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Ben Strauss
Multiple Authors
NEW YORK — Located in the heart of Manhattan, the Major League Soccer headquarters showcases the league’s achievements with tangible artifacts.
Outside commissioner Don Garber’s office, you’ll find over two dozen hard hats adorned with team logos, like those of Austin FC and FC Cincinnati, alongside a red shovel from Chicago Fire FC, representing the stadiums built or refurbished under Garber’s tenure. He proudly notes that he has shovels for each of the 27 stadiums connected to the league.
“We’ve been quite busy,” Garber remarked in a recent interview.
The various stadiums are a testament to MLS’s endurance, as it transitioned from a novelty to a vital sports entity. The league was on the verge of collapse in 2001, with six clubs owned by a single individual shortly thereafter. Today, it operates as a 30-team league generating $2.5 billion in revenue, with Lionel Messi now playing for Inter Miami.
The old adage that soccer is the “sport of the future” has endured, particularly after David Beckham joined the league in 2007, which garnered considerable media attention.
This World Cup has marked a significant moment, drawing an audience of over 50 million viewers in the U.S. for the men’s team’s round of 16 match against Belgium. Garber commented, “I never imagined a round-of-16 World Cup game could rival NFL conference championships in TV ratings.” The final attracted more than 60 million viewers—an all-time record for a soccer broadcast.
With this momentum, MLS is eager to capitalize.
Recently, the league launched a major advertising campaign costing tens of millions, featuring the slogan: “Thanks, world. We’ll take it from here.” This initiative marked MLS’s largest marketing investment to date, appearing on television and digital platforms. During the World Cup, clubs held watch parties that attracted tens of thousands of fans, and free ticket promotions saw a significant uptake. MLS emphasizes that its 45 World Cup players accumulated over 8,000 minutes on the field—more than any league outside Europe’s top five—and plans to align its schedule with international leagues starting in 2027.
However, a paradox emerges as the global soccer landscape shifts away from the U.S. While Sportico identifies MLS having 18 of the 50 most valuable franchises globally, several surpassing $1 billion, it ranks just 10th in quality worldwide, according to Global Football Rankings. The league’s growth has primarily relied on expansion fees and stadium construction—both limited resources—and will need to explore new revenue channels moving forward.
Consequently, MLS finds itself at a critical juncture: Should it operate like a real estate enterprise focused on filling venues and offering superb game-day experiences, akin to minor league baseball? Or should it disregard its past practices and invest more in talent to secure lucrative media rights? Crucially, are these two paths—better cash flow versus superior soccer—mutually exclusive?
Six league executives express their opinions to ESPN, aware of the risks associated with both choices: Enhancing investment does not guarantee returns, while maintaining the current strategy could jeopardize team values and let the U.S. soccer market slip to competitors.
Within the league office, Garber remains optimistic. Addressing an audience of around 250 reporters at an event in advance of the World Cup final, he declared, “I’d rather be us than any other soccer league in the world.”
Taking the MLS commissioner role in 1999 after a marketing career in the NFL, Garber recalls the skepticism from peers. A lighthearted moment involved someone gifting him a “Soccer for Dummies” book—he read it. When questioned about his soccer knowledge by NFL moguls like Robert Kraft, Garber admitted, “Very little,” to which they replied, “That’s okay.”
These anecdotes emerged as Garber sat in the sleek MLS headquarters, a France versus Morocco quarterfinal unfolding on a large screen. He utilized the World Cup to promote soccer in the U.S., even noting interactions with celebrities like Paris Hilton, an avid soccer enthusiast.
Garber is set to step down in 2027, offering a unique view into MLS’s distinct sports context. Established as a prerequisite for the U.S. to host the 1994 World Cup, MLS functions as a single-entity model—team owners collectively possess the league, while players are contracted through it. This structure aims to maintain owner collaboration and fiscal stability.
