From College to the Pros - The US soccer ladder

Friday, May 04, 2007

2007 MLS Player Salaries - Dis-Parity...

MLS is a league that wants parity. League Commissioner, Don Garber, comes from the NFL where parity has made the league one of the top sports money makers in the USA. NASCAR is one of the ultimate places of parity due to all of the rules placed on the cars and teams. Parity is seen as a way to keep MLS growing together as a league as opposed to the old NASL model of every team for themselves towards destruction. So far so good.

This 2007 season is one of the most exciting in terms of play on the field, off-season moves, new stadiums, etc. However, the nagging issue in the league is how to best grow American talent without pushing them out the door once they become successful and more valuable. MLS wants to keep a lid on player salaries while increasing the quality of the on field product. So far they've been able to do it with modest annual increases to lowest level player salaries. However, this year a huge gulf has grown between the MLS player have and have nots. David Beckham will earn more in one year then most MLS players in five lifetimes. Granted, he is the most recognizable sports figure on the planet...he's worth it. But that does not mean young American players won't be jealous and I believe that is the tough issue for MLS going forward.

The annual release of the league player salaries happened the other day so it is time for all the fans to tear into the analysis thereof.

On the one hand we have the Designated Players (Beckham, Reyna, Angel and Blanco). Combined those four players will earn base salaries of $10,492,324. Ok, pick your jaw up off the ground. We all knew Beckham was going to cost a lot of money and he accounts for 52% of that figure at $5,500,000/year base.

The total payroll for the league in 2007 is $37,448,179 in base salary. One impressive figure is that the league payroll grew by 54% or $13,177,970 this off-season. 80% of the growth were the DP signings. 16% was the addition of Toronto. So 4% is the increase across the rest of the league. I should point out that the league is not paying DP salaries over $400,000. The team owner is responsible for the rest. So the above figured are not all paid by the league.

MLS as a league and individual clubs have many new sources of revenue this season between the new TV rights deals, shirt advertisers, stadium revenue, player sales, etc. The league's owners obviously decided it would be more worthwhile to bring in big name stars then it would give the low level grunts big raises. I can't say I disagree. David Beckham's signature alone has given the league much needed publicity and no doubt helped New York capture one of the most dangerous strikers we've seen on these shores in Juan Pablo Angel. The investment made in these DP players will no doubt help grown the league. However, I'm the defender of the young and poor so let's take a look at them.

The lowest 2007 base salary is $12,900, a 10% raise over 2006. That is a generous raise by any employers standards. The 2007 US Department of Health and Human services says for a one person household the poverty level is $10,210...so at least our young players aren't impoverished. Second year developmental players are earning $17,700, a 7% increase over 2006. Overall MLS is moving in the right direction for these kids. However, it isn't keeping the likes of Greg Dalby and Kyle Davies from exploring their options abroad. Money isn't the only motivation but I'm willing to bet more young American players would stay here if the salaries were better.

This brings up another point I have made before. Talent level should count for something. Top prospects like Michael Harrington ($36,000 base/$53,500 guaranteed), Maurice Edu ($50,000 base/$132,500 guaranteed) and Bakary Soumare ($45,000 base/$78,000 guaranteed) are getting paid good money in 2007. Some of the better performing rookies to this point in the season are more in the neighborhood of $30,000 base/$30,000 guaranteed. The guys making the bottom developmental salaries are in some ways lucky to have a job in the league thanks to the creation of the reserve division two seasons ago.

Here are some brief stats on league salaries in 2007:
Lowest: $12,900 Base/$12,900 Guaranteed
Maximum: $5,500,000 Base/$6,500,000 Guaranteed
Average: $104,312 Base/$115,520 Guaranteed
Median: $47,250 Base/$52,550 Guaranteed

Total: $37,448,179 Base/$41,471,723 Guaranteed

Part of the title to this post is Dis-Parity...and we can see that best when comparing the teams total salaries:
1 LA: $8,056,189/ $9,179,949
2 NY: $4,334,616/ $4,896,657
3 Chicago: $4,185,826/ $4,464,613
4 KC: $2,429,925/ $2,625,550
5 Colorado: $2,322,114/ $2,431,764
6 Houston: $2,215,849/ $2,292,049
7 RSL: $2,173,437/ $2,607,531
8 TFC: $2,130,520/ $2,453,708
9 DC: $2,003,278/ $2,163,103
10 NE: $1,992,948/ $2,087,948
11 Dallas: $1,992,804/ $2,285,629
12 Columbus: $1,807,199/ $2,044,249
13 Chivas USA: $1,750,375/ $1,885,875

The three teams with DP's are obviously on top. The "youthful" teams are on the bottom. The Hunt's like to hold their pocketbooks I suppose. I would like to draw some sort of conclusion between who spends the most and who wins, but it is too early to do that. Remind me at the end of the season.

Overall I was surprised to see such a big increase in the total payroll of the league. However, when I figured out what was due to DP signings and what was due to an additional team in the league, 4% sounds more typical. It is going to take many years of those kinds of increases for MLS to become a monetary draw for young American kids, but many of them are playing for the love of the game. I like that the top prospects are making good money but I don't want to see it all going towards Generation Adidas kids who don't start playing until their second or third year. I am happy to see Jonathan Bornstein get a raise from $28,000 to $57,500. He earned it. It is that type of break out player MLS needs to reward and keep around. The league seems to be learning that.

Those are my thoughts. What are yours?

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1 Comments:

  • i think the salaries are agood start.im a big lacrosse fan my son plays both lacrosse and soccer and i never thought i would say it but im steering him towards soccer you can make a living,unlike lacrosse.

    By Anonymous Anonymous, at 8:49 AM  

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