MLS sets timetable for expansion to 28 teams, $150M fee for teams No. 25, 26
Major League Soccer intends to identify its next two expansion teams during the second or third quarter of 2017, and those clubs will begin playing by 2020, the league announced Thursday afternoon. It then intends to begin crafting a timeline for the selection and entry of teams No. 27 and 28.
While Los Angeles FC prepares to take the field in 2018 and David Beckham’s Miami team, supposedly team No. 24, continues to try and simply find one, the MLS board of governors met Thursday morning in New York City to draft the road map to 28 clubs. The first significant milestone is January 31, when prospective expansion team owners must submit a formal application to the league.
The short time frame between Thursday’s meeting, the application due date and next year’s announcement suggests that Sacramento and St. Louis likely will be teams No. 25 and 26. Those cities appear to be further ahead than the competition, with investor groups finalized and stadium plans in motion.
MLS commissioner Don Garber has expressed his support for Sacramento Republic, which just finished its third season in the USL.
“I don’t think there’s any market that’s done more than any other, other than Sacramento, which clearly is MLS ready,” he told SI.com in September.
Last month, St. Louis unveiled an ownership group led by investor Paul Edgerley and St. Louis FC owner Jim Kavanaugh, as well as a stadium site just west of the city’s iconic train station and about one mile from Busch Stadium.
A potential 2017-2020 wildcard is Cincinnati, which drew massive crowds during its first season in USL and theoretically could play MLS games at Nippert Stadium in the short term. It would be a shock, however, if it overtook Sacramento or St. Louis unless the latter sees its stadium plan fall through if public funding is rejected.
The two expansion teams confirmed next year will pay an entry fee of $150 million each, MLS announced Thursday. It’s understood that Sacramento and St. Louis have been discussing that fee and other parameters for entry for some time. Ten years ago, Toronto FC paid $10 million to join the league.
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“There is tremendous interest in professional soccer across the United States and Canada,” Garber said in a statement released by the league. “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. We look forward to reviewing expansion applications in the coming months and conducting formal meetings in 2017 with possible team owners.”
MLS listed Charlotte, Cincinnati, Detroit, Nashville, Raleigh/Durham, San Antonio, San Diego and Tampa/St. Petersburg as at the other markets that “have publicly expressed interest in securing an MLS expansion team.” All but Detroit and San Diego are currently represented by teams in the NASL or USL.
The applications due at the end of January must focus on ownership group structure and worth, potential stadium sites and financing and a business plan that includes financial projections (it takes a lot more than the expansion fee to launch a club), information on potential stadium and jersey sponsors and insight into the local soccer community. All interested cities/investors must submit an application, but MLS did not indicate when it intends to select teams 27 and 28, saying only that, “The timeline for selecting clubs 27 and 28 will be decided following the filing of applications.”
In addition to Cincinnati, which would be the smallest market in MLS, several other cities are in good position to contend for the last two spots. NBA owners Dan Gilbert and Tom Gores have proposed the redevelopment of a piece of downtown Detroit property and the construction of a stadium.
Charlotte hopes to renovate and then build over the historic American Legion Memorial Stadium in trendy Elizabeth. Its effort is led by Charlotte Independence owner Jim McPhilliamy and investor Marcus Smith, whose family controls the company that owns the Charlotte Motor Speedway.
North Carolina FC (Raleigh/Durham) and the Tampa Bay Rowdies have announced their MLS intentions, while the San Antonio Spurs have been working to bring MLS to the Alamo City.
The expansion fee for teams No. 27 and 28 will be set when the timetable for their selection and entry is determined, MLS said.
