Major League Soccer is in a paradox. On one hand, its franchises are losing money at an alarming rate. On the other hand, team valuations are skyrocketing to record highs. So, is MLS truly thriving, or is this just a high-stakes gamble? Two reports emerged around MLS in recent times.

In one, Don Garber, the Major League Soccer (MLS) commissioner, emphasized his league’s importance and potential for growth in the coming years. In another–from Forbes–it came out that most MLS teams are operating on a loss. For instance, 16 of the 30 current teams failed to make any profitable income last year. So, where do Garber’s words stand? 

Well, most teams are indeed failing to break even at the end of the season, but here’s the catch. The growth of team valuation over the years and consistent investors’ faith in the product actually tell a different story. First, let’s understand why teams are losing money and what the league lacks. 

Operating Losses vs. Team Valuations

Recent financial disclosures indicate that over 50–60% of MLS teams continue to report net operating losses. These losses typically stem from:

The rising cost of player acquisition in MLS 

The cost of bringing in top players has shot through the roof. As per the MLS Players Association (MLSPA) report from last September, Inter Miami’s annual payroll was over $39 million. Lionel Messi & Sergio Busquets’s compensation alone is $20.5M. Toronto FC was the second-highest at $32 million. But expect it to only go up as MLS tries to be at par with the top soccer league on the other side of the Atlantic. 

For comparison, Real Madrid’s annual payroll is $285.92M. Whereas Southampton FC–which is fighting relegation in the Premier League by the way – has an annual payroll of 61.33M, per Capology. 

Additionally, MLS generated nearly $250M in player sales, almost double the previous transfer windows. Yet that’s almost one-tenth of the Premier League. It is also estimated that rosters in the second-tier English Championship are about 1.4x more valuable, with far fewer teams than MLS. 

MLS franchises must spend big to attract marquee talent and boost stadium attendance. However, that spending hasn’t translated into comparable growth in broadcast revenue. The MLS signed a streaming-only 10-year $2.5B partnership deal with Apple TV in 2022 after parting ways with ESPN. However, that hasn’t been as beneficial as one thought.

Lack of profit from media rights and broadcasting

Compared to MLS, the NHL’s media rights deal with ABC/ESPN and Turner Broadcasting puts $600M per year into their coffer. Whereas the NFL’s current broadcasting deal with a range of TV partners brings in roughly $10B annually. There is also another caveat: MLS is responsible for the production costs, which often run up to $80M/per year. 

It leaves less than $8.3 million per team if taken with the production costs. Whereas,  in the Premier League, the broadcast revenues for Southampton are north of $125 million. On top of that, Apple TV isn’t as popular or as accessible as the other four major league streaming/broadcast partners. It concerns team owners, too. 

“If you’re at home at night and you’re on Hulu or YouTube, you don’t find us. Apple is very destination-based. It’s not a casual streaming platform,” a team executive was quoted as saying by Forbes. Notably, Apple TV doesn’t reveal the viewership numbers but an ESPN article cited sources to report that it was lower than expected. Proof of that is the fact that even though the MLS is supposed to receive a 50% share of subscription fees once a certain benchmark is hit, the league has yet to get to that point. 

But… 

It’s not all doom and gloom for the franchises. Despite the setbacks, the valuation of teams has increased multifold. In the past decade, average MLS team valuations have grown from roughly $300–$400 million in the early 2010s to nearly $1 billion by 2025. Top-tier franchises have even surpassed the $1.2–$1.5 billion mark. 

Current Valuation of MLS Franchises

Think of this: In just four years, LAFC’s valuation soared from $800M to $1.28B, per Sportico— a staggering 60% increase. In 2021, not a single team crossed the $1B mark. In 2025, five teams are valued at over $1B. New York City FC and Inter Miami have witnessed a 19% and 17% increase in valuation, respectively. 

• The average MLS franchise is now valued at $690 million. A whopping 121% increase from 2019.
• Six teams have witnessed double-digit year-on-year growth, with the average growth rate at 14% last year.
• Inter Miami notched $180M in revenue, the highest in the league, and $50M in operating income. In 2022, Miami’s revenue was $55M.

This represents a compounded annual growth rate (CAGR) in valuation of roughly 15–18%, which far outpaces the pace of operating income improvements. Miami was the fourth club to post a revenue of over $100M. In fact, it is the highest-revenue soccer club in the Americas, surpassing Brazilian giant Flamingo, according to Amir Somoggi, the managing director at Sports Value. 

So, Garber was right in claiming that MLS is in for robust growth. But the question arises: What is the key driver of this growth, and can it be sustained once the Messi bubble bursts?

