The Review: A Journal of Undergraduate Student Research Volume 13 Article 4 2012 Assessing Major League Soccer's Efficiency Christopher Maxwell St. John Fisher College, [email protected] Follow this and additional works at: https://fisherpub.sjfc.edu/ur Part of the Sports Studies Commons How has open access to Fisher Digital Publications benefited ou?y Recommended Citation Maxwell, Christopher. "Assessing Major League Soccer's Efficiency." The Review: A Journal of Undergraduate Student Research 13 (2012): 6-14. Web. [date of access]. <https://fisherpub.sjfc.edu/ur/ vol13/iss1/4>. This document is posted at https://fisherpub.sjfc.edu/ur/vol13/iss1/4 and is brought to you for free and open access by Fisher Digital Publications at St. John Fisher College. For more information, please contact [email protected]. Assessing Major League Soccer's Efficiency Abstract Since the North American Soccer League dissolved in 1984, there was no longer a prominent professional soccer league in North America until Major League Soccer was founded in 1996. Previous research on MLS efficiency was lastecor r ded after the 2000 season, leaving a ten-year gap. This research revisits MLS efficiency for the 2010 season through a formula based on percentages against averages of each team for all tested elements. The factors used to compute efficiency are absolute attendance, television viewership, points awarded, and total team salary. Efficiency scores are then further analyzed for anomalies. In contrast to previous research, the teams operating efficiently have changed, and half of the 16-team league is now efficient. This article is available in The Review: A Journal of Undergraduate Student Research: https://fisherpub.sjfc.edu/ur/ vol13/iss1/4 Maxwell: Assessing Major League Soccer's Efficiency Assessing Major League Soccer's Efficiency going to be the first American soccer league to last Chris Maxwell longer than sixteen seasons. In 1967, there were two professional soccer Abstract leagues in America; the United Soccer Association Since the North American Soccer League dissolved in and the National Professional Soccer League. One 1984, there was no longer a prominent professional year later, they merged to form the North American soccer league in North America until Major League Soccer League, the NASL (Crowder, 2006). In the Soccer was founded in 1996. Previous research on documentary film Once In A Lifetime, directed by MLS efficiency was last recorded after the 2000 Crowder (2006), the NASL's quick rise to prominence season, leaving a ten-year gap. This research revisits in America was tracked through the eyes of the MLS efficiency for the 2010 season through a league's top team, the New York Cosmos. The film formula based on percentages against averages of illustrates the success of the league to expand to 24 each team for all tested elements. The factors used teams in the first ten years, attempt to fill Giants to compute efficiency are absolute attendance, Stadium for playoff games, a capacity of over 77,000, television viewership, points awarded, and total and to attract international talent like Brazilian team salary. Efficiency scores are then further forward, Pete. analyzed for anomalies. In contrast to previous As tremendous as these accomplishments research, the teams operating efficiently have were, especially when considering the duration of changed, and half of the 16-team league is now the NASL existence, they contributed to its eventual efficient. downfall. Of the 24 teams that once competed in the NASL, only two teams won more than one league championship— Chicago twice and the New York Keywords: MLS, soccer, efficiency, major league Cosmos five times (Crowder, 2006). Giants Stadium may have been filled to capacity on more than one Assessing Major League Soccer's Efficiency occasion, but each of these seemingly popular The United States and Canada have games involved the New York Cosmos. Recognizable fostered four major professional sports leagues, names like Pele and Germany midfielder Franz being Major League Baseball, the National Football Beckenbauer were lured to the growing NASL. League, the National Basketball Association, and the However, they only came at the ends of their National Hockey League. Strictly referring to when careers, and all to the New York Cosmos (Crowder, the leagues stood alone (including going through 2006). mergers with competing leagues), as the NHL was the last to conspire, the four leagues have been in The high risk, high reward operation of the standalone operations from anywhere between NASL eventually led to its demise. MLS was founded 1901 (MLB) and 1979 (NHL) (Liponski, 2010). What twelve years after the fall of the NASL, but it is still league then has the promise of turning the well- its immediate successor, and inherently must accept established "Big Four" into the "Big Five"? This comparisons. The central problem of the NASL was report assesses the potential of