Competition for MLS?

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In what was a shock announcement on Thursday, the United Soccer League announced plans to launch a new first-division men’s professional league starting in 2027/28. The governing body of the USL Championship (second division), USL League One (third division), and USL League Two (fourth division) is now attempting to create a first-division league that will run parallel to Major League Soccer. If approved by the US Soccer Federation (USSF), this would create a scenario in which two first divisions would co-exist.
“Today is a defining moment for the USL and the future of soccer in the United States,” the CEO of the United Soccer League, Alec Papadakis, said in a statement by the league. “Creating a Division One league is a bold step forward, expanding access to top-tier competition, deepening the connection between our communities, and taking another step in aligning with the structure of the global game. By uniting people through soccer and bringing Division One to more cities, we’re not just growing the sport—we’re creating lasting opportunities while building a more sustainable and vibrant soccer ecosystem in the U.S.”
Earlier this year, the United Soccer League announced the expansion of the USL Jägermeister Cup. Previously, that tournament included only teams from USL League One, but has been expanded to include teams from the USL Championship this season. “Soccer can grow off the back of what’s going on in Albuquerque, New Mexico, and Madison, Wisconsin, Louisville, Kentucky, Richmond, Virginia,” USL CEO & President Paul McDonough said in an exclusive interview with Transfermarkt about the expansion of the Jägermeister Cup.
McDonough: North America to big to built soccer “in just 30 markets”
Indeed, in the interview with Transfermarkt, McDonough emphasized that North American might be too big for just one first-division. “Soccer in this country isn’t just going to be built in just 30 markets,” McDonough said in the interview with Transfermarkt. “The United States is as big as Europe, so there’s plenty of room for teams.” In retrospect, those comments might have been a prelude to what was a more aggressive strategy beyond the Jägermeister Cup to grow the game in the United States.
According to a report by The Guardian, there are some strict rules in place for a league to meet Division-I standards. Owners must meet specific financial criteria: A principal owner with at least a 35% stake in the team whose net worth is at least $40m and/or a group of owners whose combined net worth is at least $70m. Other requirements include that a league must have at least 12 teams to begin play in D-I, and must expand to at least 14 by year three of its existence. These teams must come from across the country, with at least 75% of them serving metro areas of at least one million people. In addition, every team in the league must play in a stadium that seats at least 15,000 people.
The USL leadership hopes that the new, yet-to-be-named league will draw a certain number of clubs from its existing group of teams playing in the USL Championship and USL League One. A glimpse in the Transfermarkt database reveals that currently, only four USLC clubs, Birmingham Legion, Miami FC, Louisville City, and Oakland Roots, have stadiums that meet the D-I minimum standard as laid out by the USSF. On top of that, Sacramento Republic are currently building a stadium that can be expanded to up to 15,000 seats. In the USL League One only the Richmond Kickers and Greenville Triumph have big enough stadiums to meet the criteria.
New first division in America? USL model “empowers clubs with greater autonomoy”
Despite this, the USL ownership feels that they can press ahead with their plan and that their system provides an alternative to the MLS model. “The USL has long been committed to creating a structure that drives growth, opportunity, and long-term success in American soccer,” Papadakis said. “The USL model empowers clubs with greater autonomy and fosters a dynamic, interconnected system—one that allows them to compete at the highest level while remaining deeply rooted in their communities. Around the world, top-tier clubs thrive in cities of all sizes, and we believe the same is possible here. The demand and infrastructure are in place, and the potential for growth is immense.”
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