MLS commissioner Don Garber confirmed the league is evaluating two additional expansion franchises, though he stopped short of naming cities or setting a timetable. The league currently operates 30 clubs and last expanded in 2023 with St. Louis City SC, which paid a $200 million entry fee. Garber's remarks, delivered at a league event last week, pointed to sustained television ratings and sponsor interest following the 2022 Qatar World Cup as the primary drivers.
The league's expansion history offers a template. Since 2017, MLS has added nine franchises, each paying progressively higher fees—Nashville and Miami entered at $150 million in 2020, while Charlotte FC's 2022 entry reportedly approached $325 million. The incremental revenue has allowed the league to raise its salary cap, now $5.47 million per team for 2025, and fund infrastructure investments including a $50 million technology stack for officiating and broadcast production. Garber has previously stated the league could support 32 to 34 teams before pausing expansion, a figure tied to broadcast scheduling mechanics and playoff bracket symmetry.
The momentum Garber referenced is real but narrow. Fox Sports reported a 21% increase in MLS regular-season viewership for 2024 versus 2023, driven primarily by Lionel Messi's Inter Miami appearances and a handful of marquee Apple TV windows. Apple's 10-year, $2.5 billion streaming deal, signed in 2022, includes performance escalators tied to subscriber growth—currently estimated at 2 million MLS Season Pass accounts. A new franchise in a media market Apple prioritizes (Phoenix, Las Vegas, San Diego) would strengthen the league's negotiating position when escalator clauses are reviewed in 2026.
Expansion economics hinge on three inputs: the franchise fee, stadium construction costs, and local broadcast carriage. Recent expansion markets have required $300 million to $500 million in stadium investment, typically split between ownership groups, municipal bonds, and tax-increment financing. St. Louis's $458 million facility was privately financed; Sacramento's stalled bid collapsed in 2019 over a $252 million stadium funding gap. Las Vegas, frequently mentioned as a candidate, has a new $2 billion resort district and existing ownership groups tied to the NHL's Golden Knights, but no shovel-ready soccer venue. Phoenix has a similar profile: strong demographics, no purpose-built stadium, and ownership interest from the NBA's Suns controlling stakeholder.
The league's operational calendar complicates timing. MLS front offices expect the next Collective Bargaining Agreement negotiation to begin in late 2026, ahead of the current deal's 2027 expiration. Ownership groups prefer to finalize expansion during labor peace, not six months before a potential work stoppage. Garber has also said the league will "slow down" expansion ahead of the 2026 World Cup, which the U.S. co-hosts, to avoid splitting focus between tournament operations and franchise launches. That suggests any new teams would begin play in 2028 or 2029, following a 24-to-30-month construction and roster-building window.
Two names circulate privately: Las Vegas and San Diego. Las Vegas offers a transient, entertainment-forward market that has absorbed the Raiders and Golden Knights without cannibalizing either; its convention and tourism base would support premium suites and corporate sponsorships. San Diego has a 1.4 million metro population, no MLS team within 90 miles, and a failed NWSL bid that left stadium infrastructure plans on the shelf. Phoenix's political complications around public stadium funding have cooled enthusiasm among league officials, according to two people familiar with expansion discussions.
The next data point arrives in April, when Apple and MLS review subscriber trajectories and discuss the 2026 escalator clause. If growth exceeds internal targets, Garber will have leverage to raise the expansion fee above $400 million—a price that filters applicants and ensures only well-capitalized groups proceed.
The takeaway
MLS eyes two more teams but no timeline; Apple subscriber figures in April will determine franchise-fee pricing power and bid sequencing.
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