theseason,throughrelegationdogfights,battlesforthetopfour

andthetitlerace,unfortunatelyfansoftheMLSatthismomentin

time,areunabletoexperiencethesehighsandlowsofbeinga

footballfan.

AdoptingpromotionandrelegationintheMLSbyconformingwith

Europeanfootball’sbasicstructurewouldprovetobeagood

additiontotheleague’sdesign.Firstofall,thisconceptwould

improvethelevelofcompetitionthroughouttheU.Sfootballing

pyramidbyhavingapositiveeffectonentertainmentfor

supporters,duetothelargernumberofgamesthroughoutthe

seasonwithgreaterimportance.Thissystemalsoencourages

qualityoffootball,asthereisatargetforclubsattheendofthe

season.ThiscanonlybodewellforfuturecompetitionintheMLS

andtheU.Snationalteam.Thecurrentsingle-entitystructurehas

comeunderseverescrutiny,withtanking(Taylor&Trogdon,

2002)becomingarealissue.Tankingisawell-knownphrasein

MajorLeaguesports,wherebyteamswhohavenoopportunityto

maketheplay-offs‘taketheirfootoffthegas’sotospeak,meaning

thatalowerleaguepositionallowsthemtoacquireabetterdraft

pickbeforethenew campaign.TheMLS isattemptingtocombat

competitiveimbalancethroughvariousmechanisms,butisthe

closedleaguesystemactuallyhavinganadverseeffecton

encouraging competitivebalance?Buzzachietal(2003)statethat

closedleaguesincreasecompetitivebalance,butitistheopinionof

theresearcherthatthiscouldbethecase,tankingisadangerous

subjectastheintegrityoffootballintheU.Scanbecomeunder

threat,havingthepotentialtoaffectnumerouscommercial

activities.Onthecontrary,promotionandrelegationwould

removethethreatoftanking,astheteamthatfinishesbottomare

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relegated.Theresearcheralsobelievesthatpromotionand

relegationwillimprovetheoverallcompetitionofU.Sfootball,

whichcanleadtoadditionalopportunitiesforcommercialisation,

astheentertainmentvalueofthesportwillrise.

Theplay-offsystemhasbeeningrainedintheNorthAmerican

sportsmodelfordecades.ForEuropeansthissystemisextremely

bizarre.Weareusedtoseeingtheteamthathasbeenthemost

consistentthroughouttheseasoncrownedchampionsattheend

ofthecampaign.DeCourcy(2014)explainsthatthedesignofthe

play-offsneitherinvigoratesthefinalfewgamesoftheseason,nor

providestruejusticefortheteamthatistopoftheleague.

Currently,teamsthatfinishedinamediocre6thpositionineach

conferencestillhaveachancetowintheMLSCup.Theplay-off

modeldoesnotonlydefeattheobjectofasportingleague,but

disregardsthecompetitivenatureofthegame.Asbefore

mentioned,thissystemmuchlikethesingle-tierstructurehasa

negativeeffectongameimportance,leadingtoadominoeffecton

spectatorentertainment.Theresearchercouldunderstandaplay-

offsystembeingutilisedinthelowerleaguesifpromotionand

relegationwasanoption,butwithoutanopenleaguetheconcept

ofplay-offsaremeaningless.

R5‘’Theconferencesystemandplayoffs,arerelicsfromwhenMLS

wastryingtoimitateotherAmericansportsleaguestodraw

viewershipinitsearlyyears’’

Theresearcherstronglybelievesthatthenotionoftheplay-offsis

havinganegativeinfluenceoncompetitionthroughouttheleague.

Teamsareallowedtounderperformthroughouttheseason,but

stillhaveashotatwinningthecompetition.Thisisnothealthyfor

theentertainmentvalueofthesportandfurtherunderminesthe

successoftheteamsthathavebeenmostconsistent

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throughouttheyear.Iftheplay-offsweretoberemoved,the

competitionandgameimportancewouldsurelybecomemore

significant.Tomakethisideaasuccess,theconferencestructure

willalsoneedtobeabandoned,creatingatraditionalleague

wherebyeachteamplayseachothertwice.Atthismomentintime,

theMLScomesacrossasmoreofahybridleaguethanatraditional

legitimatefootballcompetition.Theresearcherwouldliketosee

MLSconformwithEuropeanfootballleaguesregardingthebasic

structureoftheleague.

‘’MLSneedstoeliminatetheconferenceandplayoffsystem,adjust

theschedulesoeveryteamplayseveryotherteamtwiceaseason

andmovetheseasonsothatitalignswiththeleaguesabroad.These

alterationswillremovethepartsoftheleague’sstructurethat

alienatetraditionalfootballfanssothatMLSfeelslikealegitimate

league’’

(Altstadt,2015) R5‘’Nowthatareputablefootballleaguehasbeenestablishedinthe

USAbothinviewershipandrevenue,theleagueshouldstart

emulatingitsEuropeancounterparts’’

Thedraftprocesshasalreadybeencriticallyanalysedin4.3.2,but

thisisanotherpartoftheMLSthatneedstoberemovedto

Europeanisetheleague.ThefutureforyoungstersintheUSAis

throughhighqualityacademyprograms,ratherthanexisting

collegepolicies.Thecollegeprocessisholdingthebestyoung

talentbackandthestrategiesinplacearenotcompetent

enoughtopreparetheplayersforprofessionalfootball.The

Europeanacademystructureisanotheraspectthathasstartedto

beimplementedwithinMLSclubs,whichshouldbemaintainedin

thefuture.Therewillbeagreaterpoolofyoungtalenttechnically

readytomakethestepintotheprofessionalgame.Academiesalso

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eliminatethepossibilityofplayersbeingselectedforteams,and

thenbeingreleasedimmediately,something,whichiscommon

withinthecurrentdraftsystem.Thedraftmodelismostcertainly

notover,but fortheforeseeablefuture,investingand

developmentinacademiesisthebestwaytodrivebetterquality

talentintotheleague.

DespitetheevidentfrailtiesinthecompetitiondesignofMLS,

thereareanumberofmechanismsthatareworkingeffectively,

whichshouldbepreservedgoingforward.Revenuesharingand

thesalarycapinparticulararepositiveconceptsofthe

Americanisedstructure,somethingthatEuropeanleaguesshould

takenoticeof.Thesalarycapisagreatadditiontoanysporting

leagueasitencouragesequality,andrestrictsthefinancial

superiorfranchisesfrombuyingsuccess,somethingthatisvery

apparentinEuropeanfootballwiththelikesofChelsea,

ManchesterCityandParisSt-Germain.Theconceptofthesalary

capisadmirable,butsimplythecapneedstobesignificantly

increased.Moremoneyencourageshigherqualitytalent,

andnotjustinrelationtodesignatedplayers.Duetothefinancial

sustainabilityoftheleague,clubsandtheleagueitselfareina

positiontomakefundamentalchangestothecap.Theresearcher

approvesthecommentsofCoyne(2014):

‘’Withmoreteamsturningprofits,controllingtheirrevenuestreams

viafootballspecificstadiaandsellingmoretickets,it'stimefor

Garberandcompanytoputtheirmoneywheretheirmouthisand

raisethecap.Helpteamskeepusefulplayersandletteamsmeetthe

salaryrequirementsofbetterplayers’’

(Coyne,2014)

ManyfootballfansacrossEuropearesupportingtheideaofa

salarycapduetothegulfoffinancialsuperiority.TheMLSarea

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stepaheadinthisrespect,hencetheimportancetonurturethis

ideaandimplementambitiousrestrictionstoimprovethe

attractionoftheleague.TheunderlyingissueisthattheMLSis

tryingtoohardtooperateasaviablebusiness,ratherthan

satisfyingtheneeds forstakeholders.Anothermodelthatruns

paralleltothesalarycapis independentownership.Ownersare

currentlyrestrictedininvestingheavilyintheirfranchises,asall

decisionsmadeareleagueorientated.Teamownersshouldbe

allowedtoinvest,butstillhavesufficientboundariesinplaceto

preventdomination.Abalancebetweenthetwowouldwork

extremelyeffectively,asthecapwouldstillpromotecompetitive

balanceandmaintainfinancialsustainability,aswellasbeingable

toattracthigherprofileplayersandmostsignificantly,holdonto

theleague’sbestplayerswhocan nowearnrespectablesalaries.

R2‘’ThewaytheleaguewillworkontheirSalaryCaplimitswillbe

veryimportanttomakeMLScompetitive,butyoualsocanseehow

playerscanhaveabiggerincomebyplayingintheAmerican

market’’

Revenuesharingshouldalsoberetainedasanothermechanismof

combattingcompetitiveimbalancebybridgingthegapbetween

largeandsmallmarketteams.Theprocessofrevenuesharingwas

achievableintheMLSaseachfranchisewasstartingfromscratch,

thereforenoteamhadagreateradvantageoveranother.Ithas

beenstatisticallyproventhatrevenuesharingaccomplishesthe

requirementsofcompetitivebalanceifimplementedproperly.The

leaguedoesnotwanttocompletelystiflerevenues,asthiscan

affectdevelopment,butsharingTVrights,merchandiseand30%

offhometicketsalessupportsequality.Theresearcheractually

approvestherulesallowingfranchisestokeeptheirlocal

sponsorshipmoney,kitdealsandstadiumnamingrights,asit

allowsforincreasedinvestmentsinteams.

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‘’Everyleagueacknowledgesthatthepurposeofarevenuesharing

agreementistoallowacloserrangeofpayrollspendingthatmight

otherwisenotbeaccomplished,preventinglargemarketteamsfrom

controllingtheallocationofhigh-pricedfreeagents’’

(Hunt,2011:2)

Manypersonnelmaybelievethatthishinderscompetitivebalance,

butsurelytheteamshavetherighttoretaintherevenuesthey

generateintheirownmarket.Thereneedstobeabalance

betweentothetwo,tonotonlyallowteamstoinvestanddevelop,

butalsoincludeasenseofparity.Themajorityof

respondentsagreethatforMLStothrive,Europeanisingisthe

strategytheyshouldemploy.ThecurrentAmericanisedmodelhas

beensuccessfulupuntilnow,butforU.Sfootballtomake

significantstridesforward,conformingwithEuropeanfootballis

undoubtedlythebestmodeltoapproach.Onerespondentsuggests

thatMLSiswellplacedandshouldbideitstimeindevelopingthe

leaguefurther.Inthemeantimetherespondentdescribeshowthe

MLS’long-termcompetitionisagainstthelikesoftheEredivisie

andthePortugueseleague.

R2‘’TheyarestandingnearthoseleaguesandIthinkthatthegoal,

forthenext20years,istosolidifytheirpresenceinthisgroup,

becomingwithFranceandBrasilthefifthworldleague.There,I

thinktheycanreachit’’

TheresearcherbelievesEuropeanisingwillallowtheMLStoeasily

competewiththeleaguesmentionedaboveinamuchshortertime

frame.Yes,itisunrealisticforMLSatthismomentintimeto

competewiththelikesoftheEPL,butwiththefinancialattraction,

lifestylechoicesandshearsizeofpopulation,accompaniedwitha

newEuropeanisedmodel,footballintheUSAhasallthe

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ingredientstobearesoundingsuccessinthefuture.Thereisa

senseofcautionsurroundingthistopic,whichtheresearcher

actuallythinkscouldhaveanegativeeffectontheleagueby

preventingitfromflourishing.

4.5.2AnAmericanisedEPL

TheEPLisastarkcontrastwiththeMLS,notjustintheir

governancestructure,butalsothroughtheirreputationand

financialpower.Duetothehugeincreaseinforeigninvestmentin

Englishfootball,manyoverseasownershavecalledforthe

PremierLeaguetoAmericanise,byremovingtheopenleague

structure.Thesecommentsadvocatethattheownersareseeking

thebestavenuestomaximiserevenue,withminimalrisk.As

beforementioned,thismodeliscurrentlyimplementedinNorth

America,whichhashadapositiveeffectonrevenuegeneration.

Theprimaryissuewiththismodelisthatrevenuegenerationis

substitutedforpro-competition.TheEPL’sworldwidereputation

hasdevelopedincrediblysince1992,amajorfactorofthisbeing

thehighlevelsofcompetition,generatedthroughpromotionand

relegation.Consequently,theresearcherbelievesthatweare

unlikelytoseeanychangestotheEPL’scompetitiondesign.Asone

oftherespondentsstated;‘whychangethingsupifitisworking?’

Withinthelastdecade,therehasbeenaninfluxofAmericanised

activitiesinEnglishfootball,mostnotably;stadiumnamingrights,

largeremphasesonsponsorshipandalsocorporatehospitality.

ThereisanimpressionthatfootballclubsinEnglandare

transformingmoreintobusinessoutfits,somethingthathasbeen

negativelyreceivedamongstEnglishfootballfans.

DespitetheEPLbeingregardedasthebestleagueintheworld,the

leaguehasbecomeincreasinglypredictable.Thisissueisapositive

aspectoftheAmericanmodel,asseenintheNFLandNBA.Despite

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thispredictability,theEPLstillpresentsincredibleviewerand

spectatorfigures,amajorcontributiontothecontinuedincreasein

broadcastingrights.Referringtoacademictheorysurrounding

competitivebalanceanduncertaintyofoutcome,theEPLisan

evidentanomaly(Buzzachietal,2003).Aspreviouslymentioned,

duetothePremierLeague’sresoundingsuccess,radicalchanges

totheleague’sgovernancestructureareimprobable.However,

thereareaspectsoftheAmericanisedmodelthatwould

undoubtedlyimprovecompetition,withoutmakingdrastic

changes.

Firstofall,asalarycapmechanismwouldaidbothapro-

competitionandfinancialstability.Playerwagesandtransferfees,

whichRottenberg(1956)suggestsareimbalanced,continue

torocket,correlatingwiththeupsurgeinbroadcastingrightsand

commercialarrangements.TheinclusionofFFPhasbeendesigned

tohelpfinancialsustainability,however,clubscontinuetopay

astronomicalwages.Ifasalarycapwasintroducedimmediately,

wewouldwitnessamassuproarasmanyplayerswouldhaveonly

juststartedlucrative,long-termcontracts.Introducingacapwould

gosomewaytobridgingthegapbetweenthesmallerandlarger

marketteams,whichcouldonlyhaveapositiveoutcomeon

competitivebalance.AstheEPLhassuchanestablished

reputation,thereductioninplayersalariesshouldnotbe

detrimenttothequalityofplayersoperatingwithintheleague.

Acapalsohasthepotentialforaknock-oneffectforgrassroots

footballandfans.Areductionissalarieswillfreeupsome

disposableincometobereinvestedelsewhere,benefittingfootball

asawhole.

ThereareaspectsofrevenuesharingpresentintheEPL,butnot

onthesamelevelasMajorLeaguesports.Theonlymechanismof

revenuesharingwitnessedinEnglishfootball,istheequalsplitof

broadcastingpayments.Despitethis,clubsgainextrarevenuethe

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moretimestheyareshownonTV(facilityfees).Therefore,the

likesofArsenal,ManchesterUnitedandChelseagainmoremoney

throughfacilityfees,astheytendtobeinvolvedinhigherprofile

matchesthroughouttheseason,aswellashavingabroaderglobal

fanbase.Consequently,broadcastingpaymentsaretechnically not

distributedevenly,resultinginfinancialinequality.Sharingall

broadcastingpaymentsequallywouldimprovetheequalityinthe

league,howeverwhatarethechancesofthetopfouragreeingwith

thischange?Veryslimistheanswer.Thesuperiorclubswould

undoubtedlyseektonegotiatetheirTVrightsexclusively,to

ensuretheymaximisetheirrevenue.

