A Monopoly on American Soccer: The USL’s Plan to Break the Hold of MLS

Noah Lopez
1 day ago
4 min read

Major League Soccer ("MLS") has benefited from the United States Soccer Federation’s ("USSF") policies limiting the ability of competitors to challenge their hold on the topflight of U.S. Soccer. But do these policies amount to a monopolistic conspiracy?

In February, the United Soccer League ("USL") announced their intention to launch a Division One Men’s professional league for the 2027-28 season.[2] The USL cited growing traction for the sport with the United States hosting the 2026 FIFA World Cup, as well as the 2028 Olympics.[3] Currently, MLS is the only top division league sanctioned by the USSF.[4]

USSF Division One Requirements

The USSF Professional League Standards lay out the requirements that teams must meet prior to Division One sanctioning.[5] Included in the requirements is that the proposed league must consist of 12 teams, with 14 teams participating by the third year of Division One status.[6] Additionally, the USSF requires that 75% of clubs be in a market of at least one million people, while clubs’ stadiums must seat at least 15,000 supporters.[7]

Further, the USSF sets out certain requirements for each team’s ownership structure.[8] First, the principal owner must have a stake in the team of at least 35%.[9] Additional regulations apply to the entirety of an ownership group.[10] For example, the principal owner must have a net worth of at least 40 million U.S. dollars.[11] Additionally, the ownership group must also have a combined net worth of at least $70 million.[12]

Allegations of USSF’s Insulation of MLS

In February, the USSF and MLS secured a jury verdict in an antitrust suit brought by the North American Soccer League ("NASL").[13] The lawsuit alleged that the mandated criteria for Division One sanctioning unfairly favors MLS.[14] As such, the suit claimed that MLS and USSF violated Sections One and Two of the Sherman Act which targets conspiracies to monopolize markets.[15]

With the definition of the market being pivotal to questions of monopolization, NASL argued for a narrow definition of the market relevant to the case.[16] They argued that the market should only include Division One and Division Two soccer.[17] By contrast, the defendants stated that Division Three soccer leagues should be included in the product market with other sports treated as substitutes.[18] The inclusion of Division Three would expand the market, weaken the view of MLS’s hold, and illustrate a market with healthy competition.[19] In response, NASL suggested that the differences between Division Three leagues are too significant to encompass the same product market.[20]

The jury rejected the NASL’s argument in favor of the broadened market view and found for the defendants.[21] showings, such as the fact that Orlando City SC moved from Division Three to MLS, illustrated that the market should include Division Three.[22] The defendants also pointed to the USL’s movement from Division Three to Division Two.[23] The District Court judge rejected NASL’s motion for a new trial which led them to file for appeal; likely extending the legal process into next year.[24]

What Does this Mean for the USL’s Division One Effort?

The USL must overcome many obstacles during the next few years if they are to successfully achieve Division One sanctioning in time for the 2027-28 season. For example, fewer than five stadiums meet the capacity requirement.[25] However, Detroit City SC, Atletico Dallas, and the Pittsburgh Riverhounds have recently announced plans to build new stadiums, relocate to larger stadiums, or expand their current grounds. [26]

With the NASL’s appeal pending, the USL must continue their expansion effort in an uncertain environment while aiming to satisfy the existing framework. Should the appeal succeed, the USL may benefit from the potential of relaxed regulations in trying to break the hold of MLS at the top of the soccer pyramid. For now, fans can keep tabs on the courtroom where it may be decided if U.S. soccer remains under one dominant league or opens to competition.

Noah Lopez (staff writer) Noah is a 1L at Villanova from Millville, NJ. He earned a B.A. in Economics with a minor in Political Science from Rowan University. While pursuing his undergraduate degree, Noah spent time interning with the NJ Courts as well as in consumer lending with a Boston-based bank. Noah is a longtime fan of Philadelphia sports as well as of Premier League club Manchester United. He is eager to apply his interests in economics, foreign affairs, and national security within the world of sports.

Refercences:

[1] Fancy Crave. (June 18. 2015). Unsplash.

[2] United Soccer League Takes Bold Step Forward with Launch of Division One Professional men’s League https://www.uslsoccer.com/news_article/show/1331372

[3] Id.

[4] Paul Tenorio. Move over, Major League Soccer. A rival top flight men’s league is coming to the U.S. https://www.nytimes.com/athletic/6129972/2025/02/13/usl-launch-division-1-league-us-soccer-mls/

[5] United State Soccer Federation Professional League Standards https://cdn.sanity.io/files/oyf3dba6/production/39c508f13ff3ae8413bbd740af8ebcf85de41c87.pdf

[6] Id.

[7] Id.

[8] Id.

[9] Id.

[10] Id.

[11] Id.

[12] Id.

[13] Jeff Carlisle. Jury Sides with MLS, USSF in NASL anti-trust suit (Feb. 3. 2025). https://www.espn.com/soccer/story/_/id/43680111/jury-sides-mls-ussf-nasl-suit

[14] Id.