How After 25 Years, MLS Transformed Into a Sports Powerhouse

When Major League Soccer debuted in 1996, it had a definite aesthetic. There were bright uniforms that wouldn’t have felt out of place at a Jimmy Buffett concert. Most of the matches were played on NFL fields—sometimes with the yardage lines in full flower—and the style of play was bruising. An entertaining Instagram account chronicled that first year, including a rain-soaked final between the L.A. Galaxy and D.C. United that remains a classic. After hosting the 1994 World Cup (establishing a national league was a requirement) and starting with 10 teams, MLS experimented with some tweaks to what's known worldwide as "the beautiful game." Among the most prominent was a shootout at the end of tied matches to not alienate American fans, who were not used to professional sports stalemates. And the team names were far afield from what purists expected. There were the Tampa Bay Mutiny, San Jose Clash, Dallas Burn and the Kansas City Wiz. In some ways, the extra flourishes were reminiscent of the league’s predecessor, the NASL, which folded in 1984. But, like its forebearer, MLS certainly had (and retains) a strong personality and sense of self. View this post on Instagram A post shared by MLS in '96 (@mlsin96) As MLS celebrates its 25th season—and an MLS Cup matchup between the defending champion Seattle Sounders and Columbus Crew (one of the original 10 franchises)—it is now a powerful league with 26 teams, with four more on the way. It’s also the third most-attended league in U.S. sports behind the NFL and Major League Baseball, with robust broadcast rights and an increasingly diverse and young audience that craves soccer and can set it up for future success. Adweek spoke to several people involved with the league’s formation, and what emerged is a compelling and unique story about its business plan, the league’s upward arc, and the eclectic characters who built a strong foundation that will chart the course for where MLS is headed next. The original business plan According to Sunil Gulati, former MLS deputy commissioner and past president of the U.S. Soccer Federation, several people involved with the sport thought about taking a run at developing a business plan in the late '80s, several years after the NASL folded. “It never really got anywhere,” he said. In late 1991, Alan Rothenberg, chairman and CEO of the 1994 World Cup, put together a group to point the way forward on starting a league. One of the mandates for hosting the global tournament was that it be held in America. Gulati knew it was critical to find someone to structure a business plan, since others were working on the World Cup. “Mark Abbott became the point person,” said Gulati. “And later on, become employee No. 1 of Major League Soccer.” Abbott, who serves as the league’s president and deputy commissioner, was a young associate at law firm Latham & Watkins, where Rothenberg was a partner. Abbott overheard Rothenberg asking about having someone draft a business plan. That was the spark he needed. “I heard that, ran down four flights of stairs to his office and volunteered to do it,” said Abbott, who grew up in St. Paul, Minn. and was a ballboy at Minnesota Kicks games in the ‘70s. Learning from the NASL, where powerhouse teams like the New York Cosmos had an outsized influence, one of the more critical components of the plan was to ensure that MLS had a solid ownership structure. Additionally, those owners needed to be in it for the long haul. “Commitment to a strategic vision to grow the sport in the U.S. [was key],” said Abbott. To that end, a handful of owners, including Lamar Hunt, one of the godfathers of American soccer, signed on. Some owners operated more than one team and, as Gulati put it, “had the wherewithal to absorb some of the [financial] losses to get the league going.” MLS Cup 2019 in Seattle. The league ran several teams, something that Abbott notes wasn’t exactly a winning formula. “It’s really important to have a true, local connection with the community as an owner,” said Abbott. “That’s critical for the league, but especially the fans.” The other main component of the business plan was to develop soccer-specific stadiums. The first opened in Columbus in 1999, and, over the years, beautiful stadiums only used for soccer have enhanced the league and, importantly, the fan experience. The quest for brand partnerships The lifeblood of any sport is a combination of fans and sponsorship. In the early days of MLS, the latter became a slog. Kathy Carter, vp of corporate sponsorships from 1995 to 1999, recalled some of the more heady days. Sleeping on couches and in dingy hotels seems a far cry from today, where the league is one of the gold standards of sports partnerships. “I think there was a lot of people who took meetings with us just so that they could get us to stop calling them,” chuckled Carter. “I’m not joking about this. People told us we weren’t a proven commodity so it was easy to say no. Slowly but surely, people took the meetings.” View this post on Instagram A post shared by MLS in '96 (@mlsin96) The first sponsor was Anheuser-Busch. ESPN and Nike also came aboard early, taking a calculated bet on the future. “[These brands] took fliers on things and ended up getting some good deals,” recalled Carter, who now serves as CEO of the U.S. Olympic and Paralympic Properties and Chief Revenue Officer of LA28. Eventually, it all came together, and in a big way. On the same day, Mastercard and Honda said yes. The latter helped create a cascading effect, with other Japanese brands like Bandai and