AsfortheEPLAmericanising,thisisextremelyunlikely.The

EuropeanmodelhasbeenahugesuccessinEnglishfootball,and

whilstthePremierLeaguecontinuestodominatethrough

revenuesandbroadcasting,whyshouldtheychangeamodelthat

isincrediblysuccessful?Theresearcherhowever,doesbelievethat

introducingmechanismssuchasthesalarycapwouldonly

improvetheleaguefurther.Theastronomicalwagespresentinthe

EPLisoneofgreatconcerntothesustainabilityoffootballclubs,

whichsuggeststhatintroducingacapwouldbeasensible

additiontotheiralreadysuccessfulleaguedesign.Althoughit

wouldbeupliftingtoseetheEPLbecomemorebalanced

competitively,thetopclubsintheleaguearemorethanlikelyto

opposeanychanges,astheirsuperiorityandfinancialpower

wouldbeprovoked.TheFAcannotaffordtowoundtheEPL’s

powerhouses,astheyareavitalcoginmakingtheEPLso

successful.Inrelationtothequestionposedatthebeginningof

thisparticularsection,thereisamuchhigherprobabilityofan

EuropeanisedMLSthanan AmericanisedEPL.

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4.6 TheUltimateLeague

Afteranalysingwhatmakesasportingcompetitionsuccessful,the

researcherhasanumberofviewsinwhatconstitutesthe‘ultimate

league’.NeithertheMLSortheEPLareperfectsportingcontests,but

combiningsomeofthemechanismsincludedinbothleagueswould

composeanalmostperfectleague,withregardstocompetitionand

equality.YoucouldarguethatthePremierLeagueisclosetoperfection,

butthelackofcompetitivebalanceissomethingthatcouldbetargeted.

EventhoughtheEPLdefiestheconceptofcompetitivebalancethrough

broadcastingstreamsandspectatornumbers,Englishfootballfans

realisticallyknowthatifyouarenotatopfourteam,thepossibilityof

winningtheEPLisnon-existent.So,whatconstitutesaperfectly

designedcompetition?Firstofalltheleagueneedstoincludepromotion

andrelegation.ThisconcepthasbeenagreatsuccessinEnglishfootball

especially,asitpromoteshighlevelsofcompetitionthroughoutthe

season,aswellasoptimisingspectatorentertainment.Theideaof

promotionandrelegationalsogivessmallermarketteamsanopportunity

toreachthesummitoffootballintheircountry,providingmore

favourablelevelsofcompetition.Single-entityleaguestructuresdohave

anadverseeffectoncompetition.Thereisnoincentiveforteams

operatinginlowerleagues,astheycannotcompeteatthehighestlevelin

theircountry,whichconsequentlydrivesspectatorsaway.

Salarycapswouldalsobeapositiveadditiontoaleaguescompetition

design.ThegulfinqualityinEuropeisevident,simplybecausethelarger

marketteamsarefarfinanciallysuperiortotherestofthefield,thus

creatingunfaircompetition.Thenotionofasalarycapalsoensuresa

higherleveloffinancialstabilityofentitiesparticipatingwithinthe

league.Theonlyissuewithintegratingasalarycap,isthatmoneytalksin

football.Ifotherleaguesaroundtheworldarenotabidingbythesame

regulations,playerswillcontinuetofollowwhereverthemostmoneyis

available.YoucanarguethatUEFA’sFFPregulationshavesimilar

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characteristicstoasalarycap,butevenwiththisconcept,smallerteams

arerestrictedwithregardstoinvesting,astherulesstateaclubcannot

spendmorethanwhattheybringinthroughrevenue.Incorporatinga

salarycapwouldundoubtedlyincreasecompetition,butinmodernday

Europeanfootballitisamechanismthatisunlikelytobeemployedinthe

future.Theinfluenceofsuper-richclubsongovernancerulingcannotbe

undermined,meaningthatgoverningbodiessuchasUEFAhavetokeep

G14clubsforexample,atarmslength.Introducingasalarycapwould

helpcreatealevelplayingfield,theso-calledbiggerteamswouldstill

havehigherbargainingpowerthroughtheirreputation,butitwouldalso

allowsmallersidestoholdontotheirbestplayers.

MajorLeaguesportsincorporateplay-offs,butforthepurposeof

designingan‘ultimateleague’,thistheoryshouldbeoverlooked.Theidea

oftheplay-offsdemoralisethetruepurposefulnessofasporting

competition.Theteamthatfinishestopoftheleaguetabledeservesto

winthecompetition.Aspreviouslymentioned,overseeingtheplay-offs

encouragesconsistentcompetitionthroughouttheseason,ratherthan

allowingteamstounderperform,butstillhavetheopportunitytobe

crownedchampions.

Theleague’sschedulemustrunparalleltotheFIFAcalendar,something

thattheMLScurrentlydoesnotadopt.Thisisanimportantissueto

highlight,astherearesevereimplicationswithregardstothe

internationalcalendar.TheMLSseasonwasstillinfullforce,despitethe

WorldCupinBrazilbeingunderway.ThebestU.Splayerswereabsent

fromtheleagueastheywererepresentingtheircountry,meaningthe

attendanceshadthepotentialtobemajorlyeffectedduringthisperiod.

MLSisanexception,asatthismomentintime,thereareanumberof

groundsharesandtheadditionofhigherreputationsportstotakeinto

consideration.

R1‘’Withfootball,basketballandbaseballandwithuskindofbeingthe

newkidontheblock,we’vegottobeverycarefulthatwedon’tcompromise

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thelongtermgrowthabilityforthisleague,whenwemakeamoveandlets

saywetrytocompeteandrunourschedulethesameasletssaywhatis

goingonoverinEurope,andthenwe’regoingheadtoheadwiththeNFL

andtheNBA.Soifwedidthat,maybewhatcouldenduptheoretically

happening,isthatcouldendupimpactingourabilitytogetthebest

possibleTVdealdone,becauseastheyprioritisetheirprogramming

schedulewiththeseotherleagues,theywouldendupnotputtingusupat

thetopofthelistbecausethey’regoingtohavetheNFLastheirnumberone

property,andworktheirwaydown,thatcouldbeanissuethatisoutthere’’

Forthepurposeofan‘ultimateleague’,itmakescompletesenseforthat

sportingcompetitiontoabidebyFIFArulesregardingscheduling.

Thefinalpropositiontoconsiderwhendesigningtheultimatesporting

leagueisplayerdevelopment.Asalreadymentionedthroughoutthis

project,thistopicrelatestodraftsandacademies.Eventhough

integratingadraftwouldbeagreatmediatool,itisalsoaneffectiveway

tomeethomegrownplayerregulations.However,theimplementationof

academysystemswouldbethemosteffectivechoiceforthisfocus.

Academiesofferaconsiderablehigherlevelofcompetitionandqualityof

coachingcomparedtocollegeprogrammes,whichwouldthenleadtoa

playerbeingselectedoncetheireducationhasfinishedat21yearsofage.

Anotherissuewithadraftisthatplayersattheageof21shouldalready

beplayingatthehighestlevel,meaningthattheyarealreadybehindin

theirfootballdevelopment.Academyplatformsarethemostefficient

methodofdevelopingyoungfootballers.Firstofall,thereisnoissuewith

playersnotbeing‘uptoscratch’,somethingwhichisseenwiththecollege

draftintheUSA.Academiesonlypossessqualityyoungsterswhohave

beenscoutedanddevelopedinternally,whohaveachanceofmakingitto

theprofessionalstage.Asthemajorityoffootballteamsincludehigh-class

academysetups,itallowsforcompetitiveleagues,whichisanotherkey

conceptforplayerdevelopment.Despiteacademiesbeingthemost

efficientwayordevelopingyoungtalent,thedraftissomethingthathas

long-termpotential.Firstofall,thedraftbringsexcitementforfans,as

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wellasbeingabrilliantmediasource.Itwouldbegreattoseeadraftin

Europeanfootball,butthisdiminishesthealreadyestablishedacademy

systemandrequiresessentialchangestoEuropeanuniversities’toallow

thistohappen.

Toconclude,themechanismsthatshouldbeimplementedtocreatean

‘ultimateleague’incorporate;asenseofequality,thebestopportunities

forplayerdevelopmentandfanentertainment.Theconceptsthatmeet

theserequirementsare;

• Promotion&Relegation

• SalaryCapregulations

• RevenueSharingguidelines

• TheNon-AppearanceofPlayoffs

• RunningaschedulewhichshadowstheFIFAcalendar

• IntegrationofAcademysetups

4.7 IsAEuropeanModelofGovernanceTheFutureforThe MLS?

Therespondentshavepresentedsomefascinatingopinionsaroundthe

mechanismsassociatedwithcompetitivebalance,aswellasfurthering

theresearcher’sknowledgeofthesesubjectsintheprocess.Whathas

becomeabundantlyclearfromtheanalysisofthedataisthatthereis

mixedopinionsregardingwhetherMLSshouldEuropeanise.Ononehand,

anumberofrespondentssuggestthatEuropeanisingwouldbepotentially

threateningtotheleaguesstability,whereastheotherinterviewees

believethataEuropeanisedstructureisessential,ifU.Sfootballandthe

MLSwishtoreachthesummitofworldfootball.Aspreviouslymentioned

byBeech&Chadwick(2004)emphasisonfairtreatmentofstakeholders

isanimperativepartofmaintainingcorporategovernance,howeverit

canbearguedthatthisisn’thappeninginMLSduetothehighlevelsof

controlMLSasanidependentorganisationholds.

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Theresearcherrecognisesthattheremaybecautionregardingapotential

change,particularlyduetotheevidentgrowthoftheleaguesince1996,

however,theresearcherdeemsthefutureforMLSisEuropeanisation.

Despitethis,theresearchercannotdismissthesignificanceofcompetitive

balancetothesuccessofasportsleague,buttotheinterestsofMajor

Leaguesportsfans.Therefore,mechanismsintroducedtocombat

competitiveimbalancemustcontinuetobeintegrated.Interestingly,in

thestudyof‘EqualityofOpportunityandEqualityofOutcome:Open

Leagues,ClosedLeaguesandCompetitiveBalance’composedbyBuzzachi

etal(2003:182),theacademicssuggestthat;

‘’ByaconventionalmeasuretheopensoccerleaguesofEuropeare,if

anything,morebalancedthantheNorthAmericanclosedleagues.However,

bythedynamicmeasureofcompetitivebalancetheOLs(openleagues)

appearsignificantlylessbalancedthantheclosedleagues’’

ThisquoteissignificantwhendiscussingwhetherEuropeanisationor

Americanisationisthesuperiorformatforcompetitiondesign.Theideaof

competitivebalanceisMajorLeaguesport’suniquesellingpointsoto

speak;itisperhapsthemajordifferencebetweenNorthAmericanand

Europe,thereforethecommentsofBuzzachietal(2003)havesomewhat

underminedtheimportanceofcompetitivebalanceinmakingasporting

competitionsuccessful.Nevertheless,theresearcherappreciatesthe

valueofcompetitivebalance,andbelievesthatitisstillacrucialaspectis

ensuringaleagueispro-competitive.

So,IsAEuropeanModelofGovernanceTheFutureforTheMLS?Following

analysisprocess,theresearcheragreesthatMLS’sfuturelieswiththe

Europeanmodel.ThecurrentNorthAmericanmodelhasbeena

resoundingsuccessintheestablishmentoffootballintheUSA,however,

thiscompetitiondesignhasitslimitations.Theprimarylimitationisthat

itdifferstheleaguefromtherestofitscounterpartsinthefootball

industry,meaningthattheleagueisaloneranger.Secondly,theleague’s

currentstructureisnotsustainableforasportthatisgainingahigher

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reputationandincreasingfanbase.Themechanismsthathavebeen

incorporatedtoensuretheMLSremainscompetitive,areironically

havinganegativeeffectonpro-competition.Thesalarycapforexample,is

preventingtrueworld-classplayersfromplayingintheleague,and

furthermore,isforcingthecountry’sbestplayersawayfromtheleague,

astheguidelinesarecontinuingtobesettoolowtoattractqualityplayers

toparticipateintheleague.AsstatedbySzymanski&Kuypers(1999in

Morrow,2011:51)’’tomaximiseonfieldperformanceclubsneedtospend

significantsumsonplayerremunerationcosts,yetthisexpenditure

inevitablyweakenstheclubsreportedfinancialperformance’’.Theleague’s

franchisesarefinanciallystableaftertwentyyearsofasustainable

businessmodel,butnowtheMLS hierarchymustvacateany

complacency,orfaceafutureofmediocrity,consequentlyaffectingthe

league’soperationsaltogether.Tofurthersupportthecommentthat

MLSshouldEuropeanise,itisimportanttodiscussthe conceptsthat

havealreadybeenhighlighted,to showhowtheirintegrationintoMLS

willhaveapositiveeffect.

Transformingthesingle-entity,closedleaguesystemisimperativefor

MLS’sgrowthtoemployanopenleaguestructure.Footballisaglobal

game,notsolelyaNorthAmericansportsuchasAmericanFootball.The

MLSisnotinapositiontocompete,untiltheyareoperatingfromthe

samehymnsheetastherestoftheindustry.Theclosedstructure’s

negativitywithregardstopro-competition,outweighsthepositive,hence

theneedtoconform.Themajorpositivewithopenleagues,isthatit

allowssmallermarketteamstocompetewithlargermarketteams.Thisis

onlygoingtobeapositivetocompetition.Thereisalargerincentivefor

smallermarketteamsoperatinginlowerleaguestoreachthepinnaclein

theircountry,ratherthanbeingsummonedtothelowerleagueswithno

opportunityforexpansion.Americanfansbelieveinentertainment,the

addedimportanceofwinningmatchesthroughouttheseasonwillonly

aidthis,aswellasthedevelopmentofplayersintheUSA,whowillbe

presentedwithdirectcompetitionweekinweekout.Theresearcher

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believesthatthewaytheMLSisorganised,wherebyfranchiseownersare

heavilyinvolvedindecision-making,alteringtheleaguestructurewillbe

adifficultmatter.Ownerswanttohaveateamthatisstablebothonand

offthepitch,andthisiswhataclosedconfigurationoffers.Thefocuson

beingasuccessfulbusinessseemstobeakeycomponenttotheleague’s

structure,buthowwillthisimprovetheplayingqualityandspectator

entertainment?The answerisitwon’t.However,adoptingpromotion

andrelegationwithinoneleaguestructurewouldcertainlyhavean

encouragingeffectonplayerdevelopment,fanengagement,

entertainmentandopportunity.

Followingtheevaluationoftherespondentsopinions,thereisacommon

agreementthatacademiesarethesuperiormethodofplayer

development,ratherthanthecollegedraftcurrentlyingrainedintheMLS’

competitiondesign.MLSfranchiseshaverecentlysupportedtheideaof

academies,butcontinuetoengagetocollegedraftalongsidethis.Itisa

veryconfusingsubject,aneutralwouldexpecttoseeoneortheother

incorporated,notboth.Theacademyprocessisfarsuperiortothedraft,

asshownbyanumberofthetopcollegetalentbypassingthedraft

processandsigningcontractsfortheteamwhoseacademytheyhave

beenrepresenting.Thecollegedraftclassesarebelowaverage,

additionallythisisonlygoingtogetworse.Therewillbeafurtherrisein

thebestyoungtalentsigningprofessionalcontractsforclubacademies

andsidesteppingthewholecollegeprocesscompletely.Yes,thedraftcan

producesomehiddengems,butwiththeincreasedreputationoffootball

intheUnitedStatesandamplifiedfocusonplayerdevelopment,the

qualitytalentwillbeselectedatamuchearlierstage.Academieshavethe

facilitiesandfundingtooffersuperiortrainingandcoaching,aswellas

operatingwithinaprofessionalenvironment.Itismoderatelyconceivable

thatthecollegedraftisbecomingirrelevantasabreedingground.So,this

isanothertopicthatfavourstheEuropeanstyleofgovernance,andone

thatisalreadystartingtotakeforceintheUSA.Thecollegedraftisa

brilliantconceptforencouragingcompetitivebalance,butthecollege

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footballprogrammesarenotestablishedenoughtoreadyplayersfor

professionalcompetitionatthismomentintime.Oncefootballgainsa

greaterreputationthroughoutthecountrythedraftcouldbereinstated,

butfortheforeseeablefuture,academysetupsaretheanswertoimprove

playerdevelopment.

