MLS 3.0: Global Streaming, Calendar Shift, and Sustainable Growth - Episode Hero Image

MLS 3.0: Global Streaming, Calendar Shift, and Sustainable Growth

The Varsity · · Listen to Original Episode →
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TL;DR

  • MLS's MLS 3.0 blueprint prioritizes a direct-to-consumer global streaming model, shifting from traditional broadcast ubiquity to aggregate all games, enabling global access without blackouts.
  • The league's strategic calendar shift to align with the international soccer season, playing games in February, is a massive undertaking to improve player trading and media competitiveness.
  • MLS's structural foundations, including playoffs and salary caps, are North American traditions that balance global game integration with economic stability, unlike European leagues with debt issues.
  • The league's valuation at over $21 billion reflects a generational shift, with fans now having kids who grew up with MLS, fostering deep DNA connectivity and long-term investment.
  • MLS's investment in player development, including MLS Next and MLS Next Pro, has significantly increased, creating professional environments and facilities to compete globally.
  • The league's move to a global streaming service with Apple, despite initial criticism, positions MLS to reach tens of millions of viewers, particularly younger "cable nevers."
  • The creation of SUM established a commercial market for soccer in the US, monetizing rights and creating value from scratch, making the US the most important global soccer market.

Deep Dive

Major League Soccer (MLS) is positioning itself for a new era of growth, "MLS 3.0," leveraging significant collective valuation and strategic media partnerships to establish the U.S. as a global soccer nation. Despite its 30-year history, the league operates with a startup mentality, constantly innovating and taking calculated risks, particularly in its media strategy aimed at capturing a streaming-first audience and maximizing global reach.

The league's strategic shift towards a direct-to-consumer model with Apple TV, ending the deal early to renegotiate, signifies a proactive approach to the evolving media landscape. This move aims to aggregate all MLS games into a single, accessible global package, eliminating blackouts and reaching a massive streaming audience. While this strategy initially faced criticism for potentially alienating casual viewers accustomed to broadcast television, MLS argues it is aligning with the viewing habits of its core demographic, who are increasingly "cable nevers." The league’s continued growth in attendance, revenue, team valuations, and expansion interest underscores the success of this forward-thinking approach, even as it navigates the complexities of a changing media market.

Furthermore, MLS is undergoing a significant calendar realignment to align with the international soccer season, a move that will necessitate playing games in colder months in northern markets and adapting infrastructure like heated fields. This change is crucial for player development and transfer market integration, allowing MLS to better compete globally. The league is also committed to investing heavily in its academy systems, aiming to bridge the gap between domestic talent and the elite European academies by creating professional environments and world-class facilities. This long-term vision, coupled with a stable economic model that emphasizes infrastructure investment over debt-laden operations common in European soccer, positions MLS for sustainable growth and a stronger global standing, despite structural differences like playoffs and the absence of promotion/relegation. The league's ability to attract and retain top talent, exemplified by Lionel Messi's arrival, further validates its strategy and growing appeal.

Action Items

  • Audit media rights strategy: Analyze current Apple deal terms and forecast market shifts (RSN disruption, streamer consolidation) for future negotiations.
  • Create runbook template: Define 5 required sections (setup, common failures, rollback, monitoring) to prevent knowledge silos for MLS 3.0 initiatives.
  • Track 3-5 key performance indicators (KPIs) for MLS 3.0 growth (e.g., subscriber acquisition cost, fan engagement metrics) to measure strategic impact.
  • Evaluate player development pathway: Identify 3-5 critical junctures where MLS academies lag European counterparts to inform investment.

Related Episodes

Key Quotes

"I like to say when I started, I'm not quite sure what I was thinking. I left a pretty good job and MLS was pretty fledgling and then it went, you know, a bit of a rabbit hole for a couple of years. So I kind of look at these great moments as milestones for what everybody who cares about the game has been dreaming of, which is establishing our country as a true soccer nation and having all of the pieces come together and harness the passion of fans and try to convince, as you can imagine, the political folks that are supporting both the World Cup but building stadiums and creating green fields for people to play."

Don Garber reflects on the early struggles of Major League Soccer, contrasting them with the current excitement and momentum. He highlights the league's journey toward establishing the United States as a significant soccer nation, emphasizing the importance of fan passion and the need for political support for infrastructure development.

"We're unusual. There are very few 30-year startups, and I've had a lot of conversations with our owners about that. I'm kind of like a VC CEO but have been in the job way longer than most founders are. Generally, you're kicked out way earlier, and they bring in somebody that will be a proper CEO."

Don Garber describes Major League Soccer as a unique "30-year startup," drawing an analogy to venture capital-backed companies. He positions himself as a long-tenured CEO in a startup environment, noting that founders typically move on much sooner than he has in his role.

"The other leagues don't innovate that much because they're so mature. You know, the NBA has their in-season tournament. We launched the Leagues Cup. We play an in-season tournament against the Mexican league, and we do it in the middle of our season. We're constantly innovating as a business. A, we can't. B, we have to because we're competing, unlike almost all of them, in a global market where the rest of the football world is very established. They are the NFL, if you will, of the sporting world."

