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  • Poku and the Age of Panic in the NASL

    Wes Burdine

    July 7, 2016
    The Angle

    Kwadwo Poku’s $700k transfer to Miami FC (on the heels of their $750k signing of Richie Ryan) has caused a frenzy of weeping and gnashing of teeth. But is it a sign of NASL growth or the soccer-pocalypse?*

    I have a new favorite past-time. Whenever I’m chatting with a player, coach, or anyone else professionally involved with the NASL, I ask a one word question: “Poku?”

    Poku is the new Ibarra. Miguel Ibarra’s surprise call-up to the USMNT in 2014 while playing for Minnesota United ignited a firestorm of debate about MLS, NASL, and just where the latter fits in the American soccer landscape. The questions, then, were about player development: about Portland passing on a prospect, MLS not wanting to pay for top NASL talent, and whether NASL is better than it’s given credit for.

    If Ibarra inspired debates of NASL’s value, Poku has turned us upon a more existential path. For some, the expensive outlay on a young talent by a second-division side is a sign of health; Miami FC are ushering in an era of real clubs paying good money for talented players. For others, Poku’s signing is one of the seven seals of the apocalypse. The answer, as you might suspect, is likely somewhere in between. But I want to argue that it isn’t the crazy spending over players that is so worrisome in NASL, it’s the profound lack of coordination or coherent plan to succeed.

    NASL Signings in the Current Soccer Pyramid

    Ryan and Poku, in particular, represent two types of precious commodities in the NASL: the difference-making veteran and the genius-talent.

    Take money out of it: Richie Ryan, Michael Lahoud, Gabriel Farfan, and Poku are smart NASL signings (though, we should admit, they fail to address Miami’s anemic forward line and delicate backline). Ryan and Poku, in particular, represent two types of precious commodities in the NASL: the difference-making veteran and the genius-talent. In 2015, Richie Ryan anchored the remarkable Ottawa Fury side that bulldozed their way to the Soccer Bowl Final, eventually losing to the New York Cosmos. Ryan performs his duties like an imperious butler: he cleans up the opposition’s attack and distributes the ball politely.

    Poku is quite different. He is an exciting, young talent who counter-balances flashes of brilliance with a lackadaisical aloofness to silly trifles such as “working off the ball” or “defending.” When genius crops up in the NASL, it is always tempered with an Achilles Heel: age, a limited toolbox or a Calvinist predestination for giving up howlers.

    Embed from Getty Images

    That Ryan and Poku are such good signings tells you a lot about the league’s current situation for acquisitions. NASL teams want to get better, not just better than their weekly opposition, but they want to catch up to MLS. Yet as these clubs navigate the transfer market, they sail between MLS’s Scylla and USL’s Charybdis. The former will be obvious: MLS is not only getting better, but paying even its squad players more. A couple years ago clubs in NASL were able to snap up the Hunter Freemans, Matt Pickenses, and Adam Moffetts of this world quite easily. The more recent crop of players to decamp MLS to NASL tend to be much more flawed. Take Rayo OKC’s surprising haul of MLS talent: Michel, Robbie Findley, and Sebastian Velasquez. All of these players have a certain level of talent, but they are much bigger gambles.

    The USL has expanded from 13 teams in 2013 to its current crop of 29. This means that around 400 roster spots have opened up in the USL alone.

    But the real squeeze on NASL has come from below. The USL has expanded from 13 teams in 2013 to its current crop of 29. This means that around 400 roster spots have opened up in the USL alone. While salaries remain well below the NASL, the third division guarantees players that they are playing in front of MLS scouts. Young players are much more likely to be discovered by MLS teams playing in USL and so of them will choose smaller salaries in hopes of moving up. In addition, MLS teams can take more chances on prospects with the USL. Minnesota United’s Justin Davis, Kevin Venegas, and Miguel Ibarra all came to the team because they were drafted by teams that didn’t have the roster space for development. With MLS retaining more solid squad players and USL acting as the new garden for youth development, spare a sympathetic thought for the poor NASL manager.

