The Miami FC To Join USL Championship For 2020 Season. How It Happened & Why It's A Positive Move

Club will begin season in March 2020

Home games will be at Riccardo Silva Stadium On The FIU Campus

MIAMI, Fla. (December 12, 2019) —

The Miami Football Club will once again be in the second division of U.S. Soccer. The fifth-year club, which began life in and became one of the flagship teams in the now-defunct NASL, has played the last two seasons in the NPSL and NISA, lower level leagues outside of the official division sanctioning of U.S. Soccer.

Statement Released by the Miami FC on December 11, 2019

The team will join the United Soccer Leagues and begin play in the USL Championship in March, 2020 with its home games to be played at Riccardo Silva Stadium on the campus of Florida International University (“FIU”) in the western part of Miami-Dade County. That venue was renamed in 2017 by FIU in recognition of Silva’s financial contributions to the college’s athletic programs. It marks a full time return to that venue for the first time since 2017.

The news was announced at last week’s USL 2019 Annual Winter Summit, held in Orlando. Miami FC sporting personnel and club employees were present, holding meetings and attending sessions.

The Mechanics

The pathway to the USL Championship bears the label “Made in Canada / Fait au Canada.” Here is the background: The Ottawa Fury was owned by Ottawa Sports and Entertainment Group (“OSEG”). The club joined the NASL in 2014, later moving from the NASL to the USL in 2017. The club has averaged nearly 5,000 fans over the past three seasons, and reached the USL Championship Playoffs in 2019. On November 8, 2019, The Fury announced a suspension of their operations. after receiving news that their sanctioning to play in USL would not be renewed. This was not entirely unexpected, as Ottawa had to fight to receive sanctioning from Concacaf prior to the 2019 season, and Concacaf had been clear that the licensing would be for 2019 only. The confederation has been accused of trying to force Fury FC into the Canadian Premier League, something the club’s owners did not wish to do.

Relocation of the franchise to the United States was one of the ways the franchise could continue in the USL Championship, since it eliminated the need for approval from Canada Soccer, U.S. Soccer and Concacaf. Moreover, a relocation clause was contained in the club’s franchise agreement with the USL.

Last Wednesday, OSEG announced that they had exercised those contractual rights to relocate. Under the arrangement, Ottawa Fury are officially relocating to Miami pursuant to their USL franchise agreement. They then will enter into a contract to sell the club to Riccardo Silva. Under the terms of the sale, the club will operate under the existing the Miami FC name, with Miami FC’s logo and iconic aqua, orange and blue colour scheme. The purchase by the Miami FC involves its same club and staff, which means the Miami FC will not field a team in either the NPSL or the NISA moving forward. The club will also maintain the same ownership and technical staff.

The amount the Miami FC are paying to purchase OSEG’s franchise was not disclosed. For context, the initial expansion fee for USL Championship was estimated to be $7 million in 2018. The likelihood is that the purchase price was less than that, given the desire/need of OSEG to sell its franchise, but probably still a significant amount given the level of interest around the country in obtaining a USL franchise.

“We are extremely grateful to USL CEO Alec Papadakis and President Jake Edwards for their leadership and whole-hearted support during this difficult process,” said Ottawa Fury FC President John Pugh. “We’re also thankful to Paul Dalglish and his team for helping to facilitate this transaction and wish The Miami FC well.”

A Win For The Miami FC

The Miami FC have been highly successful from the start, winning nine trophies and becoming an established presence in the heart of the Miami soccer community. The club recently launched The Miami FC Youth Academy Program with the past year, as part of its commitment to growing the game not only at the professional level, but also at the youth level in Miami.

Miami FC in a Miami derby versus Miami United FC at Barry University on April 20, 2019. |

“We could not be more excited to bring The Miami FC to the USL Championship in 2020,” said The Miami FC General Manager Paul Dalglish. “We will build on the Fury’s success and honour their history, while also elevating our club and our community as part of the fastest growing professional soccer league in the United States. I want to thank Ottawa Sports Entertainment Group for putting this deal together, and to USL CEO Alec Papadakis for welcoming us to the league.”