Don Garber explains that Major League Soccer's need to innovate stems from its position as a less mature league compared to established sports like the NBA. He argues that MLS must constantly evolve due to global competition, unlike more established leagues that may innovate less frequently.

"We aggregate all of that into a global package that anybody anywhere without blackouts can go with the touch of a button and capture the excitement of Major League Soccer. What was criticized was you're walking away from the ubiquity of having a Red Bull game that was on MSG maybe 20,000 people were watching that game on a good day. So what we were looking to do is have a Red Bull New York City game be treated as if it was on ESPN, no differently than Columbus and Cincinnati or San Jose playing LA. Every single game is available the exact same way."

Don Garber defends the decision to move all MLS games to a global, direct-to-consumer platform via Apple TV. He contrasts this with the limited reach of local broadcasts, emphasizing the goal of making every game accessible worldwide with consistent production quality, treating each match with the same importance as a major broadcast event.

"The US Soccer thing to me is great. I've been on their board for 26 years, so I'm a big fan of the national team and it's part of my red, white, and blue blood, but the representation agreement is over, and they couldn't be doing a better job. They hired good people. Their head of commercials used to run commercials for MLS, so it's a win-win for everybody."

Don Garber discusses the past commercial rights partnership between MLS and U.S. Soccer, facilitated by Soccer United Marketing (SUM). He explains that while the formal agreement has ended, the relationship remains strong and mutually beneficial, with both entities now operating independently and successfully in the commercial soccer market.

Resources

External Resources

Books

  • "The $7 Billion U.S. Soccer Market" by John Skipper - Mentioned as a book that John Skipper wrote.

Articles & Papers

  • "The MLS 3.0 Blueprint" (The Varsity Podcast) - Episode title featuring Don Garber discussing the league's growth strategy.
  • "The $7 Billion U.S. Soccer Market" (Puck) - Mentioned as a newsletter that provides industry information.

People

  • Don Garber - Commissioner of Major League Soccer, interviewed about the league's growth, media deals, and future.
  • John Arand - Host of The Varsity podcast and Pux's sports correspondent.
  • Shirley Povich - Famed sports writer, after whom the University of Maryland's symposium is named.
  • Steve Povich - Son of Shirley Povich, described as a great soccer journalist.
  • George - Former editor at the University of Maryland, described as a soccer-friendly editor and grandfather of Steve Povich.
  • Hank Paulson - Owner of an MLS team, who questioned Don Garber's tenure.
  • Gary Bettman - Commissioner of the NHL, mentioned for his success in building the league's media property and stadium value.
  • David Stern - Former NBA commissioner, who offered advice to Don Garber.
  • Eddie Cue - Mentioned in relation to Apple's role in the sports media business.
  • Messi - Player for Inter Miami, discussed for his impact on MLS and his commitment to playing.
  • Leo - Refers to Lionel Messi, mentioned in relation to the development of a new stadium.
  • Rui Ferreira Naggy - Player for Betheza Soccer Club U17, asked a question about the difference in academy levels between Europe and MLS Next.
  • Nolan - Sophomore at the Merrill College of Journalism at the University of Maryland, asked a question about MLS's structural balance between global game and North American tradition.
  • Jack Suzann - Recent graduate from the University of Maryland, asked a question about the relationship between MLS and SUM.
  • John Skipper - Former ESPN executive, mentioned in relation to the creation of SUM and his book.
  • Phil Anschutz - Investor in MLS, mentioned for his role in the league's growth.
  • Kraft - Investor in MLS, mentioned for his role in the league's growth.
  • Mark Heiman - Director of Maryland's Shirley Povich Center for Sports Journalism, thanked for setting up the event.
  • Greg Both - Executive editor at Nessen.
  • Mark Murlock - Executive editor at Nessen.

