or the past few months, there has been an abundance of articles, media coverage and discussions about the New York Cosmos organization efforts on wanting to become the 20th MLS team. During this ti- me, MLS Commissioner Don Garber has publicly admitted that the league is focused on awarding the 20th MLS team to an ownership group in the metropolitan NY-area. We at 5 Points Press made the decision to learn about the process it takes to become a franchise in Major League Soccer (MLS). In addition, we wanted to know who else was competing with the New York Cosmos organization for the rights to become the second New York franchise in MLS. I contacted the offices of MLS and a one on one phone interview was set up with Dan Courtemanche; MLS Executive Vice President of Communications. Taking a moment from his busy schedule, Dan answered all our questions and gave us a better understanding on the process any potential ownership group has to go through before they’re awarded the rights to be an expansion team. Hopefully, this interview will answer some of your questions.
❺ What are the criteria for an expansion team wanting to join Major League Soccer? DC: When Major League Soccer looks at expansion, it’s conducted very strategically. We look at three-four key areas. First and foremost, you need to have an appropriate market. One that is attractive to sponsors, TV partners, a great geographic location and most importantly a history of strong fan support for soccer and other sporting events. We certainly believe that the metropolitan New York Area fits that criteria. Second, not too far behind the market, you need to have a committed local ownership group with the appropriate financial resources. Preferably, an ownership group that understands the sports and entertainment business, certainly one that would have a magic general partner that would understand the sports and entertainment business. Third, an expansion market has to have a comprehensive a stadium plan where the ownership controls the venue; preferably a soccer specific stadium or plans to build a soccer specific stadium. For example, Philadelphia Union with PPL Park, Toronto FC with BMO Field, or a little different where in Portland where they renovated what used to be known as PGE Park which is now Jeld-Wen Field to a soccer specific stadium. But also it’s working well up in Seattle where the Sounders is playing in Qwest Field but that venue is owned and managed by the Seahawks which is part of the Sounders ownership group. Those are some of the key areas that we look for when it comes to expansion.
❺ How is the “Franchise Fee” determined? Is it a set across the board or does it varies by location? DC: Well, that “franchise fee” which by the way when Real Salt Lake and Chivas USA came on board back in 2005, that expansion fee was $7.5 million each for those clubs. The most recent expansion fee for Montreal which will join MLS in 2012 was $40 million. So, the fee gone up more than five-times since 2005 and it continues to illustrate how Major League Soccer is growing. That fee is determined by our “Board of Governors”, which is a representation or a subset of our ownership group. Each team has a representative or two representatives actually on our “Board of Governors.” That group is led by MLS Commissioner Don Garber and they discuss potential fees and then they set fees for
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