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How the MLS is becoming more like the Premier League

Soccer economics guru Stefan Szymanski takes a look at how the MLS in the US is becoming more like the Premier League: Convergence?

In many respects, the gap is still a large one but there has been 'a $50 million increase in total salaries paid (25%) and a 19% increase in salaries per team. Given that Forbes estimated that MLS made an aggregate operating loss of $20 million, last year while attendance is largely flat and there is no new broadcast income, it’s fair to ask where the money is coming from. There are some new sources of income, such as new sponsorship deals and the ever-mysterious SUM, but the most likely candidate must be the expansion fees paid by the teams entering the league.'

Of course, the crucial difference is that there is no relegation from the MLS. There are those who would like that to happen in the Premier League.

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