Major League Soccer announced Tuesday a broadcasting deal with Apple TV. The deal is worth a reported $2.5 billion over 10 years, the period of time when Apple will have broadcasting rights for MLS. This is a groundbreaking deal in many regards. It will change the league in myriad ways and should be a positive story at the end of the day. Apple TV is a massive streaming service, and MLS just showed once again how hard they are working to increase the level of production and quality for their league. Without further ado, here are three major implications of the groundbreaking MLS-Apple TV deal.
Implications of MLS-Apple TV deal
3. It will mean more money is in MLSÂ
With soccer going in the direction it is, it is very hard for MLS to cope with that. MLS talents are leaving because clubs can just offer them tons of money, leaving the league without significant talent. However, this deal will definitely help MLS survive a bit more, and we could see changes very soon when it comes to the financial implication of this arrangement. When the NBA signed its new broadcasting deal, the salary cap rose exponentially in 2016. While MLS does not come close to the popularity of the NBA, it is still a blueprint of how new money entering the ecosystem of the sport can change everything.
Now, the important aspect is where the money goes. The current deals MLS has with Univision, Fox, and ESPN are worth a combined $90 million per year, of which $65 million goes to the league. We do not have the information yet on whether this deal will also be split financially between MLS and the US Soccer Federation, but if it is not, that is a massive increase of broadcasting money for the league, a major boost. Additionally, the deals MLS is currently negotiating with other carriers of their content will be impacted as well, as they might seek even more than the money they got in the last deal the league signed.
2. It will open up new audiencesÂ
When it comes to viewership, MLS has struggled at times. ESPN+ numbers have been poor and there was no solution. The MLS games we are seeing now are some of the best in history in terms of pure football, as there was never this amount of young talent in the league. Yet, the viewership numbers were poor and MLS, as a league and an organization, had to do something. Signing this deal is perfect for it and will be a massive boost for the viewership of this league, not only in the US but worldwide.
As per current statistics, ESPN+ has around 20 million subscribers total, which is not too bad. However, it is dwarfed by Apple TV and its 50 million subscribers worldwide. Given the fact that Europeans also use this, and do it significantly more than ESPN+, we should see an increase in viewership, especially during the summer, when there is not much going on in terms of soccer in Europe or around the world. MLS will continue playing throughout the summer and give European audiences a chance to watch their favorite sport, grow accustomed to the league, and there is a portion of them that should become fans. In other terms, for the worldwide potential of MLS, this was an incredible move.
1. It gives MLS better leverage going forwardÂ
This was briefly mentioned above, but it is also a huge implication of the deal. Unless there is a major collapse of viewership, popularity, or anything similar to that, this deal just existing is going to give MLS much better leverage in future negotiations. Now, there is an immediate effect, given the fact that the broadcasters mentioned above are set for new deals this year, but also a long-term one that will impact sponsorship deals and other things that the league can use to increase their financial power.
If MLS can increase in popularity and get even bigger, this deal becomes the turning point for the league and generally for American soccer. In simpler terms, the Apple TV deal will become the minimum for future deals that MLS signs with broadcasters if it brings in the desired effects.
However, it will also increase the price of sponsorships and generally increase the level at which the MLS is operating. All in all, it is a great deal for a football league that does not always get the respect it deserves. Now, even more people will be able to watch the league and watch young talent that might dominate in the future.
Follow Us
Subscribe