How MLS expansion works and which new teams are coming next

• MLS has expanded through a closed-league model that prioritizes investment, financial stability and strategic markets rather than traditional sporting promotion
• Expansion fees now exceed $500 million, reflecting the league’s global growth and appeal while significantly raising barriers to entry
• Despite driving infrastructure development and attracting international stars, the system continues to spark debate over the lack of promotion and relegation and its impact on competitiveness

Major League Soccer has evolved from a modest league with just 10 teams in 1996 into one of the fastest-growing football competitions in the world, reaching 30 active franchises by 2025. Unlike the promotion and relegation systems that dominate Europe and South America, the North American model follows a business-driven logic, to reach the top, clubs must buy a seat at the table.

This approach has allowed MLS to grow steadily, attract global investment and sign stars like Lionel Messi, but it has also reignited debates about competitive integrity, sporting merit and long-term sustainability.

How MLS expansion works

In the United States and Canadá, clubs do not earn promotion through on-field results. Instead, MLS operates as a closed league, adding new teams through a highly structured expansion process.

An expansion team is a brand-new franchise that gains the right to compete after meeting strict financial, sporting, and logistical requirements. Once approved, the club must pay an expansion fee, which reached $500 million with San Diego FC, before officially joining the league.

From there, the new team builds its roster through several mechanisms: international signings, Designated Players, the Expansion Draft, the college SuperDraft, and internal MLS trades.

What MLS evaluates before approving a new club

Expansion does not happen automatically. MLS requires ownership groups to submit a detailed business plan that proves long-term viability. Key criteria include financial strength, a clear stadium project, local political support and a market with genuine potential for professional soccer.

The league’s expansion committee reviews each proposal and, if it advances, presents it to the Board of Governors, made up of current owners. Approval requires a two-thirds majority vote, reinforcing the league’s emphasis on consensus and stability.

From 10 to 30 teams: A historic expansion

Since 1996, MLS has expanded steadily across strategic markets in the United States and Canada. Chicago Fire and Miami Fusion joined in 1998, Toronto FC made history in 2007 as the league’s first Canadian club, and recent additions like St. Louis City and San Diego FC reflect sustained interest in new soccer markets.

Not every expansion succeeded. Clubs such as Tampa Bay Mutiny, Miami Fusion, and Chivas USA folded, serving as reminders that growth also carries risk.

Will MLS expand beyond 30 teams?

Commissioner Don Garber has made it clear that MLS remains open to further expansion if strong markets emerge. Cities like Indianapolis have surfaced as potential candidates, although any future franchise would likely face even higher expansion fees.

This strategy suggests the league now prioritizes investment quality over expansion speed, aiming to avoid past mistakes.

Pros and cons of the MLS expansion model

The expansion system has delivered clear benefits: financial stability, modern infrastructure and the ability to attract global stars who raise the league’s international profile. It has also boosted local economies through stadium development, job creation, and sports tourism.

However, criticism persists. Massive expansion fees, rising player salaries and operating costs place pressure on smaller clubs. Most notably, the absence of promotion and relegation limits sporting mobility and reduces competitive incentives outside the league structure.

What defines MLS expansion today

• Expansion remains a business-driven process, not a sporting one, based on investment, market size and financial stability rather than results on the pitch
• Record expansion fees reflect MLS’s current value, but they also raise entry barriers and concerns about overexpansion
• The model fuels global growth, while continuing to spark debate over merit, competitiveness and the structure of the North American soccer pyramid

MLS continues to redefine itself at the intersection of business and sport. Expansion has been central to its success, but the league’s true challenge lies in maintaining quality and competitive credibility as it continues to grow.