Aspreviouslymentionedthroughoutthisresearchfindingssection,there

areaspectsoftheAmericanisedmodelthatcanbemodifiedtocorrelate

withaEuropeanstyle,tocreateawinningformulafortheMLS.

‘’Avarietyofrestrictiveagreementsrecentlystruckamongteamownersin

themajorNorthAmericansportsrestrictsalaryescalationoftopplayers.

Perhapsitisacoincidencethatleagueattemptstorestrainsalarieshave

comeatatimewhenthedemandforsportandplayers’salarieshavegrown

somuch’’

(Rosen&Sanderson,2001:64)

Theassimilationofrevenuesharingandsalarycapguidelinescontinueto

encouragecompetitivebalance,whichinturnwouldassociatewellwitha

Europeanmodel.Theresearchersuggeststhatthesemechanismskeepan

appreciationoftheAmericanisedapproach,aswellaspromotingasense

offinancialstability,similartotheFFPregulationsembracedinEurope.

Theseconceptsarekeytopreventthefinanciallypowerfulteamsfrom

completelydominating,butfurthermore,theymustbecustomisedto

allowteamstoattractworld-classtalent.

Asubjectthathasnotbeendiscussedingreatdetailisthematteroffree

movement.EuropeanfootballhasseentheincorporationoftheBosman

Ruling,whichhasallowedplayerstherightforcontractualfreedom.

MLShaswitnessedasimilarcaseinrelationtofreeagencyin2015,which

hasresultedinradicalchangestotheleague’sCBA.

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‘’Undertheoldsystem,playerswithexpiredcontractswereallowedtobe

redraftedbyotherM.L.S.teams,butonlyattheircurrentsalariesandwith

nosayaboutwhichteamtheywouldbeassignedto’’(Sandmoir,2015)

Asthisisacontemporaryissue,furtherresearchintothefutureofthis

matterisforanothertime,butitisanotherexampleoftheflawsthatan

Americanisedmodelhas,especiallywhenoperatingwithinaglobalgame.

Oneoftherespondentswhooperatesasasportsconsultant,specialising

insportslaw,isextremelypassionateaboutthetopicoffreemovement.

Theintervieweesuggeststhatfreemovementiscrucialinthegame,and

shouldnotbeusedasanothertechniqueofensuringcompetitivebalance.

R3‘’Salarycaps,thedraftprocess,andrestrictedfreeagencyarein

place,ostensiblytoensurecompetitivebalance,buttheydosobystripping

awayathletes'rights.Iftherewastruefreemovementandnosalarycaps

(andinstead,amoreequitablesystemlikethePremierLeague's

FFPregulations),playerswouldearnmoremoneyandhavemorecontrol

overtheircareers’’

Asanexpertinsportslaw,theresearcherwassurprisedtoreadthatthe

respondenthassuggestedthattheMLSdoawaywithsalarycaps,Dietlet

al(2007)suggestthatactuallyeventhoughrevenuesharingpreventsthe

richfromcompletelydominating,italsorestrictlessfinanciallysuperior

teamsfrominvesting.Eventhoughthecurrentcapispreventingtrue

world-classplayersfromfunctioningwithintheMLS,thereisasensethat

therealmeaningbehindthecapiseffective,itjustrequiresmodification.

ManyfootballfansinEuropehavecampaignedfortheintroductionofa

salarycap,sotheMLSareastepaheadinthisregard.Asforfreedomof

movement,theresearcherdeemsthatthismatterwillcoincidewith

Europe’sBosmanRuling(seeAppendixC)forallMLSplayersinthenotso

distantfuture.Thecurrentmodelisahugelyoffputtingforplayers,why

wouldaplayerwanttosignforateamandbestuckuntilatradeforthat

playersrightsarises?Europeanfootballisamuchmoreattractive

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proposition,asplayersarefreetonegotiatewithotherteamsoncethat

contractexpires.

Afterevaluatingthecasestudieschosenforthisstudy,withtheadded

inputoftherespectedrespondents,theresearcherisabletoanswerthe

officialresearchquestion.Therefore,‘ShouldMajorLeagueSoccer

AdoptAMoreEuropeanStyleModelofGovernanceInOrderToBe

MoreCompetitiveOnTheInternationalStage?Itistheopinionofthe

researcherthatMLSshouldadoptaEuropeanisedmodelofgovernance.

Thismayseemacontroversialinterpretationastheleaguehaswitnessed

incrediblegrowthandstabilityoverthelasttwentyyears;however,the

researcherhasalludedtoathoughtthattheMLSisapproachingthenext

stageofitsdevelopment.MLShas undoubtedlygotincrediblepotential

tobecomeamajorplayerinthefootballindustry.Toachievethis

potential,theleagueneedsworld-classplayersrepresentingthe

franchises,ahigherlevelofcompetitionthroughU.Sfootballand

increasedentertainmentforfootballfans.Americanisation,although

encouragesequalityofoutcome,willnottaketheMLStothesummitof

worldfootball.ByEuropeanisingandimitatingEuropeanfootballleagues,

MLScanreachitsfullpotentialandbecompetitiveonthe

internationalstage.

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5.Conclusions&Recommendations

5.1 ChapterOverview

Thischapterpresentstheconcludingcommentsofthisstudy,which

emphasisetheprofessionalandacademiccontributionstotheresearch

project.Theapplicabilityoftheinvestigationsfindingsareunderlined,as

wellastheimportanceoffurtherstudyinthestudyofGovernancein

MLS.Finally,thissectionconcludeswiththeidentificationofanumberof

recommendationsforacademicsandprofessionalsworkingwithinthe

footballindustry.

5.2 ResearchConclusions

MLS’futureisaverypopulartopicamongstfootballexperts,inwhichit

representstheleague’shierarchywithanumberofkeydecisionsto

ensuretheMLSreachesitsfullpotential.Theevidentincreasein

popularity,insuchashortspaceoftimehasbeenahugesurpriseto

AmericansportsfansSmith(2013see1.2.2).Footballisnowmentioned

inthesamebreathasthelikesofbasketball,icehockeyandbaseball,

somethingthattheMLS’bossescouldnotofdreamedofbackin1996.

Thistopicinitselfiswhythisresearchinvestigationissosignificant.

GiventhesolidfoundationachievedbytheMLS,thenextstepinthe

leaguesdevelopmentisofupmostimportancetoguaranteethatMLS

doesnotonlycompetewithotherMajorLeaguesports,butonthe

internationalfootballstage.ItisvitalthatMLSlookstoprogress,to

increasetheircapabilityofattractingtheworld’sbestplayersinthepeak

oftheircareers,andensurethattheleagueachievesthestatusofa‘super

league’,ratherthanbeingsituatedinthesecondlineofworldleagues.The

MLShasreceiveditscriticsbyfootballstakeholders,whohavequestioned

thestructureoftheleague,aswellassuggestionsthatMLSisasemi-

retirementhomeforex-footballingsuperstars.Regardingthese

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comments,thisresearchbeginstoaddressthemechanismsthatMLS

couldbegintoimplementforexpansion,usingitsEuropeancounterparts

asacasestudyforthispotentialdevelopment.

ThefocusofthisresearchhasbeentoanalysehowandwhyMLSshould

respondtothegovernanceoffootballandcompetitiondesign,as

presentedinEuropeanfootball.Assuch,inexaminingtheimpactof

incorporatingaEuropeanmodelofgovernance,thisparticularresearch

haspursuedtoconceptualisethekeyconceptsofcompetitiondesignand

thepositiveandnegativeeffectsofthesenotionsonMLS’slong-term

aspirations.Thisresearchinvestigationprovidesanin-depth

understandingofprosandconsthatMLScouldfacebyeitherdecidingto

stayloyaltotheNorthAmericanmodelofcompetitionstructure,or

conformingtothesuccessfulEuropeansystem.Inordertoaddressthe

existingissuesingovernanceandcompetitiondesignspecifically,this

studyhasconcentratedondevelopingawidercontextualunderstanding

ofacapacitythathasyettoreceivetheamountofattentioninthe

academicindustry.Furthermore,implementingagroundedtheory

approachtomethodology,hasaidedthedevelopmentofpracticaland

academicunderstandingaroundthefundamentalissuesrelatedtothis

contemporaryissue.

InordertoidentifyhowMLScanbecomemorecompetitiveonthe

internationalstage,theresearcherconductedaresearchdesign,

consistingofthreestages,tosupporttheefficiencyofanalysis.Thisstudy

primarilyincludesaqualitativeapproachtoresearchmethodology,which

utilisesgroundedtheory(Glaser&Strauss,1967;Strauss&Corbin,1990;

Goulding,2001;Oates,2003;Paterson,2013)andapplyingan

interpretivistnatureofresearch,whichcorrelatessuccessfullyalongside

agroundedtheoryapproach.Themethodofsingle-embeddedcase

studieswascreatedtoevaluatebothMLSandtheEPL,whichwas

highlightedasacaseforcomparison.Supportingtheevaluationofthe

casestudies,aseriesofin-depthsemi-structuredinterviewswere

conductedwithanumberofstakeholdersinthefootballindustryThe

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organisedinterviewswererecorded,transcribedandfinallyanalysed,

allowingkeythemestobecomparedand contrasted.

Afteranalysingthedataacquiredfromtheinterviews,theresultswere

unanimousinfavourofMLSEuropeanising.The respondentswerealso

incommonagreementthatthedraft,whichisanaspectemployedto

meetcompetitivebalancerequirements,shouldberemoved,toallowMLS

teamstofocusmoreupondevelopingeffectiveacademyprogrammes.A

smallnumberofrespondentsarguedthefactthatAmericanisedapproach

theMLScurrentlyadoptshouldbereinstated,bysimplystating‘why

changesomethingifitisworkingeffectively?’Despitethemajoritycalling

forMLStoconformwithEurope,theintervieweesmaintainthatcertain

mechanismsshouldbesustainedalongsidetheconformingprocess,to

taketheleaguetothenextlevel.Theconceptsinclude:thepresenceofthe

salarycapandmaintainingrevenuesharingprotocols.Thegeneral

consensusamongsttherespondentsisthattheUSAandMLScertainlyhas

thepotentialtobegloballyrelevant,butevidentmodificationsare

requiredtoensurethatthispotentialisreached.

ThepopularityandstandardoffootballintheUSAhasseenremarkable

growthoverthelasttwodecades.Footballhasgainedrespectandan

increasedreputationfromNorthAmericansportfans,whonowregard

MLSamongst‘thebigfour’.ThereisnodoubtthatU.Sfootballisthenext

prevalentfootballmarket,thuswhytherehasbeenariseinpre-season

toursintotheUSA.OtherfootballingpowerhousesrecognisethatAmerica

hasincrediblepotentialtoproducequalitytalent,hencetheupsurgein

commercialactivitiesconnectedtotheAmericanmarket.Itisextremely

unfairtocomparetheMLStootherEuropeansuper-leagues,buttherate

ofexpansionandgrowththeMLSiswitnessingmustbenurtured,ifthisis

developedinthecorrectmanner,thereisnoreasonwhyMLScannot

competewiththeworld’sbestinthenotsodistantfuture.

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Afterstudyingtherelevantcasestudiesalongsiderespondent’s

assessments,theresearcherhascombinedthekeyconceptstocreatean

‘ultimateleague’,whichmeetsalltherequirementsforasuccessfuland

competitivecompetitiondesign.Theleaguerepresentsalltheconcepts

thathavebeencriticallydiscussedthroughout,offeringatemplatedesign

ofwhatMLScouldlooktoimplementtocontinuetoincreasethe

reputationoftheleagueontheinternationalscale.MLSalreadypossesses

anumberofthemechanismsevaluatedintheirleaguestructure,however

modifyingtheseconcepts,aswellasintegratingothersthathavebeen

emphasised,wouldplacetheMLSinagreatpositiontoflourishgoing

forward.Choosingnottoincorporatethismodel,andlookingtofurther

developMLS,couldleadtoanumberofrepercussions:fanscouldlose

interestduetoalackofcompetition;thequalityoffootballcouldsufferas

atthiscurrenttimethesalarycapissettoolow, preventingfranchises

frombringinginworld-classpersonnel;homegrowntalentwillcontinue

toflocktoforeignshoresduetolargersalariesandbetterstandardof

football,thushavinganegativeeffectontheMLSasawhole;theexisting

collegedraftprogrammeisnotproducingthepoolofqualityyoung

players,somethingwhichisnotaproblemthroughoutEuropean

academies.Thisdesignhasthepotentialtobeanextremelyuseful

checklistforMLS,howeveritcannotcategoricallyprovidequantitative

datatosupportthequalitativerecords.Theresearcherconcursthewords

ofHoye&Cuskelly(2012)thatassportcontinuestogrow,changestothe

managementoforganisationsisvitaltopreventstrategicdrift,andthisis

thesameforMLS.

5.3 ContributionToKnowledge

Althoughthereiswidespreadresearchinthefieldsofsportgovernance

(Fort,2003;Beech&Chadwick,2004;Geeraertetal,2013),competition

design(Noll,2003;Borland,2006;Andreff,2011)andcompetitive

balance(Rottenberg,1956;Kesenne,2006;Borooah&Mangan,2012;

Owen&King,2013),thereisascarcityofacademicliterature

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surroundingMLSspecifically,inparticularhowtheleaguecouldbe

presentedinthefuture.Throughoutthecompetitiondesignliterature

particularly,therehavebeensuccessfulattemptsintocomparing

EuropeanandNorthAmericandifferencesincompetitiondesign,

evaluatingwhichstructureisperceivedtobethemosteffective.

Additionally,therehasbeenextensiveresearchintocompetitivebalance,

identifyingtheimportanceofequalityofcompetitiononstakeholders.As

such,thisresearchhassoughttointegratethistheorytoacontemporary

caseinthefieldofsportmanagementtoexplainthemanifestationswithin

MLS.

Despitethisprecedingacademicresearch,itistheanalysisofthe

responsesofindustrypersonneltoMLS’scompetitionstructure,andthe

contextualfactorsthatcouldariseregardinganyalterations,which

differentiatesthisresearchfrompreviousinvestigations.Inrecognising

thecontextualmechanismsthathavedirectrelevancetotheMLS’league

design,thisresearchhassoughttoprovideawiderunderstandingonhow

MLScandevelopinthefuture,andsignificantly,begintohighlightthe

unbelievablepotentialU.Sfootballhaswithinthefootballindustry.

Primarily,thisstudyaddssignificantvaluetofieldofsportsgovernance

andcompetitiondesign.Moreover,thisparticularresearchisaunique

attempttoevaluatewhetherMLSshouldEuropeanise,ormaintain

Americanisation,takingintoconsiderationthepresenceofstakeholders.

