Sports and Finance: The Real Cost of Buying an MLS Team
Ever wondered what it takes to own a Major League Soccer (MLS) franchise? It’s not just a love of the game – it’s a massive financial commitment. In this guide we break down the biggest cost drivers so you can see why the price tag often tops $500 million.
Franchise Fee: The Starting Line
The first hurdle is the franchise fee. MLS sets this price based on market size and growth potential. In 2023 the fee ranged from $200 million in smaller markets to $325 million for top‑tier cities like Miami or Los Angeles. That money goes straight to the league and gives you the right to operate a team under the MLS brand.
Stadium and Infrastructure: Building the Home Field
Most owners need a dedicated stadium or a long‑term lease on an existing venue. Building a new stadium can add another $100 million to $200 million, depending on capacity, design, and location. Even if you use a shared stadium, you’ll likely pay for upgrades, naming rights, and community agreements.
Beyond the stadium, you’ll invest in training facilities, offices, and fan‑experience upgrades. Those costs can easily climb into the tens of millions, especially if you want a cutting‑edge complex that attracts top talent.
Operating Costs: The Ongoing Money Drain
Once the team is up and running, day‑to‑day expenses start to add up. Player salaries are the biggest item – MLS has a salary cap, but high‑profile signings and Designated Player contracts can push payroll toward $70 million or more each season.
Coaching staff, medical teams, scouting networks, and travel expenses also chip away at the budget. Marketing, ticketing, and community outreach programs are essential for building a loyal fan base, and they require a solid financial commitment.
Other Hidden Expenses
Don’t forget the legal and advisory fees involved in the purchase. You’ll need lawyers, accountants, and consultants to navigate league approvals, ownership structures, and tax considerations. Those services can cost several million dollars.
There are also contingencies for stadium debt servicing, insurance, and potential revenue shortfalls. Smart owners set aside a reserve fund to handle unexpected costs without jeopardizing the club’s stability.
Putting It All Together
If you add the franchise fee ($200‑$325 million), stadium costs ($100‑$200 million), and the first few years of operating expenses, the total investment can easily exceed $500 million. That’s why most owners are wealthy individuals, investment groups, or global brands looking for long‑term returns through media rights, sponsorships, and growing fan engagement.
For anyone eyeing an MLS team, it’s crucial to run a detailed financial model. Project revenue from ticket sales, merchandise, broadcast deals, and sponsorships, then match those numbers against the massive upfront and ongoing costs.
Bottom line: Buying an MLS franchise isn’t just a passion project – it’s a high‑stakes business venture that requires deep pockets and a solid strategy. If you have the cash and a plan to grow the club’s brand, the payoff can be huge, both on and off the field.
How much does it cost to buy an MLS team?
Buying an MLS team is no small investment, it's a venture that could cost hundreds of millions of dollars. The franchise fee alone can range from $200 million to $325 million, depending on the city. On top of that, there's also the cost of building a stadium, which can set you back anywhere from $100 million to $200 million. Plus, don't forget about the operating costs, player salaries and other team-related expenses. So, in the end, the total cost could easily exceed half a billion dollars.
