Interested in the business side of Major League Soccer? It's a very complicated business organization with centralized ownership, management, and control. Perhaps I'll do a legal and business analysis of it later on this blog on the off chance that you care - in my field of competition law, it's an interesting case study.
Oh, you're still awake. Let me get to the point. While the league used to go to great pains to maintain parity in salaries and financial performance among players and teams, the business is now maturing and some disparities are occuring that have been the undoing of previous leagues. Some clubs face immediate challenges. Like most professional sports, teams can more easily turn a profit if they control revenues from their venues.
DCU does not control its venue, and consequently continues to post an operating loss of approximately -$3M annually, according to Forbes. The value of the club still rests at $35M, which I'm guessing is approximately 3x the initial investment in 1996. Outlook: good, but with risk.
Read about MLS franchise values here: http://www.forbes.com/sportsbusiness/2008/09/09/mls-soccer-beckham-biz-sports-cz_kb_0909mlsvalues.html
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