Semi-OT. Apple acquires MLS rights

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laxtreme56
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Semi-OT. Apple acquires MLS rights

Post by laxtreme56 »

It's been speculated for a while, but looks like Apple will be getting every MLS game for the next ten years. While ESPN and Fox are still in play, they would not get exclusive rights to those games and would still be shown on Apple TV in addition to those networks. Seems to be an incentive laden contract (one I suspect the XFL will receive) worth a minimum of $250 million a year. With Fox and ESPN more than likely getting substantially (if any) MLS games in 2023 and beyond, this should open open some good time slots for both the XFL and USFL.

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Re: Semi-OT. Apple acquires MLS rights

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Wouldn't really affect the USFL since FOX had most of their coverage done before it started (only 5/21 during the season opposite Mich/Bir on NBC), it would help the XFL though in that ESPN and ABC had games in February, March, and April that were/were to be XFL spots in 2020.

While I'm sure this was originally talked about in league circles post-sale, the reality is going all-digital/streaming is too risky for a league, even one that wants to venture away from the traditional blueprint. UFC can do that since they aren't a typical venture and were set up on the PPV model (granted they kind of drifted away from it during the FOX era), but they're about it.
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Re: Semi-OT. Apple acquires MLS rights

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MGB01 wrote: Tue Jun 14, 2022 1:23 pm Wouldn't really affect the USFL since FOX had most of their coverage done before it started (only 5/21 during the season opposite Mich/Bir on NBC), it would help the XFL though in that ESPN and ABC had games in February, March, and April that were/were to be XFL spots in 2020.

While I'm sure this was originally talked about in league circles post-sale, the reality is going all-digital/streaming is too risky for a league, even one that wants to venture away from the traditional blueprint. UFC can do that since they aren't a typical venture and were set up on the PPV model (granted they kind of drifted away from it during the FOX era), but they're about it.
This totally impacts USFL... in a positive way.

1) FOX needs USFL more than ever
2) NBC/FOX options for programming one less option
3) The value of a non-exclusive MLS deal is $250million

Add more...

And of course this helps XFL too
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Re: Semi-OT. Apple acquires MLS rights

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MGB01 wrote: Tue Jun 14, 2022 1:23 pm Wouldn't really affect the USFL since FOX had most of their coverage done before it started (only 5/21 during the season opposite Mich/Bir on NBC), it would help the XFL though in that ESPN and ABC had games in February, March, and April that were/were to be XFL spots in 2020.

While I'm sure this was originally talked about in league circles post-sale, the reality is going all-digital/streaming is too risky for a league, even one that wants to venture away from the traditional blueprint. UFC can do that since they aren't a typical venture and were set up on the PPV model (granted they kind of drifted away from it during the FOX era), but they're about it.
But remember: MLS was, by all accounts, a failure in traditional media. They have no national radio deal, their TV ratings were disastrous, and nobody in sports talk, well, talks about them. Outside each team's individual fan base, MLS is practically invisible.

So considering MLS needs the money, it doesn't hurt to try something that will get them that money.
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Re: Semi-OT. Apple acquires MLS rights

Post by 4th&long »

johnnyangryfuzzball wrote: Wed Jun 15, 2022 7:20 am
MGB01 wrote: Tue Jun 14, 2022 1:23 pm Wouldn't really affect the USFL since FOX had most of their coverage done before it started (only 5/21 during the season opposite Mich/Bir on NBC), it would help the XFL though in that ESPN and ABC had games in February, March, and April that were/were to be XFL spots in 2020.

While I'm sure this was originally talked about in league circles post-sale, the reality is going all-digital/streaming is too risky for a league, even one that wants to venture away from the traditional blueprint. UFC can do that since they aren't a typical venture and were set up on the PPV model (granted they kind of drifted away from it during the FOX era), but they're about it.
But remember: MLS was, by all accounts, a failure in traditional media. They have no national radio deal, their TV ratings were disastrous, and nobody in sports talk, well, talks about them. Outside each team's individual fan base, MLS is practically invisible.

So considering MLS needs the money, it doesn't hurt to try something that will get them that money.
This is a good point and MLS reeks of some kind of desperation here going full OTT with the deal. Now the Commissioner did say they will look to get key/some games on linear TV in the early years of the contract. They will not be exclusive though as AppleTV will also be showing those games.

Look, the ponzi scheme of new franchise fees is running out, they need new money coming in to keep team valuations up. But as you said they do not get national sports media attention, yet they sign a deal that really lowers their visibility. They need a linear TV deal to get visibility, how much will they get? Who knows.

Clearly they were unable to get this kind of money even from ESPN (XFL may have hurt??). And with inflation running high $250mm a year will look much smaller in a few years. So they went to AppleTV. And I dont blame AppleTV. They are desperate for appointment viewing - ie live sports. They saw what happened to NetFlix stock (as I called 2 days before the first big dip) and know that they needed something. Only MLB and MLS was available. BTW NF is looking at F1 I read.

Fox is the odd play in this new streaming world - they have no studio (20th Century Fox was sold to Disney) and they don't have a streaming service. Though you can stream their sports and specialty news.
They are looking at cable as bottoming out and their three pronged programming goals are still in play (News, Sports and realityTV)) are the main drivers. USFL fits in.

The AppleTV deal sets another high bar in sports programming valuation for smaller properties. This tremendously helps the new FB leagues.
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Re: Semi-OT. Apple acquires MLS rights

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MLS is built for OTT. They don't have a national/general following, but they have lots of dedicated individual fan bases who will pay $8/mo or whatever to watch their team's road games.

The next frontier for them is building that national/general following, and this deal allows them to keep featuring some games on traditional television. I don't know what's it's going to take to get people in New York to care about Seattle vs Portland, but this will let them to continue to try. At first glance, I think it's a fine deal for them.

I don't know how instructive it is for the XFL or USFL. They sort of face the opposite problem as MLS. There is a national/general appetite for their football. There isn't yet a dedicated enough fan base to move the needle for a streaming service. That makes something like MLS's Apple deal a poor fit for the XFL or USFL, imo.
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laxtreme56
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Re: Semi-OT. Apple acquires MLS rights

Post by laxtreme56 »

Apparently MLS is on the hook for production costs of these games, to the tune of $50 million. In reality the deal is closer to $200 million after production costs
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Re: Semi-OT. Apple acquires MLS rights

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I think that's the case for their current ESPN+ set up as well.
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Re: Semi-OT. Apple acquires MLS rights

Post by Sounder »

I thought the idea behind all that expansion was to grow their footprint for tv. If that's not the case, might that spell trouble?
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Re: Semi-OT. Apple acquires MLS rights

Post by johnnyangryfuzzball »

Sounder wrote: Thu Jun 16, 2022 5:00 pm I thought the idea behind all that expansion was to grow their footprint for tv. If that's not the case, might that spell trouble?
Don't kid yourself.

Expansion teams are about one thing first and foremost, and that is expansion fees. Each new team means a few extra million for every other team in the league. That goes for every professional sports league in existence.

The only reason major leagues don't do it more often is because they're much less willing to see an expansion team fail.
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