How much does it cost to start an MLS Team?

The MLS has experienced several growth over the years, with more clubs gaining the opportunity to join the league. To start an MLS club involves several significant financial steps, with the most important being the expansion fee. This fee allows the club to pay for the rights to launch a new franchise. The amount of the expansion fee varies depending on the year the club launches its franchise. Over the years, this fee has increased drastically, reflecting the league's growth and rising popularity of soccer in the United States. From Between 2007 till 2025, the fee increased from $10m to $500m, showing the league's growth and the increased interest in soccer around America.

Latest Franchise's added to the MLS

San Diego FC 

In 2023, San Diego set a new record in the MLS buy paying $500m expansion fee to join the MLS as its 30th team. Owned by the Sycuan Band of the Kumeyaay Nation and Egyptian billionaire Mohamed Mansour, the club is scheduled to begin competing in the 2025 MLS season. This is a record breaking fee for the MLS, showing the ambitions that owners have to own a franchise in the MLS. Apart from the expansion fee, San Diego faces an estimated cost of $150 million to $300 million for constructing a new soccer-specific stadium or renovating an existing one. These expenses are on top of standard operational costs, such as player and staff salaries, further illustrating the significant financial investment required to run a successful MLS club.

San Diego FC owners after their franchise was confirmed

New York City FC

Joining MLS in 2013, NYFC began competing in 2015, two years after receiving approval to join the league. Paying a $100m expansion fee, NYFC's became the 20th team in MLS, bringing international recognition and valuable resources to the league. The club is owned by the City Football Group (Parent company of Manchester City) and Yankee Global Enterprises. The same like other clubs, the club needed additional money to build a stadium and owning a training ground. The two-year gap between approval and their first match allowed the club to establish branding, coaching staff, and initial roster, while also dealing with stadium challenges.

New York City FC partnering with Manchester City after their franchise was confirmed

Inter Miami CF

In 2014, David Beckham activated his option of owning an MLS franchise, a clause included in his playing contract, allowing him to pay a significantly reduced expansion fee of $25 million—one of the lowest in MLS history. The franchise was officially announced in 2018, marking the beginning of Inter Miami CF's journey. However, their entry into the league was delayed due to challenges such as securing a stadium location and engaging local support. After overcoming these problems, Inter Miami started playing in MLS in 2020. The club managed to acquire global superstar Lionel Messi in 2023, raising the league's profile and commercial value. 

Inter Miami's President David Beckham celebrating after the club was confirmed as a new franchise in MLS

Charlotte FC 

When Charlotte FC joined MLS in 2019, they broke multiple records by spending $325m. Owned by David Tepper, regarded as the wealthiest owner in the league, set the process for expansion costs and increased demands for MLS franchises. Charlotte FC quickly built a strong fan base and began playing in the league in 2022, debuting in front of a fully packed Bank of America Stadium. During the interim period, the club focused on converting the stadium for soccer use and assembling its inaugural roster.

Charlotte FC new owners posing with the MLS Ball after their franchise confirmation

Toronto FC 

In 2005, Toronto FC became the first Canadian club to join in the MLS, paying a $10 million expansion fee to secure their place as the league’s 13th team. They club began playing 2007, two years after announcing their franchise launch. During this process, they gained approval from the Canadian Soccer Association and invested $54 million to build BMO Field.

Toronto FC Owners with new signings

Their addition into the league opened more doors for Canadian teams, such as Vancouver Whitecaps and CF Montreal. Since 2007, Toronto FC became one of the most successful clubs in the MLS, winning the MLS Cup in 2017.

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