Dynamo For Sale
Published by Mike on Wednesday, November 28, 2007 at 11:41 AMThe news: In an ongoing attempt to diversify ownership of the league and improve the bottom line of franchises, Major League Soccer has asked Anschutz Entertainment Group (AEG) to sell the Houston Dynamo because it also owns the Los Angeles Galaxy. Even better, the league has found a way to negotiate a stipulation that the sale would not affect Houston's progress toward building a new soccer-only stadium downtown. The deal would include an agreement that the team could not move, ensuring that the stadium would go on as planned. Oscar de la Hoya is leading the conversation to buy the team from AEG.
Winners
Houston Dynamo: With two consecutive titles under their belts, a new soccer-only stadium on its way downtown, and the chance to attract a dedicated new owner, things continue to look good for the organization. Already a club with growing prestige, an improved ownership structure is sure to put the Dynamo in an elite group of organizations in the league.
LA Galaxy/AEG: For AEG, the deal fits because of addition by subtraction. They can now focus on their stronger investment, the LA Galaxy, who are making a hard push to become an international super-club. They have a long way to go, but with AEG now focusing all of their energies and resources on the Galaxy, even more opportunities should arise for the club and their investor.
Major League Soccer: The league helps its chances of improving upon an already strong club. Diversifying league ownership is a big reason why the league has been so successful in the last few years, as private owners are more concerned about turning a profit by way of running their organization to its fullest potential. Once again, the league benefits from their new-found business sense.
Losers
To Be Announced: I'm not sure if there are any real losers in the deal, but the thing that concerns me is Oscar de la Hoya's attempt to buy the team. I don't know much about the boxer other than his bouts in the ring, so it is hard for me to judge his chances at running a good club. I just hope he is really dedicated to doing a good job, because operating a successful MLS franchise is a delicate process. Let's hope it is a true passion of his, and not Oscar making a "trendy" purchase "because he can." Otherwise, all the winners might become losers...
Labels: AEG, Houston Dynamo, LA Galaxy