Organizations & Institutions

  • Major League Soccer (MLS) - The primary subject of discussion, focusing on its growth, strategy, and media deals.
  • University of Maryland - Host of the Povich Symposium where the interview took place.
  • Povich Symposium - An annual event at the University of Maryland focused on sports journalism.
  • Netflix - Mentioned in relation to a potential acquisition of Warner Brothers Discovery.
  • Warner Brothers Discovery (WBD) - Discussed in the context of potential acquisition and its sports media assets.
  • TNT Sports - Mentioned as a bidder for sports rights, potentially impacted by WBD's future.
  • Bleacher Report - Mentioned in relation to TNT Sports' role in bidding for sports rights.
  • National Basketball Association (NBA) - Mentioned as a mature league that continues to innovate.
  • Major League Baseball (MLB) - Mentioned in relation to upcoming rights deals and its own growth phases.
  • National Hockey League (NHL) - Mentioned in relation to upcoming rights deals and its growth.
  • FIFA - Mentioned in relation to the 1994 World Cup and its impact on MLS's founding.
  • US Soccer - Mentioned in relation to its obligation to FIFA that led to MLS's founding and its commercial rights partnership with SUM.
  • Apple - Partner with MLS for its media rights, discussed in relation to the direct-to-consumer streaming model.
  • ESPN - Mentioned in relation to John Skipper's past role and the sale of World Cup rights.
  • Univision - Mentioned as a past media partner for MLS.
  • Fox - Mentioned as a past media partner for MLS.
  • MSG - Mentioned as a regional sports network that previously broadcasted Red Bulls games.
  • SEC - Mentioned in relation to its championship game, which MLS playoffs compete with for viewership.
  • Puck - Mentioned as a partner of The Varsity podcast and a source for industry newsletters.
  • Nessen - Mentioned as a new partner of The Varsity podcast.
  • F1 (Formula 1) - Mentioned in relation to Apple's media strategy and a recent deal.
  • New York Times - Mentioned as a publication where a book about Messi is being written.
  • Betheza Soccer Club U17 - The club of a player who asked a question about academy development.
  • Merrill College of Journalism - The college where Nolan is a sophomore.
  • SUM (Soccer United Marketing) - A marketing company created by MLS, discussed in relation to its past commercial rights partnership with US Soccer.
  • IMG - Mentioned as a company that has evolved similarly to SUM.
  • Roma - A football club in Italy, mentioned in relation to its stadium and investors who have also invested in MLS.
  • Inter Miami - The MLS club of Lionel Messi, mentioned in relation to its academy and future stadium plans.
  • Real Madrid - A European football club, mentioned as a benchmark for academy competition.
  • Fanduel - A sports betting platform, mentioned for its live betting features.
  • Mint Mobile - A mobile service provider, mentioned for a promotional offer.
  • Monster Energy - A beverage company, mentioned for its zero-sugar energy drinks.

Tools & Software

  • HBO Max - Mentioned as a streaming service potentially being acquired by Netflix.

Websites & Online Resources

  • AmericanGaming.org/predictionmarkets - A website providing information on prediction markets.
  • Audacyinc.com/privacy-policy - A website detailing listener data and privacy practices.
  • Podcastchoices.com/adchoices - A website related to podcast advertising.
  • Bombas.com/audio - A website for the company Bombas, offering slippers and socks.
  • Puck.net - A website for Puck, mentioned for its newsletters.
  • Indeed.com/listen - A website for Indeed, offering a sponsored job credit.
  • Fanduel.com/sportsfan - A website for Fanduel, for downloading their app.
  • Mintmobile.com - A website for Mint Mobile, offering wireless service.

Other Resources

  • MLS 3.0 - The branding for the next wave of growth for Major League Soccer.
  • Prediction Markets - Discussed in relation to skirting state authority and posing risks to consumers.
  • Bomba's - A brand of slippers and socks, mentioned for comfort and coziness.
  • MLS Next - A youth soccer league, discussed in relation to player development.
  • MLS Next Pro - A professional soccer league, discussed in relation to player development.
  • Doce Cero - A historical term referring to a 2-0 victory, mentioned in the context of USMNT matches against Mexico.
  • Celsius - A sponsor mentioned in relation to player breaks.
  • F1 (Formula 1) - Mentioned as a sport Apple is involved with.
  • NWSL (National Women's Soccer League) - Mentioned as a major league.
  • RSN (Regional Sports Network) - Discussed in relation to the disruption in the sports media landscape.
  • World Cup Draw - An event mentioned in relation to the upcoming World Cup.
  • League's Cup - A competition involving MLS and Mexican league teams.
  • Champions League - A competition mentioned in relation to player schedules.
  • MLS Season Ticket Holder - Discussed in relation to the calendar change and its impact on season ticket sales.
  • Summer Competition Lessons - Mentioned in relation to the previous MLS calendar.
  • SEC Championship - A college football championship game that competes for viewership with MLS playoffs.
  • Duke Game - A college basketball game mentioned in relation to viewership competition.
  • Global Football - The broader sport of soccer, discussed in comparison to MLS.
  • Premier League - The top professional football league in England, mentioned as a benchmark for global football.
  • Serie A - The top professional football league in Italy, mentioned as a benchmark for global football.
  • USMNT (United States Men's National Team) - Mentioned in relation to its past struggles against Mexico and player development.
  • Olympic Team - Mentioned in relation to the USMNT's performance against other countries.
  • Player Development Facilities - Discussed as a key component of MLS's investment in youth soccer.
  • Promotion/Relegation - A system common in European soccer leagues, discussed as a structural difference from MLS.
  • Shared Ownership Stakeholders Style - A characteristic of MLS ownership.
  • Salary Cap - A mechanism used in MLS to manage player salaries.
  • Public Private Partnerships - Mentioned as a way to fund infrastructure development.
  • Banking Facilities - Mentioned in relation to financing business operations.
  • Live Betting - A feature offered by Fanduel, discussed in the context of NFL games.
  • Zero Sugar Energy Drink - A category of beverage, exemplified by Monster Energy's Ultra line.
  • Premium Unlimited Wireless - A type of mobile service, offered by Mint Mobile.

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