Fujifilm coming on board. Adidas, the league’s longest-tenured brand partner, came on board as a sponsor for several teams but locked up the league deal in 2004. According to Forbes, the latest sponsorship, announced in 2017, is worth $700 million. “Adidas always had a [major] impact on soccer globally,” said Chris McGuire, who joined Adidas in 1999 and is the brand’s senior director of sports marketing. “We knew that the U.S. was the next uncharted territory and it was really a no-brainer.” McGuire says that global star David Beckham’s arrival in Los Angeles to play for the Galaxy in 2007 transformed the league and how fans interacted with brands. “In the first six months, we sold over 350,000 [Beckham] jerseys,” said McGuire, “At that time, that was completely unheard of.” Fast-forward to today, in addition to Adidas, MLS has a huge roster of well-known, blue-chip brands like Audi, Diageo, Heineken and others—a far cry for the hardscrabble hustle of the early and mid-'90s. “Everyone thought that we were a bunch of Don Quixotes fighting that windmill,” said Carter. “The fact that everyone doubted us gave us rocket fuel to keep going.” Marketing with star power The early entrepreneurial days of any company or brand has colorful stories and personalities. While MLS didn’t have someone at the same stature as the NASL’s Pele or Frank Beckenbauer, it had plenty of star power to go around. Actor Andrew Shue, a star on Melrose Place, signed a contract with the L.A. Galaxy. It could have been perceived as a stunt but, Shue played soccer at Dartmouth and professionally in Zimbabwe. So it wasn’t much of a stretch, though there was no denying the allure of promoting the league with someone at the height of his fame. Dan Courtemanche, evp of communications and one of the league's early employees, recalled that MLS was willing to work around his shooting schedule to get him on board. Shue’s mainstream appeal opened up several opportunities to market to mainstream America. “We had Andrew and six of his teammates on The Tonight Show with Jay Leno,” said Courtemanche. “He was one of the biggest stars around and this allowed us to get into American pop culture.” But one of the brightest lights in the inaugural season was the flamboyant Galaxy goalkeeper from Mexico, Jorge Campos. An electric star, he was the first major player signed by the league. In his debut, close to 70,000 people showed up at The Rose Bowl, most cheering for him. With his contract not exactly finalized, Campos and his team made a demand due to his popularity: a Ferrari. View this post on Instagram A post shared by MLS in '96 (@mlsin96) Unbeknownst to Abbott, Campos had already picked the car out at a showroom in Beverly Hills. Never in that position before, Abbott assumed that there would be some negotiation like any car-buying transaction. “The sales guy said, ‘the transaction is easy. We tell you the price, and you pay it,’” recalled Abbott, who then called a family friend familiar with buying exotic cars. “I tried to negotiate a bit and they said, ‘you seem like a nice guy. We’ll throw in an FM radio and CD player.” On to the next 25 years Current MLS commissioner Don Garber has helped steer the league since 1999. In some ways, he’s akin to the late NBA commissioner David Stern, who elevated his league to one of the most prominent in the world thanks to a combination of smart moves and savvy marketing. Yet, some of the things put in place early make it attractive for fans, players, brands and investors. Without the financial ups and downs of relegation and promotion common in other leagues, a single-entity structure ensures a more balanced, equitable economic field for all. MLS franchises put significant resources into academies and homegrown players, which develops talent that could end up in global leagues, resulting in substantial transfer fees. Portland Timbers mascot Timber Joey saws off a log at recently-renovated Providence Park. Owners continue to be local, and a raft of high-profile luminaries dot the landscape. Drew Carey was an early investor in Seattle—and Russell Wilson and his spouse Ciara are new partners. Will Ferrell is part owner of LAFC in Los Angeles. NBA stars Kevin Durant and James Harden have stakes in Philadelphia and Houston, respectively. Matthew McConaughey is part of the ownership group launching Austin next season. And, of course, the inimitable David Beckham is an owner and president of Inter Miami FC. America is changing, and the audience is taking the ride with MLS. According to Courtemanche, the national Hispanic population has more than doubled since the league started—and many teams draw players from Central and South America. It’s also trending younger, and soccer is an increasingly important part of peoples’ lives. Crucially, all of the stars could align in 2026, when Canada, Mexico and the U.S. host the men’s World Cup. Many MLS players will be on those teams, further illustrating how far the league has come in 25 years. It will also be the 30th anniversary of MLS and looks to benefit from a six-year runup to showcase its presence in the soccer landscape, not as a curiosity, but as a strong brand worldwide. Major League Soccer debuts 25th anniversary jerseys from Adidas. Though it is a vibrant, viable league that’s respected worldwide, Courtemanche believes that MLS still feels like a “25-year-old startup.” According to Abbott, who most certainly can look back to the future, there is still ample room to set the foundation for the next 25 years. “Over 70 million people in America watch soccer now,” he said. “That’s a huge market opportunity.”