What are the financial risks of promotion and relegation in MLS?

Promotion and relegation could disrupt MLS's guaranteed revenue model and threaten long-term financial viability, putting investments at risk.

When is USL planning to introduce promotion and relegation?

USL announced plans to introduce promotion and relegation in either 2027 or 2028.

Why is Don Garber concerned about promotion/relegation for MLS?

Don Garber is concerned that it could destabilize the league's financial model and jeopardize over $2 billion in stadium investments.

Home / Sports / MLS Warns: Relegation Could Bankrupt League

MLS Warns: Relegation Could Bankrupt League

17 Dec

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Summary

MLS Commissioner warns promotion/relegation threatens revenue.
Owners' multi-billion dollar stadium investments are at risk.
USL plans to introduce promotion/relegation in 2027/2028.

MLS Warns: Relegation Could Bankrupt League

Major League Soccer (MLS) Commissioner Don Garber has expressed strong reservations about implementing promotion and relegation, citing substantial financial risks. He stated that this system could disrupt the league's established revenue streams, which are crucial for covering significant investments in infrastructure, estimated at over $2 billion.

Garber elaborated that team owners, who are industrialists and not philanthropists, rely on guaranteed revenue to finance these ventures. He cautioned that a shift to a dynamic where revenue could disappear would, in his view, lead to the league's collapse. He emphasized that current MLS clubs do not face the same competitive pressures as European leagues.

This discussion arises as the USL announced its intention to introduce promotion and relegation within its league, potentially starting in 2027 or 2028, sparking debate about the future structure of American soccer.