The MLS

Major League Soccer has transformed from a fledgling league with modest ambitions into a fast-growing property that now sits firmly on the radar of global investors. Club values have climbed steadily year after year, new broadcast partnerships have expanded the league’s reach, and the run-up to the 2026 World Cup has only amplified its momentum. What was once a speculative play has become a credible asset class, and the financial world is beginning to take notice.

MLS Breaks into Private Equity

The latest twist in MLS’s growth story is the league’s quiet decision to allow private equity into its ownership structure. For years, MLS kept a firm line against institutional capital, preferring traditional ownership groups. That stance has shifted as team valuations climb and capital demands rise, especially around stadium projects and player investments. Under the new framework, funds can buy minority stakes, but the rules are strict: caps on how much equity can be held, restrictions on owning multiple clubs, and little to no operational control. It’s a carefully controlled opening designed to bring in new money without changing the league’s balance of power.

What Rules Must Private Equity play by?

MLS has finally put private equity on the table, but only within a tightly controlled framework. The league wants fresh capital without giving up control, and the rules reflect that balance.

The key restrictions:

• Maximum stake capped at a minority percentage of 20%

• No control or board seats for funds

• A fund is limited to having owning stakes in max 4 MLS teams

• Minimum fund size of 20 million required to qualify

• A fund must have at least $500 million in committed capital to qualify.

It’s a cautious step forward, one that signals opportunity but also sets the tone for how tightly MLS plans to guard its model.

Is it Worth It Even With All These Limitations?

In 1996 an MLS franchise could be bought for around $5 Million. Today the average team is valued at about $721 Million, which represents nearly 18.7% compound annual growth over almost three decades. That growth rate beats the S&P 500’s historical 10% return. To see what that means in practice, take a 20% stake in an average MLS club today. At current valuations that stake would cost about $144.2 Million. If league values continue compounding at the same historical pace, that position could be worth more than $800 Million by 2035. It is this kind of acceleration, driven by scarcity and momentum, that private equity firms want access to even if they have to play under the league’s tight restrictions.

However, the very rules that make MLS cautious could also blunt private equity’s appetite. With a maximum stake capped at 20%, no board seats, and no real say in club operations, funds are essentially writing big checks without the levers they usually rely on to shape performance. Add in the requirement that a fund can only hold stakes in up to 4 MLS teams, with a minimum $20 million check size and at least $100 million in committed capital, and the setup starts to look like a high barrier with limited upside influence. For some firms this may dampen long-term engagement, because while the growth story is strong, the lack of control means they are betting almost entirely on valuations continuing to climb. Whether that trade-off is enough to keep new money flowing into MLS is still an open question.

In Summary

Major League Soccer has grown faster than almost any other sports league, with average club values jumping from just $5M in 1996 to more than $700M today. That works out to nearly 19% annual growth, well above the S&P 500’s long-term 10% return. It is no surprise private equity wants in, and the potential returns from even a minority stake could be massive if that growth continues. But MLS is keeping a tight grip on control. Funds must write checks of at least $20M, manage at least $100M in capital, and can own no more than 20% of a club or four club’s total. They cannot sit on boards or influence everyday operations.

The result is a double-edged proposition. On one side, the league offers scarce, fast-growing assets that could compound into hundreds of millions over the next decade. On the other, investors are asked to commit big money with little say in how clubs are run. Whether that balance will keep private equity engaged or ultimately hold them back is the debate that will shape MLS’s next chapter.