Thursday, March 09, 2006
Seeing Red
MLS and AEG have sold the MetroStars to Red Bull of Austria (makers of the wildly popular energy drink) for somewhere north of 30 million dollars. The details of the deal will come out shortly but this much we do know:
1) This will be the first major professional team in the U.S. named after a corporation. MLS will garner a lot of press, good and bad, due to this unique arrangement.
2) A portion of the MetroStars fans (all jokes about the meager amount aside) will be incensed that the team they rooted for is gone. The uniforms, the history, the team colors are history. Red Bull New York is a new team.
3) AEG has to be thrilled about their windfall. After losing millions of dollars each year owning multiple MLS teams, this has to look good on their bottom line.
4) The real money for MLS teams lies in the ownership of Soccer Specific Stadiums (SSS). AEG only sold a portion of their stake in the new Harrison facility. That's telling. There's real profit to be had renting an SSS to MLS and then filling the rest of the calendar with as many concerts, games and shows that a promoter can find. AEG knows this and this deal is further evidence of that.
MLS has found a promising formula in the buidling of an SSS in Columbus, Los Angeles, and Dallas. Will the selling of other teams to various corporations prove to be their next big invention? Fidelity New England? Motorola Chicago? Chase Columbus? This bet seems far riskier than the first. It's no coincidence that the MetroStars were sold before their move into the Harrison facility. That allows the league a reason (admittedly weak) to tell the fans the team has been rebranded. New stadium. New team. New beginning. New hope. As tempestuous as the reaction in New York may be to this news, it is likely the only city where MLS can pull off such a stunt. The MetroStars were very low on the Tri-State radar. Other teams with more established and recognized brands seem as unlikely candidates for a name change. But 30 million dollars will always grab the attention of a proud owner of a bleeding balance sheet. (Bostrom)