TherehasnotbeenanyspecificacademicresearchintoMLSasasporting

competition,butinsteadthemajorityisfocusedupontheeconomics

withinaleaguestructure(Noll,2003;Sloane,2006;Buzzachietal,2013)

andthecorrelationbetweenuncertaintyofoutcomeandspectator

interests(Rottenberg,1956;Michie&Oughton,2004;Pivovarnik,2008;

Manasisetal,2014).Untilnow,therehasonlybeenconveyedopinions

aroundwhetherMLSshouldconformwiththeEuropeanmodelof

competitiondesign,howeverthisresearchinvestigationoffersastronger

academicperspectiveintothishighlydisputedtopic.

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5.4 FutureResearch

TheprimaryaimofthisstudyhasbeentoinvestigateMLSingreater

depth,aswellasevaluatinghowthismaturingsportingcompetitioncan

developtobecomeamajorcompetitorwithinthefootballindustry.By

analysingtheresponsesofstakeholdersrelatedtotheindustry,this

researchhasenabledthedevelopmentofawidercontextual

understandingofboththepositiveandnegativeimplicationsthatthese

potentialdecisionscouldconveytoMLS.Byevaluating therelevant

conceptsrelatedtocompetitiondesigninfootball,the findingsofthis

studyhaveofferedastrongerunderstandingofthesemechanismsfor

footballinggoverningbodies.

Anotherinterestingextensiontothisstudywouldbetofocuson

analysingtheimplicationsforcommercialbusiness,inrelationtoMLS

beingeitherEuropeanisedorAmericanised.Upuntilthispoint,theMLS

hasbeenasuccessfulandsustainablebusinessmodel,wherebythe

majorityoffranchisesareprofitableeachyear,somethingthatisstark

contrasttoalotofEuropeanfootballclubs.Thecommercialisationof

footballintheUnitedStatesisvitaltothegrowthoftheleaguegoing

forward,thereforeitwouldbestimulatingtoinvestigatethisingreat

depth,especiallytheviewsofthesestakeholderstopotentialchangesto

theMLS’governancestructure.Asaresultofthisfurtherresearch,MLS’s

hierarchymaylooktomakemodificationstotheleaguetomeetthe

requirementsofcommercialpartners.

Thereareotherexistingareasofstudythatgivetheresearcherfurther

opportunitiestoresearchregardingfootballandMLSspecifically.One

particularareaofinterestistheimpactoffootballagentsintheUSA

comparedtoEngland.Footballagentsarenotheldinthehighestregardin

theUK,asoverthepastdecade,intermediarieshavebecomemore

powerfulwithinfootballingoperations.Recently,FIFAhavereformed

agentregulations,whichhasledtoamultitudeofnegativeresponses

fromlicensedagents.WiththeadoptionofthecollegedraftintheUSA,

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theNCAAhasamajorroleinthedevelopmentofcollegeprospects.

ThisispolaroppositetohowthisprocessoperatesintheUK,asitisvery

commonthatyoungstersagedbetweenthirteenandseventeenaresigned

tofootballagencies,beforetheyhaveevensignedaprofessionalplaying

contract.Thiswouldbeathought-provokingstudy,tocriticallycompare

theoperationsinbothnations,toseewhetheroneismoreefficientthan

theother.

Therearetwoprimarylimitationsthathavearisenfromthisresearch

investigation,particularlywhenfinalisingtheanalysisprocess.Firstofall,

itisclearthatintegratingquantitativedatacollectionalongsidetherich

qualitativedata,wouldhaveofferedanotherdimensiontotheresearch

findings.Quantitativedatawouldperhapshavebeenmoreeffectivefor

comparativeanalysis.MLS,asanentitywouldpreferprovenstatistical

dataforanydecision-making,eventhoughtheviewsandopinions

throughoutthisstudywarrantjustasmuchattention.Additionally,

anotherlimitationofthisstudyistimeandresourceconstraints.These

constraintshavehadanimpactonthequantityofprimarydatacollected

throughouttheinvestigation.Theresearcher,withmoretime,wouldhave

preferredtohavetravelledouttotheUSAagaintoconductmore

primarydatawithfootballfansandfranchiseowners.Acquiringextra

datarelatingtothesestakeholderswouldhaveallowedforamoreall

roundedresponsetotheresearchquestion.

110

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APPENDIXA

InterviewTranscript

SG–Dr.SamanthaGorse

R1–Respondent1(MajorLeagueSoccer)

MT–MattTaylor

LW–LukeWhitworth

RECORDINGSTARTS

SG Iunderstandthatthisinformationmaypotentiallybesensitive.

Therefore,mayIassureyouthatthecontentsofthisdiscussionwillbe

keptfirmlyconfidentialandtherecordingandtranscriptsaredemolished

post-analysis.

CoventryUniversityhasastrictcodeofethics.Allinterviewsthatare

conductedaspartofthisresearchprojectwillcomplywiththiscodeof

ethics.Ifyouwouldliketoreceiveacopyofthiscode,Iwillarrangefor

onetobesenttoyou.

Ifyouwouldlikeanyadditionalinformationregardingthisproject,please

donothesitatetoaskattheendoftheinterview.Similarly,ifyouhave

anyconcernsorquestionsduringtheinterview,pleasedonothesitateto

ask.

OnceIhavecompletedthisstageofmyresearch,ifyouwishIwillprovide

youwithashortsummaryoffindings.

R1 Yeahsure,ifthere’sanythingIcan’tcommentIwillletyouknow,andwe

canmoveontothenextquestion.

125

MT Yeahsure,noproblem.

MT Cool,socanyoutellusaboutMajorLeagueSoccerandhowits

structured?

R1 Yeah,Imeanerm…so…Thisisjustspecificallyrelatedtothedraft

system?Or,justoverallregardingthebusinessstructure?

MT Justoverallaboutthebusinessstructure.

R1 So,youknow,Itserm…It’sasingleentitystructurewheretheleagueand

ownershipswithaclubcollaborateandsupportoneanotherregarding

theerm…operationoftheMajorLeagueSoccerthatwhentheleaguewas

startedupalmost20yearsago,thefocusatthatpointwas,theydon’tlike

thesport,soccer,wasparticularlybighere,intheunitedstates,duetothe

worldcupthathadtakenplacewasagoodtimefortheleaguetoventure

in.Clearlytherehavebeenpreviousleaguesinpreviousyearsthathave

then..,.havecomeupanddidn’thavegreatsuccessbutIthinkthetiming

ofthesuccessthattheUnitedStateshadattheWorldCuphereandthe

supportthattheygotcamefromthefansandtheerm…peoplehereand

peopleintheUnitedStatesbutalsoonthecorporateside.Youknow,it

endedupbeingthemostsuccessfulworldcuptodateregardingthe

numberofpeoplethatattendedgamesandthecorporatesupport.That

clearlycontinuestogrowyearsinyearout,especiallywiththenewTV

dealthatwasnegotiatedandwhatendeduphappeningwasyouhad3

primaryownersthatcameonboardwiththeleaguetomakean

investmenttobuyteams.SoyouhaveLamarHunt,whowastheownerof

theKansasCityChiefsofAmericanfootballwhohaserm…whowasoneof

theinvestorsandpartnersofoneofthewholerolloutalongwithPhillip

Anschutz,whoisourowner,andhisprimarycompanyAEG,andthenthe

lastownerwas…erm….Ohjeez…I’mblankhere–NewEnglandPatriots

owner….

SG Kraft?

R1 Yes,thankyou–RobertKraft.Youknow,itsbeenalongmorningalready.

126

*Everyonelaughs*

R1 SoMrKraft,Anschutz&Huntcomeaboardandtheyownmultipleteams

andthewaythestructuredeverythingwiththewholefinancialmakeup

oftheleaguewastomakesuretheyhadamodelthatcouldsustainand

grow.Thelongtermvisionwasthemarketwouldbecomesuccessfulby

buildingstrongfanbasesandfoundationsandthoseparticularmarkets

andtheownersandtheleagueswouldselltospecificinterestgroupsand

ownershipgroupstogrowthatbusiness,yearin,yearout.Soifyoufast

forwardtowhereweareatasoftoday,younowhaveveryviablemarkets

withverycompellingstorieswithgreatsuccess,greatgrowth,greatfan

basethat’sreallytakenplace.Anddatashowsusthatsoccerintheunited

statesisthefastestgrowingsportandyoutakealookatwhat’s

happeningonthecommercialsideofthebusiness,withthepartners,not

onlyattheclublevel,butattheleaguelevelandthey’rebreakingintothis

propertyendofthesportanditsgrownimmensely,erm…inadditionto

thatyoutaketheotherrevenuemakingopportunitiesandotherrevenue

propertiesatthebusinessside–itsverysubstantial,ImeanMajorLeague

Soccerjustnegotiatedan8yearTVagreementandthegrownofthe

previousbilltothisdealwasthelargestTVdealinAmericansportin

recenthistory.WithFoxSports,ESPNandUniVisioncomingaboardasthe

officialTVpartners,andgoingbacktotheclubsasthesemarkets,someof

theseclubssucceed,somedidn’t.Butthere’steamsinMiamiandFlorida

andelsewhere,likeLA,buttheydidn’tsucceed.Butthentherewasother

newmarketsthatcameintoplaythroughexpansionthathadgreat

successandgreatstoriesandso,youtakealookatthetwonew

expansionteams–asecondteaminNewYork,andthenewexpansion

teaminOrlando.Nextyearyou’vegotateamcomingupinAtlanta,that’s

goingtoberolledoutanditincludesthegreatgrowthandthegreat

storiesthatareinvolvedwiththesport.Andsoagain,asthesemarkets

begantosucceed,andcreatestrongfoundationsthethreeindividual

ownersalongwiththeleaguestartedsellingofftotheseprivateinterest

groupsandalotofthemareownersofotherAmericansportsteams.I

127

mentionedabouttheAtlantateamcomingup,intoplaynextyear,so

ArthurBlank,theowneroftheFalconsNFLteam,orKraft,notonlyowns

thepatriots,butownstheNewEnglandRevolution,MrAnschutzwho

ownsAEGandourparentcompany,alsoownsmultipleothersports

franchisesaroundtheworldandheredomestically,thoughyou’vegot

somegreatownershipgroupswithsomedeeppockets,withknowledge

andresourceswhomakereallylargeinvestmentstoreallygrowthesport

intherightway,inthoseinparticularmarkets.Andso,wheretheleagues

attoday,isironicallyabouttheplantodaywasalwaystogetthepoint

whereeachteamhasanindividualowner.

SG Mhhm…

R1 Theywantedtogoawayfromhavingthoseoriginal3primaryowners

whoownedalltheclubs,butrightnowMrAnschutzofAEG,ownsbothus

andLAGalaxy,sowithintimeatsomepointintime,withtherightowner,

ourclubandorganisationwillbesoldofftoanotherinterestgroup–yeah

there’sbeenanumberofermanumberofpeoplethathaveenquired

abouttheopportunitytobuythefranchiseherelocally.Butthingshave

moredoubtbecauseitwasn’ttherighttime,oritwasn’ttheright

ownershipgroup.Butagain,AEG’splan,wastoalwayshaveAEGhavethe

LAGalaxyastheirprimaryteamthattheywouldinvestin.So,theleague

isheadingintherightdirection,whenyoutakealookatthedraftandthe

competitivesideofthings,Ithinkyouguysprobablyknowthisbetter

thanIdo,I’vebeeninthissportsinceFeb2012,I’vespent20+yearsin

professionalsportandthesportsmarketingbusiness,bothontheteam,

corporateandfacilitymanagement,soI’veactuallyseenitfromallthe

threeprimarysectors.WhatIcantellyouis,IstartedintheNBA,

spending3yearsthere,spent7yearsinprofessionalhockey,andthen

endedupmovingtoprofessionalsoccerbecauseofthegrowth,andwhere

thesportwasgoingintheUnitedStates,butalsobecauseofthesuccess

thatthe------hadinthismarkethere.Thecompetitivesideandthemake-

uphere–I’mnotthatknowledgeableregardinghowit’shandledoveran

EPLorinEurope.Oneofthebigthingswhenitcomestothedraft,that’s

128

alwaysbeenaplatformfortheMLStohaveapooloftalentandthe

developmenttogetintothisleague,butwhatIthinkshappeningisasthe

leaguecontinuestogrowandyoucanreallyseeamuchlarger

internationalpresenceofplayersthatarenowplayinginthisleague.I

meanyouseewhat’shappenedduringtheoffseasongoinginto2015,

withthenumberoftopinternationalplayers,fromKaka,toGerrardand

othersthathavemadethemoveovertoMLS,Ithinktheperception

originallystartedtohappenyearsagowasthatitwasplayersthatwere

kindaatthetailendoftheircareer,andwantedtocomeovertothe

UnitedStatesforthemtobeabletogetpaidwellforthesuccessthatthey

hadpreviouslyearlierintheircareers,butnowwhatyou’reseeingis,

we’restartingtoseetoptalent,topinternationalplayerscometothe

leagueatanearlierstageintheircareers,becausetheyseethesuccess

thatthisleague.We’reaperfectexample.BackinDecember,December

23rd,weendedupsigningwhatwasconsideredthetopMexicanyoung

nationalplayer,withourfranchisepayingaverylargetransferfeeforhis

rightsandtohavehimcomingtopayforourclubfora5yearcontract

involvingamulti-milliondealtosecurehisrights.Weboughtin2other

solidplayersthathadverygoodcareersoverinArgentinaandSpainin

thetopleaguesoverthere.We’rejustonesmallexampleofthosesimilar

storiesacrosstheboardandthroughouttheleague.

SG Mhhm…

R1 Andso,erm….Whenyoutakealookatwherethingsareatregardingthe

collegedraftIthinkthat’sandimportantplatformbecausewehaveso

manyplayersatayouthlevelthatplaycompetitivesoccerandthe

numbersaremind-bogglingbecauseit’saveryaffordablesporttoplay

comparedtohockeyormaybesomeoftheothersports.

SG Yeah

R1 Andsoyou’vegotalotofkidsplaying,butwhathappenedinprevious

years,isthatyoudidn’treallyhaveatrueprofessionalleaguethatkids

aspiretoendupbeingaprofessionalsportsman.Sotheymightstart

129

playingintheirelementaryyearsatayoungage,butonetheygetolder,

theygetexposedtowhatwasconsideredthetoppremiersports,ie.

Basketballandbaseball.Butnowwhat’shappeningistheleveloftop

competitionistheleveloftheplayersthatisbeingdevelopedisofa

higherscaleandyoustarttoseeUSplayersthatarehavinggreatsuccess.

Notonlyhere,butinternationally–playersaregoingoverseasandhaving

professionalsoccercareers.SoIthinkitsnowmoreofaregularmindset

andcommitmenttoseethingsthrough.Ialsothinkitsimportanttosee

howyoudevelopthesport,thatyouseekidsnowcanlookatthese

professionalathletesinsoccerandinsteadofnotseeingtheserolemodels

insoccer,butitwaseasyforyouseeaMichaelJordanoraJackNicklausin

Golfandsay,heythat’swhat’sIwannabe.

MT&LW Yeah…

R1 TheonlycommonthemeIcanseebeingappliedisthatit’sagrowing

sport,there’sapassionatefollowing.There’salotofpeoplethatare

gettingexposedtoitandaretryingthesportout.Thenumberof

internationalgamesthatareshownherehasgrownleapsandbounds

hereinthepast5years.TheEPLcontentandthosegamesthatareshown

hereondailybasis.AswellasSpainaregettingcoverage.Likeyousee10

yearsago,youwouldn’thaveseenanyofthis.Therearesomanythings

thatarecomingintoplaytoshowthesportisheadingintheright

direction.Theonlychallenge,okmaybechallengeisthewrongword,

maybehowwe’restructuredusingthecollegedraftasaplatform,itis

morecompetitive,butthere’salargertalentpoolthatcanpotentiallydip

into,butIfeelmylackofknowledgeofhowitshandledoverinEurope,I

don’tknowhowifitsyougotocollegeandplaycollegesoccer.Imeando

theyevenhaveadraftinEngland?

