NYCFC valued at $800 million

For the first time since 2019, Forbes published the valuations for all MLS clubs in a juicy online feature. New York City FC is valued at an eye-watering $800 million, trailing only LAFC ($1 billion), LA Galaxy ($925 million), and Atlanta United ($825 million).

Before we get into what those valuations might mean, we want to point out that these numbers are essentially made-up. Forbes didn’t conduct an audit, and MLS clubs are under no obligation to submit their finances to the publication. These valuations are entirely speculative, estimations based not just on attendance and merchandising, but vibes. Or, in the words of the disclaimer published in Forbes, “All published figures are Forbes estimates; team values do not include stadiums, real estate or debt.”

As The Athletic pointed out last year, MLS clubs are “like tech stocks” with inflated values that reflect potential growth. In addition, every club in MLS is worth $325 million simply for being a club in MLS: That’s the buy-in fee paid by Charlotte FC to join the league, which makes it the foundational value of every team.

Keeping all that in mind, we’re deeply skeptical of the attention-grabbing headline that appeared in Forbes, namely “Major League Soccer’s Most Valuable Clubs 2023: LAFC Is The First Billion-Dollar Franchise.” Did an intern with an abacus really arrive at that oh-so-clean $1 billion figure? Or was the actual figure, say, $970 million, and an SEO-savvy editor bumped it up to a billion with a “B” because who will know?

All that aside, we like goofing around with numbers, and this article is as fine an excuse as ever to play around with millions - even billions! - of make-believe dollars. In that spirit, here are 6 takeaways.

But first, here’s a table that compares the valuations published today and the valuations Forbes published in 2019. It’s best viewed on a desktop, but we know most of you are reading this on your phone.

1. Not all clubs gained value

The table above looks like growth was spread around the league, albeit unevenly. But those gains are misleading as all MLS teams got a $175 million bump over 2019 figures.

If every MLS franchise is worth at least $325 million today (the cost of Charlotte’s expansion fee), then every club should be worth $175 million more than what they were valued at when Forbes last published this list in 2019, when FC Cincinnati joined the league for $150 million.

That means that San Jose Earthquakes are stalled when they gained just $175 million, and Houston Dynamo, Chicago Fire, Orlando City, CF Montréal, and Colorado Rapids actually lost value.

Chicago Fire’s gain of just $90 million is especially notable — basically, they lost $185 in value. More like Chicago Dumpster Fire, amiright?

2. Philadelphia Union and Columbus Crew are overperforming

While the Forbes headline belongs to LAFC, and the glam clubs at the top of the list generally posted the largest gains, both Philadelphia Union and Columbus Crew outperformed traditionally strong franchises such as Seattle Sounders, Portland Timbers, and Toronto FC. The Crew’s 175% growth was the most in the league, and they climbed seven spots in the rankings despite MLS adding four teams.

3. NYCFC are keeping it tight at the top of the pack

New York City have generally remained a top-five team since joining the league in 2015. As you can see from the following table, NYCFC have steadily added value over the years. (Note that no major publication published MLS valuations in 2020; Forbes didn’t publish valuations in 2021 or 2022, so we use Sportico’s figures for those years.)

4. New Jersey Red Bulls remain mediocre

Our frenemies across the Hudson River added just $235 million in value, or $60 million when adjusted to reflect the higher MLS franchise fee. Arbitrary as all of this might be, it feels right that the New Jersey Red Bulls are worth less than Minnesota United, FC Cincinnati, or Sporting Kansas City

5. DC United’s $700 million valuation is a mystery

Why DC United, a team that came in last or almost-last in every meaningful measure this past season on the field, are ranked fifth, which put them above hyper-popular clubs such as Sounders and Timbers, is beyond us. Are DC United really worth more than the always-sold-out Austin FC, a team that dominates the sporting scene in a metropolitan area with more than two million residents? Or than Toronto FC, a team that feels like a perennial contender even when it doesn't put up the strongest performances?

If you want an illustration of the arbitrariness of these numbers, look no further than DC United’s $700 million valuation, which, if you are to believe it, means that the club is worth more than Newcastle United, Leeds United, Southampton, and Fulham combined.

6. Sounders fans aren't happy with these numbers

Looks like Seattle dropped $20 million in value in the past year. Declining valuation, missing the playoffs: Looks like going all-in to win the CCL last year continues to hurt the organization.

Still, best of luck in the Club World Cup this Saturday!