New York City FC is one of the most popular and valuable soccer clubs in Major League Soccer (MLS). The club was founded in 2013 and is owned by City Football Group, which also owns other major clubs like Manchester City F.C. As one of the league’s premier clubs, New York City FC has invested heavily in player salaries, facilities, marketing and other expenses to build a competitive and successful team. But how much does it actually cost to run an MLS club like New York City FC? In this article, we’ll break down the major expense areas and provide estimates of the club’s overall operating budget. Understanding the costs involved in running a pro soccer club provides insight into the business side of the sport.
Player Salaries
Player salaries make up the biggest expense for New York City FC, like most sports teams. The club has signed several high-profile Designated Players (DP) like David Villa, Frank Lampard and Andrea Pirlo whose multi-million dollar salaries far exceed the league’s modest salary cap. DPs and other first-team players likely account for $15-20 million of the club’s total payroll. In addition, NYCFC has over 20 additional players signed to its first team roster and youth academy teams. Factoring in all players across the organization, total salary expenses likely range from $25-35 million per year. The club has consistently had one of the highest total payrolls in MLS, reflecting its ambition to attract elite talent.
Transfer Fees
In global soccer, transfer fees are payments made when a player moves between clubs. Although MLS has relatively few large transfers compared to other leagues, NYCFC has still invested millions in incoming transfer fees for players like Maxi Moralez ($6 million) and Jesús Medina ($5 million). The club likely spends $5-10 million annually in total on transfer fees to acquire new talent, offset by any fees received for outgoing players. These fees are a cost of improving the squad each season and competing for championships.
Facilities
New York City FC plays its home matches at Yankee Stadium, which the club rents from the New York Yankees. The rental agreement is estimated to cost NYCFC between $6-12 million per year in stadium rent and associated costs. This allows the club to play in a prestigious venue while searching for plans to build a soccer-specific stadium. NYCFC also trains at the City Football Academy and Etihad City Football Academy training grounds in New Jersey, a state-of-the-art $80 million facility funded by City Football Group. The costs of maintaining these training grounds and other team facilities likely falls in the range of $5-10 million annually.
Coaching Staff
New York City FC employs a full-time technical coaching staff to train the soccer team and manage operations. This includes the head coach, assistants, goalkeeper coaches, fitness coaches, analysts and other support staff. The annual cost of the first team coaching staff is likely $5-8 million based on market rates for their experience levels. The club also has a full academy coaching staff to develop young players. In total, $8-12 million per year is invested into the coaching ranks.
Travel
As an MLS club, NYCFC must pay for extensive domestic travel for road games against other teams in the United States and Canada. This includes chartered flights for the first team, hotels, ground transportation, per diems and other travel-related expenses. With 17 away matches per regular season, plus preseason and playoff travel, these costs likely range from $5-8 million annually. International friendlies and CONCACAF Champions League matches add to this tally.
Marketing & Commercial
Expanding the club’s brand and generating new revenue streams requires significant investments in marketing, advertising, partnerships and other commercial activity. NYCFC likely spends $5-10 million a year on marketing to promote ticket sales, broadcasts, and merchandise. The club also employs sales and partnership staff to sell sponsorships, including a $20 million per year shirt sponsorship with Etihad Airways. Other major partners include Adidas, Heineken, Scotiabank, and more.
Matchday and Game Operations
Hosting 17 regular season home matches at Yankee Stadium entails substantial operational expenses. These include security, concessions, ticketing, entertainment, first aid services and more on match days. With average attendance over 25,000 fans per game, the costs of game day operations likely falls between $5-10 million annually. Preseason friendlies at other venues around the region also contribute to these operational costs.
Youth Academy
New York City FC operates a comprehensive youth academy program to develop talented young players from the region. The academy fields multiple teams across different age groups in the U.S. Soccer Development Academy leagues. Costs include coaches, travel, equipment, facilities, schooling and other expenses required to cultivate the next generation of stars. Total youth academy costs likely run between $5-10 million per year.