MT&LW *Laughs*No…

R1 ImeanIknowtheacademysystemishugeandactsasafeedersystemto

hopefullydevelopplayingtalentandplayinginthefirstteamatsome

130

point.Thatseemstobeapartofthewholemodeltohelpthesportsustain

itsgrowthandbesuccessful.

SG Right.Socouldyoujusttellusalittlebitaboutthestructure,intermsof

howmanyteamsthereare,isthereageographicaldividearetheremore

teamsinthenorththanthereareinthesouth?–Thosekindofthings.

R1 Yeah,so,wehave21teamsnowintheleague,andwe’llenduphaving…

erm.Wehave11teamsthatplayinthewesternconference,whichare

madeupof…Doyouwantmetoprovideyouofthebreakdown,doyou

needthat?

SG Ifyoucould?

R1 Sure.LetmepullupmyschedulesoIdon’tmissanyout.Letssee,so…On

thewesternconferencewehaveLAGalaxy,ColoradoRapids,Seattle

Sounders,KansasCity,FCDallas,SanJose,PortlandTimers,Vancouver,

RealSaltLakeand…theDynamo.Yeah,Ithinkthat’s11.Thenonthe

westernconference,withthetwonewfranchises,wehaveOrlando,the

twoNewYorkteams;DCUnited,NewEnglandRevolution,Chicago,

Toronto,MontrealandIthinkthat’sit…

MT Yeah,thatsoundsaboutright.

R1 Sowhathappenedrightnowwiththeleague,andclearlyitsunbalanced,

onceAtlantacomesintothemix,I’msurethey’llendupslottingthemin

tothewesternconference.Andagain,theydothatgeographically,to

dividetheUnitedStatesinhalfandtrytodoitthatway.So,KansasCityis

thefurthestEasttermthatplaysintheWestifthatmakessense.Sowhat

happenedisthatlastyearwehad19teamsandHoustonandKansasCity

wereintheeasternconferencebutoncethesetwonewfranchisescame

intothefold,theymovedusoverbacktothewesternconference,and

that’sthewayitsgonnabetill2016.

SG YoumentionedAtlantacomingintotheleague,there’sobviouslythe

BeckhamfranchiseinMiami,arethereanyotherteamsthatarelookingto

bedeveloped?

131

R1 SooutinSacramento,erm…Illgiveyouthecitiesthathaveavery

legitimateclaimingettinganewfranchiseoverthenext5years.Soyou

haveSacramento,asImentionedwhohasaverysuccessfulminorleague

teamandtheyaveragelike13,000fanspergame.Oneotherimportant

thingtoknowisthereisabigvariancebetweenEPLandthesizeofthe

stadiumscanvery.IknowplaceslikeManchesterUnitedandArsenaland

Chelseahavelargervenues.ThenyouhaveclubslikeCrystalpalaceand

stufflikethatwhohavesmallervenues.Butwhatwasimportantforthe

leaguewasnottositthere,whentheyfirststartedtheleaguealotof

theseteamswe’replayinginNFLstadiums,andyouknow,whenyou’re

sittingthereina70-80,000seaterstadium,andyou’veonlygot20,000-

30,000people,eventhoughthat’sadecentnumber,itdoesn’tlookvery

good,especiallyonTVortothepeoplethatareattendingthosegames.

Ultimately,whatthey’vegottodoitasitstartedtobuildastronger

foundation,theywantedtomakesuretheybuiltsoccerspecificstadiums

forthoseparticularmarkets.That’sanothermajorcomponent.Allthe

newteamsthathavecomeintotheleague,thatwasoneofthe

requirementsthatyouhavetohaveastadiumplan,youhavetohavea

specificstadiumplanorleasethat’sputinplace.SoinOrlando,their

playingatwhat’scalledtheCitrusBowlwhichhas72,000seatsbow

stadiumandtheydoalotofcollegefootballgamesandstuff.Butthey’ve

gotapprovalforanewstadiumthatwillopenupnextyearwhichwillend

uphaving19,000or20,000seats.Ourstadium,asanexamplehas22,000

whichisalittlebitlargerthanaverage,Ithinktheaverageisaround

20,000butitsimportantfortheleaguetositthereandbuildastrong

foundationandfanbasethatcanselloutthosevenues,forpeopleto

experiencetheatmosphereandenjoyit.Ifthere’stheabilitytoexpand

thosevenuesinfutureyears,thenthat’sgreat.Listen,ifyou’resellingit

outanddrivingrevenuesinallareasofthebusinessandyou’regetting

goodratingsonyourproductsandstufflikethat,itallgoesintothestory

oftryingtogrowthesporttohavesuccessfulfranchisesinMLS.So,

there’scurrentlyahandfulofteamsthatarestillworkingonstadium

plans–DCUnitedhavebeenaroundsinceday1,theyplayintheoldRFK

132

stadium,whichiswheretheWashingtonRedskinsusedtoplay.It’snot

thebestsetup,italsolimitedtheirabilitytohavecommercialareas,due

torevenuerightsandhaveopportunitiestogrowtheirbusiness

financially.Butallthoseoriginalteamsare,youknow,haveamajorfocus

ongettingtheirstadiumdealsdonesotheycancontrolallthecommercial

revenuerightsinthosevenues.Butalsotheycansetthemupinaway

theycanbuildthatfanbaseandhopefullyhavethedemandthatis

sustainingbutgrowingbusiness.Soweoriginallystartedin2006,when

wemovedfrom------------.Weoriginallyplayedforseveralyearsatthe

University------,whichisacollegeinstitutionandweplayedourgamesin

theirfootballstadiumthatiscalledRobertsonStadium.Thentheteam

movedhere,anditwasalwaystheplanforthecityof------tobuilda

soccerstadiumforus.Clearlythere’salotthatgoesintothat–findingthe

rightlocation,findingtherightfinancialsupportlikefindingpublic

supportandwhat’sgoingtobeinvestedintheprivatesideofthings.So,

backin2012,wewereabletobringasoccerspecificstadiumforthe------,

andweownthestadiumandwemadethatinvestmentandwewereable

tomakeadealoutwiththeCityof----,anditwasveryimportantforour

franchisetoalsomakesureitwaslocatedintherightlocation.Thatright

locationwastoberightinthemiddleofdowntown------,sowe’reinthe

middleofthegreatopportunitiesthatexisthere.It’stremendousforus

andhasbeenacatalystforustogrowourbusinesswithgreatrelevance

withtheclubandthesport.Wehavebeenveryblessedandfortunateto

receivegreatfansupport.Weareveryoptimisticaboutwhatthefuture

holdsforus.

SG Yeah.SoyoumentionedthatSacramentocouldhaveateam-

R1 Yeah–sothereareacoupleofotherteamsthatcouldbeinthemix.

OriginallytherewasLasVegas,andwethoughtthattheyweregoingto

getone.Actuallytheleaguecameoutlastweeksayingthey’regoingto

holdoffawardinganexpansionteamthere.Theydon’tthinkLasVegasis

therightlocationforoneatthistime.Idon’tknowifthat’sbecauseofthe

gamblingissueor…what.Buttheydidcomeoutandsaythatwasn’tgoing

133

tobeanoption.Butsomeoftheotherlocationsthatarebeingconsidered

asviableoptionsareStLouis,Minnesota,clearlywhatBeckhamistrying

tododownatSouthFloridaanddd….Ermthey’realsotakingSanAntonio

orAustinbutIdon’tknowofAustinwouldgetitovertheother.I’dgiveit

toSanAntonio.

SG AndwhatimpactwouldaSanAntonioorAustinteamhaveonyou?

R1 I’msorry,Icouldn’thearyou.

SG WhatimpactwouldaSanAntonioorAustinteamhaveonyou?

R1 Ithinkitwouldbetremendous.Ithinkitwouldhave…FCDallas.When

wefirstmovedthefranchiseto------,wewereoriginallyinthewestern

conferenceandFCDallaswe’realsointhedivision.Itwasgreatknowing

wewereplayingthem3timesayearandwecandevelopthatinstate

rivalry.Whenyoutakealookattheresidentsof-----andDallas,therehas

alwaysbeenaverycompetitivefanbaseisagoodwaytoputit,inall

sports.LiketheTexansareplayingtheCowboys.Thefansgetintoitand

footballwhenTexasplayedupinCowboysstadiumthisyear;itwaslikea

homefieldadvantage,becausetheTexansfansthatwentupthere.We

thenmovedintotheEasternconferencesowewereonlyabletoplay

themonceayear,butwewereabletocreatethatrivalryanditwasabig

dealthere.That’ssimilartoalotofmarkets,likeyouseeinNewYork.

LikewhentheGalaxyareplayingChivasorSanJose,theygetalotoftheir

fansgoingtosupporttheirteam.IfwecouldaddSanAntonio,Ithinkit

wouldbegreat,asitwouldaddadditionalexcitementandhaveagreat

storylinewhenthoseclubsareplayingoneanother.Butalsorivalmarket,

whichhasgreatpotential–forusitsjusttoseegrowth.Theleaguehasa

planwheretheywanttobeby2026whenitcomestoexpansion.They

havealotofgreatownershipsthatwouldmakeaninvestment,butthe

leagueisn’tgoingtogrowtooquickly–theleaguewilltakeitsbabysteps

andgrowtheleaguestrategicallyandmakesureitfitswiththelongterm

visionandbeingintherightmarketsthatcanbesuccessful.

134

SG Okthen.Sowhatdoyouconsiderthemainmechanismsarefor

competitivebalanceinUSsport?

R1 Letssee–Canyouelaborateforme?

SG InEuropeforexamplewedon’thaveanythingthatprotectsthe

competitivebalanceofaleague.WhatUEFAaretryingtodo,the

EuropeangovernanceorganisationforSoccer,aretryingtobringinFFP.

Thisdesignisforclubsnottogointotoomuchdebtandsoclubscan

sustainthemselvesandhopefullytryandprotectcompetitivebalance.

R1 Yeah.ThereasonwhyIthinktheleaguehasbeenabletogrowisbecause

ofthesalarycap.So,thereisasalarycapintheCBAagreementthatthey

feltwasagoodfinanciallyviablemodel.Theleaguealsopaysthemajority

ofthesalary’s.Thewayitworksisthereisasalarycapforeachclub,then

eachclubisallowedtobringin,currently,upto3designatedplayers.So

whenyouhaveGerrardwhoisgoingtotheGalaxy–Theleaguewillpay

hissalarytoacertainamount.Onceitexceedsthatnumber,theclubwill

thenberesponsibleforpayingthedifferenceofthat.Thissortof

handcuffssomeofthelargermarketsforownersthathavedeeper

pocketstositthereand…letssayinMLBforexample,ortheEPLwhere

somefranchisesarespendingalotonplayer’swages.Andthenyouhave

otherswhostrict,andhavemorefinancialconstraints.Youknow,ifyou’re

gettingthetoptiertalent,there’sacorrelationforthemtobemore

competitive,andforthemtohaveahigherchanceofsuccessandwinning

championships.SoIthinkit’samodelthatworksverywellforusatthis

momentintime.That’snottosayitwon’tchangewithtime.Rightnow,

that’soneofthekeyfactorsof…ataminimumthatsustainsagood

foundationtoseetheleaguegrow–andthat’swherethisleagueisgoing.

Becauseofthesalarycapparameters,itcreatesalotofcompetition

amongstalltheclubsintheleague.That’swhatwecallanevenplaying

fieldwhenitcomestomakingcompetitiveclubs.Ithinkattheendofthe

daywhereoneteamismoresuccessfulthananotherisrelatedtotheir

abilitytorecruitandfindgoodtalentbothheredomesticallyand

135

internationally–thisenhancesyourcompetitivebalancebyrecruiting

bettertalent.

SG WhathappensinthePremierLeague,youcanalmostsitdownatthestart

oftheseasonandprettymuchpredictwhosegoingtobeinthetopfour,

whosegoingtobeinthebottomthree.

R1 Right

SG There’salwaysthatshockteam–LikewhatSouthamptonplayingsowell

thisseason.

R1 Right,Right.

SG Forus,theEuropeanleagueisquitepredictable.Sothemechanismsthat

youusetoprotectthiscompetitivebalanceisreallyinterestingforus

becausewedon’tdoit.

R1 Sure.

SG Soyoumentionthesalarycap,butarethereothermechanismssuchas

revenuesharing,suchasthedraftthatMattandLukecandrawonfor

theirstudy?

R1 Well,ontheplayercompetitionsideofthings,that’sanareathatcomesin

toplay.Buttheotherhand,theoverallbusinessmodeltheclubshelpfund

differentpiecesofthefinancialstructureoftheleague.Asanexample,

whenwesellticketsforgameswehavesomeofthatmoney,there’sa

percentageofthatmoneythatgoesbacktotheleaguetohelpwithits

operatingcostsandhelpfundMLSandUSsoccer.It’saplatformandan

avenuethatisabletoprovidethenecessaryfinancialresourcesforitto

beablegrowanddowhatitneedstobesuccessfulandintherightway.

Thathappensontheticketsalesside,happensonthecorporatesideor

commercialsalesside.There’salsofinancialsupportthatcomesbackin

totheleaguewhenitcomestoTVdealsorotherleaguewidecorporate

deals.Wherethereisrevenuestreamswhereitcomesbacktotheclub.So

136

thereisalotthat…Iwouldn’tnecessarilysayitsreciprocal,butthereisa

differentlevelofsupportthatcomestoandfromtheleaguetotheclubs.

LW Hmm.

SG Soyoumentionedbeforeabouthowmuch,ornotparticularlyknowing

abouthowtheEuropeanorEPLsystemworksforFootballintheUK–

sorryproperfootballworksintheUK.

LW *Laughs*

SG Isitsomethingyou’reactivelyinterestedinlookingat,orisitsomething

youtryandtakenoteof?

R1 Wellthat’smoreofjustmeand…SoImentionedI’vebeeninprofessional

sportfor20+years.But,Ifocusmyresponsibilitieshereasthechief

operatingofficer.Ifocusonmakingsurewe’remakingmoneyandasan

efficientbusiness,alsomakingsurewe’redoingwhatweneedtobedoing

tobesuccessful.Notonly,ataclublevel,butwhatwecandoforthe

leagueintermsofthetoptierinitiatives.Yes,itsimportanttohavethat

knowledgeofwhat’sgoingonoutsideofthesportdomestically,ButI

thinkthat’smeonlybeinginthesportfor3years.LikeeachdayI’m

learningtodothings,itagoodwaytoputit.There’sotherpeopleinthis

organisationthathavebeeninthesportfor20+years.I’msurethey’ve

gotmoreknowledgeregardinghowtheotherleaguesaroundtheworld

arestructured.Whatthingstheydowellandwhatmaybe,notnecessarily

fitforwherewe’retryingtogoasaleague,oranorganisation.Sothat’s

morerelatedbacktomeandthesport.

SG OneofthethingsthathappenedinEuropeanfootballandthiswillhelp

contextualiseLuke’sworkalittlebitforyou,althoughI’mgoingtohandit

overtotalktoLukeabitmoreaboutit.Wehadarulingbackinthe90s,

the BosmanRuling,madebytheEuropeancourt,thatbasicallyallowed

playersfreemovement,whichledtoquiteasubstantialshiftinhowthe

recruitmentofplayersworkedacrosstheEuropeanleagues.Asaresultof

thatwe’venow,itusedtobethefactplayerscouldmoveatanytimeof

137

the season,butwhattheywantedtotryandstopteamsfromdoingisbuilding

teamstoplaythenextteamattheweekend.

