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MLS announces new expansion franchise in Los Angeles, Magic Johnson among owners

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xbhaskarx

Member
live press conference is starting now: LIVE: MLS Press Conference | New Los Angeles Club

Website: http://www.lafc.com/

The Ownership Group:
Executive Chairman: Henry Nguyen (VC/Entrepreneur)
President: Tom Penn (ESPN NBA Analyst, former VP of Basketball Operations of Portland Trailblazers)
Managing Partner: Peter Guber (Entrepreneur, co-owner of the Golden State Warriors and Dodgers)

Allen Shapiro (CEO of Dick Clark Productions and managing partner of Mosaic Media Investment Partners)
Anthony Robbins (life and business strategist, best-selling author, entrepreneur and philanthropist)
Bennet Rosenthal (co-founder and senior partner of Ares Management and a co-owner of AS Roma)
Brandon Schneider (VP of Ticket Sales and Services for Golden State Warriors)
Chad Hurley (co-founder and former CEO of YouTube and the founder and CEO of MixBit)
Harry Tsao (VC/Entrepreneur)
Irwin Raij (Partner & business lawyer focused on sports)
Jason Sugarman (unknown)
Kirk Lacob (Assistant GM, Golden State Warriors)
Larry Berg (senior partner at Apollo Global Management and a co-owner of AS Roma)
Magic Johnson (former Los Angeles Lakers star, Chairman and CEO of Magic Johnson Enterprises and an owner of the Los Angeles Dodgers)
Mia Hamm Garciaparra (U.S. women’s soccer great)
Mike Mahan (President, Dick Clark Productions)
Mark Leschly (VC)
Nomar Garciaparra (former Major League Baseball star and SportsNet LA baseball analyst)
Paul Schaeffer (Vice-chairman, Mandalay Pictures)
Rick Welts (President and COO of the Golden State Warriors Basketball Club)
Ruben Gnanaligam (Malaysian Businessman, co-owner of the English Premier League’s Queens Park Ranger)
Vincent Tan (Malaysian Businessman, owner of the Football League Championship’s Cardiff City and FK Sarajevo of the Premier League of Bosnia and Herzegovina)

"A few additional prominent owners are expected to be added to this list shortly."

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Stadium?
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The Search

We’re building a world-class stadium—from the ground up—that will define American soccer and Greater Los Angeles. We’re seeking the perfect location for a soccer-specific stadium that will be a hub of diversity and culture. A stadium that blends into the community yet creates a unique experience for our fans. A location that becomes a destination and a pitch that feels like it’s your new home.

History:
- The LA Galaxy, one of the original 10 MLS teams from the 1996 inaugural season, are one of the most successful teams in American soccer.
- In 2005, a struggling MLS added two teams, one in LA and one in Salt Lake City, to go from 10 to 12 teams.
- The LA franchise was purchased by Chivas Guadalajara owner Jorge Vergara. The expansion fee was just $7.5 million (the original teams payed $5 million in 94). The new team was named Chivas USA and played their home games at the LA Galaxy's home stadium in Carson.
- In 2012, with MLS up to 19 teams, Forbes' valuation of Chivas USA was $64 million, the lowest in the league. For comparison, the LA Galaxy were second at $170 million.
- In early 2014, MLS bought Chivas USA from Vergara for approximately $70 million.
- The league ran the team in the 2014 season, without replacing the problematic Chivas branding. Average attendance for Chivas continued to decline, down to 7,000 per game (the league average was over 19,000 in 2014).
- The league disbanded the team once the season was over. The players will be sent to other teams via a dispersal draft.
- Reports indicate that the expansion fee for this new LA team will be approximately $100 million, and they will look to build their own stadium and begin playing in 2017.
 

GRW810

Member
The involvement of Vincent Tan is worrying. Other than that I'm glad this is happening. Chivas USA was a mess from day one and LA deserves a better rival to Galaxy.
 
How are the Whitecaps and Impact doing?