Management & Admin
The front office and other administrative staff that oversee club operations across all areas cost millions per year. Executives, finance, accounting, legal, human resources, IT and other corporate functions require year-round staffing and support. These overhead costs likely fall in the range of $5-10 million annually.
Miscellaneous Expenses
Other costs related to running an MLS club include equipment costs, insurance, legal & professional fees, scouting networks, match expenses, USL affiliate support, community programs, taxes and various other operating expenses. These miscellaneous items can add up to $5-10 million per year.
Total Estimated Costs
Adding up the estimated expenses across all of these categories, the total cost to operate New York City FC likely falls between $100-150 million per season:
Expense Category | Estimated Annual Cost |
Player salaries | $25-35 million |
Transfer fees | $5-10 million |
Facilities | $10-15 million |
Coaching staff | $10-15 million |
Travel | $5-8 million |
Marketing & commercial | $5-10 million |
Matchday operations | $5-10 million |
Youth academy | $5-10 million |
Management & admin | $5-10 million |
Miscellaneous expenses | $5-10 million |
Total | $100-150 million |
This places New York City FC among the top MLS clubs in total spending power. However, expenses don’t always directly correlate with on-field success. The LA Galaxy and Toronto FC have typically outpaced NYCFC in spending but lagged behind in attendance and local popularity. Seattle Sounders FC has achieved great success with strong fan support despite more modest player payroll. But NYCFC’s heavy investment reflects City Football Group’s commitment to achieving elite status in MLS and bringing another championship to its growing portfolio of clubs.
Revenue Sources
To cover these hefty expenses, New York City FC relies on several key revenue streams:
– Ticket sales – NYCFC sells 17,000+ season tickets and individual match tickets at Yankee Stadium. Ticket prices range from $30-$500+ per seat depending on location. Total ticketing revenue likely ranges from $25-40 million.
– Sponsorships – Etihad Airways pays over $20 million per year to be NYCFC’s shirt sponsor. Multi-year deals with Adidas, Heineken, Scotiabank and others bring in tens of millions more.
– Media rights – MLS has a league-wide TV deal worth $90 million per year split between clubs. NYCFC also gets revenue from local broadcast partners. Total media revenue may reach $15-20 million.
– Merchandise – Fanatics handles NYCFC’s official merchandise and licensing, splitting net revenues. Club merchandise sales likely generate $5-10 million annually.
– Concessions – A portion of food, beverage and parking sales at Yankee Stadium go to NYCFC as the tenant. This contributes several million per year in ancillary event revenue.
– Expansion fees – NYCFC paid a $100 million expansion fee to join MLS which is shared between ownership groups.
– Player transfers – Fees received from transfers like Jack Harrison’s $6 million sale to Manchester City help offset player acquisition costs.
– Other – Revenue from summer tours, events, youth camps and various minor streams provide a few million more each year.
Conservatively, NYCFC likely generates $100-150 million in total annual revenue, enough to cover its considerable operating expenses. The club reported over $60 million in revenue in 2015, its first season, which has surely grown significantly since then. Both revenue and costs are among the highest in MLS, highlighting NYCFC’s instant clout since entering the league.
The team has yet to turn an annual profit, instead reinvesting back into the squad to fuel success. But as player salaries and transfer fees increase over time, balancing the books will become more imperative to maintain a sustainable operation. This is the nature of the business side of MLS soccer.
Conclusion
Running a Major League Soccer club like New York City FC requires an extensive budget covering a wide range of expenses on and off the field. From expensive designated players to top-tier facilities, coaching and support staff to domestic and international travel, and major front office and operational costs, total spending likely ranges from $100-150 million per year. This allows NYCFC to compete for championships within MLS while building its brand globally. Offsetting these hefty costs requires monetizing multiple revenue streams like ticket sales, sponsorships and media rights. Despite the challenges of turning a profit, ownership has demonstrated its willingness to spend with the ultimate goal of winning trophies and cementing NYCFC’s place among the elite in American soccer.