MLS expansion process, includes timeline and fees
Published 11:57 am Saturday, December 17, 2016
Major League Soccer Commissioner Don Garber announced plans Thursday for the league’s expansion to 28 teams, including a deadline for owners to apply and a new franchise fee.
The fee for the two teams expected to be granted next year is jumping to $150 million. Garber also set a Jan. 31, 2017, deadline for interested potential owners or ownership groups to apply.
The league has expanded to 22 teams with the addition of Atlanta United FC and Minnesota United FC, which will debut next season.
The Los Angeles Football Club will join the league in 2018 as the 23rd team. The league announced it is “making progress” on plans to add a team in Miami — the high-profile bid that includes David Beckham — that would bring the league to 24.
Garber was not specific about the Miami team on a conference call with reporters Thursday, but said: “We are very focused on Miami being our 24th team.”
Minnesota paid a $100 million franchise fee. In contrast, Toronto paid a $10 million fee in 2006. The fee does not cover the entire cost that owners will incur in starting up a franchise, like coaching staff salaries and stadium costs, which Garber said would bring the total cost “well north of $300 million.”
Following the meeting Thursday of the MLS Board of Governors in New York, Garber said the two new expansion teams, slated to start play by 2020, would be announced in late 2017. The timeline and fees for the two additional franchises were not yet set.
“Since announcing plans to expand to 28 clubs late last year, many potential ownership groups have contacted us, and numerous public officials have stated their desire to bring an MLS expansion team to their city,” Garber said in a prepared statement. “We look forward to reviewing expansion applications in the coming months and conducting formal meetings in 2017 with possible team owners.”
Current MLS owners approved the expansion process. Garber said some of the factors that will be considered include fan support, market size, geographic location, level of corporate support and stadium suitability.