Major League Soccer’s extraordinary growth from a tedious “retirement league” to an established platform for intriguing soccer, has caught the attention of fans and investors alike around America who wish to bring a Major League club to their city – so is the case for the city of Sacramento.
Photo by Sacramento Republic FC
Sacramento is eager to be chosen as the 22nd team to join the league – at least until 2020 – however, the management team for Sacramento Republic FC have key decisions to make. None bigger than: is it worth making this dream a reality?
In 2012, of the 19 teams in the MLS, more than half of the organizations were not profitable by the end of the season. Furthermore, the costs to start up a MLS club require the construction of a suitable stadium, which hovers around the $100 million mark. Despite the dismal reality for MLS clubs, Sacramento Republic FC can still become a profitable organization in the league if it is well positioned within its industry as stated in Michael Porter’s Generic Strategies.
If Sacramento is able to implement the low cost focus strategy on its abundant millennial and young population, it will have a greater chance at achieving profitability as an MLS club as well as providing the euphoria that Sacramento sports fans have long been deprived of.
References
http://www.forbes.com/pictures/emdm45efhfi/19-chivas-usa/
http://www.quickmba.com/strategy/generic.shtml