Major League Soccer the sole exponential growth of the New York to become a major league sport in America based on Cosmos, its attraction to the top players, the league's current level of operation. championships, and, subsequently, its public fan base. MLS has made a publicly known effort not to Founded in 1996, MLS has subsisted half as over expand the league too quickly, reaching 18 long as the NHL, the youngest league in the "Big teams in 2011. Nine of the current 18 teams have Four" (Lipinski, 2010). Celebrating its fifteenth won MLS championships, including four repeat season, MLS is potentially at its most pivotal point of champions (Liponski, 2010). MLS efficiency was existence in foreshadowing its future as a league. tested once before following the 2000 season. Since The MLS predecessor, the North American Soccer Dieter Haas' study of MLS efficiency, two expansion League, was a successful American soccer league of teams have won a combined three championships the 1970s. The league, however, failed dramatically (Liponski, 2010), further reinforcing the idea that in 1984, after seemingly being an established league MLS has improved on the NASL in terms of (Crowder, 2006). The NASL reached sixteen seasons maintaining competitive balance. in 1984, which serves as a concern for MLS if it is 6 Published by Fisher Digital Publications, 2012 1 The Review: A Journal of Undergraduate Student Research, Vol. 13 [2012], Art. 4 Major League Soccer also mimicked some Literature Review other NASL operations that contributed to credibility Considering the lifespan of the American and popularity of the league. While the importing of major professional leagues, MLS is a relatively new England national team star David Beckham in 2007 spectrum of sport, and the underwhelming amount seemed like a reoccurrence of Pele's New York of research studies in comparison to those of MLB, Cosmos' signing in 1975, MLS implemented a salary for example, attests to that fact. There is, however, cap rule in 2007 to prevent a sudden influx of foreign the ability to lay comparisons based on the theories talent. Large salary players are known as Designated used to test efficiency of the American "Big Four," as Players, and each team can declare two players as well as the European soccer leagues, that have also such, with an option to purchase a third. These more than doubled MLS' lifespan. players' contracts count as $415,000 against the Barros and Leach (2006), Francis and Zheng team salary cap, no matter what amount they are (2010), and Haas (2003) are all published authors of signed for (Major League Soccer, 2011). Since 2007, studies analyzing the efficiency of American only three more prominent foreign stars have been professional sports leagues. Their criterion for these signed to MLS teams, dispersing the now four measurements include fan attendance of games, players over three teams. team performance on the field, and each team's The final piece of comparison between the expenses. These factors, combined with television leagues is television viewership ratings. The NASL's viewership numbers of the league were used and rapid success gained the attention of television giant cross-examined with plausible external influences to ABC in 1979 (Crowder, 2006). The league had 24 determine the true efficient teams of MLS. teams and the New York Cosmos had won the last Contributing factors (outside of the four variables two championships at the time of the television tested) that were considered in this study include contract (Liponski, 2010). The league received a 2.7 the "stadium novelty effect," player and event rating (watched in 2.7% of TV equipped homes) for "honeymoon effects," and past professional soccer the 1979 season, with the majority of the airtime leagues. dedicated to Cosmos' games. The competition It is possible that a "stadium novelty effect" amongst the league had become too diluted and the creates a boom in attendance for a team with a new fans began to express their disinterest in the stadium (Howard &. Crompton, 2003). This Cosmos' dominance (Crowder, 2006). In contrast to phenomenon will also be referred to in this study as the NASL's one season on the air, MLS has had a "honeymoon effect." There is evidence across televised games since its 1996 founding. MLS sports research that attendance receives a boost in currently holds television contracts with ESPN and the years immediately following a stadium upgrade Fox Soccer Channel, as well as full schedule or move, before falling back to equivalent numbers broadcasting on Direct Kick (MLS, 2011). from before the move (Howard & Crompton, 2003; With the many similarities and differences Zygmont & Leadley, 2005). Howard and Crompton's between the NASL and MLS, a research study testing study (2003) shows that average attendance the viability of MLS holds great relevance to its increased 22.2% in the first year for a team in the prospect of lasting longer than the NASL.