Total Value: The sum of the current market value of an MLS franchise combined with the value of team-related businesses and real estate holdings.

Team Value: MLS franchise valuation, derived from metrics by which soccer team transactions typically occur, including aggregating local and national revenues and factoring in a team-specific multiplier. It includes the value of each franchise's 3.4% interest in Soccer United Marketing—which is acquired/dispossessed in tandem with the sale of a team.

Team-Related Businesses and Real Estate Holdings: The value of a franchise or franchise owner's equity in team-related businesses—that is, both those on the team's balance sheet and held in distinct corporate entities—as well as government-assessed real estate related to venue, practice facilities and adjacent developments. These assets represent a small percentage of MLS total values at this stage; the predominant value in most cases involves training complexes and new stadiums owned by teams, although a government organization often owns the land underneath the home venues.

We do include other assets in the total value, such as the 100-plus acres of land, owned and operated by the Philadelphia Union, along the waterfront in Chester, Pa., where the club plays. We also factor in club ownership stakes of MLS Next Pro teams, which launched in 2022, and National Women's Soccer League teams in Houston, Orlando and Utah.

Total Team Revenue: Cumulative amount of National Revenue and Local Revenue. These figures are net of sales tax and gate revenue shared with other MLS clubs, as well as net concession and merchandise figures. Figures include playoff revenue.

National Revenue: Each franchise's equal proportion of league-shared revenue, derived predominantly from MLS contracts with media and advertising partners. This consists of:

(i.) National media (broadcast deals with Apple, Fox Sports, TSN and TVA Sports).

(ii.) League sponsorship (e.g., Adidas, BodyArmor, Coca-Cola, Heineken, Procter & Gamble and Target) and licensed merchandise royalties (through league subsidiary SUM).

(iii.) Distributions and dividends related to SUM beyond broadcast, sponsorship and licensing agreements.

(iv.) The 10% of each team's gate receipts that are shared equally with other MLS clubs.

Local Revenue: Revenue generated by each franchise independent of league distributions. This is comprised of dozens of revenue streams captured within two broad categories:

(i.) Stadium, which includes: ticket sales, parking, team's share of concessions and non-soccer ("third-party" or "marquee") events when venue is controlled by team.

(ii.) Sponsorship, which includes: naming rights, pouring rights, advertising, corporate partnerships and local merchandising (distinct from league licensing royalties in National Revenue).

Teams don't actually receive an annual check from MLS, as its single-entity structure means player contracts are "owned" and paid by the league. The cost of players and league operations outstrips central revenue, requiring teams to fund those expenses via an annual assessment.

Full Transparency

Sportico is committed to transparency, including provision of detailed methodology and sourcing information below. For any additional questions, please contact sports valuations reporter Kurt Badenhausen at kbadenhausen@sportico.com, who led in the composition of this report.


Franchise Valuations

To derive the market value of the 29 current MLS franchises, Sportico calculated each team's revenue, relying on publicly available information and financial records—and interviews with those knowledgeable of team finances, including seven sports bankers and attorneys who actively work on MLS transactions. We traded candor for anonymity. This information was vetted by most team or parent company owners, CEOs, presidents, chief financial officers and media relations personnel, as well as industry experts and investors.

Revenue totals were then subject to a team-specific multiplier, which, based on interviews with multiple sports bankers, remains the only reliable manner by which transactions occur, due to dramatic fluctuations of earnings before interest, taxes and amortization (EBITA), year-over-year, based on player spending and special expenses. In addition, most MLS clubs lose money.

The team-specific multipliers were based on multiple factors, including historical sales, market (size, saturation and interest by prospective owners), strength of brand, on-field performance (historical and recent), terms of facility lease, debt burden and additional obligations, as well as expected future team and league economics. The average multiple was 9.7. In 2021, Houston Dynamo FC sold for 13 times revenue, and Orlando City SC garnered roughly 10 times revenue, while Real Salt Lake fetched 12 times revenue in 2022.

Revenue was calculated based on analyses of data from industry sources and reports, as well as interviews with experts and those with knowledge of team and league finances (detailed below); together, this comprised hundreds of inputs of confirmed and estimated information from dozens of sources.


Team Review and Comments

Almost every MLS team or their parent company participated with Sportico by providing or validating at least partial information. Every franchise was provided the opportunity to review and comment on Sportico's tabulations of their financial results.


Government, Financial and Industry Sources

To assess team-owned real estate with consistency, Sportico included government property appraisals. Sources included: Adams County Assessor's Office (Colorado); City of St. Louis Assessor's Office (Missouri); Cobb County Board of Tax Assessors (Georgia); Collin County Tax Assessor-Collector's Office (Texas); Cook County Assessor's Office (Illinois); County of Morris Board of Taxation (New Jersey); County of Santa Clara, Office of the Assessor (California); Delaware County Board of Assessment (Pennsylvania); Franklin County Auditor's Office (Ohio); Hamilton County Auditor's Office (Ohio); Loudoun County Property Assessment and Tax (Virginia); Montreal property assessment roll; Orange County Property Appraiser's Office (Florida); Ramsey County Assessor's Office (Minnesota); Salt Lake County Assessor's Office (Utah); Town of Foxborough Assessor's Office (Massachusetts); Travis Central Appraisal District (Texas); Wyandotte County Appraiser's Office (Kansas).

Team and league financial information was derived from industry data sources, including the Association of Luxury Suite Directors (for club and luxury suite capacity, occupancy and pricing); Team Marketing Report (fan spending and sponsorship information); individual team and sponsor websites. Chris Bigelow, founder of foodservice consultancy The Bigelow Companies, provided expert guidance on per-caps and concession revenue at MLS venues.

Additional financial, corporate and structural information was derived from the MLS-MLSPA Collective Bargaining Agreement, and through analyses of historical team sales over the last five years, based on Sportico research.

Overall, Sportico spoke to more than 60 people to compile these valuations.