Expansion of Major League Soccer
is the top level of professional soccer in the United States. It began play in 1996 with 10 teams and has expanded several times since 1998. From 2005 to 2025, the league expanded rapidly and has added an average of one new team per season. The league has 30 teams as of the 2025 season with the debut of San Diego FC.
Expanding and establishing a larger national reach is seen as essential to securing television rights fees needed to reach MLS's initially stated goal of becoming one of the top leagues in the world. As of December 2024, there are no pending expansion teams but the league may expand to 32 teams at a later date.
In 2007, Toronto FC became the first of three Canadian teams to join the league. In 2013, New York City FC agreed to pay a record $100 million expansion fee for the right to join MLS in 2015. This record was surpassed by the ownership groups of FC Cincinnati and Nashville SC, which each paid $150 million to join MLS. The same amount was paid as an effective entrance fee by a group that bought Columbus Crew SC in 2018, which led to that team's previous operator receiving a new team in Austin, Texas, that joined MLS in April 2021. Before Sacramento's group withdrew its franchise acquisition, MLS also announced that the ownership groups of the 28th and 29th teams would each pay a $200 million entrance fee and that of the 30th had to pay $325 million.
Major League Soccer considers several criteria when determining where to award expansion franchises:
- Owners that are committed to MLS and have the financial wherewithal to invest in a team
- A stadium or approved plans for a stadium that allows the team to control revenue streams such as parking and concessions
- The size of the market of the metropolitan area
- An established local fan base.
Early history: 1993–2004
Foundation (1993–1996)
was established in 1993, as part of an agreement with FIFA that the United States set up a professional first division to gain the right to host the 1994 FIFA World Cup. No successful professional outdoor soccer league existed since the North American Soccer League folded in 1985. Due to rapid over-expansion and poor franchise placement, the NASL collapse led future MLS leaders to be extremely cautious of establishing new franchises.Initially 12 teams were to be placed in carefully selected cities where a strong soccer market was thought to exist, which was scaled back to 10 after potential backers could not be found. Eventually 22 communities submitted formal bids to host an inaugural MLS franchise.
The initial 10 teams were the Columbus Crew, D.C. United, New England Revolution, New York/New Jersey MetroStars, Tampa Bay Mutiny, Colorado Rapids, Dallas Burn, Kansas City Wiz, Los Angeles Galaxy and San Jose Clash. Although New York City and Los Angeles were awarded franchises, the next four largest American cities – Chicago, Houston, Philadelphia, and Detroit – were without a team. Using American football stadiums, the new league kicked off in April 1996.
Expansion: Chicago and Miami (1998)
In 1998, the league expanded for the first time, rising from 10 teams to 12. The new teams were the Chicago Fire SC and Miami Fusion. Miami owner Ken Horowitz paid a $20 million expansion fee to join MLS, while the expansion fee for the Chicago team was $5 million.Contraction from Florida (2002)
Major League Soccer reportedly lost an estimated $250 million during its first five years. During the winter break between the 2000 and 2001 seasons, reports began circulating that MLS was considering trimming the league from 12 teams back to 10 teams.MLS announced in January 2002 that it had decided to contract the two Florida franchises, the Tampa Bay Mutiny and Miami Fusion. The league chose to fold Miami, in part because their ownership reportedly lacked financial resources, had been trying to run the Fusion on a bare-minimum budget, and had asked the league to pay some of the club's expenses. Miami ownership had reportedly experienced $15 million in operating losses since Miami joined the league. The league folded the Tampa Bay Mutiny in part because the team was operated by the league instead of by an individual owner, meaning that the league had to absorb 100% of the team's operating losses.
This contraction left the league with 10 teams, the same number as when MLS began.
First growth phase: 2005–2014
In 2005, MLS began a significant expansion phase, nearly doubling in size from 10 teams in 2004 to 19 teams in 2014.Los Angeles and Salt Lake City (2005)
The performance of the US national team at the 2002 World Cup, where they reached the quarter-final, sparked a recovery in the league's fortunes, and attendances once again began to rise. MLS began looking to expand once more with a number of cities interested in hosting new teams. The demand for an expansion team grew.MLS awarded a second franchise to the Los Angeles area, Chivas USA, in 2004 and began play in 2005. The expansion fee was $7.5 million. The team was owned partly by C.D. Guadalajara owner Jorge Vergara, and took the name and colors from the Mexican club with the aim of appealing to the Hispanic community in Southern California. Chivas and the Los Angeles Galaxy shared The Home Depot Center and played in the league's first local derby game.
