Rejecting Relegation

As I sit here watching the Gold Cup final, I can't help thinking about the news announced the other day about MLS, the league that provides many of the players on the national teams in the Americas.  It was the talk of the sports media world when it became public.  MLS rejected a $4 billion TV deal, which would've quadrupled the league's current deal with ESPN and FOX.

Why?  Because the new deal would've required promotion and relegation, which made it a non-starter for MLS.  FIFA has long called for MLS to institute a promotion/relegation system like every other top-flight league in the world, and MLS has continually rejected the notion.  But this was the strongest statement yet that promotion/relegation isn't happening in MLS anytime soon...likely ever.

It's worth noting here that there were definitely ulterior motives behind this promotion/relegation mandate.  The offer was made by the international media company MP & Silva, which just happens to own Miami FC, which currently plays in the NASL.  And with MLS poised to award David Beckham an expansion team in the city, Miami FC's chances of joining MLS would appear to be slim to none.  Unless, of course, they were to earn promotion from the lower league.

MLS could've just given Silva a flat "No," but was actually pretty diplomatic in its response.  For starters, the current TV contract doesn't expire until 2023, so we're talking six years down the road.  And, regardless, ESPN and FOX have an exclusive window to renegotiate the rights before they can even be opened up to other bids.  That and, as the MLS VP for communications pointed out, the league deals directly with the networks in negotiations, not third parties...before throwing in at the end, "We are not in a position, nor are we interested, in engaging with Mr. Silva on his proposal."

So, in my eyes, this was nothing more than a blatant attempt by Silva to draw attention to himself.  He's a disgruntled NASL owner who's frustrated his team can't get into MLS.  He's trying to make them out to be the bad guys, but the explanation offered by MLS is beyond reasonable.  In fact, it kinda makes him look like an idiot.  If nothing can change until six years from now at the earliest, why even bring it up?  Unless it's for self-serving purposes?

Of course, there are plenty of other reasons MLS has no interest in implementing a promotion/relegation system.  Perhaps the most obvious is that there are two leagues that could be considered "Triple A."  Would you promote a team from the NASL or the USL?  Or both?  (Although, you could always relegate two and promote one from each.)

There are also expansion plans in the works for MLS, beyond just Beckham's Miami team.  Their goal is to have 28 teams by the end of the decade, which would make MLS the largest top-flight league in the world.  With expansion fees at $150 million apiece, four additional teams means an extra $600 million to spread among the existing owners.  Promotion and relegation wouldn't just make potential owners less willing to pay that expansion fee, it would decrease the existing franchise values (how much to English clubs lose in a given year when they're relegated from the Premier League?).

Besides, just because a team plays in the NASL doesn't mean they can't eventually join MLS.  The Montreal Impact started as an NASL team.  So did the Vancouver Whitecaps.  So did the Portland Timbers.  So did Minnesota United.  And some of the cities under consideration for expansion (St. Louis, Nashville, Indianapolis) are being considered mainly because they have successful second-tier teams.

The main reason why MLS refuses to even consider a promotion/relegation system, though, is because they don't need to.  After 20 years, they've found their place as the fifth major professional North American sport.  Sure, there are the people who prefer the Premier League and deride MLS as "second-rate" compared to European leagues, but there's no denying MLS has found a business model that works...and has no need to mess with it!

In fact, Silva's proposal is, in a way, a great compliment to MLS.  Just think, MLS was created primarily as a condition of the U.S. getting the World Cup.  Now, 20 years later, its place on the North American sports scene is secure and it's so financially stable that the league just keeps growing.  MLS is so stable that potential owners are chomping at the bit to join the party.  Who ever could've seen that coming?