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Management speaks

I share this mainly because it's the first time I've seen a member of team management (as opposed to an MLS head honcho) speak about the strike threat.

AEG's Tim Leiweke essentially threw down the gauntlet today in an interview with the LA Times.

"Here's our issue, and I'm speaking on behalf of AEG," Leiweke said in an interview with The Times on Monday. "We have spent to the tune of $300 million on soccer. We have spent money on facilities. We at one point owned six of the 10 teams to keep the league alive.

"I don't even know how to react when I hear the players now saying that we have treated them poorly and they're going to strike. The fact is, the Galaxy isn't going to make money this year. There are only a couple of [MLS] teams that will make money this year.

"It's not like this league is a work of completion. It's not like we have accomplished what we have to accomplish to be stable and to know we have a great future. It's not like we have reached the potential of a soccer league in this country.

"So when I hear them talk about striking and shutting the league down, I've got to tell you, they're going to lose us when they talk like that.

"We do this out of passion. If this were a business, we would have quit this 10 years ago."

Star-divide

I've certainly said some things here that could be read as pretty pro-management, and certainly pro status-quo. My opinions, for whatever it's worth, are borne out of the belief that a strike would not only be bad for MLS, but bad for the players and their union. As far as future gains go, if players strike and owners are able to essentially break that strike, you can turn back the clock on any serious gains at least another 5-10 years (just look at the NFL and what happened to their union after two horrible defeats in the 1980s). 

That said, Leiweke does his side no favors by coming out in this way. If I were a conspiracy type, I'd almost believe that he's trying to goad the union into striking for the precise reasons I laid out above. 

I really don't want the players to strike. If they do, though, I hope for their sake that I'm wrong about what will happen.

Anyone else find it strange that a management team that had kept such a tight lid on rogue voices has apparently sprung a leak? Or maybe they're just worried that too much of the press has been pro player and this is an attempt to balance the scales?

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He's probably pissed

and needed to vent in a public forum. Whether or not that’s a good idea, I don’t know. He sounds exactly like what I pictured the owners to be like though – they’re in this for the long haul to bring pro soccer to the US and make it stay. They’re in this because they love the sport and are willing to make thin margins because of that. There is money to be made, but investments would certainly produce more elsewhere.

I think after getting proverbially bitch-slapped by the union, he’s probably blown a fuse and is voicing his frustration.

by chrisperry1983 on Mar 16, 2010 9:27 AM PDT reply actions  

You're probably right

I’m just wondering why now? It’s not like the players just started talking this week.

by Jeremiah Oshan on Mar 16, 2010 9:50 AM PDT up reply actions  

But the rhetoric has certainly ticked up a notch over the past week. It wouldn’t surprise me if this was part of an overall media plan by the owners. It certainly works to their benefit to point out how little money they are making.

by Perrinbar on Mar 16, 2010 10:57 AM PDT up reply actions  

Management losing PR war

I think this is a bad sign. Management is losing the PR war and they know it. If they believe a strike is eminent then I believe they will be firing on all cylinders trying to persuade us all with their case.
Not fun to think about, and especially after I got my tickets yesterday….

http://web.me.com/lienc/Site/Sounders_Talk/Sounders_Talk.html

by sounderstalk on Mar 16, 2010 9:32 AM PDT reply actions  

Note, that he agrees that neither of his teams made money

That would be Galaxy and Dynamo

I’m thinking that many players don’t understand just how bad the Recession hurt MLS.

Though someone did mention to me that Expansion Fees may have meant that MLS turned a profit (though these may just be going to payoff long term AEG/Hunt/Kraft debt).

I am not a Supporter
I am not a Fan
I am a Sounder
Sounder At Heart

by Dave Clark on Mar 16, 2010 9:49 AM PDT reply actions  

You're right on

about the NFLPA setbacks, but they were at least able to decertify, then successfully sue the NFL for free agency. MLS players don’t even have that option, having already lost the Fraser decision.

