Date:Tue, 8 Jan 2002 12:40:56 EST
Reply-To:Discussion of Topics for Soccer Referees <[log in to unmask]>
Sender:Discussion of Topics for Soccer Referees <[log in to unmask]>
From:Ed Bazan <[log in to unmask]>
Subject:MLS Contraction is Official
Content-Type:text/plain; charset="ISO-8859-1"
MAJOR LEAGUE SOCCER ANNOUNCES ELIMINATION OF
TAMPA BAY MUTINY AND MIAMI FUSION FOR 2002 SEASON
New League Format Will Allow for Greater Revenue Opportunities at the Team
Level and
Assure Every MLS Team Will Have An Investor-Operator
NEW YORK (Tuesday, January 8, 2002) - - Major League Soccer
Commissioner Don Garber announced today that the Tampa Bay Mutiny and the
Miami Fusion will immediately cease operations. The decision to close both
teams was made unanimously by the MLS Board of Governors, after a
comprehensive strategic review of the League's operations.
The League also announced that it is in continuing negotiations with several
entities to invest in MLS and acquire the operating rights of the Dallas Burn
and San Jose Earthquakes. An announcement is intended in both markets prior
to the beginning of the season.
Additionally, the League announced that the Anschutz Entertainment Group has
exercised its option to become the Investor-Operator of D.C. United. When
these transactions are completed, the League will for the first time have an
Investor-Operator for every MLS team.
Finally, the League has made significant changes to its operating
relationship with its teams. These adjustments will provide enhanced revenue
opportunities at the local level by allowing teams to retain a greater share
of revenue from ticket sales, local sponsorship and television.
These changes follow the announcement on December 6, 2001 that MLS investors
committed to funding and operating the league for the next five years,
through the 2006 season. The six-year old League also announced last week a
five-year extension of its broadcast agreement with ABC and ESPN to televise
a significant schedule of MLS games. At the same time, the League announced
the formation of a new marketing and production company which purchased the
rights to the 2002 World Cup, 2003 Women's World Cup and the 2006 World Cup
and an agreement with ABC and ESPN to broadcast all three of these World Cup
tournaments in the United States (English language).
"Our investors have made a number of strategic decisions that will
better position MLS in the short and long term," Commissioner Garber said.
"These decisions took many months to finalize and were enormously complex and
involved, but are necessary to ensure the future success of the League.
While we are reducing the number of teams by two for now, the long-term
funding commitment, media commitments, new investment and the fact that all
teams will have Investor-Operators will make MLS a stronger and more viable
league going forward."
The MLS Board of Governors has determined that all teams must have an
Investor-Operator to manage and fund local operations. The League and Board
of Governors thoroughly evaluated all teams and markets, based on their
ability to provide value to the league and the sport overall for the
long-term. Factors that were considered in the decision-making process
included ownership status, past market performance, market potential, and the
soccer appropriateness of the local stadium.
"The decision to leave both cities for the 2002 MLS Season was extremely
difficult," said MLS Commissioner Garber. "I can assure all of our fans that
we worked tirelessly to find a plan that would have allowed us to remain in
both markets. We simply could not find a solution that was economically
feasible at this time and we hope to return to the State of Florida when the
League expands in future years."
Major League Soccer's investors include Philip Anschutz of Denver, the Hunt
family of Dallas, the Kraft family of Boston, Kenneth Horowitz, Alan
Rothenberg and the global advertising agency, Dentsu. The Anschutz
Entertainment Group (AEG) is the Investor-Operator of the Chicago Fire,
Colorado Rapids, D.C. United, Los Angeles Galaxy, and the MetroStars. The
Hunt family is the Investor-Operator of the Columbus Crew and Kansas City
Wizards. The Kraft family is the Investor-Operator of the New England
Revolution. The additional shareholders are investors in the entire League,
but do not have operating rights to a specific team.
