LAGSB - what’s going on??
- Thread starter RedNevilles
- Start date
This is definitely an interesting corporate entity structure, wonder if there's an offshore company in the Cayman Islands somewhere in the mix. Seems like someone saw an opportunity in the roughly $13B youth sports market and wants to monetize at scale. Now you can add Steel United somewhere in the org chart. I've always wondered why soccer clubs can operate as non-profits; I get what they say their mission is, but it seems like a pretty big loophole to me.
A few links:
Parent company -- Steel Partners -- https://www.steelpartners.com/
Steel Sports -- https://steel-sports.com/
UK Elite, Portfolio company of Steel Sports -- https://steel-sports.com/our-portfolio/uk-elite/
https://ukelite.com/
Subsidiary of UK Elite that operates teams -- https://thefootballclubusa.com/
A few links:
Parent company -- Steel Partners -- https://www.steelpartners.com/
Steel Sports -- https://steel-sports.com/
UK Elite, Portfolio company of Steel Sports -- https://steel-sports.com/our-portfolio/uk-elite/
https://ukelite.com/
Subsidiary of UK Elite that operates teams -- https://thefootballclubusa.com/
I hope that poster was joking or else he/she is completely misinformed. Lastman is pretty transparent about his involvement in LAGSB on the girls side as a parent and team manager.
And, what? You seem to think this proves any of your claims?
The interesting question might be why someone is calling this "Steel United" rather than "The Football Club USA," which apparently has acquired clubs in 6 states (the latest being the Jersey United Club in Spring 2018 and the John Smith club in Massachusetts in Summer 2018). Perhaps this is something different and new and Steel Sports is trying to innovate. If not, and the name thrown around is just a placeholder for another FCUSA franchise, then you could probably find out more about how things will go here by investigating the other locations in places like Massachusetts, Texas, New Jersey, Maryland, New York, and Pennsylvania. They claim to be the fastest growing youth soccer club in the US and I don't doubt it given that they literally have gobbled up clubs over the last two years and appear to have something like 170 teams and 2,750 players now
Footbollah
BRONZE
The latest development is that LAGSB (not the defecting directors/coaches) circulated to team admins that the new Boys' Technical Director for LAGSB is Paul Krumpke, men's head coach Loyola Marymount University, which admins (at least ours) forwarded to parents.
FWIW, being a parent of a kids in the boys program, communication was never great, even face to face, with the handful of boys directors I interacted with (lots of dropped balls). It was difficult to understand why club fees were so high--a couple of clubs kids left our team to were 20%-30% lower (too many directors maybe?). The coaching quality varied a lot based on the coach, which undercutting the whole idea of having director overseeing combined practices on Friday. The boys directors seemed unresponsive (maybe too busy running tournaments and UK Elite? I don't know).
Anyway, I would hesitate to follow that cast of characters anywhere myself, and I don't see how involving a new entity will fix those problems, unless corporate is looking to lose a lot of money for a tax write-off. But if they figure it out and everybody wins, great!
FWIW, being a parent of a kids in the boys program, communication was never great, even face to face, with the handful of boys directors I interacted with (lots of dropped balls). It was difficult to understand why club fees were so high--a couple of clubs kids left our team to were 20%-30% lower (too many directors maybe?). The coaching quality varied a lot based on the coach, which undercutting the whole idea of having director overseeing combined practices on Friday. The boys directors seemed unresponsive (maybe too busy running tournaments and UK Elite? I don't know).
Anyway, I would hesitate to follow that cast of characters anywhere myself, and I don't see how involving a new entity will fix those problems, unless corporate is looking to lose a lot of money for a tax write-off. But if they figure it out and everybody wins, great!
It will be interesting to see how the girls side reacts. Looks like a large amount of revenue walking out the door and the girls side has made a big play of offering lots of scholarships to lure players from other clubs this year. If the revenue for the girls DA ever went away the girls side would be in real jeopardy.
Dos Equis
GOLD
Paul Krumpe was the DOC the Exiles turned to when they broke apart. Mr. Frost, as I recall, was effectively the head of Exiles during its break-up, and was most recently listed as President of LAGSB.
As for FCUSA, the question is what are the benefits of such an affiliation, and will the people/coaches in charge locally have the desire and wherewithal to take advantage of them.
Past experience is often the best predictor of future behavior. The good news is that it is still tryout season.
As for FCUSA, the question is what are the benefits of such an affiliation, and will the people/coaches in charge locally have the desire and wherewithal to take advantage of them.
Past experience is often the best predictor of future behavior. The good news is that it is still tryout season.
Can you clarify what you mean by this? My understanding is that LAG (MLS Club) operates the LAG Girls Academy while LAGSB (an affiliate) runs a successful girls program in the South Bay with teams participating in SCDSL and DPL. What is the revenue that flows from LAG Girls DA to LAGSB? LAG Girls Academy does offer a fully funded girls DA program in which LAG has invested, so LAG changing their approach or willingness to invest would seem to impact LAG Girls Academy but not LAGSB (except to the extent that the perception of LAGSB as a feeder to LAG Girls Academy is impacted).
