Major League Soccer (MLS) has cast doubt on its future with Apple TV, marking the first time such concerns have been raised since the partnership was established. This comes despite a record-breaking deal between Apple and MLS to broadcast every game in the American top flight.
The agreement, which saw MLS move away from regional sports networks and limit its offerings on FOX Sports, was always considered a gamble. In 2023, MLS Commissioner Don Garber acknowledged this risk. However, with Apple paying $250 million annually for ten years to MLS, it seemed like a risk worth taking. Yet now Garber is discussing an uncertain future for MLS without Apple.
MLS Commissioner, Don Garber, said:
“If [the MLS-Apple relationship] continues to grow, we’re very much in the revenue share mode with Apple, and it will turn out to be one of the greatest deals in sports history, If we’re wrong and the world doesn’t go into the streaming environment the way we think it is, then you’ve just got to be smart, make a decision and if it’s not the right decision, you figure out what you need to do to go forward. But I am really bullish on Apple.”
Despite nearly two years into their partnership and even after acquiring Lionel Messi - one of the world's greatest players - Major League Soccer has failed to surpass the minimum guarantee required to trigger revenue sharing as part of their deal with Apple.
Revenue share agreement
Apple's agreement with MLS includes selling subscriptions to the 'MLS Season Pass' streaming service at a minimum guarantee of $250 million annually. From this amount, all production and talent costs are covered by MLS; these costs run into tens of millions of dollars each year. Once they reach an agreed number of subscriptions – kept secret – they will earn 50 cents on every dollar under a 50% revenue share model.
However, as per October 2024 reports, that magic number remains elusive for triggering this revenue share agreement. The last reported subscription count stood at two million subscribers in December 2023 but no numbers have been revealed since then for 'MLS Season Pass'. This lack of transparency coupled with dropping free subscription offers through T-Mobile likely resulted in significantly lower numbers in 2024.
Moreover, there was no mention about any figures or percentages related to 'MLS Season Pass' in the Key Business Metrics report published by MLS in July 2024.
Falling behind other leagues
The situation is further complicated as MLS falls behind other leagues in terms of TV revenue. For instance, even the bottom two relegated Premier League clubs earn more TV revenue than all 29 teams in MLS combined. Despite these challenges, Garber continues to publicly maintain a positive outlook. He emphasizes the need for winning over soccer fans not just within the United States but globally as well.
Don Garber added:
“I’m happy for [MLS’ deal with Apple] to go on forever because what are you looking for from a media partner? Revenue, support from a marketing and promotion perspective and insights and data, which for MLS is super important and there is no bigger data insights company in the world than Apple.”
However, he also criticized previous linear partners before Apple's deal with MLS.
Don Garber added:
“We weren’t getting enough in terms of exposure, schedule, and promotion from the linear networks, because we’re not just competing against the other leagues. We’re competing against every single football league that is selling their rights in the United States.”
Apple TV holds exclusive rights to Major League Soccer within its ecosystem. However, this monopoly has resulted in it being largely overlooked by sports fans who consume content through a mix of television and streaming services offering a range of soccer leagues at lower costs than an 'MLS Season Pass' subscription. While the partnership between Apple and MLS was initially seen as groundbreaking, it now faces significant challenges that cast doubt on its future viability.