Tim Leiweke’s comments are likely calculated and the player’s should take them seriously. AEG in many respects IS the League.

by 108Ultra on Mar 16, 2010 9:52 AM PDT reply actions  

They also went 10 years without a deal

Until recently, the NFLPA was just beaten to a pulp … and they still don’t have guaranteed contracts. I really have a hard time seeing how this breaks the way the players want.

by Jeremiah Oshan on Mar 16, 2010 10:00 AM PDT up reply actions  

The MLS players seem to lack historical perspective

both in how much money the league has lost since inception and where they are as a union. They’re talking like they’re MLBPA in the mid-90’s, and they’re not even close to that level of power.

by 108Ultra on Mar 16, 2010 10:15 AM PDT up reply actions  

MLBPA

I think most players unions want to think they are like baseball in this sense. For all the gains players have made over the years, MLBPA is the only one that regularly “wins” when a work stoppage occurs. I don’t have a quick answer for why that is, but they appear to be the exception, not the rule.

by Jeremiah Oshan on Mar 16, 2010 10:26 AM PDT up reply actions  

Part of the reason is that baseball careers last longer. The older stars have a lot of power.

In football the average career is so short that you do not have enough older and powerful stars to hold the league’s feet to the fire.

by Sec 108 on Mar 16, 2010 12:19 PM PDT up reply actions  

Galaxy lost money? Hmmm...

I’m sure you can twist the books so that it appears the Galaxy are losing money, but I don’t believe for a second that the Galaxy aren’t bringing AEG more money than they are costing them.

And I don’t think the owners are really that concerned with PR.

by WendellGee on Mar 16, 2010 9:56 AM PDT reply actions  

The only reason they made money in 2007

was the initial Beckham shine.

They don’t have that any more, but they have all the costs. Gate was WAY down for them from ’07 to ’09

I am not a Supporter
I am not a Fan
I am a Sounder
Sounder At Heart

by Dave Clark on Mar 16, 2010 9:57 AM PDT up reply actions  

They're OK

I can’t conceive of AEG sticking with the Galaxy if they are back to losing money after 2007. If they aren’t making money now they never will. And I know attendance was down, but expansion fees alone probably made up for that.

by WendellGee on Mar 16, 2010 10:04 AM PDT up reply actions  

If they're not losing money on the Galaxy

(and I think they are), AEG is certainly losing plenty on the Dynamo.

by 108Ultra on Mar 16, 2010 10:16 AM PDT up reply actions  

Really? My business lost 30% of our revenue in one year.

Businesses all over the country are having the same experience. Why would an MLS team be insulated from this?

by Sec 108 on Mar 16, 2010 12:20 PM PDT up reply actions  

'I don't think they'll strike'

I’ve said similar things before, albeit for different reasons, but Jason Davis sees a lot of the same things I (and Buzz Carrick, for that matter) do.

Terrible analogies aside, my conviction on this comes from an appreciation of what the Players have done to this point. They knew all along when their drop dead date would come. Butting up as close to the actual start of the season as possible would provide them with their greatest amount of leverage short of an actual walkout. Reasonable people, who appreciate their situation and can think beyond defending principle alone, should realize the martyrdom is a fool’s errand. If there is a worthwhile positive to be gained from a strike, it’s imperceptible to me. The leverage just isn’t enough to move the owners, making it no real leverage at all.

Players, by nature, are a confident bunch. I don’t know that I put quite as much faith in reasonable minds dominating the conversation, especially when it’s the bargaining committee that will make the ultimate call.

by Jeremiah Oshan on Mar 16, 2010 10:14 AM PDT reply actions  

For fairness's sake

Here’s Tom Dunmore not exactly believing Leiweke.

AEG aren’t fooling anyone by claiming they are in this for the passion and not the business, as if this entire soccer venture was a tax write-off for Uncle Phil Anschutz, who didn’t become America’s 37th richest man through benevolence.

by Jeremiah Oshan on Mar 16, 2010 10:19 AM PDT up reply actions  

I think Davis...

might be giving them too much credit. He’s thinking pretty deep here. Not that pro sportmen aren’t deep thinkers. But when you round up a bunch of guys with egos with a common cause, they’re not going to realize it’s a fool’s errand. They’re gonna stick it to the man who they see as treating them unfairly.

