The Deal That Launches The Battle for America's Soccer Pyramid
For years, the battle for control of lower-division professional soccer in the United States has been conducted largely in the shadows — fought through quiet franchise agreements, maneuvering in small markets, and the occasional pointed press release. That era is now over. The announcement that KKR, one of the world’s most formidable private equity firms, is committing what multiple sources told Sportico will likely reach $150 to $200 million into MLS Next Pro through the newly formed Hometown Soccer Holdings is a signal flare. The fight for America’s soccer pyramid is now underway in earnest.
MLS Next Pro, launched with considerable fanfare in 2022, has done a credible job on one of its two core mandates: player development. More than 255 players have moved from Next Pro into MLS first teams. That pipeline is real. But the second mandate — building commercial resonance, creating clubs that fans actually care about, generating revenue that justifies the enterprise — has been, to put it charitably, a work in progress. The brutally honest version is that most Next Pro teams are playing in front of sparse crowds in borrowed stadiums, functionally invisible in their own markets. They feel like what critics say they are: youthful reserve teams, not professional clubs with an identity. MLS clubs have varied wildly in how seriously they have taken their Next Pro teams, with some prioritising commercial development while others have treated them purely as development vehicles and little else.
MLS commissioner Don Garber put the underlying problem plainly when speaking to Sportico. “I’ve been on the U.S. Soccer board for many years, and I talk very proudly about all of our elite youth development,” he said, “and then I’m reminded that we’re in 27 markets in the U.S. and there are hundreds of millions of people in the country and not all of them are touched by MLS teams. So how do we extend our reach outside of our markets that allows us to be more ubiquitous?”
That question has been hanging over MLS strategy for years. KKR and HSH represent their answer.
The vast majority of MLS-affiliated Next Pro clubs have not been commercialized, and that creates significant room for growth. That is the investment thesis - you can still develop players but do so in new markets, creating new clubs, new fan-bases, new sources of revenue, new stadiums. It gives players something closer to pro soccer as an environment and it allows MLS to plant its flag in scores of new communities.
The strategy HSH is pursuing — moving affiliate clubs into new, untapped markets, building distinct local brands, developing purpose-built soccer stadiums — is essentially the playbook that Nashville SC’s affiliate in Huntsville, Alabama has already proven at small scale, and that North Texas SC is replicating with a new $85 million stadium in Mansfield, Texas, 55 miles from Frisco, home to FC Dallas. KKR wants to industrialise that model across more than a hundred underserved mid-sized American cities. The ambition is significant. The execution risk is equally so.
In many ways the approach ressembles that of Minor League Baseball although one hopes there will be some twists on that development model. Is there room for some sort of promotion and relegation between divisions in the pyramid (even if not reaching the top flight of MLS itself)? Will these clubs be able to compete in the US Open Cup? Will they look and feel like any other club in the world, while being owned by a parent club?
Added into the mix is MLS Next Pro's goal of expanding the number of independent clubs in its ecosytem. Already Carolina Core, Chattanooga FC and Connecticut United play in the league and clubs in Cleveland, Jacksonville and Grand Rapids are in line to join. These are clubs which could have joined USL but opted to go with MLS Next Pro instead. There is also talk of possible hybrid clubs which maintain a link with their MLS parent club but who are co-owned or operated by an independent investor.
So where does this leave USL? Over the past year we have heard a lot of ambitious talk from USL about them creating their own pyramid with promotion and relegation all the way up to a new 'D1 sanctioned' USL Premier division. Many framed this as a possible alternative to MLS and one which is more familiar in structure to followers of the game around the world. But it remains a plan, a goal, an ambition.
Like MLS Next Pro, USL wants to build stadiums and create clubs in 'virgin markets' and much of the real excitement around the league has been because it can set up and operate in places which have no chance of becoming MLS markets. Now MLS is saying, not so fast......
MLS Next Pro, with KKR’s firepower behind it, will compete on capital, infrastructure, and the gravitational pull of the MLS mothership. USL will compete on the romance of the pyramid, the authenticity argument, and its head start in markets MLS has historically ignored.
