Looking at the operating margin of the global soccer clubs coupled with their very strong revenue it’s hard to determine why Forbes doesn’t value them higher. One answer is be that the growth potential is limited relative to the American sports leagues, but that seems hard to imagine.

The NFL again is the clear leader in operating margin, and it’s not by accident because they have the tightest control over player salaries. There have a hard salary cap and have no guaranteed contracts. Meanwhile, Major League Baseball has the lowest operating margin but also has the most open market for players of all the American sports leagues.

The soccer business model comes out looking very good through this lens. The top 20 soccer clubs compete in a completely open market for players and have very high wage costs. Despite that they generate a considerable operating margin. Smaller clubs may struggle, but that is why MLS has maintained tight controls on player salaries as they grow. Given the single entity structure it’s reasonable to project that MLS could have margins in the range of the global soccer clubs and the NFL.

MLS also has the benefit of tremendous growth potential. They attract a young demographic and play in the world’s biggest market financially. This coupled with their operating margin potential is why Forbes has their value to revenue ratio so high.