There’s been a lot said lately about MLS expansion, but on a recent edition of ESPNFC, analysts Taylor Twellman and Steve Nicol had a fiery exchange that distilled the MLS expansion debate right down to its essence. Lincoln v. Douglas-esque in its gravity, the showdown also evoked Kennedy v. Nixon in its stark visual contrast between Twellman’s gleaming visage and Nicol’s gray grimace. But Twellman was the cold realist, all but chanting “C.R.E.A.M.,” while Nicol, belying his days as a hard-nosed Anfield Red, played the dreamy idealist.
Twellman and Nicol only went at it over Orlando for a minute or so, but in their battle they hit on what the expansion tension is all about, namely, art versus commerce. It’s a question we normally associate with music and movies, but in this case it’s also the essential question behind MLS’ growth strategy. Should MLS take the badly-needed cash being offered now? Or should MLS shun it in favor of beauty and with it, potentially greater riches down the road?
In beauty’s corner was Nicol, pleading with MLS to patiently work on improving the quality of play before spreading its talent thinner. In money’s corner was Twellman, countering that it’s unrealistic for MLS to resist the ridiculous expansion fees being thrown its way. They’re both right, but in this fight Nicol won by T.K.O.
Tellingly, Nicol and Twellman didn’t battle over Orlando specifically. Rather, refreshingly, they focused on the forest, not the trees. The big money pouring into MLS via expansion fees and soccer specific stadium building can be seen as an affirmation of the league’s bright future. After all, why would supposedly savvy businessmen invest in a product they thought would fail? On the other hand, just like basement-dwelling day traders pumping money into Wall Street while ignoring fundamentals like P/E ratio, we’ve seen out-of-whack valuations inflate bubbles before. Is MLS’ foundation strong enough to support adding additional clubs when the existing ones are still heavily reliant on attendance for revenue? There simply is no massive pie to split, for at NBC’s $10 million a year, MLS clubs are pecking at a Lil Debbie’s. And those scraps would be even more meager when split among 24.
Twellman insisted that expansion would stop at 24, but by his own logic, what would stop MLS from taking another cash-stuffed briefcase from a 25th suitor, and a 26th, and so on? Without robust revenue, expansion fees can only be seen as short money. For money infused now will demand its comeuppance in the future. Or as Three 6 Mafia succinctly put it, it’s “short cheese.” MLS, with the pressure of trying to feed an ever-increasing amount of clubs, could be forced to make rash or ruinous business decisions just like any distressed company trying to appease stockholders. Every dollar put in now must be repaid in kind. Or as Ted DiBiase warned, “Everybody’s got a price. Everybody’s gonna pay.”