...off the post!

The Fort Worth Star-Telegram has a good article today on why the licensing agreement for Pizza Hut Park in Frisco, Texas works out for everyone involved:

According to Dallas Business Journal and an MLS source, the deal calls for a 20-year partnership worth about $30 million, or an average of about $1.2 million to $1.5 million per year.

Why, when soccer is still working to find its place in the American sports landscape, would Pizza Hut pay that much?

Simply, the stadium provides more than the 25 or so FC Dallas home games per year. With 17 amateur fields surrounding the stadium, the facility essentially will enjoy usage on a daily basis with soccer practices, international youth tournaments, concerts, high school football and international soccer exhibitions.

For FC Dallas' part, the $1.5 million per year will take a major dent out of the organization's payroll. The player salary cap runs about $1.7 million. In 2002 the club reported in public documents to the City of McKinney that it carried $4 million in player and front-office salaries.

Note this last paragraph especially, and then throw in the knowledge that the new Adidas sponsorship agreement signed this year breaks down to $1.25M/team annually. That means a very significant percentage of operating expenses, at least for FC Dallas, are covered without even factoring in other ancillary revenues, merchandising deals, gate receipts, etc.

That's pretty remarkable. I recognize MLS has been in the red for some time, and will be for at least a few more years, but these deals are a major reason why the league's front office in NYC beams with confidence.