The deciding factor for not continuing operations of the Tampa Bay Mutiny is
the fact that the team has not had an investor-operator since it began play
in 1996. The Mutiny have been operated and funded by the League Office since
its inception.
In Miami, the MLS Board of Governors, along with Investor-Operator
Ken Horowitz, who founded the Miami Fusion as an expansion team in 1998, have
determined that the local market is not capable at this time of providing the
support necessary to effectively sustain a Major League Soccer team. Both
the League and the team worked throughout the 2001 season to bolster the
team's support from the local community. Even with an Eastern Conference
Championship and increases at the gate, the team remained among the lowest in
League average attendance, corporate support and overall revenues.
Mr. Horowitz will remain an investor in the League, with a n option of
returning as an operator in South Florida or an expansion market.
"There are few owners in professional sports who dedicated themselves to
their team as Ken Horowitz did the Fusion," said MLS Investor-Operator, Lamar
Hunt. "He tried so hard to make it work in South Florida and all of us in
Major League Soccer greatly appreciate his passion and commitment to the
game."
"Ken Horowitz contributed so much to the League and the sport in South
Florida," added MLS Commissioner Don Garber. "I know the pain and sorrow he
feels to no longer be associated with the Fusion. He gave every effort over
the past years to create a team that represented the community with pride,
personality and public service."
MLS will feature a 10-team, two conference alignment for the 2002 season.
The Eastern Conference will consist of the Chicago Fire, Columbus Crew, D.C.
United, the MetroStars and the New England Revolution. The Western
Conference makeup will consist of the Colorado Rapids, Dallas Burn, Kansas
City Wizards, Los Angeles Galaxy and defending MLS Cup champion San Jose
Earthquakes.
MLS Will Conduct Allocation/Dispersal Drafts of all Tampa and Miami Players
In conjunction with this announcement, MLS will conduct a Dispersal Draft of
the Tampa Bay and Miami rosters on Friday, January, 11. All former Fusion
and Mutiny players will be placed into a Dispersal Draft pool, along with all
first round picks in the 2002 SuperDraft held by Miami and Tampa Bay. All
lower 2002 SuperDraft picks held by these teams (other than picks they may
have previously traded away) will be eliminated, including any picks for
which the teams had traded.
Immediately prior to the Dispersal Draft, teams due allocations for the 2002
season will participate in an Allocation Draft and may select any one
player/pick on the Dispersal Draft list per allocation.
The MLS Competition Committee has approved the allocations and selection
order for those allocations as follows: Colorado (failure to make the 2001
MLS Cup Playoffs); New England (failure to make the MLS Playoffs); DC United
(failure to make the MLS Playoffs); Colorado (Unused 2001 allocation); New
England (loss of Leonel Alvarez and Mauricio Wright); New England (loss of
William Sunsing); Dallas (retirement of Lubos Kubik); Los Angeles (loss of
Luis Hernandez); and San Jose (unused 2001 allocation).
2002 MLS Dispersal Draft Timeline
Friday, January 11, 2002 Allocation Draft
Dispersal Draft
Tuesday, January 15, 2002 MLS Waiver Date - All teams in
compliance with roster rules
Thursday, January 17, 2002 MLS Waiver Draft
Immediately following the Allocation Draft, the League will conduct the
Dispersal Draft. The draft order is based on the natural SuperDraft order
based on final 2001 standings:
1. Colorado Rapids 6. MetroStars
2. New England Revolution 7. Columbus Crew
3. D.C. United 8. Chicago Fire
4. Kansas City Wizards 9. Los Angeles Galaxy
5. Dallas Burn 10. San Jose Earthquakes
Further details of the Allocation/Dispersal Draft and the 2002 Rules of
Competition will be released later this week.
Headquartered in New York City, Major League Soccer features many top stars
from the United States and around the world, and is America's only Division I
men's outdoor professional soccer league. For the latest headlines and
official information on MLS, log onto www.MLSnet.com.