    NASL, then, has a supply problem and it should surprise no one that the prices are going up, nor that clubs would turn inward. Miami FC are only the latest club to cannibalize its competitors. Since Bill McGuire took over Minnesota United, they have simply printed out the NASL Best XI, scratched out the title and replaced it with “shopping list.” Tampa Bay and Fort Lauderdale have developed a border so porous that Nigel Farage has called for a Str[ikers’]exit. Whether or not the strategy works (it has rarely worked for the Loons), Miami FC can’t be faulted for looking around at the proven NASL talent. Those solid players who have achieved success have become hot commodities (as evidenced by Tampa Bay throwing money at Tommy Heinemann).

    Panic in NASL

    The fact remains that Miami FC have splashed almost $2 million on a few midfielders. That sum is more than the entire wage budgets of a few clubs in the league.

    But the NASL also has a demand problem. At the same moment that the league is seeing its natural player pool chipped away from above and below, it is also under an increasing, self-imposed pressure to deliver a better product on the field. So, you can’t take the money out of the equation. The fact remains that Miami FC have splashed almost $2 million on a few midfielders. That sum is more than the entire wage budgets of a few clubs in the league. More importantly, $500k a year is a salary previously only seen in the league for the likes of Marcos Senna or Raul. And Poku, Mr. Senator, is no Marcos Senna.

    Poku and Ryan are panic buys at panic prices. One can’t help but think of the Rowdies’ owner Bill Edwards words when he fired Farrukh Quraishi and Thomas Rongen despite still being in the playoff places. “I have a one year plan,” he said at the time. A former Rowdies player recently described the period after that comment as the most toxic he had ever seen a locker room. Panic is contagious and the more Miami panics, the more the existing players will become demoralized.

    When I pose my one word “Poku?” question to people around the league, some will immediately point to the remarkably disparity it reveals between the haves and the have-nots. I asked a few players from around the league if they think recent events will mean higher wages for mid-level players. They responded by pointing out that most clubs are still on nine-month contracts for salaries and housing. Meaning: in between seasons players are scrambling for short-term jobs and housing. There are also clubs, they point out, where players don’t get health insurance.

    Sustainability

    But is it sustainable? This question keeps popping up and it is misleading because it overlooks the reality that professional soccer in the U.S. and Canada is almost always a guaranteed losing proposition. Only a handful of clubs throughout the soccer pyramid are in the black. So, on the one hand, of course it is unsustainable since almost all professional soccer is unsustainable. On the other hand, the USSF has put in place rules to make sure its clubs are owned by people who can afford to lose millions of dollars every year.

    Embed from Getty Images

    At best, you’re creating a league without any sense of parity. At worst, every potential owner walks away from the NASL, driven off by the Caligula-esque orgy of spending.

    Miami FC’s owner, Riccardo Silva, recently sold a majority of his company MP & Silva company that was valued at $1.4 billion. Losing a little money on Poku and Ryan is completely sustainable for him. He can continue to lose a few million for decades to come. There are just one problem with this notion of “sustainability”: not every club in the NASL is going to be owned by a billionaire who lights money on fire for the pleasure of his miniature giraffes. At best, you’re creating a league without any sense of parity. At worst, every potential owner walks away from the NASL, driven off by the Caligula-esque orgy of spending.

    Let’s also pause briefly to dispel the profoundly lazy “Isn’t this how the Cosmos killed the NASL the first time?” comments that have inevitably followed these signings. First, take a brief look at the Colorado Caribous and tell me straight-faced that too much spending in New York caused that team to fail. Second, the current iteration of NASL has gone through ebbs and flows of teams that will “splash cash” and those that serve hardtack and porridge for team meals. Teams that spend one year learn their lesson and often temper their approach the next. Even the Cosmos have been far more strategic and modest compared to their first couple of years.

    When people ask if Miami is sustainable, what they are really asking is “when will Silva get bored?” Miami averaged 3,764 fans in the spring season (including a home opener with 10k and a match played in a minor hurricane with hundreds). That, quite simply is not good enough for a team that wants to be the Cosmos of the south (I’m just going to skip the Cosmos attendance joke, too easy). But the question of boredom is a product of the NASL’s recent pivot toward the international market. The league has turned to foreign investors (and to the foreign media, too, while we’re on the subject) with the pitch of “real football”: control your club’s destiny! Promotion and relegation (maybe, we’re not clear on the details)!

