![]() These investors have the authority to manage the business affairs of the MLS, while also having Operating Agreements with the MLS which provide them rights to operate and “own” MLS teams. The current structure of the MLS, which has been in place since 1995, is governed by its Limited Liability Agreement, which establishes a Management Committee consisting of representatives acting as “investors” in the league. In order to avoid the issues that plagued the North American Soccer League that led to its downfall in the 1980’s – namely, poor expansion planning and significant financial troubles – the MLS set up shop under a single-entity structure, where teams and player contracts are centrally owned by the league itself. ![]() When the league was founded, the sport of football had little traction with the public in the US. In order to better understand the current structure of the MLS, we must revisit its history. Major League Soccer & Single-Entity Structure While the MLS continues to expand its global brand and increase its presence in the international football scene, many around the world are still confused how the MLS operates due to its unique structure and rules that differ from the rest of the footballing community. Since its inception, the MLS has grown into one of the world’s most reputable football leagues, becoming the sixth-best attended football league in the world with the average MLS franchise valuation hovering around $240 million. Major League Soccer (“MLS”) was founded in 1993 as part of the United States successful bid to host the 1994 FIFA World Cup. With the MLS reluctant to give up their centralised power, it appears the single-entity structure is here to stay…for now.
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