Economics of Girls Development Academy

The President of the LA Galaxy said on the radio Wednesday that they have spent "several million dollars" fully funding their girls development academy program (including improving a soccer field).

I wondered how that could be possible. The Galaxy is a for profit enterprise. How do they expect to get that money back? It's different from MLS teams that have sponsored similar boys teams. The Seattle Sounders, for example, benefited when Jordan Morris chose to come back and play for them as a "home grown" player. But girls DA players obviously will not play in the MLS. (Nor will they likely earn a livable wage playing professional women's soccer. The team cap, for all players combined, is $315,000 a year!)

So how can the Galaxy afford to invest millions of dollars for teenagers to practice soccer. Is it marketing - do they just hope to make it up in increased licensing fees from the affiliate LA Galaxy clubs (South Bay, Orange County, San Diego)?

And what about the other clubs? Are they fully funding their DA teams too? If so, then I guess they've now just set in stone a policy that full-pay families have to subsidize the top players (who may have no prior connection to the club). Is everyone okay with that?

 

Perhaps they are going for a long term goal of one day having a female soccer team in the NWSL and this is their vision to increased ticket sales, brand recognition or home growing some females of their own. Or maybe they just follow the belief that what goes around comes around so they are giving back to the sport they make money in, ideally in hopes of a return as it is a benefit. SoCal does have a huge youth female soccer base. Sometimes it's not always about the initial return on investment but rather a long term one.

 

Love your post. We already subsidize the A team at every club.
Pats are fully funded and are among a large dent in OC

 

Come on Striker, you know that isn't true. It may be the case with some Clubs but not "ALL".

 

You are correct not all, I would say 99% but there is still that 1% out there

 

Yes, we already know that LA Galaxy and Pateadores are offering fully funded DA programs for their girls teams. Don't forget that LA Galaxy is owned by AEG, which is ridiculously wealthy. I doubt that LAG has spent several million dollars on the GDA, but it sure sounds altruistic. If true that they have spent several million dollars, there is a long-term plan in place (AEG won't spend that money unless they are very confident it will be recouped and then some).

As for the "lower" teams paying for the "A" teams, I think that happens very frequently. My dd is an 03 DA reserve player, which will cost me between two and three thousand dollars this year. I am okay with it and well aware that my dollars are helping subsidize other players who may be paying little or no club fees.

Lastly, what I would really love to know is how many players from the other GDA clubs are being offered free rides or very reduced prices to have their dd playing there? If my dd was a unicorn, I would be playing clubs against one another looking for the "best deal".

 

With all the avenues of information distribution available to parents today (other parents, blogs, boards, observations, etc.), it amuses me that there are still parents out there (and not just the U littles with their blinders) that don't know that at any mega club, their child is either on the A team or they are paying for someone else's kid who is. I might add that there are exceptions such as the parent with the child who has no business being on the A team. He is either paying full boat to ride the bench or he is subsidizing the guy starting in his position.

Yes, this is a generalization but it is also the reality of club soccer. If you don't want to pay for your neighbor's kid, join a smaller club and only pay for your child. Otherwise, accept it for what it is. It is nothing new and the bottom line is the A teams (particularly olders) require large budgets and someone needs to cover that cost. You can't brag to your friends about that Surf, Slammers or Legends patch on your kid's jersey and expect not to have to pay for what makes it so special to you.

DAs is a different animal. One would have to be a real idiot (excuse my French) to be participating in Club that has DA status and not realize that they are helping to fund that program. I actually think most people playing for DA clubs aren't idiots and realize this.

 

AEG owns several sports franchises and entertainment venue.

The benefit can be direct or indirect. In other words, I'm speculating, regardless of the magnitude of money spent, any amount probably was spent on some shell organization that yields tax benefits to AEG.

Most likely that there's some type of foundation setup or expensed out as an offset to the business unit's accounting (LAG). Also publicity value to draw more fans and combined revenue for LAG must be considered.

Its a drop in a bucket, compared to what they spend in marketing.....

 

Let me rephrase my question -

Given up how expensive it looks like these DA programs might be compared to anything that has come before, are club parents okay with picking up that expense? And would they still be okay with that if it turns out most of the girls who make their club's DA team in the coming years did not rise up through their own club?

Separately, for those DA clubs that have been subsidizing their "A" teams, what happens now that they've added DA on top of that structure? Do kids who don't want to play DA (perhaps because they want to play high school soccer) now have to give up their scholarships? Or are the clubs now funding two teams - the old "A" team and the new DA team?

 

Interesting to read this. Dynamic is very different in Norcal. ECNL is the top team for our club, and each team self-funds. My dd is on the ECNL team and I'm familiar with the fee structure. Whether you play 100% or 20% of the time, your fee is the same. There are scholarships here or there, but definitely not the entire top team being funded (except for one club...and may not be the entire team).

 

It's really simple. All DA clubs is doing right now is getting more affiliates, so they can not only support their DA but also DPL, A team or whatever else they want.

 

I can and will only speak to my experiences. As a Team Manger and Treasurer I was privy to Scholarship information and never had a single "Fully Funded" player on either of my DD's teams (yes, A team). Not saying it doesn't happen, I know it does. But you can't say at "All Clubs". That's my only point of contention.

 

So who are the Eagle, Beach, Blues & Real SoCal affiliates?

 

Do you know for a fact that those clubs are fully funding their DA?

 

Let's see....
Real SoCal now have SCV
Beach have Long Beach and South Bay
Blues don't have anyone but they are the most expensive club as it is
Have no clue about Eagles

 

Beach doesn't?! What????
They are holding out man!!

 

Can't say what is at 03 but that sure as heck happened at 04. I actually encouraged the bidding war and found it to be hysterical!

 

Lost leader....the financials required for fully funding or even just DA is 2-3x what normal club cost: times mutiple x teams on the girls & boys side and it's big $$$$ bucks.

Galaxy has been spending upwords of 4 million a season for boys academy programs. The don't own those fields, rentals for example.

Galaxy has already invested around three $million$ on girls da according to somebody I talked with recently.

Anybody what to guess what the Pats will be spending on there 10 da teams for the girls and boys?

 

I know for a fact they are NOT Fully funded.

 

Your statement was "All DA Clubs is getting affiliates to pay for..."

Real SoCal has SCV for 2 years now
Beach LB and SB are not affiliated, they are all part of the same Club run by a single DOC
Blues - no affiliate
Eagles - no affilate

I am 100% in agreement that SOME DA clubs are doing this, but not ALL!