Since its inception in 1966, Major League Soccer has grown to become the home of soccer across North America. Yet, the absence of a promotion and relegation system — a hallmark of other leagues worldwide — remains highly debated. While critics cite challenges to its implementation, advocates argue that the adaptation of this system would enhance the league’s competitiveness and credibility.
Promotion and relegation is a system in which teams move between divisions based on their performance. The worst-performing teams are relegated, while the best-performing teams are promoted between divisions. This incentivizes clubs to invest in development and performance whilst avoiding complacency. Globally, it creates excitement as teams compete for titles, promotion spots or survival.
One of the greatest examples of this competitiveness is the Championship, with promotion offering lucrative television revenue — intensifying competition to finish in the top six.
Why it would benefit the MLS
One of the biggest threats to a competitive season finale is the lack of consequence for teams performing poorly — highlighting the ability of the system to heighten competition. In the current MLS structure, losing the chance to reach the playoffs can lead to complacency among underperforming teams.
A prime example of this is the Chicago Fire, qualifying for just two playoffs since 2010. With no consequences for below-average performances, the Fire continues in an apathetic existence.
If the MLS adopted relegation and promotion, every game would matter, with teams at the bottom scrapping to avoid relegation. This heightened competition would lead to higher-quality matches, more intense rivalries and greater fan engagement.
Promotion and relegation would integrate the vast network of soccer divisions across North America into a unified system, offering a clear path to the MLS dream for both players and clubs. For lower-league clubs without the financial resources to buy into the exclusive MLS system, promotion is the only way to make this dream a reality.
Currently, leagues like the USL Championship and USL League One operate independently of MLS, resulting in a fragmented pyramid. A connected system would provide lower-division clubs with the opportunity to rise through the ranks, enabling players who might not have been signed by an MLS club to fulfill their dream of playing at the highest level with the club where they began their journey.
Globally, promotion and relegation are deeply ingrained in the culture in Europe, South America, Africa and Asia. For international players, the motivation for a move to the MLS or the lower leagues are reduced due to a lack of competitiveness or a lack of ability to break into the top division altogether. Aligning with FIFA standards, where a club’s position in the “league championship shall depend principally on sporting merit,” would enhance its credibility and appeal abroad.
International fans, accustomed to the high-stakes battles for survival, may find it more compelling with the risk of relegation — attracting more viewers, sponsorships and media attention globally.
Promotion and relegation can help rally communities behind their local teams with higher stakes on the line. Around the world, fans support teams from lower leagues with the dream of one day reaching the promised land of the top tier. These passions for grassroots competition might invigorate North American soccer, attracting new fans and deepening the loyalty of existing ones.
Why the MLS won’t adopt promotion and relegation
The MLS operates a closed system where clubs are franchised in partnership with the league itself. Owners of clubs pay substantial expansion fees — recently as high as $500 million —to secure a spot in the elite league. These fees are predicated on the guarantee of remaining in the MLS, regardless of performance.
Introducing relegation could jeopardize revenue streams and depreciate club assets, making owners unlikely to support such a shift. Relegation could severely impact clubs financially through lost broadcast revenue, sponsorships and ticket sales. In North America’s competitive sports market, this could devastate struggling clubs.
One potential solution to this problem is parachute payments, which provide stability to relegated clubs years after relegation and distribute the profits fairly across the divisions — preventing events such as Bury’s expulsion from the English Football League.
North American sporting traditions revolve around closed leagues and playoffs. Introducing promotion and relegation would represent a dramatic departure from this norm — requiring significant time and effort to transition to a new system.
Compromises and alternatives
If the MLS is unwilling to adopt relegation and promotion due to investment risk, hybrid models could provide a middle ground. One possibility is the idea of a closed system with promotion and relegation and an MLS 1 and MLS 2. This idea would remove the risk of severe franchise decline whilst incorporating the competitive nature of relegation. This model is “considered” in the Australian A-League as a second division is confirmed for 2025 — potentially forging the path for the MLS to follow.
Another alternative is for the lower leagues to introduce promotion and relegation outside of the MLS ecosystem, allowing teams to develop over time. This would allow teams to slowly progress into stronger leagues with investment building towards the MLS. The USL held a vote as recently as July 2023 to introduce this system, with USL president Paul McDonough spearheading the movement, but the league wasn’t ready to execute it effectively.
Conclusion
While promotion and relegation offer compelling advantages — enhancing competition, global intrigue and local community engagement — the economic and cultural realities of North American soccer make it an unlikely prospect for the near future. Balancing the evolution of competitiveness of the league with stakeholder interests remains a delicate challenge — leaving the MLS’ future on its current trajectory.
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