What KKR’s involvement does, unambiguously, is accelerate the timeline for conflict. Markets will be claimed. Stadiums will be committed to. The window for USL to establish beachheads in key cities before HSH arrives with a checkbook is narrowing fast. Garber told Sportico this deal is “a real accelerant for our entire development program.” For USL, acceleration is the most important word in the entire announcement.
The battle for the American soccer pyramid is no longer coming. It has begun.
Pod: What does the MLSNP deal mean for USL?
I jumped on a quick end-of-week podcast with Andre Da Costa to discuss the issues around KKR's investment in MLS Next Pro and the broader plans for the league and what they might mean for USL? We hope to have an interview early next week with a player in this deal, so make sure to subscribe to ensure you get that too.
Apple Podcast Version here Spotify below:
Whitecaps future in Vancouver in serious doubt
I hate team relocations. I always have. They disregard history, disrespect fans, and make a mockery of all the talk about community that leagues and owners love to deploy.
So the news that a formal bid has been submitted to MLS to buy the Vancouver Whitecaps and move them to Las Vegas lands hard — even if part of me wonders whether this is simply the latest chapter in a very familiar North American sports playbook.
The bidder, according to The Athletic, is Grant Gustavson, 30, son of Kentucky billionaire Tamara Gustavson, whose family fortune — estimated by Forbes at $8.5 billion — traces back to the founding of Public Storage. His group has committed to building a soccer-specific venue in Las Vegas as part of the offer. This is not a speculative enquiry. A formal bid is sitting on Don Garber’s desk.
And yet. The classic pressure tactic — threatening relocation to force a city’s hand on a stadium deal — has been deployed so many times across North American sports that it’s almost reflexive to dismiss this as leverage rather than genuine intent. I want to believe that’s what this is.
But the facts make it harder to be reassuring. The Whitecaps have been on the market for a good while. Their tenancy at BC Place expires at the end of this year. The club itself admitted this week that over 16 months of talks with more than 100 potential buyers, no viable offer has emerged to keep the team in Vancouver. An MLS owners’ committee has already met to formally discuss relocation options, with Las Vegas and Phoenix identified as the leading candidates.
What has changed is that the crisis is now visible enough that it has forced action. Vancouver’s mayor, Ken Sim, has called on provincial government to come to the table. Premier David Eby met with MLS executives and said his government is fighting to keep the club. Fans marched and protested outside the FIFA Congress. Garber himself held meetings with senior BC officials while in the city this week.
As we saw with Columbus in 2002, sometimes it takes a crisis to make people take a situation seriously. The Crew survived. The city mobilised. The right outcome was reached — eventually.
Vancouver deserves the same outcome. The Whitecaps reached the MLS Cup final last year. They drew 27,000 fans on Saturday. This is a club with genuine roots and genuine support. They've been around since the NASL days in the 1970's. Imagine one of the legacies of this year's World Cup being one less professional team in one of the host cities?
But hoping for a Columbus moment requires Vancouver’s leaders to move with real urgency. The clock is no longer ticking quietly in the background. It is loud.
NWSL POSTPONES SEASON CALENDAR FLIP UNTIL AT LEAST 2031
The NWSL Board of Governors has officially decided to maintain its current spring-to-fall schedule through the 2030 season, delaying a highly debated move to a European-style fall-to-spring calendar. The decision followed concerns from players regarding health and safety, as well as opposition from owners regarding the financial burden of winterizing facilities. The board lacked the necessary supermajority to pass the change, citing potential negative impacts on attendance in cold-weather markets.
While the calendar will remain stable for now, the league has positioned 2031 as a potential transition year. That year, the United States is expected to host the Women’s World Cup, which would already require a significant mid-summer break in play. Maintaining the current schedule through 2030 provides business stability as the NWSL prepares to negotiate its next major media rights deal, which is expected to begin in 2028.
