Don Garber – MLS Commissioner John Hendricks – WUSA Chairman Carla Overbeck – U.S. Women’s National Team captain Don Garber’s Opening Comments: “I’d like to thank everybody for joining John Hendricks and I today for what we believe is a landmark day for soccer in America. Since John and I first met, both he and our investors have been in discussion since last November, both parties have always wanted to form the kind of relationship that is best for soccer in America. We feel that today’s announcement will result in a relationship that is best for the growth of soccer at all levels, not just the men’s and women’s league but at youth levels. Today we are announcing that MLS and the WUSA have agreed to a comprehensive cooperation plan, that provides for a coordination of marketing and promotion, and of scheduling and stadium development. “As a result of this agreement, Major League Soccer has opted not to file an application with the United States Soccer Federation to operate a Division One women’s professional outdoor soccer league in the United States. This plan combines MLS’ soccer business experience and the media power of WUSA to maximize the growth of the sport in this country. “In addition to mutually beneficial cooperation programs, MLS and WUSA are in negotiations to operate expansion teams in certain markets which are important for both leagues. Also, WUSA’s cable-industry investors will provide substantial commercial inventory for the promotion of the game in both leagues as well of promotion of game broadcasts on television. Both leagues have made a commitment to operate a team in each other’s league by 2002. We are currently analyzing which markets are best for both leagues and we’ll continue to work with our mutual investors on this important priority. “We will spend the next few months finalizing the details for a specific expansion market. Obviously, this will finalize Major League Soccer’s commitment expand by two teams in 2002. We believe that this plan satisfies the mutual interests of men’s and women’s soccer. The agreement is simple and practical. John and I believe the entire soccer community, from the investors, the players, the team personnel, as well as the U.S. Soccer Federation believes that this relationship makes a whole lot of sense. I’d like to thank John and everyone involved in the WUSA for their vision of what we hope to achieve for professional soccer in this country.” John Hendricks’ Opening Comments: “Fundamental to today’s announcement is a formal start a cooperation plan. We have setup, starting today, a joint advisory council. Each of MLS and WUSA are appointing two members to this council. Importantly, that council is going to look at all the ways that these two leagues can cooperate and grow the entire sport. We are looking specifically at marketing and promotion. As Don has alluded to, our WUSA investor groups, which comprise some of the largest media organizations in America, will provide promotion to both leagues. “We’ll also look to a common strategy to market to the youth soccer community, which both leagues think is crucial for the sport. We are looking at joint national soccer camps as well, in addition to cross-promotion on local marketing materials. I think very important to both leagues is scheduling, so we can minimize conflicts, especially in the markets that have teams in both leagues. Something I think that is very exciting to both Don and I, and the investors is how can these two leagues look at the development of soccer specific stadiums in America. “That’s kind of the mission of the join advisory council. We think this is a breakthrough in league cooperation in this country. Going beyond that, Don and I are excited about potential equity arrangements that would involve expanding WUSA into a market or two that we are very much interested in going to. Reciprocally, we are looking at expansion plans for MLS and how our investors singly or as a group can operate an MLS team in a market. We can learn a lot through that experience. We’re excited that this plan develops a cooperation both in the immediate future and is also very forward looking.” Carla Overbeck’ Opening Comments: “We as the players are extremely excited by the breakthrough. Obviously, we want to do what is best for soccer, not just women’s soccer, the men’s and the youth and the amateur sides. We feel that this is a huge breakthrough, a landmark agreement. We’re excited also, because we’ve been behind WUSA from the start, and we’re pleased that’s the plan the league will be based on with help from the MLS side. I think it’s going to benefit all sides. What we are gearing towards is helping soccer in this country.” Overbeck on a peaceful agreement between MLS and WUSA: “Obviously, as we’ve seen from other sports, having two leagues wouldn’t have been best for game. We are ecstatic by the developments. The plan that we hoped would get sanctioned will move forward with the experience that MLS brings to the table. MLS has been in existence for years already. The stadium development is something that we need desperately in this country. I think with the knowledge of MLS, with the investors