Those who want to bring an open league structure to professional soccer in the United States – one that includes promotion and relegation like most other league systems – were dealt a considerable blow on Thursday.
According to a new report released from Sports Business publication Sportico, 19 of the 50 most valuable pro soccer’ clubs on Earth play in MLS, the most of any league.
Granted, with 30 teams, MLS has more total teams than the other leagues involved. And the total value of MLS teams combined still lags considerably behind the English Premier League. (Forbes has yet to release its rankings for 2025; you can click the links to find the 2024 Forbes 10 most valuable soccer teams worldwide and the most valuable MLS teams.)
Even so, it’s an eye-popping assessment considering the league is still only considered – at best – on the fringe of the top 10 worldwide in terms of on-field quality of play.
But value has several components that aren’t directly related to competitive quality. And four of them work decidedly in MLS clubs’ favor:
- Assets: Most MLS clubs enjoy their own modern stadiums, sometimes constructed in part with public funding, and sometimes with ancillary properties adjacent to the stadium also under their control.
- Market: The league still plays in the world’s wealthiest economy, which means its clubs enjoy revenue potential that far outpace the league’s place in the global hierarchy in terms of on-field quality.
- Security: Unlike most teams around the world, MLS clubs do not have to face the risk of relegation since the league currently plays in a closed system like other North American sports.
- Growth-potential: While MLS has grown significantly in its first 30 years, it remains well behind the NFL, NBA and MLB in terms of media exposure domestically, and is only beginning to register internationally.
Of those factors, MLS has most control over No. 1 and No. 3. And there’s an argument that avoiding a promotion and relegation format has contributed positively to both.
Commissioner Don Garber has continued to insist that any promotion and relegation involving MLS sides is at least a generation away. And part of his justification for keeping the league’s current format is the amount of stadium and infrastructure investments owners have made to get the league off the ground in its first 30 years.
Now that there appears to be very real playoff for that investment, it gives Garber more leverage to suggest providing safety from relegation for MLS clubs has been the savvy business maneuver.
And those valuations of MLS clubs could grow considerably more as a result of the coming 2025 FIFA Club World Cup and 2026 FIFA World Cup to be hosted in the United States (as well as Canada and Mexico for the latter).
Bad Timing For USL?
Meanwhile, the report comes months after United Soccer Leagues – which currently operates second-, third- and fourth-tier pro soccer competitions – announced its intention to launch a rival Division One league to compete directly against MLS as a top tier of the pro men’s game in the U.S. And its owners also voted to adopt promotion and relegtion across its top three tiers once Division One is launched in 2027 or 2028.
But the USL is going to need some new investment to make sure enough clubs meet the USSF’s Division I sanctioning standards. And it appears MLS is also willing to consider re-opening expansion possibilities, meaning the USL may need to compete with MLS for those investors to a greater degree than may have been expected when the Division One concept was first announced.
If those investors are weighing both options, the current valuation MLS clubs have attained will be quite alluring, even if the cost of entry to MLS is a lot higher. So even if the USL does get its Division One project off the ground that receives the necessary sanctioning from the United States Soccer Federation, it may be left with only those investors with lesser resources who get turned down by MLS.
Ultimately, that may lead to a Division One USL project that still appears clearly inferior to MLS, regardless of sanctioning status. And from its adventageous position, it’s hard to envision MLS suddenly opting to open its league system when the closed version has been so bountiful for its members. Both those outcomes would be a major setback for those who want to see promotion and relegation at the top level of the American game.
