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Major League Soccer owners own a share in the league and are granted right to operate a team. Major League Soccer (MLS) operates under a single-entity structure in which teams and player contracts are centrally owned by the league. [1] [2] [3] [4] Each MLS team has an investor-operator that is a shareholder in the league. [5] In order to control costs, the league shares revenues and holds players contracts instead of players contracting with individual teams.
The league has 30 investor-operators for its 28 current and 1 future team. AEG, which at one time invested in six clubs, solely operates one team (LA Galaxy). Lamar Hunt used to operate multiple teams, but now Hunt Sports only operates one team (FC Dallas). Two of the league's teams are operated, at least in part, by neither Americans nor Canadians — Austrian Dietrich Mateschitz (New York Red Bulls), and Indonesian Erick Thohir (D.C. United). [6]
Having multiple clubs operated by a single investor was a necessity in the league's first ten years. [7] At one time Phil Anschutz's AEG operated six MLS clubs, and Lamar Hunt's Hunt Sports operated three teams. In order to attract additional investors, in 2002 the league announced changes to the operating agreement between the league and its teams to improve team revenues and increase the incentives to be an individual team operator. [8] These changes included granting operators the rights to a certain number of players they develop through their teams's academy system each year, sharing the profits of Soccer United Marketing, and being able to sell individual team jersey sponsorships. [8]
As MLS appeared to be on the brink of overall profitability in 2006 and developed significant expansion plans, MLS announced that it wanted each team to have a distinct operator. [9] The league has attracted new investors that have injected more money into the operation. [6] Examples include Red Bull's purchase of the operation rights of the MetroStars from AEG in 2006 for over $100 million. [7] [10]
In Fraser v. Major League Soccer , a lawsuit filed in 1996 and decided in 2002, the league won a legal battle with its players in which the court ruled that MLS was a single entity that can lawfully centrally contract for player services. [1] The court also ruled that even absent their collective bargaining agreement, players could opt to play in other leagues if they were unsatisfied. [1]
Major League Soccer (MLS) is a men's professional soccer league sanctioned by the United States Soccer Federation, which represents the sport's highest level in the United States. The league comprises 29 clubs—26 in the United States and 3 in Canada. A 30th club, San Diego FC, will join the league in 2025. MLS is headquartered in Midtown Manhattan.
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Philip Frederick Anschutz is an American billionaire businessman who owns or controls companies in a variety of industries, including energy, railroads, real estate, sports, newspapers, movies, theaters, arenas and music. In 2004, he purchased the parent company of the Journal Newspapers, which under Anschutz's direction became the American conservative editorial newspaper Washington Examiner. Anschutz is the son of Fred and Marian Pfister Anschutz.
Anschutz Entertainment Group, Inc. (AEG), also known as AEG Worldwide, is an American global sporting and music entertainment presenter and a subsidiary of The Anschutz Corporation. It is the world's largest owner of sports teams and sports events. Under the AEG Presents brand, it is the world's second-largest presenter of live music and entertainment events, after Live Nation. AEG Presents was founded in 2002 as AEG Live.
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