MLS doubles expansion fees for new franchises, will top $200 million
By Caitlin MurrayFOX Soccer @caitlinmurr
Aug 1, 2016 at 5:05p ET
For cities that want to join Major League Soccer, the cost is going to be considerably higher from now on and expansion fees will almost double.
MLS deputy commissioner Mark Abbott has reportedly told Bloomberg the fees for new expansion teams will now be upwards of $200 million. That is a massive increase from the $110 million Los Angeles FC paid to become the latest expansion team, set to start playing in 2018.
The 20-team MLS is looking to expand to 24 teams in the near term,with Atlanta United joining next year and Minnesota potentially coming next year, too. The league has also been in a drawn-out process of getting a David Beckham-backed Miami franchise. But the league wants to add four more teams for a total of 28 in the long term, with plenty of cities having already stated their interest.
It remains to be seen if the new increased $200 million expansion fee will affect the crop of ownership groups that have been vying to be next in line. Notable candidates include the Sacramento Republic, San Antonio FC and Cincinnati FC of the lower-tier United Soccer League, along with ownership groups in Detroit, San Diego and St. Louis, among others.
Neither Abbott nor commissioner Don Garber have publicly shared a timeline for when the next expansion cities will be named. Sacramento appears to be the closest to being ready, with a high-powered group of investors and plans already in motion to build a soccer-specific stadium near downtown. But Sacramento's sudden and rapid rise in the expansion conversation proves how unpredictable and quick-changing the expansion landscape can be.
MLS is operated as a single-entity organization, which gives the front office unique control over the make-up of the league. But according to Forbes, the average MLS team is now worth $157 million. As of last year, the Seattle Sounders topped the list of MLS franchises with a value of $245 million.