Dalglish recently moved into the general manager role, after being the head coach. Replacing him on the touchline is Nelson Vargas, a former forward who played for the Miami Fusion. Vargas also was on the 1996 U.S. Olympic team. He has served as an assistant coach for Dalglish since 2018. Miami is expected to maintain most of the same roster, as many of the players on the current roster are signed for 2020. The squad was both NPSL and NISA champions this season.

Miami FC versus Stumptown Athletic in NISA. | Photo: Miami FC

Dalglish says the move to the USL Championship will help Miami FC further their ties in the community. “The decision to join USL … gives us a stable platform to further expand our academy program and community work, meaning accessible, inclusive and fun family events that bring all of Miami’s soccer community together,” he said.

What makes this turn of events particularly interesting is that it is set against the backdrop of how Miami FC owner Riccardo Silva has positioned the Miami FC since the club’s inception.

Silva has been a leading advocate of opening the system of US Soccer. He founded the club in 2015, along with former AC Milan defender and fellow Italian Paolo Maldini. This came after David Beckham’s initial announcement in February 2014 of his intent to exercise his option to bring an MLS expansion franchise to Miami. At that time, Beckham’s MLS club was only provisional, and initially it was thought the team could begin play in 2016 or maybe 2017 at the latest. However, it would take until January 29, 2018 for Miami Beckham United to even become a confirmed expansion club in MLS. During that interim Silva was able to insert the Miami FC into the market and get them launched for the 2016 NASL season.

Riccardo Silva, right, with Miami FC part owner Paulo Maldini, left, in 2015.

In 2017, Silva made a $4 billion media rights offer to Major League Soccer. That offer was summarily rejected by MLS, though in defence of that position it came at a time that MLS was contractually bound to its existing broadcast rights holders, which made any negotiations impossible without breaching the contracts it had in place. The offer was also conditioned upon MLS agreeing to implement promotion and relegation, something that has been a non-starter for MLS.

Returning to the present, it might seem surprising to some that a club whose owner has been such an advocate of change in the system would join USL, a league that cooperates with MLS, and in fact has clubs that are owned by MLS clubs operating within its very ranks. But USL continues its upward trajectory, gaining new markets and seeing more of its clubs moving to better facilities. The league has established itself as a solid second division league and fertile ground for investors interested in soccer. It has also been exploring a more open system. USL president Jake Edwards has been very open about his aim to add promotion and relegation in the USL between its second-division Championship and third-division League One. While that falls short of the completely open system Silva has been advocating, it would still be a significant step in that direction.

“We are evaluating what the landscape looks like in all of those divisions over the course of the next few seasons,” Edwards said when interviewed this summer. “But that work is happening now… I’m also well aware of the excitement and the drama, the reward for ambition, and the punishment for apathy.”

Analysing the move to the USL Championship, by all accounts it is a smart business decision for Silva and the Miami FC. While they were advocating for change in the system, the collapse of the NASL left them without a viable second-tier league to play in. The NASL, now defunct, is still the subject of an existing lawsuit in Federal Court, one that it is likely to lose. The Miami FC, along with minor league side Kingston Stockade, also filed a case with the Court of Arbitration for Sport (“CAS”) in Switzerland, requesting that judicial body to rule that the United States Soccer Federation is in violation of Article 9 of FIFA, which requires promotion-relegation to be the method of determining what teams compete at what level within a country’s domestic league stricture. The CAS has yet to make a ruling, but it would be a real shock to see it intervene in the way the petitioners would like, one that would likely lead to more litigation. Finally, without any disrespect to leagues such as the NISA, the road to having the strength to be a real force for chance is a long and difficult one absent forces beyond them also wanting change.

There is also the benefit of national exposure through the USL’s broadcast agreement with ESPN. Last August, the USL announced a new three-year rights agreement with ESPN that features the USL Championship and League One matches through the 2022 season. Under that new agreement, 18 regular-season games from the Championship will air on ESPN2, ESPNEWS, ESPNU or ESPN Deportes annually in addition to the USL Championship Final. All other matches will be streamed live on ESPN+ subscription platform.

