Soccer Is the Future of Sports in America

If you're in the business of professional sports right now, the fundamentals are cause for concern. Attendance is falling, even in the midst of a strong economy. Perhaps some of that decline can be attributed to the improvement in high-definition broadcasting and the prevalence of large flat-screen televisions, which make watching at home a much better experience than in the past. But that wouldn't explain why TV ratings this season for the National Basketball Association have fallen by double digits, although that might, in part, reflect the continuing declining in the number of subscribers to the cable bundle. Major League Baseball, meanwhile, is looking to eliminate almost a quarter of its minor-league franchises, many of which are in declining or rural communities.

Just about the only bright spot on the sports landscape is Major League Soccer, where prospective investors are paying ever-higher fees for the opportunity get in on the one sport where there's real growth in North America.

Before anyone gets too excited, it's important to note that compared with either the National Football League or the big European soccer leagues, MLS is still in the minor leagues when it comes to revenue. Last year, the NFL grossed more than $16 billion. MLS is in the neighborhood of about $1 billion, with the average team pulling in about $30 million, or roughly 10% as much as the average club in the English Premier League.