Larry Berg, MLS's new commissioner, views the league's media rights deal with Apple as a pathway for growth, addressing both opportunities and gaps in revenue.
Larry Berg is stepping into the role of Major League Soccer's (MLS) next commissioner with a clear vision for expanding the league's media rights revenue. His comments come shortly after taking over from Don Garber, who has overseen significant shifts in how MLS engages with its audience, particularly through its groundbreaking agreement with Apple TV+.
In an interview with Front Office Sports, Berg addressed the pressing concerns raised by NYCFC CEO Brad Sims, who identified broadcast revenue as the "one gaping hole" in MLS's financial ecosystem. While Berg took a diplomatic stance on the league’s current media rights deal, he firmly believes there’s substantial potential to enhance that revenue stream.
“Let me say this,” Berg explained, “in my private equity business, if I buy or acquire a business that has a very popular revenue item that is low, that means a lot of upside.” His mathematical approach clearly indicates that MLS has room to grow in a market where it hasn't always enjoyed the same broadcast revenue percentages as its counterparts in other major sports leagues.
The AppleTV+ Deal: A Landmark Agreement
The MLS struck a landmark 10-year, $2.5 billion media rights deal with Apple in 2022. This partnership aims to revolutionize how viewers access games, yet raises questions about the current revenue landscape for the league. While Berg has termed the opportunity to raise TV rights revenue as an “uncapped upside,” he refrained from labeling it a “gaping hole,” suggesting more measured optimism. Instead, he sees it as a clear opportunity for growth that he and the league fully intend to exploit in the coming years.
Under Garber’s tenure, the MLS experienced robust viewer growth but faced challenges in measuring that success. As of last year, Garber reported an average of 120,000 unique viewers per match, an increase of nearly 50% compared to previous seasons. However, he underscored the complexities of tracking metrics in a subscription-based model, differing greatly from traditional linear broadcasting. “We’re struggling with… how to evaluate how people are in a subscription service,” he noted. This has left the league grappling with which metrics—such as average-minute audience versus unique viewers—truly define success.
The Path Forward: Key Challenges and Opportunities
Berg's focus on metrics and revenue suggests a broader strategy is brewing. There’s a palpable urgency to bridge the gap in media rights income, and the incoming commissioner seems reasonably optimistic that such improvements can materialize. Legacy leagues often enjoy more favorable broadcasting arrangements, which serves as a benchmark for MLS as it looks to negotiate better deals in the future.
Moreover, the league's transition from exclusive streaming in the early years of the Apple deal to a more inclusive model starting in the 2026 season—where matches become available to every Apple TV subscriber—could further broaden the audience. MLS hopes this will also enhance viewer engagement, which is vital for negotiating future rights deals. With more fans able to access games, the potential for revenue growth could be significant as the league positions itself within a competitive sports market.
Context and Future Implications
This kind of revenue restructuring is not unique to MLS. Other leagues have faced similar challenges when moving into a subscription model. As minor leagues of sports like the NHL and MLB crafted their digital platforms, they saw both growth in viewership and growing pains in their analytics. It's clear Berg is polishing a strategy rooted in those lessons learned while trying to forge a future where MLS thrives financially.
With the soccer landscape evolving rapidly in the U.S., and new franchises emerging, the stakes are high. Berg will likely be keenly aware of the financial implications any media rights enhancements will have on the league’s overall health. As such, this period may define not just Berg's tenure as commissioner, but also the long-term trajectory of Major League Soccer.
With an eye toward refining how MLS operates under the Apple deal, it’s worth keeping an eye on what Berg’s leadership will bring to the table. The upcoming seasons could very well mark a significant turning point for media engagement and revenue generation, shaping how soccer is consumed in the U.S. and potentially reconfiguring the league's status within the wider sports hierarchy.
The path forward is not without its challenges, but Larry Berg's perspective presents an intriguing case for the future growth of MLS media rights and the league's standing in the competitive American sports market.
