Major League Soccer (MLS) may not have the long history of European soccer leagues. Still, it is growing in popularity and strength. In fact, some MLS teams with valuations can rival teams in major European leagues. Which MLS teams’ valuations are leading the pack?
The top 10 MLS teams with the higher valuation today are:
- LAFC – $1 billion
- LA Galaxy – $925 million
- Atlanta United – $850 million
- New York City FC – $800 million
- DC United – $700 million
- Toronto FC – $690 million
- Austin FC – $680 million
- Seattle Sounders FC – $660 million
- Portland Timbers – $650 million
- Charlotte FC – $625 million
In this article, we review the top 10 most valuable MLS teams. We also look at what is bringing the valuation of these clubs much higher than several years ago.
Top 10 Most Valuable MLS Franchises
Forbes has recently published the most valuable MLS clubs in 2023, providing interesting information about soccer in North America and the business opportunities it provides in countries like the US and Canada where there is a strong financial market.
| Rank | Team | Revenue | Operating Income | Valuation |
|---|---|---|---|---|
| 1 | LA Football Club | $116 million | $8 million | $1 billion |
| 2 | LA Galaxy | $98 million | $4 million | $925 million |
| 3 | Atlanta United | $81 million | $6 million | $850 million |
| 4 | New York City FC | $55 million | -$12 million | $800 million |
| 5 | DC United | $70 million | $8 million | $700 million |
| 6 | Toronto FC | $62 million | -$15 million | $690 million |
| 7 | Austin FC | $84 million | $2 million | $680 million |
| 8 | Seattle Sounders FC | $66 million | $1 million | $660 million |
| 9 | Portland Timbers | $65 million | $1 million | $650 million |
| 10 | Charlotte FC | $69 million | $4 million | $625 million |
1. LAFC – $1 billion
The Los Angeles Football Club was a relative newcomer in MLS. It was founded in 2014 but only debuted in MLS in 2018. Bennett Rosenthal, Brandon Beck, and Larry Berg own the team, and they play in black and gold colors.
LAFC is one of the most profitable clubs in the MLS, which also helps propel it to become the most valuable club. The LAFC made $116 million in 2022, the only club that crossed the 9-figure mark. From that revenue, $8 million was profit.
Forbes values the LAFC at $1 billion. In fact, LAFC is the first and currently the only MLS outfit that crossed a billion dollars in value.
2. LA Galaxy – $925 million
The LA Galaxy is one of the original founders of the MLS, established in 1995. It was also probably the first US soccer club known to many worldwide since they signed many soccer superstars, such as David Beckham, Landon Donovan, and Robbie Keane.
LA Galaxy is also a successful team, winning the MLS Cup five times and the Supporters’ Shield four times.
LA Galaxy is the second most valuable team in the MLS, with a valuation of $925 million. This is partly driven by its strong revenue and its good financial situation. LA Galaxy also has worldwide recognition, which also helps increase its value as a brand.
3. Atlanta United – $850 million
Atlanta United claims the city of Atlanta, Georgia, as its home ground. It was founded in 2014 but only debuted in the MLS in 2017. Atlanta United is an entertaining side, playing aggressive, attacking football.
Atlanta United came into MLS with a bang. In its second season, it won the MLS Cup, beating other more established teams. It also won the US Open Cup 2019 and the Campeones Cup 2019.
Experts value Atlanta United at $850 million, despite its short history. This is driven by the initial investment to set up the club. On top of that, it is also one of the most profitable clubs in MLS.
4. New York City FC – $800 million
The New York City FC played its first MLS game in 2015. It was one of the clubs within the City Football Group, which also owns many soccer teams worldwide.
The club also started with significant investment from the City Football Group, which spent millions bringing in players and managers from Europe, such as Patrick Vieira,, David Villa, and Frank Lampard.
This helps the club to achieve quick success in the MLS, winning the Campeones Cup and finishing 2nd in the Eastern Conference playoffs in 2022.
Its owners’ quick success and committed investment helped propel its valuation. New York FC is currently valued at $800 million. It may have been more valuable if it is profitable.
5. DC United – $700 million
DC United is one of the founding clubs of the MLS, established in 1995. It is based in Washington, D.C. Jason Levien and Steven Kaplan are the team’s current owners and have invested heavily in the team.
This helps the team to be a strong force in the MLS. It won the MLS Cup four times. DC United also won the Supporters’ Shield four times.
DC United is the fifth most valuable club in the MLS, with a valuation of $700 million. This is partly driven by its assets, as well as its revenue and financial performance. DC United is one of the most profitable teams in the league.
6. Toronto FC – $690 million
MLS also features teams from Canada, and Toronto FC is the most successful of the bunch. It was founded in 2005 and is operated by Maple Leaf Sports and Entertainment. This company also owns many Canadian sports teams.
Toronto FC spent many years in the limbo of MLS. It took them over 12 years before it won its first MLS Cup in 2017. The 2017 season is also its most historic, as Toronto FC won the Supporters’ Shield and the Canadian Championship.
Toronto FC is sixth when it comes to valuation in the MLS. It is currently valued at $690 million. This is driven by its huge fanbase, financial backing, and assets. If the club turns profitable more consistently, the valuation may go up even more.
7. Austin FC – $680 million
Austin FC is a relative newcomer in the MLS, having been the 17th team to join the league. It is based in Austin, Texas, and was established in 2018. It played its first game in 2021.