With the clusterfuck that was Chivas and the rumors around Red Bull NY, I wonder if keeping the gas on expansion is a good idea. Maybe wait and see how 2010-2015 expansion class does or move to a more competitive ownership structure before doubling up on markets. I can't believe they're going back in to LA when it already has a team and this new one doesn't have any differentiators between it and the Galaxy when they have so many major markets (St Louis, Minneapolis, Phoenix, etc...) without teams.
 

andycapps

Member
If I read the OP right, this is basically taking the place of Chivas USA and will have their own stadium and a fresh start? Whatever, I guess. I feel like it would make more sense to open up franchises in other cities that don't already have a team rather than potentially dividing your potential supporters.
 

Meier

Member
MLS STILL expanding?

They will be at 22 teams in 2017 with a plan to reach 24 by 2020 (if I recall). 24 seems about the max you'd want to have (this is how many there are in the 2nd through 5th divisions in England) but maybe they'll continue to move towards 30+ like other American pro leagues.
 

xbhaskarx

Member
The involvement of Vincent Tan is worrying. Other than that I'm glad this is happening. Chivas USA was a mess from day one and LA deserves a better rival to Galaxy.

Tan is just one of 22 investors, the top three guys on that ownership list will be running things.

Two MLS teams, two NBA teams, two MLB teams (kinda) yet no NFL team. So wacky.

Rumor has it the NFL will eventually be relocating two teams (probably out of the Raiders, Chargers, Rams, all with LA connections) to LA... at least that's what a co-worker keeps telling me.
 
I think branding and stadium placement are key to try and get a younger demographic to buy in. For all their success the galaxy are sorta vanilla and family friendly and this could be marketed as sort of an alternative.

Also please lose the FC.
 
"Vincent Tan, Vincent Tan, you're a wanker... Vincent Tan you're a wanker, I say
Vincent Tan, Vincent Tan, you're a wanker... You've been a wanker since the very first day!"


Tan is just one of 22 investors, the top three guys on that ownership list will be running things.

Tan doesn't do things by half. If he's involved, and putting his money into it, he'll demand to be involved.

RE: the name, I like LAFC, they should keep it. No "franchise" name. Just old school.
 

xbhaskarx

Member
I think branding and stadium placement are key to try and get a younger demographic to buy in.

Some news is already starting to come out regarding their short term and long term stadium plans:

Twellman on ESPN FC: LAFC to start play in Coliseum, most likely to move to new stadium at LA sports arena afterwards at this point

"Here's what I'm hearing: I'm hearing that the new franchise will play in the LA Coliseum until a stadium's built. I'm hearing the LA Sports Arena - that old LA Sports Arena area - is where the new stadium, as of this point, is looking to be built."


Wow a vietnamese VC involved... nice!

Henry Nguyen brought the first McDonalds to Vietnam. Rumor is he will be moving to LA to run the team.
 

xbhaskarx

Member
I hope Sacramento can still get a team.

They met with the league just two days ago:
Sacramento Republic execs, mayor make pitch to Major League Soccer commissioner

MLS isn't going to stop expanding at 22 teams (Atlanta + LA2), so these two things aren't related. Sacramento's expansion competition is Minnesota, San Antonio, Las Vegas, St Louis, etc.

I know there's been a lot of talk recently about the Rams but who knows.

Maybe they could work out a NFL deal with that new stadium?

Stan Kroenke, who owns the St Louis Rams, Denver Nuggets, Colorado Avalanche, Colorado Rapids (MLS), Colorado Mammoth (lacrosse), plus Arsenal, bought a big chunk of land there like a year ago, and there was speculation that it could be for a soccer team but clearly that's not happening now with this announcement. The fact that Roger Gooddell was extensively quoted on the subject of Kroenke buying land is interesting, even if he downplayed it.
 

Zeke

Member
There's talk in El Paso that they're doing their damnedest to get a team here. I'd imagine it would be huge.
If el Paso gets a team before SA I will be livid. Pretty meh about this announcement double dipping is boring to me and it's not my town so meh.
 

xbhaskarx

Member
Its not an expansion. Theyre essentially just rebranded Chivas USA in a convoluted way that pushes fans under the bus.

Chivas USA was such a disaster on almost every level that this ownership group wants to start fresh without any Chivas stench on them. Simply buying Chivas USA and rebranding them wouldn't accomplish that. So instead they're disbanding Chivas, getting rid of the players via a dispersal draft, going dark for two seasons to separate the two, and then coming back as an expansion team with new name and crest.