    This strategy produces far more tenuous relationships between the owners and the cities. Certainly home-town owners can get tired of losing money and walk away, but there is a sense with some of these new clubs that these foreign owners make the clubs far more ephemeral. Their distance from American soccer also results in a group of new owners who don’t seem quite prepared for the realities of the soccer landscape where they set up shop. Perhaps the most telling sign is that high-level discussions continue around the league over the idea of a closed promotion and relegation system, perhaps with NPSL or with 40 NASL clubs. This is the equivalent of a teenager depositing her first Dairy Queen paycheck and asking with which hedge fund manager she should be meeting.

    The Future

    Silva’s expensive outlay is less lavish and more disproportionate both to their likely revenue and to their competitors. It is not, in and of itself, an outrageous thing. Plenty of MLS teams have spent far beyond what they could possibly be bringing in as a gamble that this will then pay off either in increased ticket or merchandise sales. The entire system of USSF (to say nothing of the debt in La Liga or the EPL) is set up on a similar gamble of “If you spend it, they will come (and spend too).”

    The central problem is that the NASL has not provided a vision of the future that includes a gamble outsiders can believe in. Remember David Downs’s vision of the NASL: a second division that takes over markets without regard to the rest of the country. A team in Minnesota, he said, is still the top level of professional soccer around; sell your fans on that. This humble strategy means a lower ceiling of attendance; it means frustrating the mega-billionaires who want more than just a minor-league team. Bill Peterson’s vision (heavily influenced by the Cosmos’s entrance into the league) is one that  is not content to stay “minor league.” It is bullish to the point of periodic delusion; how can you talk about division one standards when you’re struggling at times to meet division two standards?

    The path to sustainability is completely tied up in facilities. No team can approach sustainability without controlling its revenue and the only way to do this is to own one’s own stadium.

    And this is where I come to my final point. The path to sustainability is completely tied up in facilities. No team can approach sustainability without controlling its revenue and the only way to do this is to own one’s own stadium. How do stadiums get built? Even without public subsidies, teams need to negotiate with local and state governments. And those negotiations can’t get off the ground when they’re run by foreign owners with no local political ties who are selling politicians on a league they’ve never heard of that doesn’t provide a realistic path toward sustainability.

    I want to close then in this ambivalent space where most NASL fans live. Miami FC and the Cosmos have decided that the best way toward sustainability is a big gamble up front: spend money, get credibility, and parlay that credibility into a longer-term solution (like a stadium). It’s a big gamble and, in Miami’s case, one that is far more likely to fail, but can you blame them?

    This isn’t about Poku or Ryan or any other signing. All this panic over crazy spending comes from the league’s remarkable lack of coherent vision. The league will trumpet it’s laissez-faire utopia of a league without salary caps or anyone telling you how to run your business. Peterson will ruminate over promotion and relegation or Division One status. But 1,800 people showed up for the closest geographic derby in the league: Miami FC v Fort Lauderdale Strikers. A good talent like Poku is not going to fix that problem; Miami FC can fill their team with moneyed stars and that isn’t going to secure their future. And that’s the central problem we’re faced with when we see money scattered about on players like Poku: what’s it all for?

     

    * I published an early germ of these ideas on the “New NASL Landscape” after Richie Ryan’s signing, but the article did not survive our move from Northern Pitch to FiftyFive.One.

    Kwadwo Poku, Miami FC, NASL, Richie Ryan
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    17 responses to “Poku and the Age of Panic in the NASL”

    1. kkfla737 Avatar
      kkfla737
      July 7, 2016

      Well done Wes. I still am at a loss to explain why NASL teams are so anxious to win at all costs when the correlation between winning and attendance is minimal at this level and all the team that wins NASL gets is a shiny trophy. Also the poor scouting networks many teams have leads to an inflated internal market. Some NASL teams are now paying more for transfers than MLS ones when the revenues in the league for the best NASL club are nowhere near the worst MLS one. I could go on and on… You nailed this.