I hope to God these guys think this through. They are a marginalized sport in a country that could care less if it existed or not. They don’t have the public’s support (other those of us who are fans and just want the CBA to be completed) and will essentially be pulling the carpet out from under MLS and pro soccer in the US.

I want them to have free agency, I want the one-owner system to break up, I want them to have guaranteed contracts. But in a time where the league is fragile, the sport still isn’t recognized as a sport (heck, even in Seattle the most exposure the Sounders get is a 10 second sound bite at the end of the 11:00 news saying we beat so and so, or a page 4 writeup in the Times) they do not have the clout to be demanding such things. We don’t even know if the league is profitable yet.

Sorry for the rant. I’m just sick to my stomach because my season tickets came yesterday and I don’t know if I’ll even get to use them.

by chrisperry1983 on Mar 16, 2010 11:44 AM PDT up reply actions  

"profitability" has nothing to do with it

“The business of soccer is soccer. Almost all soccer clubs that aren’t Manchester United should ditch the idea of making profits. But that doesn’t mean they should continue to be badly run…”

Soccer clubs need to remain SOLVENT, not profitable. They are a more like an average person, who may be up to his/her eyeballs in debt (house, car, credit card bills from latest vacation) but can stay buoyant by remaining SOLVENT.

from Wikipedia:
“In finance or business, solvency is the ability of an entity or individual to pay debts. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth. The better a company’s solvency, the better it is financially. When a company is insolvent, it means that it can no longer operate and is undergoing bankruptcy.
Solvency is a different concept from profitability, which refers to the ability to earn a profit. Businesses can be profitable without being solvent (e.g. when they are expanding rapidly). Businesses can be solvent even while losing money (e.g. when they cannibalize future cash flows, like selling accounts receivable). A business is bankrupt when it is unprofitable and insolvent.”

The question we all need to be asking is not if the League is Profitable (remembering that the NBA will lose $400 million this season) but if it is Solvent.

...that's MISTER Keller to you!!!

by malcontentjake on Mar 16, 2010 12:02 PM PDT up reply actions  

a couple reax....

1) again, i’ll beat this dead horse… soccer clubs don’t, and really shouldn’t, turn profits… I’m not talking about the USA, I’m talking globally… read Soccernomics
So I don’t really care about the last sentence of his statement. Welcome to the world of soccer club ownership. Soccer clubs are LOUSY businesses (again, I’m talking globally) so I really, really, really, doubt that AEG didn’t know what they were getting into.
2) A fascinating social-economic trend over the last few generations in America is the turning of popular opinion away from unions and towards management. We are essentially a nation of managers now (and you see how well the economy is doing as a result). This statement is a PRIME example of how that’s happened. Now, look, I’m not even trying to compare professional athletes to Joe Punchclock down at the Widget Factory, but let’s set the record straight.
The players aren’t Necessarily asking for more money, they are essentially asking for FIFA rights. What Leiweke wants us to believe is this will somehow bankrupt the league, as if the ill-fated signing of Beckham for a kajillion dollars has nothing to do with such things. Also, AND I CAN’T MAKE THIS CLEAR ENOUGH: read the following sentence from the statement again:
“So when I hear them talk about striking and shutting the league down, I’ve got to tell you, they’re going to lose us when they talk like that.”
Okay, now, the Players’ wishes have been known for MONTHS, the threat of a lockout loomed over the talks, until the League announced they would not lock out the players. But that doesn’t mean anything. That maneuver does NOTHING to further talks or reach an agreement, all it does is push the ball into the Players’ end. It takes two to tango, and the Owners/League can’t sit back and say “it’s the players fault” when THEY AREN’T DOING ANYTHING ABOUT IT THEMSELVES.

For more on these types of tactics, see the US Congress…

I am loathe to criticize Leiweke because he bought a group of us a round at the bar before the MLS Cup…but he’s just being a first-class douche with this type of statement…

...that's MISTER Keller to you!!!

by malcontentjake on Mar 16, 2010 11:37 AM PDT reply actions  

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