R1 Yep.

SG SowenowhavethisprocessinEnglishfootballistheTransferWindow,

andwehavetwotransferwindowseveryyear,oneacrossthesummer,

andthenoneacrosstheChristmasperiod.

R1 Right.

SG AndLuke’sgoingtotellyoualittlebitmoreaboutit.

LW (LAUGHS)Thankyou.YehImean,transferwindowsoverhere-------are

abitofafreeforalltobehonestwithyou.NormallytheChristmas

windowwilllastaboutfourweeksandthesummeronerunsfromthe

close seasonuntilabouttwoweeksintotheseason,andoneofthe

thingsobviouslyinmypartoftheresearch,iscouldyoueverseetheMLS

transformingtheirtrading systemfromadrafttomaybeatransfer

window,ordoyouthinkthatisverymuchaintegralpartofthestructure

oftheleague?

R1 Right.Youknow,it’sagoodquestion,Iknowtherehasbeendiscussions

aboutit,Ialsoknowtherehasbeendiscussionsaboutyouknow,doesit

makesenseforMajorLeagueSoccerregardingourschedule,youknow

whenwe’replayinggamesandwhenwe’reinseasonwhenwe’re

offseason,ifitmakessenseforustolookatgoingtothesamemodeland

schedulethattheotherleagueshavearoundtheworldthatwasactuallya

veryindepthconversationandtopicwhenMajorLeagueSoccerwas

renegotiatingthenewTVagreement,becausewhatwehavetokeepin

mindis,youknow,we’vegotothermajorprofessionalsportsleaguesthat

havebeenaroundforahundredplusyearsthathavealotofequityand

relevancehereintheUnitedStates.

LW Yep.

138

R1 Withfootball,basketballandbaseballandwithuskindofbeingthe

newkidontheblock,we’vegottobeverycarefulthatwedon’t

compromisethelongtermgrowthabilityforthisleague,whenwemakea

moveandletssaywetrytocompeteandrunourschedulethesameas

letssaywhatisgoingonoverinEurope,andthenwe’regoingheadto

headwiththeNFLandtheNBA.Soifwedidthat,maybewhatcouldend

uptheoreticallyhappeningisthatcouldendupimpactingourabilityto

getthebestpossibleTVdealdone,becauseastheyprioritisetheir

programmingschedulewiththeseotherleagues,theywouldendupnot

puttingusupatthetopofthelistbecausethey’regoingtohavetheNFL

astheirnumberoneproperty,andworktheirwaydown,thatcouldbean

issuethatisoutthere.Youknow,soyou’vegottomakesurethat,ifwe

weretolookatdoingsomethinglikechangingthetimeoftheleague

scheduletohaveitbeconsistentwithmajorleaguesaroundtheworld,

thatlikeIsaiddoesn’tcompromiseotherareasthatareobviouslyvery

criticalforoursuccess,ourbothclubandleaguesuccess.Thetransfer

windowIthinkismaybealittlebiteasierofanissuetomaybebe

addressed,butyouknowtherehasn’tbeenanyconsistentcommentsto

sayyehthat’salongtermplanofsomethingthatwe’regoingtowork

towardsIwillhavetodeferthatbacktotheleagueand thepeoplewithin

theleaguethataremakingthattypeofdecision,butlikeIsaidIjustdon’t

knowenough,youknowI’vegotsomesenseofinformationandwhat

someofthecommentsandthoughtsarebutyouknowIdon’tknowif

thereisaconsistentorstrongthoughtonewayortheother.

LW Yeh.Doyouthink,ifforexampletheleaguediddecidethatachangetoa

transferwindowwasthewaytogo,doyouthinkteamsinleaguecould

actuallyattractbetterqualityplayers?

R1 Yeh,withoutadoubt,youknowlikeIsaidyouarestartingtoseea

movementofplayersintheirprimeatyoungerpointsintheircareers,are

startingtomakethemoveoverhere.Soifyouareseeingthatmovement

now,IthinkthetransferwindowpieceIthinkthat’ssomethingthatcould

beworkedoutandcouldendupworkingandwouldn’tbeadetrimentor

139

wouldn’tcompromisethecurrentstructureofwhatwehavebeenableto

do,Imeanagainifwecandoitwithinthecurrentcircumstances

structurewhatwehavenow.

LW Yeh.

R1 Idon’tthinkitwouldimpedeourabilitytobesuccessfulonyouknow,

gettingtherighttypesofplayerstocomeoverheretoplayinMajor

LeagueSoccer.Ithinktheseplayersseethegrowthofthesportandthe

leaguehere,andIthinktheyalsoastheyevaluatethisopportunity,

clearlytheyseetheycanmakesomegoodmoney,there’sprobablysome,

someadditionalcommercialandendorsementopportunitiesthatthey

cantakealookatjustlivinghereintheUnitedStates,thecostofliving

andsomeofthekindofpersonalthingsthattheymightbeevaluatingas

theyconsideryouknowanopportunityoverherewiththeleague,andI

justthinkthereisacombinationofthingstherethatmakeitofvalueand

interestandyouknowIwouldthinkthatyouknowthetypesof

movementthatyouhaveseenontheplayersside,Idon’tthinkthatis

goingtostop,IthinkthatisonlygoingtocontinuetogrowandIthinkyou

willcontinuetoseethatlevelofplayercomingoverhereandplayingin

MajorLeagueSoccer.

SG It’saninterestingone,youwerejusttalkingthenaboutthescheduleof

theleague,becauseyourleagueisscheduledoverthesummermonths,it

couldactuallyplaymassivelyintotheU.Snationalteam’sadvantage

whenitgetstoQatar2022.

R1 Right.

SG Withthemnowsayingtheyaregoingtomoveittothewinter,itsgoingto

completelyscrewwithEuropeanleagues.

R1 Right.

SG DoyouthinkQatar2022isgoingtobereallyimportantforMajorLeague

SoccerthemoresuccessfultheAmericanteamis,outofseason?

140

R1 Yeh,ImeanIthinkthereisdefinitelyacorrelationthere,youknowI’ve

readsomeofthecommentsthathavebeenmadefromsomeofthe

chiefexecutives,withsomeoftheEPLclubsandtalkingaboutwhatkind

ofconversationsaregoingtobecomingbackto,youknowtheirleagues

andstuffandtheirclubsbecauseofhowthatisgoingtoimpacttheir

schedule,andthewaythingsarecurrentlystructuredthere.

SG Yep.

R1 Sowiththatbeingtheoff-seasonandourguysbeingspecificallyfocused

onnothavingacompromiseofcompetingwiththeleagueschedule,Ido

believethatisabigadvantage.Nowtotheothersideofit,ifyoutakea

lookatthemakeupoftheU.Snationalteam,withthispastWorldCup,I

don’tknowwhatthepercentagebreakdownis,butclearlythereisalarge

numberofU.Splayersthathaveplayedinternationally.

SG Yep.

R1 SothereisstillgoingtobeanimpactonthoseU.Splayers,youknow

whenyou’vegotHoward(Tim)thatisplayingintheEPL,GeoffCameron

andyouknowsoonandsoforth.SoIdobelievetherewillbeabenefit

there,youknowIjustthinkthewholeQatarissueiscompleteseparate

extraissueinitself,justthewaythatcountryendedupgettingawarded

thegames.

SG Ohyes!

R1 YouknowactuallytheUnitedStateswas,aseverybodykindoflookedat

it,nodifferenttowhathappenedwithLondon,Imeanitwasyouknow

UnitedStatestryingtogettheWorldCupin22andIguessLondonwas

tryingtogetitin2018.

SG Yes

R1 AndIthinkbothofourcountrieswereverymuchshockedaboutthe

decisionbyFIFAtogotothoseothercountries,soyouknowwhenthe

rulingcameoutaboutthemagreeingtomovethegamestotheWinter

141

window,Ineverthoughtthatwasgoingtohappen.Butthenagain,

becauseoftheissuesandchallengesthatcountrygoingtohaveduring

thatparticulartime,ImeanIguessitmakessense,butIthoughtthere

wasjusttoomanythingswiththeotherleagueschedulesthatitwouldbe

difficultforthemtomakethatdecision.ButIguesstheydiditright!

SG Yes.DoyouthinkthenthattheMajorLeagueSoccerwouldbenefit

fromaU.ShostedWorldCup?

R1 Ohwithoutadoubt,yehwithoutadoubt.Imeanagainthatwasthe

platformforustogettheleague,MajorLeagueSoccerrolledout,backin

the90s.Youknowthemorethatpeopleareseeingandhearing,youknow

about theWorldCupandthesportofsoccerandallthatstuffhereis,itis

tremendous.Youtakealookattheinfrastructureandtheresourcesthat

ourcountryhas,nodifferenttowhatEnglandhas,youknowyou’vegot

somegreatvenues, stadiumsandinfrastructuretransportation,andrail

andallthatstuffthatisinplaceandhotelsandeverythingelse,tobeable

toputonaverysuccessfulevent,andyouknowtheUnitedStateshasn’t

reallyhadanyissuesorchallengeswhenitcomestostagingtheworld’s

largestsportingevent.

SG Yeh.

R1 Butthenyoualsotakealookatthecommercialopportunitiesthatreside

here,Ithinkthatisalsoanothermajorplus,andIknowFIFAtakesalook

atthat,butI’msurewhentheWorldCupbidsgobackaroundagainthat

U.Ssoccerwillendupsubmittingabidandwantingtobepartofthat

process.Ultimatelywe’dlovetobeabletogetitbackwithoutadoubt.

There’stoomanybenefitsthatcomealongwithhostinganeventlikethat,

youknowinyourcountry.

SG Soyoumentionedthereaboutthesortoffacilities,revenuesandthings

likethat,thatareavailableforU.Ssport.Couldyoutalktousabitabout

revenuesharingandhowthatworks?

R1 TherevenuesharingwithMajorLeagueSoccer?

142

SG Ingeneralifyoucouldprovideuswithabitofcontextualinformation

outsideofsoccer,andtalkaboutitinsocceraswell.

R1 Yeh,solet’ssee,forinstancealltheleaguesoneoftheprimaryrevenue

streamsisgoingtobetheTVrights.

SG Yes.

R1 Youknowthat’smammoth.Multibilliondollarsthataregoingtobackto

theleagueswhichthenatthatpointteamswithinthoseleaguesare

gettingapercentageofthatmoney,whichobviouslyisacriticalrevenue

streamandresourceforthemtobeabletobesuccessfulandruntheir

businesses,anddowhatisnecessary.Everyleagueisdifferentregarding

themakeupofhowtherevenueshareworks,regardinghowthose

revenuesandexpensesaresharedorarerolledthroughoneanother,you

knowsotheoneconsistentthingiswhenitcomestotheTVbroadcast

rights.Everyleagueandsportsorganisationorclubisalwaysgettinga

percentageofthatmoney,andIknowthatsomeoftheotherleagues,for

instancetheNFLformyunderstandingthiscouldhavechanged,

previouslyIknowthatwhentheleaguehadleaguewidesponsordeals,or

likeNFLsponsors,theleaguewasretaininga100%ofthoserevenues.

SG Right.

R1 LikeIsaiditisfromleaguetoleaguebutlikeIsaidtheoneisontheTV

broadcastsideandafterthatIhavetobehonestwithyouIdon’tknow

whatcurrentlythoseotherleaguesaredoing,becausesomeofitis

confidentialandalotofitishearsay,howpeoplesayyouknowhowthe

revenuesandexpensesareshared.

SG Ok,sohowthendoesitworkinMajorLeagueSoccer?

R1 WellyouknowasImentionedtoyou,youknowthereisvariousrevenue

streamsthattheleagueretainsthat’spassedontotheclubs,ortheclubs

passontotheleague.

SG Right.

143

R1 Itouchedonticketsalesandrevenuesthataregeneratedthere.The

clublevel,apercentageofthatgoesbacktotheleague,thereisalsosome

commercialandsponsorshiprights,butagaintheleaguealsopicksup

variousoperatingexpenses,sofromtheplayer’ssalariestoteamtravel,

whichisabigdeal,youknowattheotherclubsyouknowtheyarepicking

uptheirowntravel.Whatelsecouldbeappliedtothat?Teamtravel,

playersalaries,thosearereallythetwoprimaryexpensesthattheleague

endsuppickingup,andthenlikeIsaidontherevenuesideyouknowyou

havegotmoneythatiscomingandgoing.

SG Right,soIdon’tknowifyouaregoingtobeabletohelpuswiththisor

talkaboutitinanygreatdetail,isthatlikelytochangeoristhatlikelyto

beshiftedalittlebitwiththenewCollectiveBargainingAgreement?

R1 Thereverywellcouldbe,youknowthebigthingthattheplayersare

lookingfor,fromeverythingwehavebeenhearingisaboutsomechanges

whenitcomestofreeagency,youknowtheleagueisprettyfirm,the

ownersareprettyfirmregardingtheirexpectationwhenitcomestofree

agencyornothavingfreeagency.Buttherecouldbesomeadjustments

thataremade,thathelpsustotryandmeetinthemiddleonthattopic,

butI’mnotinthosemeetingswiththeownerstoknowhowflexiblethey

aregoingtobeonthat,andIalsoknowontheplayerssidethey’vecome

outtosaythatiffreeagencyandthesalarycapisnotaddressedand

changesthattheywillstrike.IhopethatisnotthecasebecauseIthink

thatwillbeabigblackeyefortheleagueandIthinkthatallthesuccess

andgrowththatthisleaguehashad,especiallyoverthelastfivetoten

years,Ithinkitwouldhurteverybody;playersandtheowners,soatthe

endofthedayIthinkitwouldbeabadthingsforthefansforsomereason

gamesbeingcancelled,ifthereissomekindoflockout.

MT So,sortof,ifyouwereliketomakeimprovements,whatwouldyousay

youwouldfocusonmainly,andforwhatreasons?

R1 Saythatagainsorry.

144

MT WhatimprovementsifanywouldyoumaketothecurrentMLSrevenue

sharingsystem?

R1 Ilikewhereitisat,Ilikethestructureoftheleague.ImeanagainI

thinkit’samodelthathasbeenabletogrowandIthinkithasbeena

viablebusinessmodelsoIwouldn’tchangeit.Youknowtherearesome

tweakshereandthere,somesmallerthings,yehmaybe,butImeanallin

allwhenyoutakealookatthebigpicture,youknowwhychangethings

upifitsworking?YouknowagainIunderstandwhenitcomestofree

agencyandthesalarycapissuesandstufflikethat,theplayerssitthere

andseethattheleague’ssecuringthesehugeTVrightsandalltheseclubs

arereallygrowinganddoingwell,sellingoutgamesandsotheyare

correlatingthat,they’llsayheylistenyouknowattheendoftheday,the

playersaretheprimaryproductthatpeoplearecomingtosee,andifthe

clubsandownersaremakingmoneysowhyshouldn’ttheybeableto

shareitinthat?SoIgetthat,andtheownersgetthatto.Sotherewillbe

changesandtherewillbethosekeycriticalissuesthatwillbeaddressed,

andtheywillcomeupwithasolutionthatworksforbothsides.Butwhat

magnitudeorsizeofscopethosechangeswillbemadeandhowtheywill

impactthings,Ican’ttellonthat.Youwillendupseeingsomethingsthat

willchangeonthatside,bynomeansisthecurrentstructureoftheCBA

agreementandthewayitsbeenthelastseveralyears,Icannotforeseeit

stayingthesameway.Heylisten,theotherpieceofityoucanlookat,is

howyoucantakealookathowyoucontinuetogettoptalentfrom

aroundtheworldtocomehere,Imeanthereisanothercorrelationthere.