      Reply
      1. Wes Avatar
        Wes
        July 7, 2016

        Case in point: Indy. Indy is obviously a way different market than Miami, but they put out a bargain basement team for two years. But they did everything else pretty damned well.
        The question is: can they secure their future with a better stadium deal? But, if any club in NASL is close to being in the black it’s them.

        Reply
        1. The Yanks Are Coming Avatar
          The Yanks Are Coming
          July 7, 2016

          Really good stuff, Wes. Great point on Indy too. Jacksonville is another interesting point: the owners are local but not loaded. But they are smart soccer people, who have spent some money but mostly churned out a team that is well-scouted and put together to compete.

          But does that sell? The sponsors (this year especially) are almost entirely local. Some of it is barter sponsorship…but they have plenty from Winn-Dixie to carry on. And if they played at the beautiful soccer facility at Jacksonville University, you’d have a lovely little club set up.

          But they remain at the minor league baseball stadium and while the supporters sections are great, they aren’t selling anyone else there.

          Reply
    2. Etch Avatar
      Etch
      July 7, 2016

      Just A Few Thoughts or More Headaches
      There are by my count 7 pro soccer teams in Florida and 6 in New York. Competition in every area related to operating a team must be huge, In order to compete in this type of marketplace money must be spent and lots of it on advertising, community outreach, camps, acquiring & keeping players, coaches, & office staff, stadiums, etc.. So why not spend on players first. Winning makes it easier to support other operational areas.
      We are lucky here in MN that we only have to compete against other sports.

      Florida Teams
      (MLS) Orlando FC; (NASL) Miami FC, Jacksonville Armada, Tampa Bay Rowdies, & Fort Lauderdale Strikers; (USL) Orlando City B; (NWSL) Orlando Pride

      New York/New Jersey Teams
      (MLS) Red Bulls & NYCFC, (NASL) Cosmos; (USL) Rochester Rhinos
      & Red Bulls II: (NWSL) Sky Blue FC

      Reply
      1. Wes Avatar
        Wes
        July 7, 2016

        Kartik has made this point elsewhere, but winning doesn’t necessarily mean success (as Cosmos have found). For Miami, being not terrible would be a good step, but if you spend $500K a year on Poku, but don’t have an in-house PR/marketing, you’re doing it wrong.

        Reply
        1. Brian Quarstad Avatar
          Brian Quarstad
          July 8, 2016

          Totally agree, Wes. Peter Wilt has said this for years. It’s a combination of having competitive players/competitive team and marketing. That doesn’t necessary mean having the best team in the league.

          Reply
      2. Scott Anthony Kerssen Avatar
        Scott Anthony Kerssen
        July 8, 2016

        In regards to your comments on competition in New York, I think you are over-estimating it. NYCFC are drawing almost 27,000 per match this season so far. The Red Bulls, slightly over 19,000. it drops off the end of the table after that. The Rhinos are not even in the New York City Metropolitan Area. And while there may be a small handful of Rochester fans that attend a “New York” MLS match, I’m betting that the reverse is far less common. So they’re not really competing with the rest of the teams you site. The Cosmos are down to under 3800 per match. The Sky Blue FC are at the bottom of the NWSL with 1677 per so far this year. And The Red Bulls II? 334. Not a typo, by the way. 334 per match. And this is a metropolitan area with 24,000,000 population. The difficulty is not that there is too much competition. There are plenty of potential fans to compete for. It is that, except for the MLS sides, nobody else knows HOW to compete in the marketplace. And winning alone will not compensate for that.

        Reply
        1. Jim Powers Avatar
          Jim Powers
          July 9, 2016

          The last two sentences are as dead on regarding the situation here in NY as I’ve read.

          Reply
      3. Neville Eclov Avatar
        Neville Eclov
        July 11, 2016

        Western New York Flash of NWSL also play in Rochester.

