This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why You Should Invest in a U.S. World Cup Run

Stocks in this article: ALL T BUD GM CLX UL JNJ MAR MCD PEP FOXA DIS

You don't invest in U.S. soccer for the short-term returns. Fans who jumped aboard after the 1994 U.S.-hosted World Cup and the national team's 1-0 Round of 16 loss to Brazil had to wait until 2002 to witness the next big advance -- when the U.S. made it to the quarterfinals against Germany. MLS fans who jumped on the in the league's early, star-studded days had to endure oversized venues, aging international talent and failing teams for more than a decade before the league shrunk its stadiums, developed talent and built from within. Even now, it's not a perfect system -- but it's much improved.

Such is the case with the men's team today. Making the Round of 16 in 2010 after being ushered out in the first round of 2006 seems like progress, but it's temporary. Klinsmann and his assembled group of established veterans including Clint Dempsey, Jozy Altidore and Michael Bradley see the potential. It was only two years ago that they got their first-ever at Estadio Azteca in Mexico City. The same year, the U.S. got its first-ever win against Italy -- in Italy.

Klinsmann has said repeatedly that this year's U.S. team cannot win the World Cup. He says it because he knows it to be true, but because his goal in bringing young, internationally seasoned players into the fold such as Green, 20-year-old DeAndre Yedlin and 23-year-olds Aron Johannson and Mix Diskerud is because he wants it to be a possibility -- if not an immediate threat -- in 2018.

Consider that for a moment. The U.S. hadn't even qualified for the World Cup in 40 years when it made the cut in 1990. It's only made it out of the group stage three times during that span, losing twice in the Round of 16 and once in the quarterfinals 12 years ago. It has gone winless in the group stage three times since 1990 and last did so just eight years ago.

But the last seven years have been far different. It finished runner up to Brazil in the FIFA Confederations Cup in 2009 -- and only by a 3-2 margin -- and defeated Spain a year before its World Cup title run to do so. It's finished no worse than second in every CONCACAF Gold Cup since 2005, and just won last year's installment over Panama. It not only qualified for the World Cup with consecutive impressive performances against Mexico, but defeated Germany 4-3 just to celebrate. In half a decade, it defeated two of the Top 2 teams in the world -- a feat the U.S. hadn't accomplished to that point.

By gutting a nearly nonexistent soccer development system and retooling itself to not only develop top-flight talent, but streamline it right into the national team, the U.S. has finally replicated a system used in countless top soccer nations including England, Germany and Spain. It's a huge, positive leap, but the results are going to take time.

The U.S. is still only 24 years into its international soccer era. It's growth in that time has been impressive, but the leap from “entertaining distraction” to “perennial global competitor” isn't so easy. In 84 years of World Cup play, only eight nations have won the title. The most recent champion, Spain, hadn't finished higher than fourth place since 1950. England won a title in 1966, but only managed a fourth-place finish in 1990 since then.

Unless you're Germany, France or Italy, there are small windows of opportunity for nations to build talent great enough for a deep World Cup run. Klinsmann sees it now, and both sponsors and broadcasters are backing him with dollars. The least you can invest is your time, especially if the payoff is as big as U.S. Soccer believes it will be.

-- Written by Jason Notte in Portland, Ore.

>To contact the writer of this article, click here: Jason Notte.

>To follow the writer on Twitter, go to http://twitter.com/notteham.

>To submit a news tip, send an email to: tips@thestreet.com.

RELATED STORIES:

Jason Notte is a reporter for TheStreet. His writing has appeared in The New York Times, The Huffington Post, Esquire.com, Time Out New York, the Boston Herald, the Boston Phoenix, the Metro newspaper and the Colorado Springs Independent. He previously served as the political and global affairs editor for Metro U.S., layout editor for Boston Now, assistant news editor for the Herald News of West Paterson, N.J., editor of Go Out! Magazine in Hoboken, N.J., and copy editor and lifestyle editor at the Jersey Journal in Jersey City, N.J.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,043.24 -10.47 -0.06%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs