USL calls "check" with promotion and relegation. How will this impact MLS?

Photo courtesy of CJ Hellner/TopBin90

Last week, the United Soccer League (USL) officially announced a new structure for promotion and relegation. This three-tier pathway is expected to launch in 2028, but has already raised the bar in the world of professional soccer in the United States. 

As the USL embarks on its new chapter, everyone cannot help but ask: Will this impact MLS? 

Here’s a breakdown of USL’s new promotion and relegation framework and a dive into how this might influence MLS: 

Future USL Structure

The USL currently operates as a traditional closed-league system where teams are limited to their respective divisions. On the men's side, USL features the USL Championship (Division II) and USL League One (Division III) leagues. USL League Two is the men's side pre-professional league. The women’s side comprises the Gainbridge Super League (Division I) and the pre-professional USL W League. 

Last Tuesday, USL released a new three-division framework, impacting only the men’s division. According to the USL’s announcement, the new structure was designed to “support long-term growth, competitive integrity, and the introduction of promotion and relegation.”

Taking on a pyramid shape, the new structure includes the USL Premier (Division One), the USL Championship (Division Two), and the USL League One (Division Three).

USL Premier serves as the top tier of the men’s professional pathway with a long-term target of 20 clubs. Underneath the Premier division will be the USL Championship, also operating as a single national table with 20 clubs. The bottom of the pyramid will be the USL League One that will focus on building players and teams locally. 

In tandem with the new structure’s launch in 2028, the USL will also adopt a promotion and relegation system. This will make the USL America’s first league to introduce promotion and relegation. 

According to the USL’s official statement, they are currently reviewing applications of clubs interested in USL Premier. The USL also noted that Tony Scholes will lead this new tiered system post his position with the English Premier League this summer.

MLS Impact

USL’s plans have moved the chess piece in the game of United States’ professional soccer. Despite operating separately from Major League Soccer (MLS), the USL has been forward with its attempts to expand competition in professional soccer. 

MLS recently initiated the game of chess with its announcement of adopting a summer-to-spring calendar format starting in 2027. The league currently operates on a February-to-December calendar, which often interferes with international competitions, especially brought to light in the wake of the 2026 FIFA World Cup. Consequently, the transitional decision will align MLS with the top league calendars to improve international play and timing of transfer windows. 

However, it is safe to say that the USL’s adoption of the three-tier promotion/relegation system places pressure on the MLS’s closed structure. From ownership benefits to fan engagement, this system will increase tensions between the leagues.

Ownership Implications

One of the most significant ripple effects of the USL’s promotion and relegation model comes at the ownership level. MLS franchise valuations are largely built on the closed system model, with expansion fees now exceeding $500 million (San Diego FC in 2023 set the record expansion fee). By contrast, USL’s model introduces competitive risk and competitive reward. 

For owners, promotion to the USL Premier presents a pathway to top-tier soccer without the massive upfront cost required by MLS. Although the USL’s model might come with some financial uncertainty, it could attract new investors who will directly support infrastructure development and long-term growth. 

The clear binary in ownership values may further the gap between the two leagues, forcing MLS to revisit its economic model. 

Player Development

USL’s new system is also likely to boost investment, with its focus on growing smaller clubs. This decision could potentially heighten competition and, over time, create some talent disparities between the leagues. 

With three interconnected professional tiers, players would gain increased pathways of participation. Rather than being limited by geographic obstacles, players would have access to development everywhere. 

Promotion/relegation also incentivizes clubs to invest in youth development as an integral component of deepening team rosters. Over time, this new system could position USL as a stronger alternative pathway for young players. 

If USL clubs begin to reap these benefits, MLS may feel pressure to adjust roster rules, salary structures, or homegrown player policies to remain relevant.  

Sponsorship & Fan Engagement

Promotion and relegation, from a media sense, will bring in a new form of storytelling. Relegation battles, promotion races, and underdog narratives will naturally drive viewership and engagement. 

If sponsors see tangible increases in engagement within the USL, it could challenge MLS’s dominance in the U.S. soccer market. The drama of a high-stakes pyramid system might also resonate more deeply with fans, drawing MLS viewership over to the USL. 

In a sense, USL’s mimicking of the European soccer model might influence how younger fans choose where to invest their loyalty. This could directly impact MLS engagement in the long term.

Looking Ahead

While USL’s new system does not immediately threaten MLS’s dominance, it introduces an alternative and competitive vision for professional soccer here in the United States. It is simply just the beginning for the USL, and their success or failure of this model will foreshadow the competitive rivalry with MLS. 

If the USL’s system does succeed, however, it could push MLS towards more competitive structural reforms. 

The chessboard is set. Each league’s moves from here-on-out will preserve relevancy in a rapidly changing American soccer landscape.