        Reply
    3. OCAlum Avatar
      OCAlum
      July 7, 2016

      Is this also not just a much more existential question for NASL? One that is so often asked? What are the goals of the league in a game dominated by MLS in this country? Yes, they say that they want to compete for First Division status, but what are their real goals? Cincy and Louisville have better attendance figures, and so does NPSL clubs in Tennessee. Splashing cash to create such a league full of immense disparity between clubs seems ridiculous, especially when some of those clubs have already stated that their real goal is MLS teams 25, 26, 27, and 28. Is this not just postering? Poku’s purchase reinforced that Miami is looking for a way into MLS, not to better NASL. NASL needs to reassess their position, and in many ways, MLS needs to reassess theirs as well.

      The league can’t continually grow as it will become too large. How big is to big? And more importantly, how do you protect owners who make a $100M investment all while capitalizing on crowds who number 20,000 in Cincinnati but fell off the radar for expansion? Especially when that number would fall anywhere from 7th and 11th in a given year in MLS.

      So many overarching and existential questions come from this move.

      Reply
    4. Doug Foss Avatar
      Doug Foss
      July 7, 2016

      In the 20’s and 30’s when Thomas Cahill was the American Soccer League’s secretary he said in order for this league to really thrive it’s clubs should own their stadiums. IMO, this thought should be Peterson’s legacy otherwise the NASL might not make it.

      Reply
    5. Alex Schieferdecker Avatar
      Alex Schieferdecker
      July 7, 2016

      *fire emoji*

      Reply
    6. Scott Anthony Kerssen Avatar
      Scott Anthony Kerssen
      July 8, 2016

      I would like to expand [Commentator’s Note: As I am infamous for doing] on the “Future” portion of the article.

      There exists a triumvirate of basic necessities in the entertainment industry (of which spectator sports is a subset of) that largely determine if an entertainment entity is going to survive and flourish in the long-term.

      Whether it is a single entertainer (a singer, comedian or boxer to name a few of very many) a corporate entertainment conglomerate (say Time-Warner, Disney, etc.) or, indeed, entire forms of entertainment (Broadway, Vaudeville, Radio and in this specific case, soccer) and anything in-between, these three necessities must be successfully established and maintained in a relatively stable state for the survival of that form of entertainment entity.

      You can be successful in a short-term situation with two, or even just one of these necessities. And other secondary and tertiary factors can affect the health of the entity in question.

      But if you want something in “Show Biz” to keep succeeding financially for years and decades to come, these three necessities must be met. They are short and simple to express, but very complicated and difficult to achieve. They are:

      You have to have a great show.
      You have to have a great venue (or medium).
      You have to make sure that everybody KNOWS that you have a great show and a great place to see it.

      Now, in sports, a great show doesn’t mean that you win all the championships. But you must be competitive. The public must have a belief that you could possibly win almost any game that you play. Even if you have a losing season or two, if you can show the public that you are trying your best, both on and off the pitch (more on off-the-pitch later) you can still develop a great sporting narrative that will interest the public. You can instill the belief that your club CAN win a division or a season or even the whole shebang. But ultimately, winning matters. Kartik’s contention that winning doesn’t matter as far as attendance or revenue goes is, I believe, incorrect. A winning team is almost always a good show. And putting on a good show is vital in a club’s overall success. Being a winner is a great tool for building attendance and revenue. But without the other two necessities, it is a wasted tool.

      One of the reasons that the Cosmos attendance figures lag far behind the team’s winning record is it’s venue. Shuart Stadium is a minimally acceptable stadium that is nowhere near a match for the quality of the squad that plays on it. Old, outdated, in need of renovation. Nothing outstanding or unique in it’s amenities or services. A pitch that is a distraction from the game itself. To quote the Cosmos’ COO, Erik Stover, “The feedback, the research we’ve done with our fans, they don’t really like [Shuart].” And on top of all that, the club does not have full control of incoming revenue or scheduling.