The league also announced Real Salt Lake in 2004 and began play in 2005. The expansion fee was $7.5 million for the team in Utah. The franchise received permission to use the "Real" name from Real Madrid as part of a business agreement between the Salt Lake owner Dave Checketts and the Spanish club. Real Salt Lake initially played its home games at Rice-Eccles Stadium on the University of Utah campus before moving to Rio Tinto Stadium in the suburb of Sandy in October 2008.
Relocation: Houston (2006)
In 2005, the San Jose Earthquakes were put on hiatus because of a failure to secure a soccer-specific stadium. The players and the coach were moved to an expansion team in Houston, Texas, where they became the Houston Dynamo playing out of Robertson Stadium. The number of teams in the league did not change.Toronto (2007)
In November 2005, Major League Soccer announced that it had approved an expansion franchise in Toronto to be owned and operated by Maple Leaf Sports & Entertainment, which also owns the Toronto Maple Leafs and Toronto Raptors. The expansion fee was $10 million for the Toronto team. The Toronto City Council had previously approved $9.8 million in funding for a $62.8-million stadium, with the rest of the money coming from MLSE, the federal government, and the provincial government. The team name Toronto FC and logo were announced in May 2006. The club played their first season in MLS in 2007, finishing at the bottom of the standings. The introduction of MLS into Canada took MLS into a separate country for the first time.San Jose (2008)
After a two-year hiatus, the San Jose Earthquakes were reactivated in 2007 and resumed play in MLS in 2008 under new ownership. The expansion fee was $20 million for the reinstated San Jose/Bay Area team.Seattle (2009)
was awarded a franchise in 2009 for a reported expansion fee of $30 million. Following a write-in vote by supporters, the team chose the name Seattle Sounders FC, after the Seattle Sounders that played in the North American Soccer League in the 1970s and '80s. The city did not have a soccer-specific stadium or any plans to construct one, and instead, it shared Qwest Field with the Seattle Seahawks of the National Football League who, like the Sounders, were owned in part by the late Microsoft co-founder Paul Allen. The stadium was built as a combined football/soccer stadium with an MLS team in mind, including soccer-specific features.Philadelphia (2010)
On February 28, 2008, MLS announced that the sixteenth franchise would be awarded to Philadelphia. Philadelphia was appealing to MLS because Philadelphia was the largest metropolitan area in the U.S. without an MLS franchise, and it had a strong ownership group. There had been a strong campaign to bring a team to the city, with intense lobbying by supporters groups such as the Sons of Ben.Philadelphia won the bid over a competing bid from St. Louis that was led by St. Louis investor Jeff Cooper. St. Louis had a stadium deal in Collinsville, Illinois, but lacked sufficient financing. The expansion fee was $30 million for the Philadelphia team.
On May 11, 2009, it was announced that the team name would be Philadelphia Union. The new team announced their intention to construct an 18,500-seat stadium in Chester, Pennsylvania, which opened as PPL Park and is now known as Subaru Park.
Vancouver and Portland (2011)
One of three Canadian cities in the running for 2011 MLS expansion, Vancouver's bid was led by local businessman Greg Kerfoot, at that time owner of the Vancouver Whitecaps FC in USSF D2 Pro. NBA star Steve Nash was also involved as a minority stakeholder. The city's bid was boosted by the proposed construction of the Whitecaps Waterfront Stadium, with an initial capacity of 20,000 and the potential for further expansion. Don Garber called the bid presentation by Vancouver "one of the best I've ever seen."On March 18, 2009, MLS commissioner Don Garber announced that Vancouver had been awarded one of the two 2011 expansion spots for a reported $35 million expansion fee. Vancouver continued to field the second-tier Whitecaps until the MLS team made its debut in 2011. The MLS Whitecaps began the 2011 season at Empire Field, sharing it with the BC Lions of the Canadian Football League, before both teams moved into the renovated BC Place in October 2011.
On July 31, 2008, Merritt Paulson announced that he would apply for an MLS franchise for Portland as an MLS continuation of the Portland Timbers. Paulson further outlined his plan by launching a website. The MLS Timbers would play in a renovated PGE Park, which was renamed to Jeld-Wen Field by the time the team made its MLS debut in 2011 and is now known as Providence Park, sharing with the Portland State University football team.
On March 20, 2009, commissioner Don Garber confirmed in a news conference that Portland would receive the 18th franchise. Portland's expansion fee was $35 million.