As Chivas USA, an offshoot of the famed Mexican soccer club, prepares for its first season in Los Angeles, the world’s soccer community and especially the local Galaxy franchise will be watching intently.
The sport has struggled to find its niche here since the professional league was formed in 1996, two years after the World Cup was held in the United States. If Chivas (“goats” in Spanish) succeeds, other teams from Mexico or even Europe might follow suit.
“Everyone is looking at us to see how it goes,” said Whit Haskel, general manager of Chivas USA. “It’s a great opportunity for us to get established and then have other major clubs from abroad join us.”
There is also the danger that Chivas USA will siphon off the Galaxy’s fan base, especially those with strong ties to Mexico, leaving both teams with weak audiences. But it’s a chance that Anschutz Entertainment Group, which owns the Galaxy and four other MLS franchises, is willing to take.
Anschutz paved the way for the Mexican team’s arrival next spring, waiving its exclusive rights to the L.A. territory as part of the $26.5 million fee that Chivas’ owners paid to join the league. (Another new squad in Salt Lake City joins the league in 2005, as Major League Soccer expands to 12 teams.) The Galaxy will also share its Home Depot Center in Carson with Chivas USA, adding to the AEG-owned facility’s revenue stream.
While they will be on-field rivals, the Galaxy and Chivas USA will be partners in other ways. AEG bought the local broadcast and sponsorship rights for Chivas USA, and has already bundled and sold the rights to at least 40 Galaxy and Chivas USA games to Fox Sports Net.
“Chivas came here because it’s the best market for them to be successful in,” said Galaxy President and General Manager Doug Hamilton. “That’s important to us as an MLS partner. We need franchises to be successful, and if this market gives them the best chance to best successful, then let’s bring them here.”
The business partnership notwithstanding, Hamilton said, the Galaxy views Chivas USA as a competitor. With average attendance at 24,000 spectators per game, the Galaxy is the only MLS team to have turned a profit. “We’re in the lead,” he said. “It’s up to Chivas to chase us. We’re not chasing Chivas.”
The history behind Guadalajara-based Chivas will provide a running start. Founded in 1906, it is perhaps the most storied sports franchise in Mexico (think the New York Yankees, but with thick red-and-white striped uniforms). The team’s passionate fan base extends beyond the border; when Chivas played rival Club America at the L.A. Coliseum last year, the exhibition match drew nearly 40,000 spectators.
“There’s a massive soccer audience in Southern California it’s a big enough pie for both of us,” said Haskel, who formerly worked for the Galaxy. “We’ll have four games against each other next year, and we hope it’s the start of a tremendous sporting rivalry.”
Chivas USA President Antonio Cue doesn’t seem worried about whether Chivas USA will catch on.
“It’s obvious that our brand represents Mexico and represents our culture,” Cue said. “People from Mexico understand perfectly what Chivas is about, so our marketing strategy is very simple. The guy that likes Chivas from Mexico will love Chivas USA because we’re bringing the same tradition, the same philosophy, to L.A.”
Cue, a founding partner in Mexico City-based real-estate company BCBA, joined forces with his partner, Chivas Guadalajara owner Jorge Vergara, at the beginning of this year. Vergara made his fortune as chief executive of herbal-supplements company Omnilife and also has been a Hollywood producer (“Y Tu Mama Tambien,” “The Assassination of Richard Nixon”). They negotiated with MLS to gain entr & #233;e to the Los Angeles market, in part to take advantage of the 27,000-seat soccer-specific stadium that AEG had built.
“Chivas USA is a startup, but it’s a startup with a big difference,” Cue said. “With a great brand and a great market, the only thing we have to do is execute.”
The team is being marketed mainly to Mexican-Americans and Mexican national in Southern California; its Web site, for instance, is in Spanish.
Chivas USA has even identified its answer to Lakers super-fan Jack Nicholson: actor Edward James Olmos, who said he made his deposit for season tickets. (Chivas USA’s season ticket packages sell for $304 to $760, slightly higher than the Galaxy’s $300 to $664 packages.)
“With Chivas coming into league, what’s going to happen will be monumental,” Olmos said. “This is going to be a very different league now that Chivas will be allowed to bring in their understanding of many years of playing the game.”
On the field, Chivas USA will field a distinctly Mexican-oriented squad even though MLS rules limit the number of foreigners on each team.
At the recent MLS expansion draft, four of the first five Chivas USA selections were Mexican or Mexican-American players, including the first pick, Arturo Torres, who previously played for the Galaxy. “We’ll train our players in the Chivas way and play an attacking, offensive-minded style,” Haskel said.
Cue plans to showcase players from both Chivas teams in exhibition matches, as a way to grow the brand. “We might schedule games with Chivas USA and Chivas Mexico players against another team,” he said. “We’ll bring the team in whenever we think it’s good for our fans.”
