Colorado sits in poorhouse
In 22 years of soccer, the Chicago Fire has yet to turn a profit. But the Windy City MLS outfit was just purchased in September for $400 million.
The Fire ranks eighth in Forbes’ latest estimates of MLS franchise values, despite being one of 17 clubs in the 24-team league to lose money in 2019.
The Rapids were one of those 17. Not only do the Rapids fall lower on the list than the current price tag for an MLS expansion side, they were Forbes’ lowestvalued club in the entire league.
At a $190 million valuation, the publication estimated the Rapids made $18 million last season with a net loss of $5 million.
Colorado spent most of the year in obscurity before a late-season surge. Their lowly decade, which started with the high of an MLS Cup, has seen the Rapids drop to second-worst in attendance league-wide. A new shirt sponsor could help bolster the club’s value as well as expected growth behind a young core.
Cincinnati, which joined MLS this year, and Nashville, which will soon become an active club, agreed to $150 million expansion fees in 2018. Announced teams in St. Louis and Sacramento are set to be added at $200 million apiece — a figure that is expected to increase to $300 million for the next expansion franchises. That’s a big jump from the $40 million fee Montreal’s owners paid to join the league in 2012.
At the top of Forbes’ list was Atlanta United at a valuation of $500 million, generating a league-best $78 million and turning a profit of $7 million.
Only 10 teams in the other big four U.S. leagues lost money last year, according to Forbes. Yet the average MLS team increased in value to $313 million, up 30% from 2018.
In comparison to the NBA (13%), NFL (11%), MLB (8%) and NHL (6%), the league is on the rise. Even the Rapids, who found themselves at the bottom of Forbes’ list again, are worth an estimated $35 million more than they were last year.
Part of the growth could be attributed to an upcoming new national TV deal and the impending North America World Cup in 2026. Atlanta’s success and the two clubs in Los Angeles thriving also provide a possible blueprint for others in the league.