MLS Faces Financial Challenges as Team Relocation Concerns Grow

The financial future of Major League Soccer (MLS) appears uncertain as the league grapples with the relocation of two of its strongest teams, both struggling to attract potential buyers. While MLS Commissioner Don Garber asserts that now is the best time for financial involvement in the league, the realities of team-level economics tell a different story.

“Ted Leonsis said the worst decision he ever made in sports was not buying D.C. United for $35M — they’re raising money at $950M,” Garber said earlier this year. “David Blitzer looked at MLS for many, many years — could have bought the Philadelphia Union for $30M, ended up coming into Real Salt Lake for hundreds and hundreds of millions of dollars.

“At that time, they didn’t believe what MLS would be able to do, how it would capture a new audience — the most diverse audience in sports.”

Questions of Revenue

Garber’s impressive nine-figure valuations are overshadowed by the everyday operations of most MLS clubs. Teams primarily rely on game-day revenue, including tickets, parking, concessions, and stadium sponsorships. When these figures decline, team values drop as well.

Vancouver’s complex stadium lease allows it to capture just 12% of its game-day revenue. The club has attempted to negotiate better terms with stadium owners but has not found success, and MLS has refrained from supporting these efforts.

“As of now, at this moment, no one, not one single one, is interested in buying even 1% of this club,” Vancouver CEO Axel Schuster told reporters. “Because all of them think that our setup here and the market and the situation we are in is not something where you can invest.”

While San Jose does not face the same obstacles as Vancouver, it still ranked 24th out of 30 MLS teams for revenue in 2025. Its estimated value of approximately $585 million is only marginally higher than that of new MLS franchises, which are valued at $500 million flat.

Mixed Messaging

Many MLS fans feel that the league has the power to assist teams like Vancouver, but with 30 teams currently in the league and no immediate plans for expansion, it seems Garber views Vancouver’s situation as an opening to bring in a higher-value city like Las Vegas or Phoenix without increasing MLS’ footprint.

Though this strategy seems reasonable, it contradicts the foundational elements driving revenue and growth in the league.

Unlike the NFL, MLS does not frequently attract new fans who might attend a match simply because they are visiting. The in-stadium experience, enriched by history, community, and connection, significantly impacts the league’s revenue.

If MLS were to relocate Vancouver as it did with San Jose two decades ago, it would undermine those fundamental aspects—first for Vancouver and ultimately for the league. Such a move risks aligning MLS’ operational strategies with its genuine financial realities, creating a perception of disconnection.

The San Jose Earthquakes will face the Vancouver Whitecaps on Saturday, marking a significant event in the MLS season and highlighting the operational challenges that affect the league’s competitiveness.