Unlike many top soccer leagues, MLS does not permit relegation, ensuring every team retains a financial foothold. Citing success, Garber highlights the league’s alignment with key NFL principles: operational parity and a rigid salary cap.
This approach has benefitted early investors. Garber’s vision to create a marketing division overseeing commercial rights related to the Mexican national team in the U.S. has also paid off, along with a “designated player” rule that allows teams to waive salary cap restrictions to recruit high-profile players.
Franchise valuations have surged, exceeding 20 times their 2008 values, fueled in part by the broader growth of American sports. Since FIFA awarded the men’s World Cup to the U.S. in 2018, the league has expanded by seven teams; San Diego FC, MLS’s 30th franchise, made its debut in 2025 with a staggering $500 million expansion fee.
As Tom Penn, CEO of San Diego FC, observes: “18 of 50 franchises rank as the most valuable because we operate effectively. Our closed system and collectively bargained salary cap allow us to thrive, unlike leagues where owners strictly compete.”
Deloitte found that top Premier League clubs’ pre-tax losses escalated sharply in successive seasons, primarily due to increased player expenditures.
Garber highlights a crucial element of MLS’s future: demographics. The average age of its fans (39) is the youngest among major U.S. soccer leagues, with a notable 28% being Hispanic—key to population growth.
“Attending an Ecuador match, you might see fans from both Ecuador and places like Queens,” Garber noted. “We embody a rich tapestry of cultures, all given space to celebrate.” When asked if this was a political comment, Garber smiled but declined to elaborate.
Since 2019, MLS has welcomed seven teams, accumulating roughly $1.5 billion in expansion fees, necessitating a justification for these substantial investments. Enhancements in hospitality and sponsorships are pivotal for revenue growth, yet executives from multiple franchises assert that true financial progress hinges on broadcast revenue.
During the last broadcast rights negotiation, MLS faced challenges. Lacking significant interest from traditional networks, the league signed a 10-year, $250 million annual contract with Apple TV in 2022, which included production costs deducted from that total. Initially, fans needed a separate Apple subscription to access MLS games, complicating matters for casual viewers. However, for the current season, only an Apple TV subscription is required, but the deal will conclude after 2029. (Apple has not provided a comment.)
Franchise owners have expressed a desire for a forthcoming rights fee between $400 million and $500 million, effectively tripling the revenue from Apple, as multiple insiders relay.
Securing such a deal won’t be straightforward. According to “Soccernomics,” broadcast revenues for MLS are weak. Stefan Szymanski, a co-author of the book, stated: “No major sports league globally should solely depend on broadcast revenue, and MLS has very low figures in this area. A successful league needs top talent to become a prime media contender.”
Data from “Soccernomics,” which uses Transfermarkt to evaluate player worth, reveals that the average MLS player held a valuation of approximately 1.7 million euros ($1.9 million) in 2024, ranking MLS as low as 14th globally. Comparatively, Premier League and La Liga player values were six times greater, with Serie A five times larger. MLS also fell short of Mexico’s Liga MX and was around 30% behind leagues in Saudi Arabia and Belgium. Even the English Championship and Dutch Eredivisie boasted player values over 50% higher.
“MLS ownership reflects a strong NFL mindset,” remarked one insider, underscoring the lack of competition for talent in American football. “In global sports, reductions in player quality would directly affect team valuations.”
The current team salary cap is approximately $6.4 million but permits supplementary spending. Most teams operate with payrolls between $13 million and $20 million, while Inter Miami’s stands at $46 million. Stakeholders suggest the league is evaluating proposals for a simpler cap and floor model that could fall between $15 million and $30 million, providing flexibility for marquee players. (The MLS Players Association declined to comment on this matter.)
NYCFC’s CEO Brad Sims indicated that just a few teams need to spearhead increased expenditures to elevate the entire league, akin to the top European leagues. “If we had six teams like Inter Miami, media rights discussions would change,” he asserted. (One executive mentioned recent ownership meetings where the potential for super teams was deliberated.)