      Infrastructure, which includes venues and more, is one of the major weaknesses of American soccer in general. Until teams can play in stadiums that they own or control, that are designed with the game in mind and are appropriate to their market, it will remain a second tier sport in this country. In a great venue, even if the team loses or is going through a rough patch in the season, the fans can still enjoy portions of the experience. Good food, friendly and helpful stadium personnel, good marketing giveaways, clean and comfortable seating and public areas; all can ease the sting of tough times in the team’s play. And in good times, they can maximize the experience, turning a fun night into a memory that will last and serve to help keep people coming back. But even if you have a winning team and a great venue, neither will bring lasting success with the public without…

      MARKETING!

      And not just marketing to the general public or the fans. Marketing to potential sponsors. Marketing to the media. Marketing to politicians. Marketing to the movers and shakers in the community. This is a vital area that has been mishandled or neglected by many of the teams in the NASL and by the league, itself. Teams that have hired professional firms and experts in the field and developed a consistent marketing strategy, such as Minnesota and Indy, have usually done well. The others, not so well, in part due to the large amount of ownership and front office turnover, which results in marketing strategy turnover. The ultimate result of this is marketing campaigns that do not build from year to year, but start from scratch each year, losing momentum and relationships that were started under previous regimes.

      The Minnesota Thunder of 1990 to 2009 is a perfect example of this . While the club was very competitive on the pitch throughout most of it’s existence and it’s venue was very good for it’s time, it’s attendance tended to range from 2500 to 4000 per match over a season; up one year, down the next. The reason was that from one year to the next, the marketing efforts changed, because of front office and ownership turnover and the lack of an overall marketing strategy. One year, a professional marketing firm would be hired, but within a year or two, it would be let go, to be replaced by…? The result: No consistent growth in attendance, media presence, sponsorships, and political influence.

      To pick on the Cosmos again (and why not?), this is a club with the most recognized brand, domestically and internationally, in U.S. soccer history. A team whose on-field performance and player development system has been excellent, to the point that a halfway credible argument could be made that they are the best soccer team in the world calling itself “New York” (two of its league’s championships compared to none for NYCFC and the Red Bulls; a 3-1 head-to-head record in the USOC). A team with a potential customer base of 8,550,000 in the city itself and a metropolitan area population of 24,000,000. And their attendance has dropped from a peak of 6859 in their inaugural season to about 5,000 in their next two seasons to less than 3800 this year?! This is a marketing embarrassment.

      [Commentator’s note: It would be interesting if someone could do a retrospective of the new NASL and it’s clubs’ marketing history. Marketing is probably the most publicly neglected area of analysis in soccer, both domestically and abroad, considering that the successes and failures of teams worldwide is very often due to performance in this area.]

      Now, the teams of the NASL have, for the most part, put on a quality show. But they have been far less than stellar in the other two departments. And until they make sizable improvements in their venue situations and, most emphatically, in their marketing, they will continue to stumble along the precipice and never come close to being a Division 1 league.

      Reply
    7. Sons of pirates Avatar
      Sons of pirates
      July 9, 2016

      The problem with this article is it treats the NASL like the single entity USL and MLS. The NASL does not control it’s teams. Each team can invest what they want and here is the result. The reality is that a good forward from the MLS, a league that painstakingly assembled nycfc, just signed for a team that has been around for less than a year in NASL.

      Reply
      1. kkfla737 Avatar
        kkfla737
        July 9, 2016

        Do you not believe NASL as a league (not a random association of teams) should provide some technical guidance and advice to owners and new coaching staffs? Do you think that is too much to ask and it infringes on club “independence?”

        Reply
      2. Wes Avatar
        Wes
        July 12, 2016

        Having been around the NASL long enough, I can see the ways in which teams don’t act in a vacuum. Talking to everyone involved with the league, they all believe this will have a knock-on effect. This isn’t one signing, it’s a particularly case amongst a series of signings. And it is not isolated to just Miami FC. Nor are Miami FC’s problems isolated.

        Reply
    8. Michael Farrow Avatar
      Michael Farrow
      August 14, 2016

      I think David Downs’ vision is pretty much dead. It was predicated on the idea that every market above 750,000 not in MLS would come to NASL, which has proved to be untrue. It sickens me that USL will win again through political machinations.

      Reply

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