The Influence of TV and Media on Soccer League Structures
Media contracts and broadcasting rights influence the character and the future of soccer leagues around the world; they are not simply about making money. Top teams in Europe make millions thanks to the enormous TV deals, which further solidify their supremacy both on and off the field. A high-stakes match results from clubs being able to draw in elite talent thanks to this revenue flow. On the other hand, Major League Soccer is still in its early stages, and media agreements such as its collaboration with Apple TV are pushing the league into new areas. The agreement represents the growing desire to question the European model, even though it is revolutionary.
While European teams, with their separate ownership and major TV contracts, are able to reinvest in their squads at will, MLS's single-entity structure restricts the earnings of individual clubs. Performance is rewarded in the European model by qualifying for international competitions, which creates new revenue streams. MLS loses out on this cyclical growth opportunity in the absence of promotion or relegation; while its closed-system approach provides stability, the excitement of European leagues is what really draws interest from around the world. The way in which MLS can leverage the power of media and broadcasting while adjusting its financial structure to reflect global trends will determine its future. The major difference is this: to compete with the appeal of Europe's best leagues, one must embrace not only bigger TV deals but also a novel league structure that will appeal to the next generation of fans.
The U.S. market is still figuring out how the league's potential is shaped by television agreements. Even while the MLS agreement with Apple TV is a huge step forward, it will take more time before it can seriously compete with the Premier League and La Liga, two of Europe's biggest broadcasters. It is evident that there is a need for top-notch soccer material given the sport's growing appeal in the United States. Whether these TV agreements will give MLS the sustained financial support it needs to compete with Europe's top leagues is still up in the air.
References
"Premier League: Technology and Media Strategy," SportsPro Media. Accessed here.
McMahon, Bobby. "Dividing the TV Money Pie," Forbes.Accessed here.