of the WUSA, it’s going to happen. We’ll get some soccer specific stadiums.” Hendricks on avoiding administrative ties with MLS: “I think this was a very mutual agreement, where we both are benefiting from the strength of each other. For a league that’s just starting out, to have the full cooperation and support of MLS, it’s invaluable to us. We bring a lot of media strength to the table. This media agreement is multi-year media agreement and is in the multi-millions of dollars. So, we’re real happy with it. “What we are looking at on an immediate time frame are the logical points of cooperation at the league level as well as at the marketing level. I think Don and I both expect some great recommendations that will come out of the joint advisory council. Long term, what we are looking at in terms of expansion is the potential for MLS operating a WUSA team or one of its investors operating a team in that particular market or a WUSA team operating an MLS team in some market. That would complete cooperation at all levels and lead to a potential equity swap. Those are the kind of things that we’ll be negotiating over the next couple of months.” Hendricks’ on WUSA teams in non-MLS markets: “I think clearly for us, the most important cooperation agreement was with MLS. I think this is an example of the kind of cooperation that we will employ throughout the country, with Division Two and Division Three teams and youth organizations. The first step was to develop a sound cooperation with MLS. In those markets without MLS teams, there’s lots of potential to cooperate with all soccer organizations. Hendricks’ on new soccer facilities: “What we are laboring to do is meet fully with U.S. Soccer standards, which require a venue contract to be signed before November 1st. It’s likely that in the first year of WUSA play, we will use existing facilities, not new ones. We are concentrating on existing facilities for our first year of play.” Garber on MLS’s bid for a women’s league: “We came very close, we had our application ready to go. At the 11th hour, .John and I and the investors were able to get together and have a meeting of the minds that made sense. It’s something that we are very excited about.” Garber on potential MLS/WUSA doubleheaders : “This agreement provides for that opportunity. We’ve not yet gotten to the details on how that could be executed. Certainly, we would like to see, and I think the WUSA would like to see, ways to co-promote. Doubleheaders would be an example of that.” Hendricks on potential MLS/WUSA doubleheaders : “The advisory council will come up with recommendations on things like doubleheaders and youth days. I think doubleheaders would be terrific where all the youth organizations would come out for the entire day.” Garber on the effects on expansion : “We are talking about mutual operation. Either a local team or the league would operate a WUSA team in a select market. Either a local cable operator/WUSA investor would operate a team in our market. Clearly it would be in markets that make sense for both of us and we are in the process of trying to finalize that as we speak.” Garber on expansion in Philadelphia : “In WUSA’s case, they are seeking a suitable facility to play in. Certainly, if in there was an MLS and WUSA teams that could be headed into that facility, the likelihood of the facility being built would increase. We hope in a market like Philadelphia that we can achieve what would be good for soccer with the creation of a new stadium.” Hendricks on expansion in Philadelphia : “What we are doing right now is leaving the markets open. We’ll look market by market where there is great fan interest or markets where one of us is already committed as we are in Atlanta. MLS is not in Atlanta so that can be a target of interest as well as Philadelphia. From our side, there are a number of cities that are not part of our target launch that are interesting and important to us. Markets like Chicago, Houston and Los Angeles will be important to us. We wanted to get the agreement in place, and then focus on the markets where it makes sense to both leagues.” Hendricks on ownership in Philadelphia : “We have had discussions with MLS that have involved a number of our investors. I think at this stage we are not going to comment on the view of any particular investor. What we’ve agreed to is Philadelphia as an expansion market and we’ll have more announcements later as we make progress in our negotiations.” Hendricks on cross-promotion : “That are five markets that have teams with both MLS and WUSA. Topic number one that is on the agenda for the joint advisory council is to look at what makes sense for marketing in those places. We can perhaps save some money in marketing expenses, while maximizing efforts for cross-promotion in those markets. We will look at venue relationships that make sense to be shared by both leagues. We’ll have more announcements on those details a little later on. ” Garber on cross-promotion : “This agreement allows for these ongoing discussions to continue. In those markets where we have teams, it certainly makes sense to evaluate every opportunity. In New York for