Austin FC is the only professional sports team that plays in the top league in the city. Austin has hockey, baseball, and basketball leagues, but they are mostly feeder teams or play in lower leagues.
This made the club hugely popular with the locals. Austin FC built up a large fanbase, despite its young age. The club’s fans are called the “Los Verdes,” and they fill their home ground, the Q2 stadium, black and green in every game.
As a result, Austin FC quickly becomes one of the most valuable teams in the MLS. Experts value the club at $680 million. This valuation is also supported by the fact that the club is profitable in its operations, something not all MLS clubs can claim.
8. Seattle Sounders FC – $660 million
Seattle Sounders FC was established in Seattle, Washington, in 2007. It played its first MLS game in 2009. The team plays at Lumen Field, a venue it shares with the NFL outfit, Seattle Seahawks.
Seattle Sounders is also one of the more successful teams in the MLS. It has so far won many championships. This includes the MLS Cup (4 times) and Supporters’ Shield (4 times). US soccer legends such as Clint Dempsey played for the team.
Seattle Sounders FC is currently valued at $660 million. This is partly driven by its strong revenue and the fact that it is currently profitable.
9. Portland Timbers – $650 million
Portland Timbers FC is based in Portland, Oregon. The team was established in 2009 and played its first MLS game in 2011. The team can trace back to 1975 as part of the North American Soccer League.
The Portland Timbers won its first MLS Cup in 2015 and won the Supporters’ Shield once, too, in 2013. The team plays in Providence Park, a soccer-specific stadium with around 25,000 people.
The team is valued at $650 million, making it the 9th most valuable team in MLS. This may be driven by its history and the fact that no other MLS teams are nearby. It is also a profitable team with strong revenue.
10. Charlotte FC – $625 million
Charlotte FC is the youngest team in the MLS, debuting only in 2022. The team was founded by David Tepper, a billionaire hedge fund manager who owns the NFL team Carolina Panthers.
Tepper invested heavily into the club, buying players and building training facilities for the team. Charlotte FC is North America’s biggest spender on transfer fees in 2022 and has spent over $50 million to make the Bank of America stadium more soccer friendly.
As a result, Charlotte FC is currently valued at $625 million. This number may be outrageous for such a new club. However, Tepper spent $325 million just to found the club, which may help you see sense in the valuation.
Why Have MLS Teams’ Valuations Grown So High?
MLS Team’s valuations may have gone sky-high within the past few years due to a larger fan base today. More investments are also made into the clubs, pushing the valuation higher. Many clubs are also becoming profitable.
MLS used to be the league nobody really cared about in the US. There’s the NFL, NBA, MLB, and the NHL to occupy fans’ time. However, it has become more prominent over the years, causing the MLS teams’ valuations to spike in recent years.
Several reasons may have contributed to this:
Growth Of Interest In Soccer
Interest in soccer has been increasing in North America due to MLS owners’ investment in the sport and the relative success of the US Men’s National Soccer Team.
The Gallup Post has done many surveys about Americans’ favorite sport, and soccer never rose beyond 2%. However, a recent survey by the Washington Post revealed that 8% of Americans now choose soccer as their favorite sport.
A larger fan base means additional revenue and growing brand recognition for the clubs. In turn, it helps the clubs to go up in value.
More Profitable Clubs
With growing interest in soccer, these MLS clubs are starting to come alive. More fans attend matches and fill the stadiums. They also purchase merchandise to show their support for the club. These contributed to the club’s financial coffers significantly.
This is evident in the financial standing of MLS clubs. In 2019, less than half of MLS clubs were profitable. In 2022 however, the number of profitable clubs has gone up.
The number of clubs and the profits they make are not too significant. Still, it is enough to propel the value of many teams to a higher valuation.
Significant Owner Investment
Another reason why MLS clubs are now worth more than before is due to their owner’s investment. Most MLS clubs are owned by billionaires or companies with strong financial backing.
They invested huge sums of money in the clubs. These include building stadiums and training facilities. Many funds are also spent on acquiring players and coaches, especially those from Europe.
These investments pushed up the valuation of these clubs since if the owners were to sell them, they would want their money back.
Rising Expansion Fees
As MLS becomes a more valuable brand, joining it costs significantly more money. In the earlier days of the MLS, the franchise expansion fee was much lower. For example, Ken Horowitz only paid $20 million to set up Chicago Fire in 1997.
Today, the fees are way higher. Charlotte FC, one of the newest franchises to play in the MLS, cost David Tepper over $325 million in expansion fees alone.
As a result, the value of all MLS teams went up. This is to reflect the new market value for the franchise expansion fees. Aside from that, since there are now 29 teams in the MLS, the number of license issues may also reduce, further driving up the valuation of these clubs.
Better Media Coverage
One of the major ways sporting teams make money is by broadcasting rights. The fees generated from selling broadcasting rights can differ depending on the league.
The English Premier League, for example, generated almost 3 billion British Pounds (about $3.72 billion) in TV money. This is over the 2022-2023 seasons.
With MLS, the numbers are smaller. MLS used to bring in only $90 million of TV money in 2006. However, in 2022, MLS announced a broadcasting deal with Apple, which will bring in around $250 million for the clubs annually for the next 10 years.