AVENUE SPORTS FUND ACQUIRES MINORITY STAKE IN NORTH CAROLINA COURAGE
The Avenue Sports Fund has made a minority investment in the North Carolina Courage of the National Women’s Soccer League (NWSL). While specific financial terms were not disclosed, the investment follows the fund’s strategy of targeting storied clubs in markets with high growth potential. Whitecap Sports Group served as the advisor to the Courage for this transaction.
Avenue Capital Group CEO Marc Lasry stated that the Courage represents exactly what the fund looks for in a partner, citing a passionate fan base and a market with extraordinary potential. This latest move adds to a portfolio that includes diverse investments across North American and European sports, such as the PGA Tour, NASCAR, and Major League Baseball.
GIANNI INFANTINO TO SEEK RE-ELECTION AS FIFA PRESIDENT IN 2027
FIFA President Gianni Infantino has officially announced his intention to run for re-election in 2027, a move that could see him lead the organization until 2031. Despite FIFA statutes typically limiting presidents to three terms, FIFA's Council had accepted that Infantino’s first three years (2016–2019) did not count toward the limit because he was completing the term of his predecessor Sepp Blatter. He already enters the race with unanimous support from the Asian (AFC) and African (CAF) confederations, as well as backing from South America’s CONMEBOL.
Infantino’s campaign centers on his record of record-breaking revenues and increased financial distributions to FIFA’s 211 member associations. He has promised $2.7 billion in distributions over the next four-year cycle, a 20 percent increase from the previous period. While he faces some criticism from fans and certain European federations over issues like ticket prices and his political ties, the one-nation-one-vote structure of FIFA makes him a heavy favorite to remain in power.
LAFC OWNERS OPEN TO SALE OF GRASSHOPPER ZURICH AFTER FAN PROTESTS
The Los Angeles FC (LAFC) ownership group has expressed a willingness to sell their majority stake in the Swiss club Grasshopper Zurich following forceful protests from local supporters. Fans recently rioted after a cup loss and displayed banners demanding the American owners leave the club. In response, LAFC issued a statement indicating they are open to discussions regarding a partial or full sale, provided it ensures the club’s long-term sustainability.
Since the LAFC group—which includes high-profile figures like Will Ferrell and Magic Johnson—purchased the club in January 2024, Grasshopper has struggled on the pitch and currently sits in 11th place. The owners acknowledged the financial reality that the club’s running costs continue to exceed revenues, requiring ongoing external support to remain competitive in professional football.
MLS INNOVATION LAB SELECTS THIRD COHORT FOCUSED ON AI SOLUTIONS
Major League Soccer has unveiled the 2026 cohort for its MLS Innovation Lab, selecting five startups focused on using artificial intelligence to transform the game. This year’s participants include Springbok Analytics, Orreco, and Fit:match, which focus on player performance and bio-analytics, alongside Advanced Image Robotics (AIR) for media production and WMT AI Ticketing for dynamic pricing.
These companies will have the opportunity to test their technologies in real-world environments, such as the 2026 MLS All-Star Game and elite youth competitions like the Generation adidas Cup. The program is designed to create a direct pathway from technical innovation to league-wide implementation, reinforcing MLS’s position as a leader in sports technology.
ADIDAS INVESTS €100M IN BUNDESLIGA STRATEGIC PARTNERSHIP
Adidas has announced a strategic investment of €100 million (US$117 million) into the Bundesliga to support the league’s marketing efforts and overall development. This funding is intended to strengthen central marketing objectives for both the Bundesliga and Bundesliga 2, with the final allocation of funds to be decided jointly by the German Football League (DFL) and the 36 professional clubs. As part of this expanded relationship, Adidas has also extended its match ball sponsorship for the league through 2034.
The DFL is pursuing this investment to close the wealth gap with the English Premier League, though the move may face backlash from traditionalist fan groups who have historically protested private equity and outside investment in German soccer. This commitment from Adidas follows the news that their long-term kit partnership with the German Football Association (DFB) will end in 2027, as Nike has secured a deal worth a reported €100 million annually.
