Major League Soccer (MLS), founded in 1993, operates under a unique single-entity structure that allows revenue sharing among teams, but limits team growth potential and is criticized for its playoff format. MLS has initiated a new player development program called MLS Next to enhance youth soccer in North America but faces threats from competing sports leagues and COVID-19's adverse financial impact. As the league prepares for the 2026 World Cup, discussions about a potential super league with Liga MX indicate a strategic move to elevate soccer's status in the region.

1. ChristopherLoPresti
Full Sail University
Course:SportBusinessModels
Swot Analysis: Major League Soccer
Summary:
Foundedin1993, Major League Soccer (MLS) representsthe bestsoccerhasto offerinNorthAmerica.
On the businessside,the League standsoutasit utilizedadifferentstructure fromothersoccerleagues.
The single-entitystructure MLSutilizedprovidesalotof benefitsasitisa growingleague,butithas also
sloweddownthe growthof otherteamsas itfeaturesa SalaryCap. Anotherareathe MLS greatlydiffers
fromotherwell-establishedsoccerleaguesinthe worldiswithitsPlay-off styletournament. This
approach fromthe League has beeninconstantreproachfrommany of its fans,soit comesas no
surprise tohear the MLS entitytalksabouta new SuperLeague fusingLaLiga MX alongside the MLS.
Withthe WorldCup2026 gettingcloser,whichwill be playedbetweenthe US,Canada,and Mexico,this
newSuperLeague can justbe one of the manystrategicmovesto take Major League Soccer to the next
level.
Table:
Strengths Weaknesses
 The League's single-entity structure
 MLS Next
 Europe’s biggest teams' scouting in US young
talent.
 The league one entity structure may not allow
some teams to grow into their maximum
potential.
 Unattractive and unappealing playoff-style
tournament
Opportunities Threats
 Five-time Ballon d'Or winner Lionel Messi
interested in joining MLS before his retirement
 New Tournament concept with La Liga MX
 Improve TV Coverage; MLS Network
 Fans interest in other sports.
 Covid-19 Impacts on the financial health of the
League

2. Analysis:
Strengths
o The League's single-entity structure
Unlike individual ownership, the MLS single-entity structure allows the League to own all
participating teams and their players' contracts. This structure allows for a percentage of the
revenue, including national broadcast rights, league-level sponsorships, and online merchandise
sales, to be shared between all participating teams in the League. Having the revenue shared
allows teams that struggle with ticket sales or may not have the option for a good sponsorship
deal like LAFC with Ford Motor Company or even local broadcasting rights like Orlando City
SC with Spectrum. In short, this model allows for all participating teams to have a "safety net" in
their revenues.
o MLS Next
Being criticized by many for lacking a youth system. MLS Next, the new youth system project
founded in 2020 and starting later in 2021, will allow for world-class player development in
North America. In collaboration with the top elite youth academies around the country, Major
League Soccer created this development project that will encompass over 489 teams across 113
clubs and six age groups, together shaping the course for a new future for the sport. MLS Next
will consist of elite year-round competition, player identification initiatives, coaching education
opportunities, and personal development programming that will undoubtedly help grow
interested in the sport in the country and help put our talent worldwide.
Weaknesses
o The league one entity structure may not allow some teams to grow into their maximum
potential.
MLS single-entity structure allows the League to have total control over player acquisitions
through an odd set of rules. The rules attempt to eliminate competition by granting teams
exclusive rights to negotiate with and sign certain players. While these rights can be traded or
sold, they must remain exclusive to the League for any given player. So teams cannot bid against
each other for a player and, technically, a player cannot choose between offers from multiple
MLS teams. In other words, MLS acquisition rules detach themselves from the straightforward
process through which players are typically signed as found in top European Leagues.

3. o Unattractive and unappealing playoff-style tournament.
On top of having a different business structure from other leagues, the MLS also differs from the
tournament structure. The MLS has a salary cap that makes the League completely unpredictable
every year: Because of the cap placed yearly on a team, every team has a chance to win the
championship. Yet much like football, there is an opportunity to win it all any given year,
working as an incentive. Unlike the English Premier League, which has teams year after year
competing for the top 4 spots, the MLS allows all teams with an equal playing field. To not be
relegated appears to be the objective for 70% of the EPL clubs as the top 4 or 5 clubs have an
infinite amount of cash to buy the best players. In response to the salary cap, the MLS then has a
playoff-style tournament, its most significant difference between those in Europe. This allows for
teams to qualify for a spot with a chance to win the championship. It is all but curious to see
what would happen if they would partake from a more standard style soccer league that would,
in addition, allow for sports for relegation and increase competitiveness and most likely playing
styles.
Threats
o Fans interest in other sports.
As an up and rising League, MLS competes with the likes of NBA, NFL, MLB, US Open, and
more. Soccer and the MLS have a higher chance of taking the backseat for someone if it
schedules conflicts with another game or event from any of these other sports in the United
States. Although viewership is increasing, attendance matches are consistent, and the League
keeps expanding with new clubs, it still does not reach the numbers of other most popular sports
in the country nor the attention it gets in other places.
o Covid-19 Impacts on the financial health of the League
With Covid-19 not allowing fans in the stadium, leagues all around the world have had to rethink
how to complete their 2020 seasons and start the following 2021 season. According to Yahoo
News (McIntyre, 2020), MLS suffered the impact of the pandemic and has had to laid-off almost
70% of its positions and 20% of their Full-Time employees. The unfortunate news came as case
numbers in the US and all around the world keep are on the rise, and fans are either not allowed
in the stands or are can attend at a limited capacity. To this day, it is unsure what will happen
next, but what we all hope is that with the vaccine soon to be available to the public, we can all
go and enjoy our favorite sports live.

4. References:
MLS SoccerStaff (September8,2020) MLS Nextelite youthdevelopmentplatformofficiallyunveiled
aheadof inaugural season.MLSSoccer.Retrievedfrom
https://www.mlssoccer.com/post/2020/09/08/mls-next-youth-development-platform-officially-
unveiled-ahead-inaugural-season
Tannenwald,J.(July25,2020) MLS tournamentTV ratingshaven’tbeengreat,butESPN’stechnologyhas
beena winner.The PhiladelphiaInquirer.Retrievedfrom https://www.inquirer.com/soccer/mls-
is-back-tournament-tv-ratings-espn-fox-univision-20200725.html
McIntyre D (November19,2020) MLS laysoff 20% of itsstaff as the financial impactof COVID-19on
sportscontinues.Yahoo!Sports.Retrievedfrom https://www.yahoo.com/now/mls-lays-off-20-
of-its-staff-as-the-financial-impact-of-covid-19-on-sports-continues-223113317.html
TolmichR. (May 21, 2020) CouldLigaMX and MLS merge?What NorthAmericanSoccersuperLeague
couldlooklike.GOAL.Retrievedfrom https://www.goal.com/en-us/news/could-liga-mx-mls-
merge-what-north-american-soccer-super/sx881v8nnsce1xgsdk542mn57
EPSN FC. (December28,2020) Live TransferTalk:Messi reveals‘dream’ of playinginthe MLSin the
future.ESPN.Retrievedfromhttps://www.espn.com/soccer/blog-transfer-
talk/story/4274704/live-transfer-talk-messi-reveals-dream-of-playing-in-mls-in-the-future
Clemente,L.(July20, 2020) 5 StandoutAmericanPlayersinEurope in2019-20. US Soccer Players.
Retrievedfrom https://ussoccerplayers.com/2020/07/5-standout-american-players-in-europe-
in-2019-20.html