D.C. United is one of the most successful clubs in Major League Soccer history, having won 4 MLS Cups, a record 13 MLS Supporters’ Shields for best regular season record, and 4 Lamar Hunt U.S. Open Cups. But who actually owns and operates this storied franchise? Let’s take a deep dive into the ownership structure and history of D.C. United.
Current Ownership Group
D.C. United is currently owned by a group led by Jason Levien and Erick Thohir. Here is an overview of the current D.C. United ownership group:
Name | Title |
---|---|
Jason Levien | CEO and Managing General Partner |
Erick Thohir | Co-Chairman |
Jeffrey Sprecher | Investor |
Earl W. Stafford | Investor |
Jason Levien and Erick Thohir lead the ownership group and are the managing partners. Levien is an American businessman who is CEO of the group, while Thohir is an Indonesian billionaire investor who co-chairs. Jeffrey Sprecher and Earl Stafford are also investors in the group.
Acquisition by Current Group
This ownership group acquired D.C. United in July 2012 from previous owners Will Chang and Victor MacFarlane. The acquisition deal was reported to be worth around $55 million. Levien and Thohir spearheaded the acquisition and became co-chairmen and managing partners.
At the time, Levien was co-owner of the Philadelphia 76ers NBA team. He had previous experience owning MLS’ Real Salt Lake from 2005 to 2008. Thohir had experience as part owner of the Philadelphia 76ers and chairman of the Indonesian soccer club Persib Bandung.
The new ownership group promised increased investment and dedication to winning. Their first major move was leading the process of getting approval and construction of Audi Field, D.C. United’s new dedicated stadium which opened in 2018.
Ownership History
Prior to the current ownership group, D.C. United had been owned by several different individuals and groups:
Ownership Period | Owners |
---|---|
1995-1998 | Washington Soccer L.P. (led by investors Marc Griffin, Kevin Payne, and Will Chang) |
1998-2001 | Anschutz Entertainment Group & Lincoln Holdings |
2001-2006 | Anschutz Entertainment Group |
2006-2012 | D.C. United Holdings (Will Chang and Victor MacFarlane) |
2012-Present | Levien, Thohir, Sprecher, Stafford ownership group |
D.C. United was founded in 1995 as one of the ten original clubs of MLS. The original operating rights were owned by Washington Soccer L.P., led by investors Marc Griffin, Kevin Payne, and future owner Will Chang.
In 1998, ownership changed hands to Anschutz Entertainment Group and Lincoln Holdings. Billionaire investor Philip Anschutz was the leader behind AEG’s ownership stake.
AEG took over full ownership control in 2001. The company owned and operated the club until 2006, a very successful period which included 4 MLS Cups and 2 Supporters’ Shields.
In 2006, Chang teamed up with businessman Victor MacFarlane to form D.C. United Holdings and reacquire the club from AEG. Chang and MacFarlane invested in the team with the goal of building a new stadium, but were unable to do so before selling in 2012.
D.C. United Business Operations
In addition to ownership, D.C. United has an experienced executive team that manages business operations:
Front Office
Name | Title |
---|---|
Jason Levien | CEO and Managing Partner |
Sam Porter | President of Business Operations |
Andy Bush | Chief Operating Officer |
Lindsay Simpson | Executive Vice President, Revenue |
Santino Quaranta | Chief Culture Officer |
This executive team oversees business areas like sponsorship, marketing, communications, ticket sales, and operations. Levien as CEO provides overall strategic direction. Sam Porter as President focuses on revenue streams, strategic partnerships, and the fan experience. The rest of the team manages day-to-day operations.
There are also executives who manage the soccer side of the club:
Soccer Operations
Name | Title |
---|---|
Dave Kasper | President of Soccer Operations and General Manager |
Stewart Mairs | Technical Director |
Wayne Rooney | Head Coach |
Dave Kasper as President of Soccer Ops and GM oversees player personnel decisions, salary cap management, and more. Stewart Mairs is responsible for the club’s overall technical strategy and player development. Together with ownership, they manage the on-field product and soccer direction of the club.
D.C. United and MLS Business Model
D.C. United operates under the single-entity business model of MLS. Under this structure, MLS centrally owns all team operating rights. Owners purchase an interest in those rights rather than directly owning a franchise.
Here are some key elements of how business is structured in MLS:
- Owners purchase an operating right from the league for a set expansion fee.
- For D.C. United, that expansion fee back in 1995 was between $5-10 million.
- MLS negotiates all sponsorships, media deals, merchandising as a central league.
- Revenues are pooled and shared across all teams.
- Owners manage their teams locally and keep a portion of revenues.
- But player salaries and budgets are controlled by the league.
- MLS has sought to keep team operating budgets and salaries relatively fixed to maintain parity.
The single-entity structure gives MLS overall control and allows it to spread revenues for competitive balance. For D.C. United, it means operations are locally run but part of an overall league approach. Major decisions like players signed and salaries are regulated by the league.
The ownership group serves strategic roles in boosting the club’s brand, fan support, and communication with MLS leadership. But they ultimately have to work within the single-entity parameters set by the league.
Value of D.C. United
As an MLS original club in a major market, D.C. United is one of the most valuable franchises in the league. Here is a look at metrics around the club’s worth:
- Forbes last estimated D.C. United’s value in 2021 at $530 million.
- That was a 21% increase over the previous year’s valuation.
- It makes D.C. United the 4th most valuable MLS team behind LA Galaxy, Seattle Sounders, and LAFC.
- The club was initially valued at around $5-10 million at launch in 1995.
- Revenues were estimated at $36 million in 2021, operating income around $6 million.
- D.C. United generated additional value from Audi Field’s opening in 2018.
- The state-of-the-art soccer stadium cost $500 million to build.
The growth of MLS and soccer’s popularity have increased D.C. United’s value exponentially since launch. The club’s strong history and tradition also give it an aura that boosts valuation. A dedicated stadium and renewed recent investment have further grown revenues and brand image.
While less than mega clubs overseas, D.C. United’s soaring valuation reflects bullishness on MLS growth potential as ownership continues to target enhanced club success.
Conclusion
D.C. United has been owned by several different investors over its history but found its greatest success under long-term ownership by Anschutz and AEG. The current group led by Jason Levien and Erick Thohir has invested heavily in infrastructure like Audi Field and looks to usher in a new era of on-field success.
The ownership groups operate locally but within the MLS single-entity structure that regulates much of the business side. Despite operating constraints, D.C. United has become one of MLS’ most prestigious and valuable franchises. With continued growth of MLS and soccer, United appears well-positioned to drive even higher valuations and profits under its current investor group.