Larry Berg has been appointed as the next MLS commissioner, set to lead the league into a pivotal phase marked by strategic growth and challenges.
Major League Soccer (MLS) is preparing for a significant transition as it announces Larry Berg, co-owner of LAFC and a private equity veteran, as the next commissioner. This decision was finalized during a meeting of MLS owners in New York City, where Berg faced off against former Fox executive David Nathanson for the coveted position.
Set to assume his new role on January 1, 2024, Berg will sell his ownership stake in LAFC, a club he helped launch in 2018. In his first public statement after the announcement, Berg expressed a vision of expansive possibilities for MLS, emphasizing the need to enhance the league's competitiveness, develop world-class talent, and deepen connections with its supporters. “We have an extraordinary opportunity to strengthen the quality of our competition, develop more world-class players, deepen our connection with supporters, and continue elevating Major League Soccer’s place in the global game,” he stated, setting a hopeful tone for his leadership.
A Look at Berg's Background
Berg's appointment comes on the heels of a distinguished career in private equity, notably at Apollo Global Management, where he served as a senior partner before moving to 26North. Under his tenure, Apollo has managed nearly a trillion dollars, a testament to his experience and strategic insight that MLS hopes to leverage as it navigates a rapidly evolving sports landscape.
MLS has increasingly integrated private equity investment, allowing such firms to own stakes in teams. Since the shift in policy in 2020, 16 of the league's 30 clubs have welcomed private equity backers. This trend mirrors a broader shift in U.S. sports, where financial resources from private equity can fuel team development and infrastructure upgrades. In April 2023, MLS also secured backing from KKR for its developmental league, MLS Next Pro, signaling a commitment to growth beyond the main league.
The Legacy of Don Garber
Current commissioner Don Garber, who has held the position since 1999, will transition to a new role as MLS Chairman. Under Garber’s stewardship, the league has expanded from just 10 teams to 30, securing star players including David Beckham and Lionel Messi—a trend that has significantly raised the league's profile. Garber's emphasis on youth academies is noteworthy; he has overseen the creation of 30 academies over the past eight years, a key achievement in developing American soccer talent.
However, Garber's tenure has not been without challenges. The recent media partnership with Apple, though lucrative at $2.5 billion, has faced scrutiny for its opaque viewership statistics, raising questions about the league's visibility. The league's adjustment to its media strategy, including the recent elimination of the Season Pass paywall this season, aims to make games more accessible to fans. Despite these efforts, viewership concerns remain a dark cloud, especially as MLS prepares to change its season format.
Strategic Changes Ahead
One of the most significant shifts being implemented is the move to a fall-to-spring schedule, aligning MLS with the European calendar by 2027. This change seeks to facilitate player transfers with leagues overseas and capitalize on the momentum generated by the recent World Cup. Critics like Tom Penn, CEO of San Diego FC, argue that the timing for this transition could have been more favorable right after the World Cup, leveraging the heightened interest in soccer at that moment.
As Berg steps into his role, the upcoming "sprint season" from February to May will serve as a testing ground for these changes before initiating the full season next July. This pressure of strategic alignment with global soccer standards and addressing local viewer engagement will be among the foremost challenges on his agenda.
Looking Forward
Many are optimistic about Berg's leadership, with Garber personally endorsing him and expressing confidence in his vision for the future. The league stands at a critical juncture, with opportunities for growth and areas requiring urgent attention. As Berg prepares to take the helm, all eyes will be on how he navigates the complexities of the MLS landscape and secures its place in global soccer.
The road ahead certainly won't be without obstacles, but Berg's blend of private equity expertise and soccer experience could just be the catalytic force MLS needs to propel itself into its next chapter. With the league’s ambitions high and the support of previously untapped investment resources, it will be fascinating to watch how Berg implements his vision while addressing the key issues that have lingered under Garber’s long leadership.
As the countdown to the new season begins, the anticipation within soccer circles continues to grow, culminating in what promises to be an exciting new era for Major League Soccer.
