USL President & Chief Soccer Officer Paul McDonough said the league is “looking at different mechanisms” to protect their clubs that are smaller or in newer markets. McDonough, speaking on the “Florida Business Minds” podcast, said initially, everyone “looks at England and the TV contracts about teams that get relegated” and “they lose so much revenue.” He said the financial safeguards they need to consider “really have to be more to protect the teams that go up” because the costs of doing business “are higher.” McDonough: “We don’t see the relegation and the parachute payments being the problem. It’s more of an inflatable payment as they go up to protect them.” He said for the clubs whose businesses are underperforming, they have “spent a lot of time” trying to improve them. He noted the league has “invested money into a group called the ‘Club Performance Group’” that will “help clubs sell tickets” through ticket strategy and sponsorships, and “letting them know what the trends are throughout.” McDonough: “So a lot of data is given to the clubs to help them lean into how to be better economically.” On the comparison to MLS and how to differentiate the USL from that league, McDonough said, “We have to lean into the ecosystem and what promotion/relegation means.” He said, “We’re not going to spend that type of money that the MLS spends on players.” McDonough: “If we can link the ecosystem together through promotion/relegation, it’s something that will be different” (“Florida Business Minds,” The Business Journals, 11/4).
McDonough: USL exploring ways to protect smaller and newer clubs