example, there is no reason that our MetroStars can’t work with Time Warner and the WUSA team.” Garber on WUSA media ties benefit MLS : “We are in discussions on how exactly that will work. In addition to the joint advisory council, we are creating a marketing and media committee that will look on how we will grow the game. We will look at how we can turn participants into fans, and media and access to media will be an important part of that. We will have access to cable time, and we can use that inventory to grow attendance and television viewership.” Hendricks on shared media : “The media resource here, the cable avails here are residual local avails that can be used for promoting MLS and WUSA. It will be a strategic interest of our cable investors. We are pleased to arrange that kind of promotional commitment.” Garber on significance of a men’s league supporting a women’s league: “All along what we have been struggling with was the desire of WUSA for a cooperation agreement without some of the commitment that we have ultimately agreed to in this agreement. This agreement, in addition to cooperation, provides a variety of things which are critical to the growth of Major League Soccer and that is media support and expansion in key markets. Without that this agreement would have been a challenge to execute. I would like to say that is was a mutual agreement providing what the WUSA was looking for in cooperation and what we were looking for in media support and expansion and those league connections that would allow local operators in certain markets to work closely with WUSA operators. “What this really says is that the soccer market is a new one. I do not think the model has been written, the story has not fully been told. We’ve both been going out and are trying to fight up against the other leagues and against a very fractured market. “What is shows, is that regardless of the sex of the players we both recognize that we have challenges ahead, and together we could achieve a whole lot more than if we were to work independent of each other. I think there is nothing but positive things to come about this and one that will be good for both men’s and women’s soccer.” Hendricks on the benefits of teaming with MLS: “I feel that there is equal value to both sides of this agreement. We are providing multi-billions dollars of worth of media time but we are also benefiting from the years of operations of MLS. And I think if we were operating without the benefit of that experience I think we could expect that our loss levels would be more. If we were reinventing the wheel I many cases in certain markets and in certain league activities. I think all in all that is how agreements are forged when both sides feel there is equal value. Don was correct, I think at the end of the day last week both sides felt like a very fair and equal value relationship has been struck.” Hendricks on WUSA expansion in Texas: “We are a little light in terms of Central United States and I think both those areas, both Houston and Dallas, are areas that we have under consideration. Ultimately, WUSA can build from being an eight-team league to certainly 12-14 and both of those markets have been under consideration.” Hendricks on stadiums: “We have got in each market we have a number of candidates (for stadiums). Some that are large venues which for us we don’t think are ideal in the long term. We are also looking at some venues that could be upgraded currently, for instance college and university venues that are not adequate but with several million dollars in investment, could be upgraded to the caliber venue that we would like. All of those announcements we are targeting by Nov. 1. Garber on financial ramifications: “We have never said that we are struggling and our investors don’t perceive us as struggling. What this (the cooperation agreement) does provide is the relationship with a new group of investors that are making a commitment to soccer and are looking at now expanding that commitment to men’s soccer. Probably as importantly, these folks are in the media business and specifically the cable business and have access to media in major markets. That is all good stuff for us and provides us access to media both that is going to be provided and certainly in marketing through that media that we are very exited to be a part of. The ownership group and who they are is very important to us and in represents new interests in the sport.” Garber on what happened at the 11th hour: “John and I have been in discussions for months and we continued to struggle with the concept of cooperation vs. a real commitment at the league level. We have a single entity which is a corporate entity and we believe that the corporate entity had to have a benefit for local investors to be able to participate in some of the opportunities that would have been presented to them or offered to them with the WUSA involvement. It took a meeting of the minds. We got together. We had a very small meeting and a very productive meeting. Ultimately, we were able to reach the kind of agreement including as to mention the potential for expansion and media support in addition