MLS in position to take advantage of transfer mayhem

No league in the world is in as good a position as MLS to take advantage of the upcoming transfer mayhem as a result of COVID-19. Here’s why.

The football world is reeling from COVID-19 and the havoc it has caused around the globe. Matches have been postponed for almost three months, clubs have lost entire revenue streams for extended periods, seasons have been called null and void, and the fallout will be massive.

One of the major environments of this paradigm shift will be the transfer window, as Toronto FC General Manager Ali Curtis explained last week.

“I do think the transfer market will exist, but there’ll be a lot less player movement than there’s ever been,” he told mlssoccer.com. “The finances of player movement will be significantly impacted.”

His comments have been echoed the world over, including in Major League Soccer. The latest to suggest something similar is Los Angeles Galaxy General Manager, Denis Te Kloese.

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“The player topic is really interesting and really important to look at,” Te Kloese told TUDN.com via mlssoccer.com. “We’re closely following it because obviously in some leagues there will be opportunities for players. I think everyone is waiting to see what will happen and how the transfer market will adjust in the summer, in the winter and next year. I think there will be a pretty important adjustment when it comes to salaries and transfer fees.

“We’re also waiting to see how the market is going to move – how it’s going to adjust – because it will be different from the way it was, that’s for sure. Now there are a lot of teams [around the world] with different priorities, above all getting back to a certain income level and being active. And this will take time.”

While these impacts are yet to be fully known in detail but are relatively plain to see from even the broadest of perspectives, MLS teams might be in the best position to take advantage of the situation, as te Kloese highlights in respect to the LA Galaxy. “We’ll see. Maybe among these players there’s someone who’s a fit for us,” Te Kloese said.

The reason for this is the financial responsibility that MLS is run with. While the single-entity ownership structure carries a bad rap, and for plenty of extremely valid reasons, especially as MLS becomes a more globally impacted and impactful league, one of the main benefits of having owners rely on the overall success of the league is that it adds a level of financial security to the league.

MLS is still figuring out how to make profits, admittedly, but it is known as an economically responsible and well-run league, one in which contracts are paid on time and the frightful rat race of European football is not present, not offering that dangling carrot to those who will never actually reach it.

The lack of promotion and relegation negates the financial risk. The salary cap limits how much teams can spend, putting a lid on total investments. Those chasing after the gold in a dangerous manner will be punished in European football. But in MLS, both the opportunity to spend beyond your means is taken away and the dangers that come with it are reduced substantially.

This now puts teams in excellent positions to spend, even after going through an extended period with cratered revenue. Of course, not all organisations will be ready to invest and there will be many feeling the strain of the current crisis.

Additionally, there is the moral argument. It does not seem right that a football club can spend millions on new players while society is reeling from thousands of deaths and millions of jobs lost and pay cut. We are steaming into a second global financial crash in a little over a decade. ‘Taking advantage of the situation’ is an uneasy process, to say the least. Nevertheless, this is elite-level sport. Clubs will look for every gain they can make, and if they have the upper hand financially, they are within their rights to flex that muscle.

In all, then, with the transfer market set to take shape in a depressed and different way to usual, MLS teams could be in the best position to spend, signing high-quality players for cut prices. Football will change because of COVID-19, and in some slightly crude way, MLS might benefit as a result.