In conclusion, joining an ambitious league growing in quality and reputation each year, with a vision of where it wants to go can only be a benefit to the Miami FC. Being in a stable league that has a national television contract is something the club needs, given that MLS’ Inter Miami CF also begins its inaugural season in March, has an ownership group worth billions and will certainly be the primary focus of the soccer media’s attention. Competition though, even if indirect and on different levels at different budgets, is always good. Smart scheduling, a well-thought marketing plan, outstanding communications team, proper price points for tickets and merchandise and giving fans a reason to feel invested in the club will all be keys to success. Outsiders may call Miami a bad sports town, but history has proven that a winning sports team here will get attention. Miami and South Florida have enjoyed an explosion of fútbol at all levels in recent years. New clubs have sprung up everywhere from West Palm Beach and Boca Raton, south across Broward and Miami-Dade Counties. Some are even bringing the concept of having fans own a stake in the club to the region. The demographics are arguably the best in the nation for soccer. The game resonates with the population, and the city and region surrounding Miami are easily big enough for more than one club to not only survive, but thrive.

To sum up Miami FC’s decision, it’s a positive move by a club that is committed to change and has likely reached a conclusion that the best avenue to continue to push for that change is as a part of the established system instead of as an outsider.

Liverpool Set To Sign New Kit Supplier Deal

MIAMI, Fla. (October 29, 2019) —

European Champions Liverpool Football Club are set to sign a new kit supplier agreement with Nike that is reported to be worth £75 million (€84.8 $93.2).

This would match Manchester United’s 10-year deal with adidas and place the Reds among the top 5 clubs in the category of kit supplier deals. FC Barcelona currently has the largest kit supplier agreement at €113.5m with Nike. 

This after the London Commercial Court dismissed New Balance’s complaint for breach of contract in a dispute that centred over “matching rights” contained in the kit supplier agreement between New Balance and Liverpool which expires at the end of this season.

#soccerbusiness #commercial #russo #russosoccer #miami @lfcmiami  @the.liverpool.corner @anfield.times #nikesoccer #supplier

Russo Law and Soccer Briefs offers a quick glance on stories making news in the world of football.

Riccardo Silva’s Unsolicited $4B Bid For MLS Broadcast Rights

MIAMI, Fla. (July 30, 2017) —

Riccardo Silva is a respected entrepreneur who has built MP & Silva, the international media rights agency he co-founded in 2004, into a billion-dollar enterprise that has had significant success in the business of sports rights arbitrage.

The 47-year-old Milanese has made repeated attempts to assert his influence in American soccer over the past two years via his founding of the Miami FC along with ex-AC Milan defender Paolo Maldini.

His latest attempt to influence the game in America came in June when he presented Major League Soccer (“MLS”) executives and owners with “an offer they surely couldn’t refuse.”

According to a report by John Ourand of SportsBusiness Journal, Silva met with MLS commissioner Don Garber. At that meeting, he offered the astronomical sum of US$4 billion for the global media rights to MLS for ten years from 2023 forward. This sum would have quadrupled the league’s media rights fees some six years before those rights were even due to go to market.

There was, however, one catch. Silva’s bold offer was conditioned on MLS agreement to introduce a system of promotion and relegation at some point in the future.

The alacrity at which this offer was dismissed would make even Usain Bolt look slow by comparison. The phrase “pro-rel” is pretty much on the list of banned words on the 7th Floor of 420 5th Avenue in Manhattan. MLS has always been opposed to the idea, even with four billion dollars on the table.

The money would no doubt be transformative for the league and its teams.

“As commissioner Garber stated in his letter to Mr Silva, we are not in a position, nor are we interested in engaging with Mr Silva on his proposal,” said Dan Courtemanche, the league’s executive vice president of communications, in a statement.

Some say that Riccardo Silva’s offer was nothing more than a publicity stunt or move to make MLS look bad. He likely knew that MLS could not accept his offer even if they happened to be interested.

The league is contractually bound to its current broadcasters until 2022. MLS is prohibited, under the terms of its current domestic TV deals with ESPN, Fox and Univision, from discussing a new media rights agreement until at least 2021. At that point, the agreements in place allow each of the incumbent broadcasters an exclusive negotiating windows and renewal options to exercise before their contracts expire in 2022.

Silva has a vested interest in seeing a system of promotion and relegation introduced in North American soccer. In May of 2015, he teamed up with his fellow countryman Paolo Maldini, the retired soccer star, to buy Miami FC, an all-new franchise that joined the second-tier North American Soccer League (NASL) last year.