Ifwedon’tmakethosechanges,youcouldpotentiallyimpacttheabilityto

getthetoptalentfromaroundtheworldtocomeoverandplayhere,

becausetheyaregoingtofeelliketherearelimitedresourcestobeable

tocapitaliseon,basedonwhattheycouldforacluborthisleague.Soyou

knowagain,Idoforeseesomechangesbeingmade,Ijustdon’tknowat

whatlevel.

145

SG Youmentionedthereaboutthefactyoulikethewaythecurrentsystem

works,doyouthinkitissustainablelongtermwithmoreandmoreteams

beingaddedtotheleague?

R1 Yes.

SG Ok.

R1 Yeswithoutadoubt.Youknowthemodelthatissetuphasbeenworking,

itworkedwhentheleaguewasnew,youknowwhentherewasalimited

numberofteamsbackthen,towhereitisattodayandgettingtheright

ownersandbeingintherightmarketshasbeencriticaltothesuccessthat

theleaguehashad,andastheevolutionofMajorLeagueSoccerandthe

growthofitiscontinuingtoimprove.Youknowwe’vebeenableto

continuetocapitaliseonandgrowwithit,withouttherebeingany

hindranceorroadblockage,becauseofcurrentpoliciesorstipulations

thatarekeycriticalitemsofthestructureoftheleague.Imeanthathasn’t

beenanything,becauseofthewaytheleaguehasbeenstructuredthatit

hasheldusback,atthispoint.

SG Ok,youmentionedabout,justthemaboutpickingtherightmarketsfor

theteamstobeestablishedin,what’shappenedwithChivas,becausethey

havegonehaven’tthey?

R1 Yeh,Ithinkitisavarietyofissuesthere,numberoneitwasanownership

issue,youknowIthinkhehadChivasGuadalajaracomingtotheleague,

andthoughtthattheycouldimplementakindofsameapproachand

becauseofthesuccesstheyhavehadinMexico,thatwouldcorrelateover

hereintheUnitedStates,andChivasclearlyhassuchahugefansupport

andfollowingdownthere,andofcoursewhenyoutakealookatUnited

States,thenumberoffirstandsecondgenerationofMexicanresidents

thatresideherenow,theythoughtok,wehavearoundtwomillion

expandingpopulationinjustHoustonalone,andsotheyprobablythought

thattherewouldbealotofthatfansupportthatwouldendup

supportingtheirteamandbrandthereinLA.Butoneoftheotherbig

challengesthattheydidn’thavetheirownspecificstadiumthatthey

146

couldcalltheirhome,Imeantheywereplayingtheirgamesoutin

StubHubwherethe(LA)Galaxyplay,clearlythat’stheirhome,andyou

knowitsfunnybecauseifyoutakealookatBasketballwiththeLos

AngelesLakersandLosAngelesClippers,theybothplayinthesame

arena,andforyearstheClipperswereacompleteafterthoughtbutnow

thattheteamhasgottencompetitivethereisnoissuesorchallengersto

beabletosellitoutorbeingabletotakeadvantageofsponsorship

opportunitiesfortheirgamesandwithinthatvenue,eventhoughpeople

alwayslookatStapleCentreasthehomeoftheLakers.Youknow,if

you’reahard-coreClippersfanyouknowthat’swhereyouplayyour

games,butthey’vebeenabletobesuccessful,butIalsothinkitsbecause

theclubhasimprovedandtheynowhavegotacompetitiveteam.Chivas

hasneverbeenthatgood,evidentlyandifyoudon’thaveahard-corefan

basesupportingyouwhetheryouarewinningorlosing,itsgoingtomake

itmuchmorechallenging,so,Ithinkagainnothavingtheirownvenue,I

thinktheownershipissuewasachallengeandthethirdpieceofitis,just

thebusinessmodelandapproachtothepreviousregimethatthe

organisationwastryingtodo,Ijustdon’tthinkitworkedinthatmarket.

SG Ok.

LW Wespokebrieflyaboutthedraftearlier,canyoutellusexactlyhowthat

works?

R1 Thecollegedraft?

LW Yeh,please.

R1 Yeh,sonodifferentthananyotherAmericansporthere,whathappensis

thereisacollegecombine,whereguysthatarecomingoutofcollege,you

knowtheyhavehopesanddreamstoplayinMajorLeagueSoccer,so

theygotothecombineinFlorida,allthecoachesandscoutsfromallthe

clubsintheleaguewillgodownthereandtheywillscoutthetalent,have

theirindividualmeetingsandstuffandseewhopossiblywouldbeof

valueintheirparticularclubs.Thedraftitselfismadeupoftwodays,

whereyouthefirstdayhastworounds,eachclubhastheirpicksthatthey

147

make,andthenthere’sanadditionaltworoundswhateverplayersdon’t

getdraftedagainyoucanfindasafreeagentiftheclubwantstobring

youalongtotry-out.It’sjustoneoftheplatformsandwaysthatclearly

MLSclubsareabletogettalent,butIthinkyouareseeingalotmore

recruitingthatistakingplaceroundtheworldtotrytotapintotalent

poolselsewhere,justbecauseofthesuccessalltheseotherclubshavehad

aroundtheworldandhavebeendoingforhundredsofyears.So,again

youhaveseensomegoodcollegeplayerscomeoutthroughthedraft,butI

thinktheotherthingyouarestartingtoseeabitisthesekidsthatare

Americanbornwillstartplayingsoccerataveryyoungage,theystart

developing,theystartgettingbetterandthere’sanumberofstoriesofa

lotofthesekidswillendupgoingelsewherearoundtheworld,and

gettingintotheseacademieswithotherclubsandtrytodeveloptheir

talentselsewhere,hopefullybeseenandendupplayinginternationally,

someofthemactuallyendupmakingtheirwaybacktotheUnited

Statestoplayatcollegelevelasitdidn’tworkout,ortheyjusttakesome

differentroutestoendupplayingsomewhere.So,Iwouldn’tconsiderthe

collegepool,theprimarypoolofbeingabletogettherighttalent,thebest

talent,that’sclearlynotthecase.Butitisonemechanismandoneplace

clearlyclubsareabletotapinto.

LW So,whatareyourthoughtsonitthen,doyouliketheinclusionofthedraft

ordoyouthinkitwouldbebettertostayawayfromit?

R1 Ilikeitatthispoint,becauseyouhavehadsomegoodplayersthat

havecomeupthroughthesystematthecollegeranksthathavehad

verygoodsuccessherewithinMajorLeagueSoccerandelsewhere.ButI

stillthinkwiththemostsuccessfulorbestpathisgoingthroughthe

academystructurewithwhatalltheclubshavearoundtheworld.You’re

clearlyinvestingmillionsofdollarsayeartohelpdevelopthosekids

becauseyouthinktheyhavethepotentialabilitytoeventuallybeonthe

firstteamandifthatwasn’taviabletoolorresourcetodoit,Idon’tthink

clubswouldbeinvestingasmuchastheyare.

148

SG Soyoumentionedthereaboutthecombine,obviouslytheNFLcombineis

goingonrightnoworhasbeeninthelastcoupleofdays.Isyours

televised?

R1 Thedraftitselfistelevisedjustonthefirstday,andthefirstround,Idon’t

thinktheydothesecondround.Thereissomedifferentnetworksthatare

pickedup,butitisn’tasifESPNarebroadcastingit.Unfortunatelythe

leaguealsodoesn’thaveitsownnetworklikeNFLnetworkandthings

likethat,soifatapointintimethatendsupcomingintoplace,youwould

seethatcontentbeingbroughtonthatplatform.

SG Isthatpartoftheleague’slongtermplandoyouthink,tohavetheirown

network?

R1 Oh,I’msureitis,butIthinkrightnowthebigthingisexpansion,the

wholethingwiththeCBAagreementofcoursehasbeenabigfocusand

priorityforthemthelastcoupleofyears,Idon’tthinkanybodywantedto

waituntiltheeleventhhourtotryandhavethisstuffresolvedandgetto

theplacethatweareat.Butlongtermwise,withoutadoubtthat’sgoto

beapointoffocus.Againitisanothercriticalfocusoftheleaguetobe

abletogrowandbuild.

SG Whendoesthecombinetakeplace?

R1 IttookplaceinJanuary,soitisheldaweekbeforetheMLSdraft,sothey

godownthethirdweekofJanuaryandthenrightafterthattheygo

straighttowhatevercityishostingMLSdraft.

SG Isithostedbycitiesthathavegotfranchises?

R1 Correct.SothisyearitwasatPhiladelphia.

SG Justwhenweweretalkingaboutexpansionandwherethefranchisesare

andwhatever,doyouthinkMajorLeagueSoccerteamsaremore

successfuliftheyareincitiesthathavealreadygotanexistingsportfan

base?Sowithyoubeingin------,haveyoubenefittedwithhavingthe

TexansthereandtheRocketsandtheAstros?

149

R1 That’sagoodquestion.Idon’tknow,Iwouldsaythatthemarketwould

haveitsopportunityandchallenges,Ithinkitwouldbedifficulttohavea

clearcutansweracrosstheboard,becausethereisdifferent

circumstancesandthingsthatcomeintoplaythatwouldchangeyour

opinionorviewonewayortheother.Forus,againwehavegoodsuccess

andourbusinesshasgrownimmensely,sousbeinginalargemarketand

havingotherprofessionalsportsteamshereandotherentertainment

optionsforpeopletoconsiderwheretheywanttospendtheir

entertainmentdollar,ithasn’tbeenachallengeforus.Welovethe

market,welovethesupportwearegetting,welovethegrowthofthe

business,butouropinionmightbedifferentthenPhiladelphia,thenagain

theydowell!Alotoftheteamshavegotverypositivestoriestobe

told.

LW Justanotherthing-----frommeaboutthedraft,doyouthinkithasa

positiveeffectoncompetitivebalance?

R1 DoIthinkthecollegedraftisimportant?Yes,intermsbalancewise,again

thetypesofplayersthatarecomingoutofthattalentpool,yestherehas

beensuccessfulstories,butisthatthemostviableplatformtogettingthe

truetoptalent,nowe’renot.Itisnotthere,ifyoutakealookacrossthe

countrywithintheNCAAandthenumberofcollegeanduniversitiesthat

havesoccerprogrammes,thereisalargemajoritythatdonotcarry

soccerprogrammes,becauseeitherthemarketsthattheyareinjust

becauseofthefundingthatcomesalongwithit,withfundinganathletic

departmentbeingasoccerclub.Idon’tthinkthatcollegesoccer

programmeshavetheultimateresourcesthattheyneedtoreallydevelop

theplayersattherightlevel,butagainthereisgoodstoriesthathave

beentoldthere,ifyou’renottrulydevelopingthetoptalentthenthereis

probablycompetitiveimbalanceright?Becausethenagainyou’regoingto

begettingyourtalentpoolelsewhere,that’sthereasonwhileyouseeso

manyclubsthataregettingplayerseitherthroughtheiracademy

programmes,wheretheydevelopthemthemselvesandthesekidsaren’t

goingofftocollegeortheygetinoutsidetheUnitedStates.Forinstance

150

thisyearwedraftedfourkidsoutofthecollegedraftandactuallyallfour

ofthemweendedupsigningcontractsto,butthatisararity.Youknow

you’redraftingfourorfivekidsyoumaybeonaverageyouhave

twoofthemthatactuallyendupsigningacontract,therejustnotatthe

competitiveleveltoplayinthisleague.Theotherpieceofitisalotof

clubsherenowareinvestingintoUSLProwhichisaminorleagueherein

AmericaandU.SSoccer,anditissimilartoMajorLeagueBaseballwhere

theyhavetheirminorleagues,wheretheyhavegotthreeorfourminor

leagueteams,classA,doubleA,tripleAallthatstuff,soalltheclubsnow

areinvestingintothese.

(PutOnHold)

SG We’vejustgotacoupleofmorequestions,ifyouhavegottimeto

answerthemforus?

R1 Sure,goahead!

SG Youmentionedthereabouttherecruitmentofplayers,whatkindof

impactoreffectdoyouthinkagentshave?

R1 Ithinkitdependsoneachparticularagent,Imeansomeofthemhave

moreexperiencethananother.Someoftheseagentshavebeenaround

formanyyearsanddothingstherightway,Idothinkthereisalotof

otheragentsdependingonwhoplayersarealigningthemselveswiththat

don’talwaysgetgoodinformationoraccurateinformationthatmaybe

whereanagentcanmisleadthemornotprovidethemwiththemore

appropriatedetailsorfeedbackonthingsthattheyshouldorshouldn’t

do,buttherenotgettingpossiblythebestconsultation,againthereisso

manyagentsnowthatarerepresentingplayers,thatisaverytrickyand

delicateissue,becausewehavehadincidenceswherewehavehada

playerwewanttosign,andwegetcontactedbymultipleagentssaying

theyrepresentaplayer,sowhoarewemeanttobetalkingto!It’san

interestingbusiness.

151

SG Andyoumentionedjustnowaboutthequalityofplayerscomingthrough

thedraftsystemorthecollegesystem,doyouthinktheNCAAandMajor

LeagueSoccerneedtoworkmorecloselytogethertofacilitatethe

developmentofbetterplayers?

R1 Yes.I’msurethatthereisalotofconversationswhenitcomestothatto

whatextentandwhatspecificallytheyaretalkingaboutandhowisitthat

MajorLeagueSoccer,U.Ssoccercanhelpsupportthattypeof

developmentatcollegiatelevelIdon’tknowwhatthethoughtsand

discussionsarebeinghadonthat,butmyopinionwouldbeyes,that

wouldmakesomesenseandbeofvalue.

LW Lastonefromme------,doyoufearthatEuropeangiantssuchasthebig

teamsinEnglandandSpainwillpoachAmerica’sbesttalentbecauseof

someoftheimplicationsoftheleague,solikethesalarycap,probablynot

beingabletomakeasmuchmoney,andmaybethequalityoffootball?

R1 Yehwithoutadoubtthatcouldhappen,alsolisten,alotofthesekids

especiallyintheirearlieryears,whenyouhadaLandonDonovanthat

wascomingup,hehadaspirationstoplayinternationally,andclearlyhe

triedtodothat,madethedecisionorthingsdidn’tworkoutorwhatever

thecasemaybe,whoeveryouaretalkingto,andendedupmakinghisway

backhereandhadagreatcareernotonlywithhistimehereinMajor

LeagueSoccerbutonthenationalteam,butIwouldbenaïvetothinkthat

playersastheyarecomingupnowdon’thaveaspirationstositthereand

goandplayintheEPL,oryouknowgoplayinSpain,orgoplayinthetop

leaguesaroundtheworld,becauseagainclearlyyoucanmakemore

moneyandbeonthebiggeststageisthere,itisnothererightnow.It

wouldbenicetobe there,andwearehappywiththedirectionweare

going,butwe’renottheEPLweknowthat,soandthat’sok,likeIsaid

we’vebeenaroundfor20years,wehaven’tbeenaroundforahundred

years,soitisgoingtotaketimetogrowandbeconsideredatthatstature

andlevel,butagainifwecancontinuetotellpositivestoriesandsee

152

growthwithintheleagueandhaveclubsthataresuccessful,Ithinkwe

haveabrightfutureandagoodfoundationaswemoveforward.

LW SodoyouthinkinthefuturetheMLScancompetewiththelikesof,

maybejustyetbutthePremierLeague,maybeLALiga,SerieA?

