MLS Having Buyer's Remorse

With Peacock and ESPN+ getting exclusive conference tournament games this week, it got me thinking about the relationship all of the college conferences and pro leagues have with streaming platforms.  They've all embraced streaming to various degrees.  Even NASCAR will have a package of races exclusively on Amazon this year.  But no one has gone all in yet, with one exception.  MLS.

MLS is now in the third season of a 10-year, $2.5 billion deal with Apple TV that positions the streamer as the league's primary broadcaster.  A handful of games are still available over-the-air on FOX, but, for the most part, they're only available on Apple, and the only way to watch them is to purchase an MLS Season Pass.  Teams aren't allowed to have their own local broadcasts, either.  So, if you want to see your favorite team, you have to either (1) go to the game, (2) buy an MLS Season Pass subscription or (3) only watch the handful of games that are available for free.  It's not exactly a great way to grow the fan base.

While it was hailed as forward-thinking at the time, it might've been a little too ambitious on MLS' part.  Because the league's visibility has all but disappeared!  Casual fans aren't going to spring for an MLS Season Pass subscription on Apple when they have so many other options.  As a result, while the Apple contract was obviously a financial boon for MLS, it hasn't exactly helped the league grow.  Which has frustrated many an MLS general manager.

It's not just GM's who are frustrated.  The streaming-exclusive arrangement has alienated a lot of fans, as well.  And MLS isn't the primary viewing choice for American sports fans.  It isn't even the primary soccer viewing choice for many.  And those who do want to watch MLS games can only do so behind a paywall.  That doesn't bring in more eyes.  It brings in less.

That frustration is really starting to boil over, too.  The Athletic interviewed a high-ranking MLS executive (who remained anonymous), who point blank said that MLS needs to somehow get out of the Apple contract and go back to a model where more games are available by traditional means, with national broadcasts on the major networks and teams able to negotiate their own local broadcast deals.  No one is suggesting they abandon streaming entirely.  The frustration is that, for the most part, it's currently the only option.

For its part, Apple has made an effort to make games somewhat more accessible.  This season, they launched Sunday Night Soccer, a weekly primetime game available to all Apple TV subscribers, whether they have an MLS Season Pass subscription or not.  They've also reached deals with both DirectTV and Xfinity, making games available for the two companies' residential customers.  That should help a little.  But has the damage already been done?

One of the issues the general managers brought up in the Athletic article is how MLS might've overestimated how much of a draw the league is.  The Premier League is available on Peacock.  The Champions League is on Paramount+.  ESPN+ has various other European domestic leagues.  Those are all better leagues than MLS, and they all have decent followings in the U.S., so soccer fans are more likely to shell out for a subscription to one of those services (especially since you don't need to pay for the soccer separately...you have access to the entire Peacock or Paramount+ library.  It's a better deal.)  It's worth noting, too, that Premier League games regularly air on NBC and Champions League games on CBS or their cable channels.  It's easier to watch European soccer than MLS!

All of this is coming at a time when MLS should be seeking maximum exposure.  The U.S. and Canada are co-hosting the World Cup next year (along with Mexico).  Every team in MLS is based in either the United States or Canada.  Beyond that, Lionel Messi is the biggest star in soccer.  He plays in MLS.  Frankly, they should do what the WNBA did last season when they showed Caitilin Clark and Indiana on national TV as often as they could.  Apple wants to keep Messi for themselves, though, so only two Miami games are on FOX this year.  The rest are only on Apple.

I can't totally blame them for that strategy, especially since the number of MLS Season Pass subscriptions rose dramatically when Messi joined Inter Miami.  But, while that's great for Apple, how exactly does it help MLS as a whole?  Again, look at the WNBA.  Ratings were up league-wide even for games that didn't involve Caitlin Clark last season.  Messi is likely providing a similar boon to MLS.  We can't say for sure, though, since Apple doesn't release viewership numbers.  If Inter Miami games were available for free and not restricted behind a paywall, though, you can bet people would be tuning in just to see Messi.

If it were up to them, the MLS executives would love to see the league return to linear television.  For the simple reason that it'd be greater exposure and, likely, more viewers.  Simply put, MLS has a niche following.  It's not an established global brand like the Premier League or Champions League.  And the streaming market is saturated with sports programming.  Both of those things, the executives feel, have limited viewership.  Which is why they feel a move back to a more traditional TV contract is imperative.

Another point of contention is how operating a league on a subscription-based model is vastly different than operating a league on a more traditional broadcast model.  You have to invest in the subscription-based model.  Not just as a fan, but as a league, too.  One general manager feels MLS could be putting in more effort in that area.  Especially since people can't randomly come across an MLS game and end up watching it.  That's affecting their bottom line.

Unfortunately, Apple holds all the cards.  It's unclear if there's an opt-out in the contract, so, for better or worse, they're locked into the long-term deal with Apple.  The secondary contract with FOX is a four-year deal that runs through next season.  Perhaps there's something that can be done there.  While negotiating the new contract, maybe they can increase the number of games available on linear TV.  Because it seems highly unlikely that they'll be able to break with Apple entirely until the contract expires in 2032, and renegotiating wouldn't seem to benefit Apple.

And, who knows?  Maybe by 2032, MLS will see the value that they anticipated from MLS Season Pass and the Apple contract will make a lot more sense then.  Right now, it doesn't.  And that's a problem.  MLS was on the rise.  All that growth has been halted, though, and the league has essentially disappeared from a lot of people's minds.  Which isn't exactly what you want heading into hosting the World Cup.

Is any sort of change imminent?  Probably not.  But it is interesting to see that it didn't take MLS long to regret making Apple its primary broadcast partner.  All of the good things that were promised simply haven't come to fruition...and maybe never will.  But, as they say, buyer beware.  MLS is learning that lesson the hard way.  And can't really do anything about it.