Major League Soccer (MLS) Commissioner Don Garber has hailed the league's long-term global deal with technology giant Apple as potentially "one of the greatest deals in sports history". This comes as streaming continues to play a pivotal role in shaping the sports media landscape.
The MLS is optimistic about how this lucrative 10-year streaming deal will bolster the financial growth of the league. The agreement, worth over $2.5 billion, is nearing its second season and has already generated millions of subscribers worldwide. For the first time ever, MLS games are being broadcast on Apple TV without any local blackouts or need for a traditional pay-TV bundle. This applies not only to viewers in the US but also to fans around the globe.
Garber, who is marking his 25th year as MLS commissioner, credits Apple with providing exposure that was previously lacking on linear networks domestically. He believes this partnership will create significant value for both parties involved.
Major League Soccer Commissioner, Don Garber, said:
“The Apple deal for us is quite simple. 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. We wanted to have a relationship with a company, and Apple's arguably the largest, most innovative, and most important company in technology in the world and would lean into us in a way where it would be a partnership.
“So the $300 million (per year) isn't a rights fee, it's a guarantee. And if our subscriptions continue to grow, we share 50% of that upside. In their ecosystem, hundreds of people are working on the MLS relationship, and the goal is to drive subscriptions, drive the revenue that comes from subscriptions, and utilize their technology.
“If it 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.”
Key driver for subscriptions
One major factor contributing to increased subscriptions has been Argentine football superstar Lionel Messi's arrival at Inter Miami in July 2023. At 37 years old, Messi’s presence has sparked massive global interest and significantly boosted Inter Miami’s revenues.
Interestingly enough, this landmark Apple deal was inked before Messi joined MLS. Despite speculation that having one of soccer's biggest stars could have added more broadcast value if he had been part of negotiations from inception, Garber expressed no regrets over signing a decade-long contract prior to Messi's arrival.
Don Garber added:
“If this works, we share in the revenue. So if we're sharing the revenue and making a lot of money, I'm happy for it go on forever, because what are you looking for from a media partner is revenue support from a marketing and promotion perspective, and insights and data, which for MLS is super important, and there is no bigger insight data company in the world than Apple.
“So all of the aspects of it are combined to drive what we see as future value. I'm betting that we're going to sell millions and millions and millions of subscriptions. If that happens, this will be economically, an incredible deal for Major League Soccer.”
Potential impact and opportunities
While it may be too early to fully assess its impact on both parties' bottom lines or predict future trends accurately, there are clear indications that this partnership could redefine how sports leagues engage with their audiences globally through digital platforms like Apple TV+.
Moreover, the deal's revenue-sharing component could set a precedent for future negotiations between sports leagues and tech giants. This could potentially lead to more such partnerships, further blurring the lines between traditional broadcast and streaming services.
As streaming continues to be a key player in the sports media landscape, this MLS-Apple deal is poised to be a game-changer. It not only promises financial growth for MLS but also offers an innovative way for fans worldwide to engage with their favorite sport.
