Forget cultural differences; perhaps soccer won’t make it big in the United States because there is not enough money to be made.
“Soccer is the least profitable sport on the planet,” says Stefan Szymanski, professor of sports management at the University of Michigan and co-author of Soccernomics. “The whole structure of soccer is totally at variance with the America model.”…
In America, TV contracts have a lot to do with a sport’s profitability. MLS recently took a step toward the big leagues with new contracts that will generate around $90 million in revenue per year, the most ever for the league. But that’s puny compared with leagues such as the NFL, which takes in about $5 billion per year from TV rights. The visibility generated by saturation TV coverage helps the NFL earn even more revenue from sponsorships, ticket fees and licensing deals.
It might be unfair to compare the MLS with the NFL, which is the world’s most profitable sports league and an almost unexplainable phenomenon. But pro soccer in the U.S. may face a chicken-and-egg problem that prevents it from ever following in the NFL’s cleats. Most NFL, NBA, MLB and NHL teams manage to be profitable whether they win or lose. That’s because of revenue-sharing deals, salary caps and other equalizers meant to keep leagues competitive and owners satisfied…
“The MLS is pursuing the America business model, which means it’s not pouring billions into making it successful but is actually limiting player spending,” Szymanski says. “There are probably 30 soccer leagues that spend more on wages per team than the MLS — including the Romanian soccer league.”
I wonder how American sports fans would react to the idea that sports “work” in the US because owners can make lots of money. Sure, the sports may be interesting and the athletes impressive but the owners have to make money and there have to be lots of commercials. The average football game has about 11 minutes of gameplay. It’s more like the sports play around the commercial breaks.
Does this mean American sports don’t really follow a free market model? It sounds more like team owners work together to guarantee their profitability and then others on the outside, like various corporations and television networks, can try to make money.