Is U.S. Soccer Ready for Two Division I Leagues?

In the wake of the 1994 World Cup, soccer experienced significant growth in the United States. The result of that growth was the establishment of Major League Soccer (MLS).^[1] MLS has operated as the dominant professional soccer league in the United States. Professional soccer is regulated by the United States Soccer Federation (USSF).^[2] The USSF sanctions leagues using a tiered system that divides them into Divisions I, II, and III.^[3] Each Division is distinguished by several factors such as seating capacity, number of teams, geographic dispersion, and metropolitan diversity.^[4] A league sanctioned as Division I or II has an easier time securing sponsorships, obtaining broadcasting deals, and attracting fans.^[5] MLS is currently the only sanctioned Division I league.

There have been other attempts at establishing Division I or II leagues since the founding of MLS with varying degrees of success. Between 2011 and 2017, the North American Soccer League operated as a Division II league, before that sanctioning was pulled and the league folded.^[6] The United Soccer League (USL) has successfully operated as a multi-league entity for over a decade.^[7] The USL operates Division I, II, and III leagues, with women’s Division I and II leagues and men’s Division II and III leagues.^[8] While MLS still maintains a grip on men’s Division I soccer, that is potentially about to change.

Last month, the USL announced plans to create its own Division I league to begin play in the 2027-28 season. The USL calls this plan “club-centric,” as it aims to vertically integrate the entire US soccer pyramid to operate under one league entity.^[9] MLS currently has 30 clubs, while the entire USL system has more than 180 men’s teams.^[10] The USL prides itself on its community orientation and easier access to entry than MLS franchises. The MLS expansion fee is $500 million, and that fee does not include any startup or stadium costs.^[11] USL team owners independently own and operate their teams, while MLS team owners are partners in a single-entity league system.^[12] MLS operates with a salary cap. The USL does not.^[13] The potential operation of these Division I leagues would potentially pit two largely diametrically opposed sports leagues against each other for attention, sponsors, and broadcast deals.

The market for soccer is large, but there are also significant hurdles for any new Division I league. There was an inflection point in the growth of US soccer following the 1994 World Cup. In the buildup to the 2026 World Cup, perhaps we are seeing a similar inflection point.

^[1] See Timothy Allaire, Buffalo Pro Soccer: USL Expansion, Stadium Plans, and Economic Impact, UB Law Sports & Entertainment Forum (Feb. 8, 2025), https://ublawsportsforum.com/2025/02/08/buffalo-pro-soccer-usl-expansion-stadium-plans-and-economic-impact/.

^[2] Zachary H. Saltzman et al., U.S. Soccer Verdict Shows Importance of Defining Relevant Antitrust Markets, Debevoise & Plimpton (Feb. 11, 2025), https://www.debevoise.com/insights/publications/2025/02/us-soccer-verdict-shows-importance-of#:~:text=Through%20its%20relationship%20with%20FIFA,Antitrust%20Act%20Violations%20by%20Defendants.

^[3] Id.

^[4] See Adam Hernandez, USL Announces Intentions to Go for Division One Sanctioning, The Majors (Feb. 13, 2025), https://themajors.net/usl-announces-intentions-to-go-for-division-one-sanctioning-%F0%9F%94%9D/.

^[5] Saltzman et al., supra note 2.

^[6] See U.S. Soccer Denies NASL Division 2 Status for 2018, ESPN (Sep. 5, 2017), https://www.espn.com/soccer/story/_/id/37532053/us-soccer-denies-nasl-division-2-status-2018.

^[7] See About, USL, https://www.uslsoccer.com/about.

^[8] Id.

^[9] See United Soccer League Takes Bold Step Forward with Launch of Division One Professional Men’s League, USL (Feb. 13, 2025).

^[10] Kevin Baxter, How United Soccer League Plans to Launch a New Top Division, Los Angeles Times (March 4, 2025), https://www.latimes.com/sports/soccer/story/2025-03-04/how-united-soccer-league-plans-to-launch-new-top-division.

^[11] See id.

^[12] See Paul Tenorio, Move Over, Major League Soccer: A Rival Top Flight Men’s League is Coming to the U.S., The Athletic (Feb. 13, 2025), https://www.nytimes.com/athletic/6129972/2025/02/13/usl-launch-division-1-league-us-soccer-mls/.