The Major League Soccer expansion process is a well-defined path that aspiring soccer franchises must follow in order to become a part of the league. This process is multifaceted, involving various steps and criteria that must be met by the applicant cities and their proposed teams.

The Criteria for Expansion

MLS has established a set of criteria that must be met by any city or ownership group looking to join the league. These criteria include:

1. A committed and financially stable ownership group
2. A comprehensive stadium plan
3. An established soccer fan base in the region
4. A viable market for soccer in terms of population and economic strength
5. The geographic location of the city, with preference given to those that can help expand the league’s national footprint

Applicant cities and ownership groups must demonstrate their ability to meet these criteria in order to be considered for expansion.

The Initial Application

The first step in the expansion process is for potential owners to submit an application to MLS. This application includes detailed information about the proposed ownership group, the city in question, and the team’s proposed stadium plan. Additionally, applicants must pay a non-refundable application fee, which was set at $10 million for the most recent round of expansion in 2020.

If the initial application is deemed satisfactory by the league, applicants move on to the next phase of the process.

The Review and Evaluation Process

Once the initial applications have been submitted, MLS conducts a thorough review and evaluation of each applicant’s proposal. This process involves various league committees and departments, as well as third-party consultants who are engaged to assist in areas such as market research, financial analysis, and stadium design. This review period can take several months to complete, as the league seeks to ensure that each applicant has a strong and viable plan in place.

During this review process, MLS may request further information or clarification from the applicants, as well as conduct site visits to the proposed stadium locations and meet with local government officials and other stakeholders. It is important for applicant cities and ownership groups to be prepared to address any concerns or questions that may arise during this phase.

The Presentation to the MLS Board of Governors

Once the review and evaluation process is complete, the most promising applicants are invited to make a formal presentation to the MLS Board of Governors. This presentation typically includes a detailed overview of the applicant’s proposed plans, as well as any changes or updates that have been made in response to feedback from the league during the review process.

Following the presentation, the MLS Board of Governors discusses the merits of each applicant and votes on whether to approve or reject their application for expansion. A successful application requires the support of at least two-thirds of the league’s current team owners.

The Expansion Fee and Franchise Agreement

If an applicant is successful in gaining the approval of the MLS Board of Governors, they must then pay an expansion fee to the league. This fee has risen significantly in recent years, with the most recent expansion teams paying a fee of $200 million. Once the expansion fee has been paid, the new team owner will enter into a franchise agreement with MLS, officially joining the league.

The Effects of Expansion on the League’s Competitive Balance

The process of expanding the number of teams in MLS has both positive and negative effects on the league’s overall competitive balance. In this section, we will explore some of the key impacts that expansion has had on the league.

Increased Revenue and Investment

One of the most significant benefits of expansion is the increase in overall league revenue. As more teams join MLS, the league is able to negotiate larger television and sponsorship deals, which in turn leads to increased revenue for all teams. This increased revenue can then be invested in player acquisitions, youth development, and stadium infrastructure, all of which can help improve the overall quality and competitiveness of the league.

Additionally, the influx of new ownership groups and their financial resources can lead to increased investment in individual teams. This can result in a higher level of spending on player salaries and transfer fees, helping to attract higher-quality players to the league and raise the overall standard of play.

Challenges in Talent Distribution

One of the key challenges that expansion poses to the competitive balance of the league is the distribution of talent among the teams. As more teams join MLS, the pool of available talent must be spread more thinly, which can lead to a dilution of the overall quality of play.

To address this issue, MLS has implemented mechanisms such as the Expansion Draft and the Allocation Process to help ensure that new teams have access to a competitive roster upon joining the league. However, these mechanisms are not perfect, and the challenge of talent distribution can still impact the competitiveness of the league, particularly in the short term as new teams establish themselves.

Geographic Imbalance

Another challenge that expansion can pose to the competitive balance of the league is geographic imbalance. As the league seeks to grow its national footprint, there is a risk that the addition of new teams in certain regions can create a competitive imbalance between the Eastern and Western Conferences.

For example, the recent addition of teams in the Southeastern United States, such as Atlanta United, Orlando City, and Nashville SC, has led to a temporary imbalance in the number of teams in each conference. This can have implications for the schedule, travel demands, and overall competitiveness of the league.

To address this issue, MLS has previously made adjustments to the conference alignment, moving teams between the Eastern and Western Conferences to maintain a more even balance. However, this is a temporary solution and the league must continue to monitor and address any geographic imbalances as it continues to expand.

Growing Pains for New Teams

Finally, it is important to acknowledge that new teams joining MLS often experience a period of growing pains as they establish themselves in the league. This can include challenges related to building a competitive roster, developing a fan base, and generating revenue from local sponsorships and ticket sales.

These growing pains can impact the competitive balance of the league, as new teams may struggle to compete with more established clubs in their initial seasons. However, there is evidence to suggest that these challenges can be overcome with time and investment, as seen in the recent success of expansion teams such as Atlanta United and Los Angeles FC.

In conclusion, the expansion of Major League Soccer has both positive and negative effects on the league’s overall competitive balance. While there are undoubtedly challenges associated with adding new teams to the league, the potential benefits in terms of increased revenue, investment, and growth of the sport in the United States make expansion a key priority for MLS in the coming years.