There exists a significant divide among owners regarding the extent of deregulated spending, as various executives highlight the disparity between long-time owners with substantial value increases and newer investors. Notably, many clubs are still striving for profitability.
Some executives are optimistic changes will materialize by year’s end.
“I anticipate considerable enhancements to the roster investment model, resulting in improved product quality,” remarked Merritt Paulson, co-owner of the Portland Timbers. “We need to bolster our roster quality and depth, an area where we’ve lagged. My confidence is strong.”
Yet the notion that higher spending on players will resolve issues can frustrate Garber.
“Everyone pushes for increased spending,” Garber commented. “But there are teams that have faced relegation for financial mismanagement. How does that serve fans?”
He referred to a 2024 scenario where Atlanta United FC transferred Thiago Almada to Botafogo for $21 million, only for Botafogo to falter on payments. Atlanta’s ensuing FIFA dispute upheld their claim, resulting in Botafogo facing a transfer ban.
“They didn’t manage their finances properly, and we still haven’t been compensated,” Garber explained. “This is unacceptable, and something like that would never occur in MLS.”
During the World Cup, many sports fans expressed new enthusiasm for soccer while simultaneously inquiring about connections to Premier League teams.
When asked if this trend was frustrating, Garber responded: “You’re seeking me to imply that it bothers me, but it doesn’t. Seeing someone post online about wanting a club leads me to believe they will ultimately return to their local team, as we can provide an unmatched live experience that highlights the best of the game.”
MLS’s internal data shows that 68% of American soccer fans support multiple teams. Studies indicate complexities in soccer fandom; for instance, Ampere Analysis found that 13% of American sports enthusiasts follow the Premier League, Liga MX, and MLS concurrently. However, over half (53%) of Premier League supporters don’t engage with the other leagues, while a third of MLS and a quarter of Liga MX fans don’t follow the others.
The fight for the American soccer audience is escalating. La Liga has set up a North American office and is looking to host matches in the U.S. The Champions League has hired an American firm to manage its media rights, while UEFA considers staging Champions League events stateside. Liga MX remains the most-watched soccer league in the U.S. and is attracting American investments, while the Premier League, a dominant global player with the rights MLS covets, is planning watch parties throughout the country next season.
“The aim is for Americans to savor high-quality global soccer this summer without too much focus on the fact that the league soccer in the U.S.—minus Messi—isn’t played by the world’s top talents,” suggested economist Andy Schwarz from OSKR. “It’s a tricky balance.”
Schwarz elaborated, “Valuations reflect an optimism that may exceed my cautious outlook. Even if the league eliminated the salary cap and began spending akin to the Premier League, it’s unclear how that would lead to profitable outcomes.”
A lawyer consulting private wealth funds on sports investments remarked, “I advise clients to steer clear of MLS; it’s the least favorable investment in sports.”
In response to this perspective, teams are exploring various strategies, including infrastructure investments already in motion. Brian Bilello, president of New England Revolution, shared positive feedback from players about the facilities experienced during the World Cup.
One promising initiative is unfolding in San Diego, where the club has allocated $150 million to enhance player development infrastructure, featuring a residential youth academy that’s expanding its programs. They’re also partnering with organizations in Denmark, Egypt, and Ghana.
“Expect to see player transfers emerging from this,” Penn, the CEO, asserted, signaling MLS’s commitment to player development as a vital aspect of their business model.
Ultimately, MLS’s most significant asset remains its positioning within the American sports economy.
“When you step back and assess what they’ve accomplished, it’s genuinely commendable,” stated Paul Harris, who advises on franchise transactions for KPMG. “MLS has solidified its status as a global soccer platform and a viable career path for players. The U.S. excels in leveraging access to agents, media, and coaching, far surpassing international counterparts.”
He added, “The challenge lies in how to advance their platform more rapidly than La Liga or the Premier League, marking a longer-term journey ahead.”