Footbollah
BRONZE
You are correct. There is to my knowledge no direct financial tie between the two entities. However. Should the MLS group ever withdraw funding for the DA, which is obviously a major benefit, it will unquestionably have a knock on effect to the South Bay entity which primarily positions itself as the gateway to a heavily subsidized/free Academy program and bases much of it's recruitment on that premise.
The SB entity has enticed players into the club with a message of a direct pathway to a free academy, as well as significant scholarship efforts this year to attract new talented players. They have used the financial side as the heavy bargaining chip. If there are any financial discrepancies - non payment of coaches as has been suggested, then I believe big picture it could create future issues for the girls side of the club.
rainbow_unicorn
PREMIER
Coaches not getting paid is an unconfirmed rumor. I have asked around and have not yet heard of a coach being paid late. If you know of a specific example then please DM me.
To be clear on this point. I do not. I have heard from various sources but have seen nothing concrete.
Hmmm. This all seems very strange. For what it is worth, I don't think choosing a "club" is the way to go. We all should be doing our homework to know who the LEGITIMATE coaches are in our player's age group. If you are lucky to find one that is always creating good teams, developing a style, improving individuals, then you are one of the few. Maybe families in that area should really take a good look at options.
mahrez
SILVER ELITE
Yikes lots of baggage in this thread, reminds me of the whole Fullerton Rangers boys blowup few years ago when the Director was fired and a bunch of financial discrepancies where discovered. They seemed to recover after a house cleaning, audits, better communication so might be time for this Org to do the same. Some new leadership perhaps?, more transparent communications and financial controls appear to be needed in order to clean things up.
Our director used to be with this club at the beginning of the mergers so I wonder what he would say about this now ? besides being disappointed
Our director used to be with this club at the beginning of the mergers so I wonder what he would say about this now ? besides being disappointed
The Steel Sports and Football Club USA sound just like GPS Global Premier Soccer - lots of hype, behind the scene relationships with promises of "National Camps" etc. GPS is apparently run by a marketing genius with a degree from Harvard. So much money in youth soccer and now individuals with financial knowledge/expertise get it and are capitalizing on that....
https://www.globalpremiersoccer.net/whatwedo
they also makes similar claims to Football Club USA and when you try to look into it and really find out what they are doing and where the teams actually are it is a bunch of smoke and mirrors.
https://www.globalpremiersoccer.net/whatwedo
they also makes similar claims to Football Club USA and when you try to look into it and really find out what they are doing and where the teams actually are it is a bunch of smoke and mirrors.
Dos Equis
GOLD
The money in Youth Team Sports is not very concentrated, and the margins are pretty low. The professionalization of the coaching and leagues has been the source of most of the increase in costs and revenues. Two thirds of most youth team budgets are spent on coaching salaries, reimbursements and benefits. Frankly, for those behind Steel, there are a lot easier ways to make money. Speaking from experience, when finance groups/individuals get into youth sports, it is either because their kids are involved and they are trying to contribute (or improve what they see as a poorly managed enterprise) or it is a vanity project. What used to be a part time or volunteer endeavor has become a career/salary for a lot of former players, but it is not a wealth creator.
If LAGSD did have any financial difficulties, it is just evidence how thin the line between breakeven and insolvency is for many clubs.
An experienced coach who has not burned any bridges in this situation would be smart to take their team to a proven club, versus taking the risk of a new consolidator, in my opinion. That may require educating parents or managing egos of those concerned about where their team fits in the pecking order, but in the world of DA and ECNL, can we finally admit that teams not playing in those leagues tend to find their correct level of competition in the remaining options, and any talk of which league is better is generally a distant tertiary concern to the coach and team you select.
The GPS organization doesn't seem to be having all of those costs- they are forming "partnerships" or "association s" with existing clubs and marketing their own tournaments, "national camps" and the Bayern accademies which cost $30,000. That's why I said smoke and mirrors where it doesn't seem they are funding the usual youth soccer business that isn't necessarily profitable.
Surf Zombie
GOLD
We are in MA and I can tell you first hand that both GPS & FCUSA, if nothing else, have figured out how to make $ in the world of you soccer. Both are expanding at a rapid rate, gobbling up smaller clubs at every opportunity. Both clubs run lots and lots of camps & tournaments, and have a ton of players spread across multiple regions. Their ceiling is NPL, as neither is in DA or ECNL, so they cater to the large segment of the club soccer market that is above town travel but below DA/ECNL.
GPS is very expensive, something like $3,500 for mid level U11–U14 teams. But, people love that Bayern patch that is right up in the corner of all their uniforms.
GPS is very expensive, something like $3,500 for mid level U11–U14 teams. But, people love that Bayern patch that is right up in the corner of all their uniforms.
The coach of LAGSB '08s used to be the coach of the LAG U-12 academy for the team they formed until the program was scrapped. 99% of the kids on that team came from other teams outside of LAGSB.
These changes to LAGSB could have been the reason LAGOC expanded a team in LA, to keep the Galaxy presence in the area.