The 5 practices that Liga MX must eliminate when marrying the MLS

The 5 practices that Liga MX must eliminate when marrying the MLS

27 years have passed since the creation of the MLS and despite the fact that it has gone through various sporting and commercial ups and downs, it currently enjoys a transparent business scheme, in which investors, television stations and sponsors have a single client, MLS itself and their investors.

That's right, all the income (Revenue) that is generated by Television Contracts, sale of income to stadiums, brand and team marketing, etc. In turn, the MLS distributes them in equal proportions to each of the teams, which must manage it publicly and efficiently to cover all their operating expenses (including player salaries), as well as comply with the payment of taxes.

Liga MX, with much greater history, identity and roots, has recently expressed its high interest in joining the MLS with the aim of expanding its exposure to the Latin American market in the USA and Canada. This strategy would not only provide better conditions for Liga MX itself, commercially speaking, but also for the sponsoring brands that join the project. However, do both Liga MX and its President Mikel Arriola understand the challenge of adapting the nature of Mexican clubs to the commercial structures of MLS?

We highlight the following 5 practices that LIGA MX must eliminate when marrying with MLS:

1) It should be operationally transparent : MLS publishes revenue, expense and transfer values for the league and all its players. Do you want to see the salary and income of a particular player? Simply click here . Can you imagine if LIGA MX declared the real value of its soccer players' contracts? What would be the incidences of paying taxes?

2) It must adopt the salary ceiling stipulated by the MLS to guarantee competitiveness: Currently, the MLS pays the salary of the players by transferring to each team 4.5 million USD per year. That has to be enough to pay the salaries of their 20 players and no player can receive more than 500kUSD per year. Only 3 players per team can earn above that limit (franchise player) at team cost. (Pea, Candle, Pizarro, etc). What would happen to the millionaire salaries of the stars of America, Rayados, Tigres, etc? If the salary ceiling enters the MX League, will more Mexicans emigrate abroad? Could it be that fewer foreigners would come to Liga MX?

3) Liga MX would wear the sports brand and limit two sponsorships per jersey . The income from sponsorships would be managed and distributed by Liga MX itself.

4) One team, one owner: Liga MX should eliminate team timeshare , so there would be an opportunity to sell franchises or transform them.

5) The relegation quotient would be eliminated, therefore, the fine of 120 million pesos to the three worst teams would disappear and therefore there would be no transfer of funds to the current Expansion League teams. Will these teams survive if those 120 million pesos are removed?

Without a doubt, an interesting commercial idea, but one that will require a lot of lobbying between the League, owners, sponsors and television stations. Once again, the fan will be the last to find out about the consumption conditions of the new show.

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