The Financial Pulse of Major League Soccer
As Major League Soccer (MLS) continues to grow, the financial landscape of the league’s franchises is becoming increasingly robust. According to data compiled by Sportico, the average MLS team is now worth $721 million. This remarkable figure underscores the league’s expanding appeal and the substantial investments being made in soccer infrastructure and talent. Leading the pack is Los Angeles FC, with a valuation of $1.28 billion, a testament to the club’s market strength and success. Conversely, CF Montréal, with a valuation of $450 million, ranks last among the current 29 franchises. Collectively, these teams are worth a staggering $20.9 billion, a figure that is poised to rise further with the addition of San Diego FC as the 30th team in the league.
Understanding the Valuations
To derive these market values, Sportico employed a comprehensive methodology, integrating publicly available information, financial records, and insights from experts in the field. The process involved interviews with eight sports bankers and attorneys who are actively involved in MLS transactions. This multifaceted approach ensures a detailed and accurate assessment of each team’s financial health and market potential. The valuation metrics are complex and multifaceted, encompassing various revenue streams and assets. Here’s a breakdown of some key terms:
Major Metrics Explained
2025 Valuation: This figure represents the projected market value of an MLS franchise, including the value of team-related businesses and real estate holdings. It is a forward-looking metric that accounts for the club’s current market value and the potential growth of its ancillary assets.
Team Value: This is the core valuation of an MLS franchise, calculated based on metrics commonly used in soccer team transactions. It includes local and national revenues and a team-specific multiplier. Each franchise also holds a 3.3% interest in Soccer United Marketing (SUM), a significant asset that is acquired or disposed of in tandem with the sale of a team.
Team-Related Businesses and Real Estate Holdings: This metric captures the value of a franchise or its owner’s equity in team-related businesses, both on the team’s balance sheet and held in separate corporate entities. It also includes government-assessed real estate related to venues, practice facilities, and adjacent developments. While these assets represent a smaller percentage of the total value, they are crucial, especially for teams with new stadiums and training complexes. For instance, the Philadelphia Union owns and operates over 100 acres of land along the waterfront in Chester, Pennsylvania, a significant asset that adds to the club’s overall value.
The Expanding League
The addition of San Diego FC as the 30th team in the league is a significant milestone for MLS. This expansion reflects the league’s continued growth and the increasing interest in soccer across the United States. San Diego, with its vibrant sporting community and robust infrastructure, is expected to contribute significantly to the league’s financial and competitive landscape. The team’s entry also highlights the league’s strategic approach to market expansion, targeting cities with strong fan bases and potential for growth.
Ancillary Assets and Their Impact
Beyond the core valuation of the franchise, the value of ancillary assets such as MLS Next Pro teams and National Women’s Soccer League (NWSL) teams is also factored into the total value. MLS Next Pro, which launched in 2022, is a second-tier professional league that serves as a development platform for young talent. Ownership stakes in these teams add an additional layer of value for MLS franchises, providing a pipeline of players and enhancing the club’s overall ecosystem. Similarly, ownership stakes in NWSL teams in Houston, Orlando, Seattle, and Utah further diversify the revenue streams and increase the franchise’s market value.
Looking Ahead
The future of MLS is bright, with continued expansion and investment driving the league’s growth. The upcoming season with San Diego FC marks a new chapter in the league’s history, one that is characterized by financial strength and strategic development. As more cities and investors recognize the potential of MLS, the league is poised to become an even more significant player in the global soccer landscape. For fans and stakeholders alike, the rising valuations of MLS franchises are a clear indication of the league’s growing popularity and the enduring appeal of soccer in the United States.
