Major League Soccer and United Soccer Leagues Pro reached a partnership that creates a “farm system” for professional soccer in the United States. Many MLS clubs have formed this type of partnership with existing USL Pro teams, others have aligned themselves with expansion teams, and a few others have decided to create their own team. This opens up the question, which of these is the smartest option?
Obviously the answer is not universal, as it depends heavily on the MLS club and their market. But is there one option that represents, for the most part, a smarter business decision? Let’s look at the options.
Partnering with an Existing Club
The Houston Dynamo recently announced a partnership with the Charleston Battery. These types of partnerships have benefits for both clubs, but what it gives the MLS club is an already established feeder program. These USL Pro club teams already have solid management in the front office, established players, marketing efforts and a fan base.
While this seems like a good decision for most clubs, there is always a risk of different philosophies and management styles clashing. Owners of major sports franchises are typically very prideful, thus creating a potential disaster for both clubs and setting the partnership back years. Not a bad option, but not one for every club to embark on.
Partnering with an Expansion Club
Colorado took this approach when they decided to form a partnership with the newly formed Charlotte Independence. This approach has allowed the Rapids to have influence in the hiring of a coach, player tryouts, marketing efforts and front office guidance. This type of hands on approach allows the parent club to align their strategic vision of play at the lower levels to ensure a much smoother transition for the players.
This type of flexibility and influence from the start makes this a very attractive option for MLS clubs. The downfall lies in the time it could take to ramp up the pipeline. The Charlotte Independence just wrapped up hiring their first coach, but are still in a position where they are not sure where to play their inaugural season. Renovations on the stadium are not likely to be done until after the 2015 campaign, thus creating a small red flag for some clubs. If a team is looking for a long term partnership, this is a much better option.
Creating a USL Pro Team
Larger clubs, such as Seattle and LA, have bitten the bullet and created their own teams to compete in the USL Pro division. Most of these teams have taken on the “2” moniker after their name to distinguish from the parent club. This approach requires more of an investment from the parent club, but it essentially is an extension of the Academy program that most clubs have. Keeping it all under one umbrella ensures the vision and tactics of the parent club, and makes sense for the larger MLS clubs such as Seattle, New York and Los Angeles.
The cost of an expansion team with USL Pro is not available, but it has been estimated that the operating cost of these teams are around $2 million per year. With the majority of MLS clubs operating as a small market team, it would make solid business sense to partner with a team inside of the USL Pro instead of paying the annual operating cost as well as the expansion fee. So, expansion or existing then becomes the million dollar question, both literally and figuratively. This is all dependent on the philosophy and expectations of the MLS club and how much influence they desire.
With the USL Pro club providing a rehabilitation platform, as well as a place to develop young talent; it would be likely the MLS club would want to have a hand in how the USL Pro club is operating. This can be negotiated into any contract, but to be able to mold and develop a fruitful relationship from the beginning seems to be the best option for most MLS clubs. If the MLS club has the patience, and are looking for a long term partnership, instead of a dip your toe in and test the waters type of partnership, then it makes the most sense for them to partner with an expansion team from the start.
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