USMNT eye extra financial options to pay high-profile manager

Recruiting top-tier talent requires substantial financial investment, and the U.S. Soccer Federation (USSF) appears ready to meet these demands. The stakes are high as the federation seeks to appoint a new coach for the USMNT; especially following the recent dismissal of Gregg Berhalter.

Historically, the compensation for the USMNT manager has come directly from the USSF’s budget. This amount has varied over time but generally increased. Manager Bob Bradley, for instance, earned $941,647 in fiscal year 2011, which included the 2010 World Cup.

When Jurgen Klinsmann took over in 2011, his compensation increased significantly. He earned $3.2 million in the fiscal year that included the 2014 World Cup. More recently, Gregg Berhalter received $2.3 million in his World Cup year; including a $900,000 bonus for qualifying for the 2022 World Cup.

Fans and experts have criticized the USSF’s expenditure when compared to other soccer countries, even with these increases. For instance, the recently departed England manager Gareth Southgate earned around $6.4 million annually. With the search for Berhalter’s replacement now underway, the USSF may need to adjust its financial approach to attract top-tier talent.

Cost of top talent

Hiring a high-profile international manager is likely to come at a premium. Jurgen Klopp, the former Liverpool manager and a top target for USMNT, was reportedly earning $54 million annually when he stepped down. While half of this amount was his salary, the rest was supplemented by external sources. Although Klopp is unlikely to join the USMNT, this scenario highlights the significant financial commitment required to attract a top-level coach.

According to ESPN, USSF sporting director Matt Crocker has already been in Europe exploring potential candidates. The USSF can anticipate spending a lot more money than it has in the past to get a manager of this quality. At this point, it becomes important to consider if the USSF has the financial means to hire the coach they want.

In recent years, sports organizations have become increasingly innovative in securing funds for hiring players and managers. David Carter, founder of the Sports Business Group and a professor at USC’s Marshall School of Business, notes that various forms of financing; such as private equity and foreign investment funds, are becoming common in the sports industry.

One notable example is MLS and Inter Miami, which utilized financial backing from Adidas and Apple to facilitate the acquisition of Lionel Messi. Similarly, the Canadian Soccer Association engaged MLS team owners in Canada to help fund the hiring of current manager Jesse Marsch. These creative approaches could serve as a blueprint for the USSF.

USMNT needs financial help for top manager targets

ESPN further explains that one potential solution for the USSF is to seek external funding from sponsors. That way, they can bridge the gap between the manager’s salary demands and what the federation can afford. The USSF has been successful in attracting sponsorship money; adding 11 new commercial partners since the beginning of 2023, including Coca-Cola, Visa, and Marriott.

Deferring compensation to future years is another option. This strategy involves offering the manager a salary plus annual payments after their tenure ends. This approach was used by the Los Angeles Dodgers when they signed Shohei Ohtani to a 10-year, $700 million deal. This ensured he would be paid for a decade after his playing contract expired.

The possibility of involving individual stakeholders also exists. For instance, Atlanta United owner Arthur Blank contributed $50 million to the USSF for a new training center. Jordan Gardner, a management and strategy consultant, suggests that MLS owners and other stakeholders who benefit from a successful national team could be incentivized to contribute financially.

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