R1 Wellyeheventually,surebecauseIthinkwehavejustasmanyresources

thatareavailabletousthatwecanuseofvalueandcouldusetosellto

makethingsattractivebutagainweneedtocontinuetodevelopthe

playersandhavemorecompetitiveplayers,whereyou’vegotastrong

playerpoolacrosstheboard,itcantbethatyouhavefourorfivestrong

callthemtoptierplayersataclubandthentherestneverevencome

closetoeverbeingonafirstteamelsewhere,soitisjustgoingtotake

time,butcanweactuallygetthere?Surewithoutadoubt,againjust

becauseIthinkthereisalotofthingsthatMajorLeagueSoccerandwhat

theUnitedStatescanendupbringingtothetabletohelptocontinueto

developandgrowthingsandprovidegoodviableopportunitiesfor

playersaroundtheworld.

SG WehavetoaskabouthimbeingEnglish,butI’mwonderinghowmuchof

arolehasDavidBeckhamplayedintherecentdevelopmentofMajor

LeagueSoccer?

R1 Huge!Everybodywilltellyouthat,peopledidn’tknowmuchabout

MajorLeagueSocceruntilhecameovertothisleague,Imeantherewasa

platformbecauseofthesuccessoftheWorldCupbackinthe90s,but

onceyouhavebroughtsomebodyinlikethat,becauseofthenoveltyof

thesupportandthesportandjustnothavingsoccerasaprimarypointof

discussionforpeopledayintodayout,likebeingaroundthewatercooler

andcominginonMondaymorningandtalkingabouttheresultsfromNFL

football,you weren’tdoingthatforsoccer,butwhenpeopledidthink

aboutsoccer,thereisbignamesthatpeoplecanidentifywith,David

Beckham,sooncehecameoverheretherewassomanybenefits

thatcamealongwithit,hewasinstrumentalandplushewassucha

greatambassadortohelpgrowthesport.ImeanIhavehadthe

153

privilegetomeethimacoupleoftimes,withhimplayingfortheGalaxy

andusbeingownedbythesamegroup,anytimehecameinto------you

couldcountthegamebeingsoldout,itwastremendous.Irememberthe

veryfirsttimeIwaswiththeclubin2012andhecametoplayhere,you

knowafterthegameheiscomingoutofthelockerroom,akindofprivate

backhouseareawaspackedwithfansandhewasgraciousprovidinghis

timetosignautographsandtakepictures,that’swhatittakes,youhave

todothoseextrathingsandeventhoughheisDavidBeckham andall

thesuccesshehashadandnotorietyaroundtheworld,Ithinkhe

recognisedtheroleheneededtoplaytohelpMajorLeagueSoccerbe

abletogrow,tomakeitrelevant.Sohewasinstrumental.

SG Itisinterestingwhenyoutalkaboutmultipleteamownership,inour

soccerleaguespeoplecantdothat,theycantownmorethanoneclubas

thereisafearthatitisgoingtoimpactcompetitivebalance.

R1 Sure.

SG OnefinalquestionforbothMattandLuke,doyouthinkMajorLeague

Soccerwouldbenefitfromperhapstakingonsomeoftheelementsfrom

EuropeanortheEnglishPremierLeague?

R1 Yes,specificallywhatthoseareIcouldn’tcommentonthoseatthispoint,

allIcansayisitisnodifferentthanwhatwedojusttotryandbreakit

down,ifIwastositthereandlookattheTexans,RocketsandAstrosdoin

mybackyardhere,iftherespecificinitiative,promotionsorthingsthat

theydothataresuccessful,I’mmorethanhappytosteelthoseideas,if

theycanhelpcorrelateovertome,mybusinessandhelpustobe

successful,againiftherearethingsthatEPLisdoingorotherleaguesare

doingthatwecanadoptorimplementtohelpusinformoffashionorany

level,absolutely,Idon’tthinkwehavetheattitudeormindsetthatwe’ve

goteverythingfiguredoutorwedoeverythinggreat,there’salotof

thingsweneedtodotocontinuetoimproveandgrowandifthere’s

things,ideasthatwecouldimplementthatotherclubsfromaroundthe

worldaredoing,wewouldbemorethanhappytodothat.

154

SG Wellthankyouverymuchfortakingthetimeoutthismorningtotalkto

us,itismuchappreciated.

R1 Absolutely,andifthereisanythingafterthecallthatwecouldmaybe

address,oradditionalinformationfeelfreetogivemeacallorshootme

anemail,andIwishyouguysthebestonthisproject.

SG Thankyousomuchforyourtime.

155

APPENDIXB

InterviewTranscript

R2–Respondent2(MajorLeagueSoccer)

LW–LukeWhitworth

LW I understand that this information may potentially be sensitive.

Therefore,may I assure you that the contents of this discussionwill be

keptfirmlyconfidentialandthetranscriptsdemolishedpost-analysis.

Coventry University has a strict code of ethics. All interviews that are

conductedaspartof this researchprojectwill complywith this codeof

ethics. Ifyouwould liketoreceiveacopyof thiscode, Iwillarrangefor

onetobesenttoyou.

Ifyouwouldlikeanyadditionalinformationregardingthisproject,please

donothesitate toaskat theendof the interview. Similarly, if youhave

anyconcernsorquestionsduringtheinterview,pleasedonothesitateto

ask.

OnceIhavecompletedthisstageofmyresearch,ifyouwishIwillprovide

youwithashortsummaryoffindings.

LW IamcurrentlydoingaResearchMastersatCoventryUniversity,andIam

focusingupontheMLSformydissertationproject.Mymajorfocusison

thedraftsystemandwhethertheMLSshouldconsiderchangingthistoa

moreEuropeanmodel of player trading in the future. I understand you

will be extremely busy, but If you have any opinions or thoughts you

couldsharewithme,itwouldbemuchappreciated.

R2 Hi Luke, I think that the mix they have, between Draft and Academy

Players,alreadysatisfiessomeof theneedsof theEuropeanmodel.The

156

Draft idea, especially when you have so many kids going to play in

College, is still very special for all the American fans and also gives a

chance to elaborate an event,which captures themedia attention. Plus,

givingthefactthatallthecontractsaremadewiththeMLS,italsogives

theLeagueachancetorenewtheirplayerseveryyear,callingsometalent

withlowsalariestofulfilltherosters.

Having some American Soccer fans calling for the MLS to adapt to the

Europeanmodels of Promotion/Relegation, Academy-only youth teams,

etc,itmakesmethinkthatifinEuropewewon’tadoptcharacteristicsof

the American model - much probably, owners would love to have a

League likeMLS,withnoPromotion/relegation,andwith thepossibility

tocaptureyoungtalentviathedraft,eliminatingpartoftheimportanceof

playersagentsintheiryoungestages.

Whatdoyouthinkaboutit?

LW SoyoubelievethatactuallyEuropewouldprefertoadoptasimilarmodel

tothatofAmerica?

Ispokewithanemployeeat---------,andIwassurprisedtohearthatitis

ararityforaclubtoactuallycontractalltheplayerstheyhavedrafted,he

saidthequalityincollegesoccerisn'touttherejustyet.WhichIsuppose

made me wonder as to why the draft was actually needed alongside

academieswhereallthetoptalentwillbepickedup.

R2 Well, thathappenswithprettymuchwithdrafts in all theother sports.

Muchoftheplayerswhoaredraftednevergettosignacontractordon't

get theopportunity toresignoneafter the first. CollegeSoccerdoesnot

havethelevelrequiredtobeacompetitiveleague,buteveryyearyousee

4/5playerscomingfromtheDrafttohaveimpactintheteams.SoIthink

that'sworthhavingaDraft just to try toget thoseplayers. It'salso true

thatteamswithgoodAcademieshavebetterresultsintheLeague,asthey

aremorestableandabletogetnewplayerswhorecognisetheirplaying

style. But thatdoesn't change the ideaof theDraft foranopportunity. I

157

don'tseeaDraftmodelcomingtoEurope,butIsuredoimagineaclosed

EuropeanLeague,withnoPromotion/relegationstatus,inthefuture.

LW IreallybelievetheMLShasthepotentialtoflourishinthefuture.Dothe

club’sacademiessignplayersfromcollegeoranearlieragedoyouknow?

I'malsointriguedtogetyourthoughtsonsomeoftheothermechanisms

like thesalarycap.Doyou think for theMLS toreallybecompetitive in

theindustry,radicalchangesneedtobemadetothesalarycaptonotonly

attract the better quality players, but also keep the best homegrown in

theleague?

R2 Academieshaveplayersfromveryyoungages.Whathappenssometimes,

is a player who belongs to an Academy, will then go to College, and

eventuallycomebacktohisteam.Ifaplayercompletes3yearswithinthe

Academy,theteam will have rights on him meaning he doesn't go to

Draft.AbouttheSalaryCap,I thinkthatmoremoneywillmeanahigher

Salary Cap. As seen in the NBA and NFL, that gives stability to teams,

ownersandevenplayers,astheyareabletoreceivetheirmoneyontime,

always.Theway the leaguewillworkon their SalaryCap limitswill be

veryimportanttomakeMLScompetitive,butyoualsocanseehowmuch

playerscanhaveabiggerincomebyplayingintheAmericanmarket. This

said,IseetheMLSlikeanalreadywell-placedleagueinthesecondlineof

worldleagues.Andforthemoment,thatmightbetheperfectspottobe.

LW Doyouthink theMLShaspotential tobecomeoneof the top leagues in

thefuture?Andifso,whatdotheyneedtodoinyouropiniontoachieve

this?

R2 If you're thinking about reaching the level of La Liga, Premier League,

Serie A or Bundesliga, I don't think so. There's so much tradition and

poweroverothersportsinEuropethatIthinkthosefouraretoofartobe

achievable.

AsforLigue1,Eredivisie,Brasileirao,PortugueseLeagueandArgentinian

158

League, they'll always have difficulties, because of the quality of the

homegrown players, but here they already can compete economically.

TheyarestandingnearthoseleaguesandIthinkthatthegoal,forthenext

20years,istosolidifytheirpresenceinthisgroup,becomingwithFrance

andBrasilthefifthworldleague.There,Ithinktheycantheycanreachit.

LW Wellthankyouverymuchfortakingthetimeouttotalktous,itismuch

appreciated.

R2 Noproblem.

LW Brilliant,thankyouforyourhelp.

159

APPENDIXC

TheBosmanRuling

Perhapsthemostfamousincidentthathascausedamajorchangeintheway

Europeanfootballhasbeengovernedisthefamous‘BosmanRuling’case.Croci

(2001)setsthescenebysayingthatinthesummerof1990,Jean-MarcBosman,a

BelgianfootballerhadcometotheendofhiscontractwithBelgiansideRFC

Liege,butwasnotwillingtosignanewcontractwiththeclubasthe offerwas

inferiortohisrecentlyexpiredagreement.Antonioni&Cubbin(2000)includein

theirpaper‘TheBosmanRulingandTheEmergenceofASingleMarketinSoccer

Talent’,thatBosmanhadinfactbeenofferedacontractthatwasworthonly25%

ofthevalueofhiscurrentagreement.Inlightofthissub-standardoffer,Bosman

exercisedhisrightstotheBelgian FootballAssociationtoturndownthisnew

contractoffer.Antonioni& Cubbin(2000)continuetoexplainhowBosmantook

ituponhimselftofindanewemployer,inwhichU.S.DunkerqueaFrenchteam,

showedinterestinhisservices.Bothclubsfailedtoagreeoncompensation,

meaningthatBosmanwasunemployed.Consequently,asmentionedbySimmon

(1997:13)BosmantookhisformerclubRFCLiegetocourt,‘’citingrestraintof

trade’’.

ThejudgementdidnotcomeforJean-MarcBosmanuntilDecember1995,

Simmons(1997:13)highlightstheEuropeanCourtofJustice’s(ECJ)ruling

change‘’wherebyout-of-contractplayerscouldonlymovebetweentwoclubsin

differentEUcountriesifatransferwasagreedbetweentheclubswith

compensationpaidtothesellingclub,wasincompatiblewitharticle48ofthe

TreatyofRomewhichrelatestofreedomofmovementoflabour.’’Thischange

regardingplayercontractsprovokedpanicwithinthefootballindustryastothe

valueoftheirassets.

Croci(2001)stateshowin1996FIFAandUEFAcametoadecisiontocounteract

theissueof‘Bosmans’,byinformingthecommissionthattransferfeeswouldno

longeroperatetoplayertransfersattheendoftheircontracts.Feess&

Muehlheusser(2002)concurthestatementprovidedbyCroci(2001),but

160

additionallyofferanexplanationofhowbeforethejudgementhadbeen

finalised,clubswerestillrequiredtopayafeeforaplayer’sservices,regardless

ifthatcontracthadexpired.Bothacademicsfeelitisimperativetoincludea

furtherchangetotheEuropeantransfersystem,whichoccurredinMarch2001.

Croci(2001)clarifieshowtheCommissioninformedbothFIFAandUEFAinJune

2000,thatfurthermodificationshadtobemadetothe transferfeesystem

withinayear,orriskitbecomingillegal.Thecommissionwasconcernedwith

therulingssurroundingvalidcontracts.‘’Accordingtoacompromisebetweenthe

Commission,FIFAandUEFA,reachedinMarch2001,aplayercanleavehiscurrent

clubwithoutitsapprovalonpayingafee forabreachofcontract,’’(Feess&

Muehlheusser,2002:1).Feess& Muehlheusser(2002)explainthatthe

previousruleallowedclubstoimpedethetransferifitdidnotwanttoacceptthe

feesofferedbyotherclubs,howeverunderthisnewregulationthefigureofboth

feesforbreachofcontractwillgenerallybeconsiderablylowerthanthefree

negotiabletransfer fee.Onemajorquestionwhichmanyacademicssuchas;

Simmons(1997),Croci(2001)andFeess&Muehlheusser(2002)have

researchedis,‘whatweretheimplicationsfordomesticfootballclubswiththe

enforcementoftheBosmanruling?’

Croci(2001)believesthattheBosmanrulinghasledtoadramaticriseinthe

transferfeesofthoseplayerswhomafeecouldstillbeattached,aswellasthe

substantialincreaseinstarplayer’ssalaries.Croci(2001)alsopaysparticular

attentiontothedevelopmentofyoungerplayers,asprevioushypotheseshad

suggestedthattheBosmanrulingcouldeffectthisprocess.Nevertheless,Croci

(2001)deemsthattherulingseemsnottohaveindicatedanynegativeimpactof

youngplayerdevelopment.‘Traditionally,thedevelopmentofyoungplayerswasa

kindofspecialisationnicheofsmallerclubsthatreliedfortheirfinancialsurvival

onthetransferfeesoftheseplayerswhentheyweresoldtobiggerclubs,’’(Croci,

2001:8).Simmons(1997)takesaslightlydifferentviewtotheBosmanruling

implications,wherebytheacademicbelievesthatfiveparticulartopicshave

arisensincetheadoptionoftheBosmanrule.Thesefivekeytopicsidentifiedby

Simmons(1997:15-18)areasfollows;‘’thecollapseoftransfermarkets,lossof

161

transferincometosmallerclubs,increased,andmoreunequalplayersalaries,

reductionoftransferfees,andfinallylongercontracts.’’

ThereareanumberofimplicationsthathavearisenfromtheBosmanruling,but

perhapsthemosthighprofilerepercussionisthedecisionwhethertosellorhold

ontoaplayer.‘’SincetheBosmanrulingapproximately90percentofalltransfers

involvingEnglishF.A.Premierclubshaveinvolvedin-contractplayers,and

thereforethepaymentofatransferfee,’’(Antonioni&Cubbin,2000:18).Football

clubscannotaffordtolettheirplayer’scontractsexpire,asthefinancial

implicationsarevast,thereforethemajorityofclubswillsellthatplayereithera

yearorsixmonthsbeforethatcontractsexpires justtoensuretheycanraise

somecapitalontheirasset,ratherthanbeingleftemptyhanded.

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