Star power drives MLS franchise value in post-Beckham era

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https://www.thestar.com/sports/tfc/2016/09/17/star-power-drives-mls-franchise-value-in-post-beckham-era.html

Star power drives MLS franchise value in post-Beckham era

By investing in stadiums and stars, Major League Soccer franchises have rapidly increased in value.

By Morgan Campbell

Sat., Sept. 17, 2016

When David Beckham signed with the L.A. Galaxy it was clear the move would enrich the soccer superstar, and moving to Hollywood could earn him up to $50 million (U.S.) annually in salary and endorsements.

Yet nine years later, The Beckham Effect also helps explain a steady rise in the value of Major League Soccer franchises.

According to a Forbes magazine study, the median value of an MLS club is $180 million this year, up from $96 million in 2013. A decade ago, Maple Leaf Sports and Entertainment paid the league a $10-million expansion fee to establish Toronto FC.

Forbes now values the club, which can clinch a second straight playoff berth Sunday, at $245 million.

Since TFC arrived, the cost of buying into the league has leapt to $200 million.

Beckham alone didn’t cause MLS to triple in value, but experts point out the designated player rule that brought Beckham to the Galaxy has since allowed teams to acquire star players, who are as much an asset as real estate or a sponsorship deal.