MLS Media Rights Deal Takes Shape

Major League Soccer (MLS) is gaining popularity, and with the World Cup boosting interest in soccer, the league’s media rights are a hot commodity. The future of MLS media rights has been a topic of discussion since the league announced it would be exiting its Apple deal early.

A new report notes MLS owners have discussed a desire for a new rights fee in the range of $400 million to $500 million annually in the next media round. This is a significant increase from the current $250 million per season from the Apple deal.

Market conditions would need to shift significantly to justify a 2x to 2.5x increase by 2029, especially with the likely absence of Lionel Messi. The expert also notes that MLS must generate enough incremental demand without greater transparency into performance on Apple.

The crunch of rights coming up, including MLB, NHL, NFL, Big Ten, and more, will also impact MLS’s media rights.

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MLS has only one partner right now in Apple, but it may have to look at models like Bundesliga, NASCAR, NFL, NBA, WNBA, NWSL, Big East, and Pac-12 to get close to its goal. These models involve multiple partners airing games, which can lead to greater revenue.

NASCAR went from two to four partners, Bundesliga from one to two, and the NBA from two to three. A reconstituted Pac-12 has three partners, while the WNBA has games on multiple networks, including ABC, NBC, ESPN, and USA.

Companies such as Versant, the CW, and ION/Scripps are always looking for sports content, which could benefit MLS.

The Premier League deal in the U.S., worth $433 million annually, will come up for renewal right before MLS. An estimate for MLS would be valued at what Premier League rights are worth currently in the U.S. market.

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Akash Jain, the U.S. Managing Director for the Premier League, said the league’s executives are excited about their partnership with NBC Sports and Versant, which has two more years left on the deal.

MLS’s media rights future will depend on various factors, including the league’s ability to attract and retain fans, as well as its capacity to negotiate favorable deals with media partners.

It will be interesting to see how MLS handles the complex media setting.

MLS must consider its options carefully to achieve its desired revenue goals.