The man behind the curtain: patience is most certainly a virtue for MLS's mysterious patriarch, Philip Anschutz - Major League Soccer

Soccer Digest, Oct-Nov, 2002 by Clemente Lisi

WHEN PHILIP ANSCHUTZ scored a pair of free tickets to the 1994 World Cup final he had no idea that he was about to fall in love at first sight. Over the past six years, the multibillionaire has pumped $100 million into the object of his affection, mostly into MLS, and is credited as the driving force behind the U.S.'s incredible showing at the 2002 World Cup.

Anschutz (pronounced Ann-shoots) is the richest American you've never heard of. The reclusive billionaire, who also owns the NHL's Los Angeles Kings and has a minority interest in the NBA's Los Angeles Lakers, has built a reputation as a risk-taker in businesses ranging from oil and real estate to telecommunications and filmmaking. Whatever the venture, he is known for his intuition and acumen. His belief in the future of U.S. soccer has been no different.

Anschutz is the most influential man in MLS, yet he's almost completely invisible. He hasn't granted an interview in more than 25 years, but those who know him say the 63-year-old tycoon is a visionary. He has certainly developed a reputation for proving others wrong--a prerequisite for an American soccer investor.

Despite staying out of sight, the U.S. soccer community has no qualms about spotlighting Anschutz's efforts. After the U.S. upset Portugal in its opening-round game at the World Cup, defender Jeff Agoos praised Anschutz's commitment to the sport. "We were wearing the jerseys, but he was one of the guys out there as well," said Agoos.

American fans back in the States should also have been singing Anschutz's praises throughout June. Were it not for Anschutz, many of the World Cup games would not have been televised live in the States. In January 2002, Anschutz created Soccer United Marketing (which also includes MIS backer Lamar Hunt and Dentsu) and acquired the U.S. English-language TV rights for the 2002 and 2006 World Cup, as well as the 2003 Women's World Cup.

The group then brokered a deal with ABC/ESPN to air the games, covering some production costs itself. The group also acquired MLS's telecast and sponsorship rights through 2006--essentially ensuring that Anschutz would remain committed to MLS for at least the next four years. AEG is also building a $130 million sports complex in Carson, Calif. ,that includes a 27,000-seat soccer-specific stadium for the Los Angeles Galaxy and a training center for the U.S. team.

These investments earned Anschutz the nickname "Uncle Phil" from American soccer fans. But why does this avuncular figure fund U.S. soccer? For starters, he's a sports nut. The Kansas-born entrepreneur regularly attends MLS games in Los Angeles and Denver, and he is also often spotted at the home games of the Lakers and Kings. On Anschutz's vast Denver ranch, he and his guests--who often include D.C. United and Colorado Rapids players--enjoy horseback riding, fishing, and golf. He also regularly plays tennis and runs marathons, which he always finishes.

Anschutz commits himself to the long haul in the boardroom, as well. Even though MLS has lost more than $250 million since it kicked off in 1996, AEG has increased its investment in the league in recent years, and it now operates five of MLS's 10 teams (the Rapids, United, Chicago Fire, Los Angeles Galaxy, and MetroStars).

There is a worry that Anschutz virtually runs MLS, but league commissioner Don Garber insists that AEG doesn't solely dictate league decisions by means of controlling its board of governors. Some measures that affect the league can be passed with a simple majority, while others require a two-thirds margin. Though the league has never revealed how voting rights are distributed, Garber says Anschutz does not hold half of the voting power just bemuse he operates 50% of the league's franchises. "We have a wide variety of checks and balances in place, and we will continue to enforce them," says Garber.

Despite the perception that MLS's lack of investors is proof of its instability, Garber believes Anschutz's inflated investment provides MIS "economic credibility" as it seeks to expand to other markets and build soccer-specific venues. Indeed, multi-ownership in MLS is nothing new. The Hunt Sports Group operates two teams, the Columbus Crew and Kansas City Wizards. And the Kraft family, which runs the New England Revolution, also operated the San Jose Earthquakes for two years before dropping the team in 2000.

"Having a small group of committed investors is better for the long-term success of the sport than a large number of [backers] who are unwilling to reach our goals," says Garber. "I don't believe that allowing AEG--the most committed soccer group in the country, perhaps the world--to have a large interest in MLS is anything but very, very good for us. Anschutz, and his group have made a massive commitment to the sport. Soccer needed someone to tell the naysayers, `I'm right, and you're wrong. I've made bets on businesses that everyone said wouldn't work and I've proven to be right. My next bet is on soccer.' Anschutz is that person."