Silva has exhibited a great deal of passion for the Miami FC. His exuberant spending, at least by NASL standards, on highly regarded players has positioned Miami FC as a major force in the league – this year, they claimed the NASL spring title in style and defeated two MLS sides, Orlando City and Atlanta United, in the US Open Cup.

It is no secret that Silva, an ambitious entrepreneur, does not want Miami FC to be stuck in lower league soccer and the lack of prestige that comes with it. He has previously discussed the possibility of moving Miami FC from their current home to the Miami Dolphins’ 65,000-seat Hard Rock Stadium, while unconfirmed reports last year said he had spoken to the United Soccer League (USL), which enjoys a close affiliation with MLS and was recently upgraded to division two status, about a possible switch.

The Deloitte Sport Business Study

In 2016, Silva International Investments, another of Silva’s companies, commissioned Deloitte’s Sport Business Group to conduct a report into the pros and cons of inter-league movement in North American soccer. To the surprise of no one, the report concluded by recommending the introduction of promotion and relegation into the existing American league system, saying the global model of divisional ups and downs ‘could have numerous long-term benefits, including increased attendances, increased broadcast audiences, improved commercial revenue and a positive impact on both elite players and grassroots participants.’

However that same report also pointed out that North American soccer is not yet ready for a drastic structural overhaul. The gap in quality from one division to the next was a primary reason. The lack of proper infrastructure in many lower tier clubs is another factor.

The report was criticised for failing to bring anything new to the discussion surrounding the contentious issue of promotion and relegation. It also did little to ingratiate Silva with MLS or the US soccer establishment. Garber classified the study as a flagrant attempt to sway opinion. His deputy, Mark Abbott, said report raised “serious credibility questions” since it had been commissioned by an owner of an NASL team.

Silva believes sports ownership requires a free-market approach, one that is prevalent in soccer leagues outside the US but generally deemed incompatible with the culture of American sport. He certainly could have invested in MLS if he wanted to, but the restrictive, single-entity business model is one he finds overly inflexible. Certainly the US$150 million expansion fee factors into his assessment. By comparison the NASL expansion fee is roughly ten times less, and Silva has cited it as the number one reason for why he deemed that league a more attractive investment opportunity.

“I am not sure that the closed rules of the MLS will be successful in the long term,” he said in an interview with FourFourTwo last year. “The NFL, the NBA, and so on, are different. They are either the best league in the world in their sport or the only league, so it makes sense to have a closed league and use salary caps.” He added:

“But the MLS is not like that. It is probably number ten or 15 in the world. So, the best way to grow it is to be open, for the teams to be independent. I believe the NASL has more potential, even if it is much smaller at the moment.”

MLS “owners,” on the other hand, are actual members (read investors) of MLS, LLC, the limited liability company that owns the league. The MLS model succeeds by increasing infrastructure investments, having stable ownership and grassroots development, rather than teams coming and going and short gains.

What’s clear is that Silva has his work cut out to convince a group of executives who view a system of promotion and relegation as a top great of a risk, especially at a time when MLS is eyeing further expansion and franchise licence fees are on the rise.

MLS sees a pro-rel system now, or down the road, as a vehicle that would only create uncertainty and inhibit the league’s growth efforts, regardless of the short-term riches Silva was offering.

There is also the issue of Soccer United Marketing to consider. Concacaf, MLS and US Soccer is propped up, at least financially, by Soccer United Marketing (SUM), the increasingly influential media and marketing arm of MLS that now distributes commercial rights to all three organisations. Crucially, SUM is, by definition, a direct competitor of MP & Silva, which look previously distributed international media rights on behalf of MLS and US Soccer but was replaced in the role by IMG, a longstanding partner of SUM, in October 2014, just months before Silva launched Miami FC and embarked on his ACL project.

The ties between SUM, MLS, US Soccer and Concacaf appear stronger than ever. Despite his signature business being one of the world’s go-to sports media rights companies, despite his determination, resources and connections to match his lofty ambition, for now at least, Silva remains an outsider looking in. Whether that changes only time will tell.

MP & Silva was appointed as the SPFL’s overseas broadcast partners for nine years, from season 2014/2015 to season 2022/2023. | Photo: SPFL

Information source:

The Long Read: Riccardo Silva’s American soccer power play, by Michael Long, Sports Pro Media, July 25, 2017.