Key Financial Drivers Behind Valuation Growth of MLS Teams

MLS franchise’s revenue model is quite different from other established soccer leagues. For example, while Itner Miami earned $180M in revenue, a significant chunk of that came from matchday revenue. Whereas Manchester United, which earned an annual revenue of $800M despite struggling in the league table, the lion’s share of it comes from broadcast, with matchday accounting for barely 20%. Here is a deeper breakdown of the revenue stream for MLS clubs. 

Game day revenue

The average MLS match attendance has been going upwards, and that’s regardless of Messi’s involvement. Over 11M soccer fans thronged to MLS stadiums, setting a new record for the league. The previous record was broken mid-season. By that time, over six matches witnessed a 60K+ crowd, seven matches witnessed a 50K+ crowd, and 21 matches recorded over 40K attendance. Average attendance was nearing 94% of stadium capacity. MLS is now the second-most attended soccer league in the world, trailing only the Premier League. 

Furthermore, jersey sales went up by 17% on MLSstore.com, according to a report on MLSSoccer.com. The average attendance went up by 4% in 2024 in matches that did not involve Inter Miami. Reportedly, FC Cincinnati ranks on top as far as generating revenue from premium seating is concerned. Whereas, a Forbes estimate reveals that the Columbus Crew recorded an uptick in virtually every revenue stream.

Inter Miami, on the other hand, has relied heavily on Messi’s power to attract fans. The team has increased its season pass price by almost 104% for the cheapest seats and $171 for premium seats in the last five years. The price of a hotdog is almost double that of what it is Old Trafford, Manchester United’s home stadium. Meanwhile, you got to spend six times the amount to buy a pint of beer at Chase Stadium than Old Trafford,  per World Soccer Talk. 

The increase in ticket prices can be attributed to the fact that the MLS franchise doesn’t earn much profit from broadcast. But that’s also likely to change dramatically in the next few years.

Broadcast & streaming will alter the MLS landscape

Data reveals that MLS fans watch an average of 65 minutes per match on Apple TV. Nowadays, Comcast Xfinity and DirecTV customers can subscribe to MLS Season Pass as well. On top of it, the Apple TV app is now available on Google Playstore.

While last year, barely 4% of Inter Miami’s revenue came from broadcasting, expect it to go up in 2025, as MLS is looking to leverage the power of streaming more in the coming days. For example, a Sunday Night Soccer broadcast is on the cards. It will be free to watch. Moreover, soccer fans will be able to watch 210 matches without getting stuck by a paywall. 

Notably, MLS will also release a documentary series from the same production company that created Netflix’s Formula 1: Drive To Survive. On top of it, MLS teams are getting the attention of heavyweight sponsors more and more frequently. While Messi is a big factor, there is more to it than just one heavyweight, as the total number of sponsorships reveals an overall growth. 

MLS teams keep raking in sponsorships

Revenue from lucrative sponsorship agreements has been a major contributor. For instance, according to a report, last year, 17 new sponsors signed before midseason. Sponsors injected a whopping $665M to the league’s total revenue last year, a 13% y-o-y increase and 44% since 2022, per a report at SponsorUnited. In addition,

• 18% of sponsorship revenue came via new deals.
• Lionel Messi, with 21 endorsement deals, is the leader in the MLS. 
• The Chicago Fire added 40 new sponsors to their roster in 2024.

Add to this the stadium naming deals and jersey patches. Per the same report, on average, brands are spending $4.4M to add their name to a stadium. On the other hand, they are ready to cough up over $3M just to get their name across the jersey. 

Inter Miami inked a deal with cryptocurrency platform XBTO. Although the financial details of the sponsorship were not publicly available, it was pitched as one of the largest deals in MLS history. Notably, so far, the league’s biggest partnership came in 2022 – the Etihad deal with NYCFC at $9M. 

With the growth in sponsorship, attendance, and a potential explosion in broadcasting numbers, MLS team owners are looking at hypergrowth in the coming years. It’s evident by the fact that the 30th club, San Diego FC, paid a  $500M expansion fee, more than 1.5x of what David Tepper paid in 2019.

Think of LAFC. It’s now worth more than top-tier European soccer clubs like West Ham United ($1.1 billion), Inter Milan ($1 billion), and Aston Villa ($800 million), per Joe Pompliano. It is estimated that an owner who purchased a team for $300 million a decade ago might now see that team valued at close to $1 billion—a roughly 230% increase in asset value. 

This translates into an approximate annualized return of 17–18%, which is highly competitive even when accounting for periodic operating losses. In sports franchises, it’s not uncommon for operational profitability to lag behind asset appreciation. Franchise owners plan for a longer investment horizon, where short-term setbacks are offset by long-term profits. 

Of course, the 2026 World Cup will be another shot in the arm for MLS. Over 70% of the matches will be hosted in the U.S. Moreover, reports indicate MLS is also planning to switch its schedule to the European model for consistency in the transfer market. MLS has the potential to cement itself as a top-tier American league. But to get there, it must solve its revenue puzzle before the valuation boom loses steam.