Don Garber, commissioner of Major League Soccer (MLS), believes the revenue-sharing component of the competition’s long-term global deal with technology giant Apple could make it “one of the greatest deals in sports history” as streaming continues to be a key player in the sports media landscape.
The league has almost concluded the second season of its 10-year, $2.5 billion-plus agreement with Apple and has generated “millions” of subscribers around the world.
Go deeper with GlobalData
For the first time, MLS games are being shown on the Apple TV platform without any local broadcast blackouts or the need for a traditional pay-TV bundle in the US and worldwide.
Garber, now in his 25th year as MLS commissioner, has credited Apple with providing the league with exposure it wasn’t experiencing on linear networks domestically which he believes will create significant value for both parties.
Speaking at The Summit, Leaders Week in London, he 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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“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.”
A key driver for subscriptions has been the arrival of Argentine superstar Lionel Messi, who signed for Inter Miami in July 2023.
The 37-year-old’s presence in MLS has generated huge interest for the league globally and bolstered Inter Miami’s revenues significantly.
The Apple deal was signed before Messi joined the league but Garber does not regret signing a 10-year contract and potentially missing out on additional broadcast value it could have gained by having one of the world’s biggest soccer stars in their ranks.
The MLS commissioner said: “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.”
Club World Cup
The US will be the hotbed of soccer in the coming years, with the revamped FIFA Club World Cup competition taking place in the market next year and the flagship 2026 FIFA World Cup.
Despite several major European clubs and leagues increasing their presence in the country to grow their commercial footprint, FIFA’s decision to expand the Club World Cup and stage it next summer has been heavily criticized by key stakeholders in European soccer.
Earlier this week, the Spanish LaLiga, European Leagues, and FIFPRO (global players’ union), organizations joined forces to file a formal complaint against the global governing body with the European Commission over FIFA’s imposition on all other soccer properties and organizations of the global match calendar.
LaLiga president Javier Tebas has also even called on FIFA to scrap the enlarged 32-team Club World Cup, while several players have criticized the increase in games and the soccer schedule.
Despite being excited at the prospect of two MLS teams competing, Garber says he understands the concerns over the competition and wider fixture congestion.
He said: “There’s going to be a lot of energy and momentum around building interest in soccer leading up to the World Cup and the Club World Cup is going to be one of those events, and I’m excited that two of my teams are going to be participating.
“I will say, we all need to be mindful of the calendar, and I understand Javier’s views.
“I think we’ve got to all work to see whether or not we can be a more engaged part of the decision-making process, and I would include that in the Club World Cup. We as a league are as mindful as everybody else about the toll on our players and all the various competitions they have to compete in.”
Garber also warned that there could be a danger of over-saturation in soccer but that the lawsuit against FIFA could actually be a pathway to a more palatable global calendar and greater collaboration between governing bodies and leagues.
He added: “I read about the lawsuits the other day … Sometimes it takes a little disruption to get everybody to sit at the same table and make the right decisions.
“I would hope that you make those right decisions, because you’re basing those decisions on data, fact and research and strategy, but if not, sometimes you have to be forced to make those decisions.”