It does suck for the fans, though.
 
Rumor has it the NFL will eventually be relocating two teams (probably out of the Raiders, Chargers, Rams, all with LA connections) to LA... at least that's what a co-worker keeps telling me.

Two are rumoured to come, one will be announced right after the Superbowl (probably the Rams). The second one will either be the Chargers or the Raiders (probably the latter).
Relocating two NFL teams to LA? That makes relocating an NFL team to London look downright sensible. It's not like the teams that left LA initially didn't have their reasons. Moving the Chargers or the Raiders probably doesn't spark a response, but if the Rams move, St Louis is going to need a replacement, it's a top 25 market and would only have MLB and NHL. (This is all assuming that the writing on Jacksonville's wall says "Ship to London.")
 
Chivas USA was such a disaster on almost every level that this ownership group wants to start fresh without any Chivas stench on them. Simply buying Chivas USA and rebranding them wouldn't accomplish that. So instead they're disbanding Chivas, getting rid of the players via a dispersal draft, going dark for two seasons to separate the two, and then coming back as an expansion team with new name and crest.

It does suck for the fans, though.

Why have hardcore fans that stuck around for the worst team in the league for so many years....when you can have Hollywood cutouts that spend more time gossiping than looking at the field?
 

davepoobond

you can't put a price on sparks
Wait, there isn't an LA galaxy team anymore?


News to me. Never even heard of this chivas thing
 
Expo park isn't a bad area. Id imagine that a stadium build would come with some sort of revitalization/gentrification as well. Would have been nice to have it be downtown.
 

Draxal

Member
Wait, there isn't an LA galaxy team anymore?


News to me. Never even heard of this chivas thing

LA galaxy is still there, this is a replacement for Chivas USA.

I'm not sure about the rapid expansion done by the MLS, and how much of its just done for expansion fees and in turn is detrimental to the sport like the rapid NHL expansion into the south was a complete failure.
 

Pastry

Banned
Trying to increase league awareness and exposure, give expansion to city that already has one. Good job MLS.
 

Zeke

Member
Relocating two NFL teams to LA? That makes relocating an NFL team to London look downright sensible. It's not like the teams that left LA initially didn't have their reasons. Moving the Chargers or the Raiders probably doesn't spark a response, but if the Rams move, St Louis is going to need a replacement, it's a top 25 market and would only have MLB and NHL. (This is all assuming that the writing on Jacksonville's wall says "Ship to London.")
Uh jags aren't going anywhere and neither are the bills. You should read the lease agreement between the jags and the city. If they do leave it won't be until after 2030 or Khan ponies up 100 million.
 
Trying to increase league awareness and exposure, give expansion to city that already has one. Good job MLS.

Not really an expansion team, and the soccer market on la can absolutely support 2 teams in a way that is great for the league if done right (I.e. Don't tie the name and brand to a Mexican league team that not everybody likes)
 

Draxal

Member
Not really an expansion team, and the soccer market on la can absolutely support 2 teams in a way that is great for the league if done right (I.e. Don't tie the name and brand to a Mexican league team that not everybody likes)

It is though, there's an expansion fee associated with this. If it was just a rebrand, there wouldn't be this fee (the Red Bulls didn't pay a fee when they rebranded right?)
 
How are the Whitecaps and Impact doing?

With the clusterfuck that was Chivas and the rumors around Red Bull NY, I wonder if keeping the gas on expansion is a good idea. Maybe wait and see how 2010-2015 expansion class does or move to a more competitive ownership structure before doubling up on markets. I can't believe they're going back in to LA when it already has a team and this new one doesn't have any differentiators between it and the Galaxy when they have so many major markets (St Louis, Minneapolis, Phoenix, etc...) without teams.
Orlando City ready has a great following and the town seems really excited to get them as a MLS franchise. 1st MLS season will be in the renovated Citrus Bowl in downtown Orlando and by year two, their soccer specific stadium will be completed for use which is also downtown.

Tons of excitement in Orlando. UCF has also announced a campus expansion into downtown Orlando as part of the new Orlando Creative Village. Another 15-16k students that will be young and likely involved in the initial fan support over the next few years.
 
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