MLS Expansion: How It Works and New Teams on the Way | OneFootball

Aspiring to reach the top tier of soccer is the ultimate goal for teams around the world.

In most countries, this is achieved through a system of promotion and relegation, where clubs climb the ranks by earning success on the field.

Take Premier League side Bournemouth, for example. Just 15 years ago, they were competing in the fourth tier of English football. Today, they face off against giants like Manchester City, Chelsea and Liverpool on a weekly basis.

In the United States, however, the path to the top is quite different.

Here, the only way to join Major League Soccer is by purchasing a spot through a process known as expansion.

What Is an MLS Expansion Team?

San Diego FC is the latest MLS expansion team. / ZUMA Press Wire/IMAGO

An MLS expansion team is a newly established club that joins MLS after being granted entry through a formal application and approval process.

These teams build their rosters by signing players from within the U.S. and abroad, including Designated Players, as well as through the Expansion Draft—which allows them to select players from existing MLS teams to help form a competitive squad ahead of their inaugural season.

Additionally, they can acquire talent through the MLS SuperDraft and trades.

Criteria for MLS Expansion

San Diego FC co-owners Mohamed Mansour and Sycuan Band of the Kumeyaay Nation tribal chairman Cody Martinez. / Orlando Ramirez-Imagn Images

The process of adding new teams to MLS requires potential ownership groups to meet a set of specific criteria, all of which must be detailed in a comprehensive business plan submitted to the league.

These criteria include a financially stable and committed ownership group, a well-developed stadium plan, an established soccer fan base in the region and a strong market for soccer in terms of both population and economic potential.

Once submitted, the initial application is carefully reviewed by MLS's expansion committee along with third-party consultants who provide expertise in areas such as market research, financial analysis and stadium design. Local government officials and other key stakeholders are also typically involved in the process.

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If the application is deemed promising, the applicant is invited to make a formal presentation to the MLS Board of Governors, which will vote on whether to approve or reject the bid. A successful application requires the support of at least two-thirds of the league’s current team owners.

Upon receiving approval, the applicant must then pay an expansion fee—which was $500 million for the league's latest addition, San Diego FC—before the team embarks on the journey to officially join MLS.

History of MLS Expansion

Atlanta United joined MLS in 2017. / Icon Sportswire/IMAGO

MLS has grown from 10 to 30 teams since its inaugural season in 1996.

The league's first two expansion teams, the Chicago Fire and Miami Fusion, joined MLS in 1998. Real Salt Lake and Chivas USA followed in 2005, and two years later, Toronto FC became the first Canadian team to be welcomed into the league.

Since then, MLS has continued to expand, adding teams from across the U.S. and Canada. The most recent additions include St. Louis City and San Diego FC, the latter of which will kick off its MLS tenure in 2025.

However, not all expansion efforts have been successful. Several teams have failed or been dissolved over the years, including the Miami Fusion, Tampa Bay Mutiny and Chivas USA.

Will There Be More MLS Expansion Teams?

Don Garber. / Joseph Maiorana-USA TODAY Sports

According to MLS Commissioner Don Garber: Yes.

“If there's a good market for us to expand in, if that market makes sense, if we have the right owner and the right stadium plan, I think like any league, we will consider strongly expanding beyond the 30 teams that we have now," Garber told reporters ahead of the 2024 MLS All-Star Game.

Garber also stated that the expansion fee for any new teams would exceed $500 million and mentioned that Indianapolis is a potential candidate for expansion.

“The folks in Indiana are bullish about an MLS team Indianapolis. We've expanded by about 20 teams over the last 25 years, so we understand how to manage this process," he said.

"We love the city and the support from the city and state leaders. We think there's interesting ownership dynamics, and we like the location that they're talking about for the stadium. We'll continue to work with them and see how it plays out with regards to the ownership group."

The Benefits and Drawbacks of MLS Expansion Teams

Lionel Messi is the crown jewel of expansion team Inter Miami. / Sam Navarro-Imagn Images

Expansion teams, especially in recent years, offer a near-guaranteed return on investment. With committed infrastructure and a growing fan base, these teams help accelerate the growth of MLS—a relatively young league compared to other top divisions in world soccer—both across North America and beyond.

The significant financial stakes now involved also allow teams to attract global stars like Lionel Messi, whose presence contributes to both the league’s sporting and economic development.

Additionally, new teams can bring considerable economic benefits to their local communities. Stadiums generate jobs, both directly and indirectly, while an influx of fans and tourists for home games boosts local businesses and generates new revenue streams.

However, there are several drawbacks.

The rising expansion fees, escalating player salaries and increasing infrastructure costs create financial pressure on smaller teams, making it harder for them to remain competitive. Over-expansion is another concern, as it could shift the league's focus from maintaining high standards to simply increasing the number of teams—which is a risk to its long-term growth.

The major downside of expansion, though, is the loss of sporting integrity.

Since the only path to MLS is through paying high expansion fees, the system diminishes the incentive for clubs in lower divisions to invest in player development or pursue promotion. As a result, it weakens the competitiveness of the overall soccer pyramid, where financial resources, rather than merit, become the primary determining factor for success.