MLS, Apple TV and streaming sports

It's been a busy week for sports business news - Lebron's a billionaire and LIV Golf launched but the biggest news may have come from Major League Soccer. The league announced a 10 year, $2.5 billion streaming deal with Apple, the first professional sports league to sign such an agreement with a streaming platform. As part of this, MLS will have its own app on the Apple TV Platform.

There is also an ability to add cable partners to the deal as the league is currently negotiating with ESPN and FOX however there will be no more regional rights, This will eliminate local blackouts, a large advantage for fans and something other leagues are observing.

Season seat owners will be able to access the MLS specific app for free. Having worked in ticket sales for a pro sports team, I can tell you that this benefit will reward the fans at one of the highest of the sports escalator.

Let's talk dollars and cents. The previous agreement for MLS broadcast rights totalled...$90 million, this deal represents an increase of $160 million per season. With 30 MLS teams soon to be active, this represents an extra $5.3 million per team. The players will be receiving 12.5% of the additional revenue meaning the cap should raise by over $1.25 million, from its current $4.9 million

The other leagues ware watching this agreement - starting with the NBA who has rights expiring in 2025 The league has acknowledged that the local media rights model does not work and that bundling all their games onto one platform would be most beneficial to fans and the most lucrative option for the NBA.

We'll also have to see if MLS / Apple follow the Formula 1 example and build a reality series around Major League Soccer to attract new fans and quite frankly have more content on their platform. There is already announcements of pre and post game shows as well as a Saturday show around that day's games.

Finally, the continuing move to streaming for sports rights means a further devaluation of cable television. Sports represents a large source of advertising revenue for cable channels and a reason to keep the cable bundles. The landscape is changing and it will be interesting to see how the large media companies respond.