The MLS Cup Final will crown the league's first two-time champion this decade, as clubs that couldn't be more different off the field showcase rival models to ultimately create success on the field.
Reigning MLS champions LAFC visit the Columbus Crew, who won the franchise's second title during the pandemic-inflicted 2020 season. This season, both teams stacked up pretty evenly, each finishing third in their respective conferences before making the playoffs in Saturday's championship game.
But when comparing LA and Columbus away from the field, the differences become stark.
This year, LAFC became the first MLS team to receive a billion dollars assessment when Forbes pegged the team's value at nearly double the crew's $550 million valuation.
Columbus is six years into the tenure of the group led by Jimmy Haslam, who has built a mini sports empire in MLS, NFL and NBA with the wealth from his family's massive truck stop business, Pilot Flying J. Los Angeles. Meanwhile, it's led by a pair of private equity investors and the co-founder of Riot Games – but most notably the team's minority shareholders, including Will Ferrell, Magic Johnson and Mia Hamm.
The contrast in ownership structures extends to clubs' business operations, as both try to strike the right balance between remaining competitive and bottom line.
A Hollywood story
LAFC's season-long title defense led to another banner year for the club.
Revenue is up more than 20 percent compared to 2022, LAFC co-president and chief operating officer Larry Freedman told Front Office Sports, confirming last year's figure was north of $100 million.
This season's growth includes a 33% increase in revenue from corporate partnerships. Overall, LAFC has increased revenue by 80% since 2019, the season before the pandemic.
“None of this includes Leo Messi, by the way,” quipped Friedman, meaning: They did it without having to introduce a soccer legend.
Inter Miami says its revenue from this season will end up around $120 million and plans next season to bring in $200 million as the benefits of signing the Argentine legend grow. Friedman says he is good friends with Inter Miami co-owners Jorge and Jose Mas, as well as the team's chief operating officer Xavi Asensi, and they often talk about MLS growth.
However, in the end, LAFC wants to remain competitive both on and off the field. “Their income seems to know no limit,” Freedman said of Inter Miami's newfound wealth. “But I think we're still in the same ballpark and we did it the old way.”
LAFC's success has caused some original prospective investors — people who turned down the chance to invest in the club in 2014 — to rethink their decisions, Freedman said: “Now they're coming around the corner and saying, 'Hey, remember where you asked me?' Can I still say yes?'
But the star-studded ownership group isn't just for show, like some others around sports, Freedman said. “You see a lot of celebrity ownership in sports [that] I would describe as [a] trick – people aren't as involved.” Ferrell, for example, helped provide a series of video content for LAFC, and even did game commentary for a game broadcast.
Despite hitting the $1 billion mark, there is no valuation target for LAFC's ownership trio of Bennett Rosenthal, Larry Berg and Brandon Beck, who Freedman believes want to keep the club going as long as possible.
That long-term approach is something LAFC's MLS Cup rival also prioritizes – but there's an entirely different buying strategy in Ohio.
Hard at work
The Crew is a part of the growing Haslam Sports Group, which also includes the Cleveland Browns and a joint controlling stake in the Milwaukee Bucks. In 2025, the Nashville Predators will also be part of the group when Bill Haslam, Jimmy's brother, completes the purchase of a controlling interest in the NHL franchise.
“We're thinking about all these teams together,” Haslam Sports Group head of strategy and development Josh Glessing told FOS. This even includes, to some extent, Aston Villa, the Premier League club co-owned by Haslam's Bucks partner Wes Edens.
Together, these five groups have a collective value estimated at more than $9 billion. And asset diversity can be an asset in maximizing value. “There's no argument about what dollar goes where,” Glessing said. “It was really one of the benefits of being in different markets and different sports.”
All franchises have shared some strategies and resources around things like ticketing, marketing and sports science to help improve operations. For the Crew, the closest integration to date is with the Browns, as the Ohio teams, which have been under the longer HSG banner, have shared some local sponsors.
And the size of the crew market — Columbus' population of nearly one million is actually more than twice that of Cleveland — is generating more business than many might expect. “What many people miss when they think of Columbus is [that] it's seen as a college town,” Glessing said. Corporate sponsorship revenue has increased 110% since the 20,000-seat Lower.com Field opened in 2021. (Glessing would not provide specific dollar amounts.)
Columbus is certainly no LA, financially, but these teams will be evenly matched when Saturday's game begins.
Trophy hunting
The prize money for winning the MLS Cup is not franchise-changing – the winning club will reportedly receive $300,000, compared to $150,000 for the runner-up.
But winning another trophy is very important for any club that is building further credibility with its fan base and financial partners.
LAFC knows the challenge of competing with their crosstown rivals, the Galaxy, who have won five MLS Cups. Even in 2019, after winning the MLS Supporters' Shield with the best regular season record, the weight remained. “Whatever we did, it was like this: [Call us] when you win a Cup,” Friedman said.
Now, his club is not only looking for else title, but also to raise its global profile. LAFC has an investment in Austrian club FC Wacker Innsbruck and is reportedly exploring the acquisition of Swiss side Grasshopper Club Zurich. In addition, LAFC has a 50-50 player development partnership with Bayern Munich — Red & Gold Football — that could lead to further collaboration with international clubs.
This offseason, the Crew will add a second party at Lower.com Field after seeing success in 2023 selling out the luxury viewing area that can accommodate up to 200 fans at games. The group will also open its first commercial building with fully leased office space.
The total money the Crew brings in won't rival LAFC's, but Glessing emphasizes the value of a long-term investment strategy: “We're not taking a short-term approach, year after year, of 'Does this help us generate more cash flow?' Yes or No.' “
The clubs' different strategies and financial models brought these clubs to the pinnacle of the league in 2023. And for now, we have a Hollywood-meets-Midwest matchup to determine this season's MLS champion.
