MLS Valuations Soar, Five Teams Break Billion-Dollar Barrier

Major League Soccer (MLS) is experiencing a surge in team valuations, signaling the league’s growing prominence on the global soccer stage. According to recent evaluations released by Sportico, five MLS teams now boast valuations exceeding $1 billion, with an additional 14 teams ranking among the top 50 most valuable soccer clubs worldwide. This milestone marks a significant leap for MLS, solidifying its position as a league with increasing financial strength and global appeal.

The five MLS franchises that have breached the billion-dollar valuation mark are: Los Angeles FC (LAFC), valued at $1.28 billion; Inter Miami, at $1.19 billion; the LA Galaxy, with a valuation of $1.11 billion; Atlanta United, valued at $1.08 billion; and New York City FC (NYCFC), clocking in at $1 billion. This achievement highlights the growing market presence and investment potential within MLS.

Notably, this is a relatively recent phenomenon. When Sportico initially released its valuations in 2023, no MLS team had yet surpassed the $1 billion threshold. In 2024, LAFC, Atlanta United, Inter Miami, and the LA Galaxy were the only clubs to achieve this milestone. The addition of New York City FC to the list in 2025, with the impending opening of its new stadium, Etihad Park, in 2027, further underscores the league’s upward trajectory. The stadium is also a major factor on the team’s rise in value as it is an asset owned by the club.

While MLS clubs may not currently generate the same revenue levels as the top-tier clubs in Europe’s elite leagues, several factors contribute to the league’s stable and rising valuations. According to Sportico, these factors include effective cost controls, modern stadium infrastructure, a unique single-entity structure that promotes collaboration among owners, and the absence of relegation, which provides a more secure investment environment for team owners. Importantly, the valuations also incorporate the value of real estate holdings and related business ventures associated with each team.

Beyond the billion-dollar clubs, a significant number of other MLS teams have achieved impressive valuations, further demonstrating the league’s overall financial health. Two teams, Austin FC and the Seattle Sounders, exceed $800 million in value, ranking 23rd and 25th, respectively, on the global list. Austin FC, established in 2019, has seen dramatic growth in popularity and value. Seven additional MLS clubs are valued at over $700 million: Columbus Crew, Toronto FC, FC Cincinnati, D.C. United, Portland Timbers, Charlotte FC, and Philadelphia Union. The competition in the East is creating value for all those teams. Finally, five more MLS teams exceed $600 million in value: St. Louis City SC, Minnesota United, Sporting Kansas City, the New York Red Bulls, and Nashville SC.

In contrast, the top echelon of global soccer club valuations is dominated by European powerhouses. Real Madrid leads the pack with a valuation of $6.53 billion, followed by Manchester United at $6.09 billion, FC Barcelona at $5.71 billion, Liverpool at $5.59 billion, and Bayern Munich at $5.21 billion. While MLS teams still lag behind these European giants in overall valuation, the rapid growth and increasing financial stability of MLS clubs suggest that the gap may narrow in the years to come.

The rise of MLS valuations has broad implications for the league and the sport in North America. Increased team values attract more investment, leading to improved player development, better facilities, and a higher quality of play. This, in turn, enhances the fan experience, attracting larger audiences and driving further revenue growth. The league’s single-entity structure promotes financial stability and collaboration among owners, fostering a more sustainable and competitive environment.

The absence of relegation, a common feature in European soccer leagues, also provides a more stable investment landscape for MLS team owners. Relegation can significantly impact a team’s revenue and valuation, as it entails a drop to a lower division with fewer media rights deals and sponsorships. The stability offered by the MLS structure makes it a more attractive investment for both domestic and international investors.

The inclusion of real estate and related businesses in the valuations further underscores the diverse revenue streams and investment opportunities associated with MLS teams. Many teams own or control significant real estate assets, including stadiums, training facilities, and surrounding development land. These assets can contribute significantly to a team’s overall valuation and provide additional avenues for revenue generation.

The growing valuations of MLS teams also reflect the increasing popularity of soccer in the United States and Canada. The sport has experienced a surge in viewership and participation in recent years, driven by factors such as the growing diversity of the population, the increasing availability of soccer programming on television and online, and the success of the U.S. and Canadian national teams.

The future of MLS looks promising, with continued growth expected in team valuations, revenue, and popularity. The league’s strategic focus on attracting top international talent, investing in player development, and expanding its reach to new markets will likely contribute to its continued success. The upcoming 2026 FIFA World Cup, to be co-hosted by the United States, Canada, and Mexico, is also expected to provide a significant boost to the sport in North America, further driving interest and investment in MLS.

In conclusion, the surge in MLS team valuations is a testament to the league’s growing financial strength, increasing popularity, and strategic vision. The five teams that have breached the billion-dollar valuation mark represent a new era for MLS, signaling its emergence as a major player in the global soccer landscape. With continued investment, strategic planning, and a growing fan base, MLS is poised to further solidify its position as one of the world’s leading soccer leagues. The factors that contribute to the growth are the cost control measures, single entity structure, the new stadiums being erected, and the increase in interest in the sport. These are all signs of a healthy sport ecosystem.