Can USL Survive Its Own Ambition?

The USL is undergoing a period of ambitious expansion, aiming to launch a new Division I league and implement promotion and relegation by 2028, potentially creating direct competition with MLS. This strategic push is partly driven by the anticipation of increased soccer fandom following the 2026 World Cup. Despite significant investments from private equity firms, the league's plans for the new division and promotion/relegation remain vague.

The USL has a history of club instability, with 20 teams across its Championship and League One divisions ceasing operations since 2015. Most recently, three clubs folded after the last season ended, including one just weeks before the current season's kickoff. This high rate of attrition raises concerns about the sustainability of the league's growth model.

Financial challenges persist for many USL clubs, which largely operate independently without meaningful revenue sharing. Clubs must rely on matchday revenue, merchandise, and player sales, with many struggling to break even. For instance, one club reported losing $4 million annually and still being among the most profitable.

Further complicating matters, USL Championship players are engaged in a difficult negotiation for a new Collective Bargaining Agreement. The ongoing dispute has led to player protests, with silent demonstrations occurring during the opening weekend of the season. The USL Players Association has even authorized a potential strike if a new agreement isn't reached.