USL plans to launch a Division One men’s soccer league in 2027 to compete with Major League Soccer (MLS). In recent years, soccer has seen an increase in popularity in the US, and leagues are hoping to benefit from the 2026 FIFA World Cup and Los Angeles Olympics in 2028.
USL’s CEO, Alec Papadakis, says the new league aims to make elite soccer accessible to more cities. “With higher engagement and attention towards soccer combined with expanding Division One to more cities, we’re not just enhancing soccer’s reach across the nation – we’re improving the socio-economic landscape of the U.S. while fostering a sustainable soccer culture,” said Papadakis.
Structure and Vision for the New League
The new league will be the third tier within the USL umbrella, which manages the second-tier USL Championship and third-tier USL League One with 26 teams. The implementation of a Division One league is meant to establish a complete three-tiered pyramid system within the US, allowing for the first time a promotion and relegation feature, remarkably common in European soccer but unprecedented in the realm of American professional soccer.
Paul McDonough, USL President, argued that soccer needs to be expanded beyond MLS’s current borders. “If soccer in the country is truly going to grow, it’s going to grow outside of 30 or 32 markets,” he said. USL believes that professional soccer can be exploited in an ever-increasing amount of markets which will help elevate the sport on a macro level.
Meeting Division One Requirements
To be sanctioned as a Division One league by U.S. Soccer, the new league must meet specific requirements, including:
- A minimum of 12 teams across Eastern, Central, and Pacific time zones.
- 75% of teams located in metropolitan areas with populations of at least one million.
- Stadiums with at least 15,000 seats.
- Financial stability with owners able to sustain the teams for at least five years.
- Full-time operational staff and a broadcast partner.
Currently, the USL Championship has three teams that meet these requirements: Birmingham Legion, Miami FC, and Oakland Roots. Additionally, expansion teams in Dallas, Palm Beach, and Buffalo could join the league if they secure appropriate stadiums.
Competition with MLS
The newly introduced Division One league by the USL is expected to operate at the same level as the MLS, which may pose a threat to competition. The USL does not have a salary cap, unlike the MLS which currently has a cap on salaries. This discrepancy will affect how both leagues can compete for various players’ services. The average salary in the MLS in 2024 was almost $600,000 and is expected to reach a team salary cap of $5.95 million per team in 2025.
With no restrictions on salary caps and a relaxed approach towards the territorial jurisdiction of academies, the USL has a single-entity system. This is unlike the single-ownership model the MLS utilizes, making the USL’s model more appealing to certain investors. Considering the expansion fee for teams in the MLS rising to 500 million dollars, this makes the new league much more desirable to potential team owners for affordable purchase, similar to San Diego FC.
Future of Soccer in the U.S.
The introduction of the Division One League is an important milestone in American soccer. This comes after the NASL’s attempt in 2016 to compete against the MLS. The United Soccer League seeks to improve the level of soccer in the United States by opening more top-tier leagues and having an integrated competition.
According to the management of the League, there is untapped potential for American soccer and for the MLS to compete globally, they need to expand their markets. The USL is taking steps towards establishing itself as a dominant force in American soccer to compete globally.
The consequences of this decision can overshadow the effect the MLS has on professional soccer in the United States. All eyes are now on the United Soccer League as they prepare to compete with the MLS. The move from the USL could elevate the competition of soccer in America immensely.