to some of the cooperation which we are sure will be good for both of us.” Hendricks on national media possibilities: “The one aspect that reaches across all the markets is national media and that is what Time Warner and Comcast have is the ability to reach out across America to promote the sport of soccer, both the men’s and the women’s and importantly build viewership and add value to our game. I think that was an important factor.” Hendricks on negotiations: “Under the soccer standards it was kind of a catch-22. If you in any way let up in your development plan you would fail to meet an important standard that the league had to be operations all levels prior to launch. We felt that it was just critical the Spring 2001 launch season. That was largely behind all of our continued efforts to get things up an operational. If we let up at any moment, it would fall out of compliance and the league would be put off for another year. So I think that was key to our efforts is that we had to proceed as if No. 1 we would untimely be sanctioned and Don and I have always have had friendly discussions. Sometimes reports would get out that don’t indicate that, but I think if anyone had been on our WUSA conference calls, I think you would realize the tone of what we had tried to stress throughout the last six months. We felt strongly that WUSA to have a chance for success needed focused energy and resources behind it the way that I think MLS has enjoyed its success. “We felt strongly that WUSA had to focus energies and resources and the challenge was to create an expansion plan for the fan base of both leagues. That is what we were successful in doing over the last two months as we began to focus in on a cooperation agreement. I think that coupled with expansion and coupled with media put us over the finish line.” Garber on MLS expansion: “We intend to add two teams by 2002 and shortly we will be able to announce where those teams are, what markets they’re in. We plan to expand to by two additional teams by 2004 and we are making some progress in those additional markets.” Hendricks on expansion: “WUSA are looking to 2002 and the addition of the central two teams and certainly by 2004 I think another two teams.” Garber on Columbus expansion: “At this point, our focus primarily is on Los Angeles and Chicago. It has not been through the Hunt organization in Columbus or Kansas City.” Garber on expansion of MLS in 2002: “We have not committed to any investors for 2002 beyond the MetroStars who have the intent to operate a second team in New York. Beyond New York there have not been any other commitments that I know about. This team would be the second team and would marry up with the intention in New York to have a second team.” Garber on the federation’s support: “I think all along the federation wanted there to be cooperation between the two leagues. They believe that the value of strong professional leagues both men and women would be very crucial to the growth of the participation and the quality of participation at all levels. U.S. Soccer was a real good guide for both of us to get an agreement.” Hendricks on the federation’s support: “Bob Contiguglia and Bert Haynes provided a healthy environment that fostered the discussions.” Garber on San Diego expansion: “San Diego is definitely on the list. It is a very strong soccer market, a market that would look forward to 2004 vs. 2002. It is certainly a market that we believe can support a men’s professional soccer team and now that we have this agreement perhaps there is an opportunity for things to happen together.” Hendricks on time frame for stadiums, players: “The facilities exist. For instance in Washington, D.C. there is one of the best soccer fields in the country with RFK Stadium. Venues are available, and whether those are long term venues for WUSA we will have to determine that. We are not concerned with venues. We have made lots of progress over the last four months in getting the league office set up in New York. We are now operating at every market level. A person has been hired to be director of soccer operations in all of the cities. “With the key allocations that will be announced tomorrow from the founding players, the 20 members of the U.S. Women’s National Team plus four top stars. There will be three assignments per markets. Shortly there will be assignments and allocations from the international starts and Tony DiCicco is organizing a large try-out combine this fall. We fell we will be up and running and will be a great first impression for all the fans.” Hendricks on salary cap: “We have a salary cap not per player, but have targeted a budget of about $800,000 so when you divide that by 20 players that’s an average salary of about $40,000. So, we think with all the conversations and letters that we have executed that that is the salary figure that will hold up.” Hendricks on whether national stars will eat up large part of cap: “I don’t think it will have that kind of impact. We have structured a base level compensation and then the $800,000 budget we are talking about. And then we have incentives based on ticket sales and other key indicators.”