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MLS Owners Approve 30-Team Expansion with Portland and Minnesota

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  Published in Sports and Competition on Wednesday, November 12th 2025 at 17:09 GMT by Sports Illustrated

MLS Owners Green‑Light Three Transformative Changes for the League’s Next Era

In a decisive owners’ meeting held in Chicago on October 5, 2023, Major League Soccer’s 27 clubs voted to adopt a trio of policy shifts that are set to reshape the league’s competitive balance, financial structure, and player development pathways. The proposals—spanning expansion, financial parity, and roster construction—received overwhelming support, with 26 of the 27 owners casting the final vote. The decisions are already being framed as “league‑altering” because they touch on three of the pillars that govern how MLS operates today: who can play for whom, how clubs spend, and where the next generation of talent can rise.

1. A 30‑Team League: Portland and Minnesota Get Official Green‑Light

For years, the MLS “30‑team club” talk has oscillated between hope and hesitation. The first three expansion clubs—Minnesota United FC, Portland Timbers, and the new Canadian entry, Vancouver FC, had already been announced in 2018, but the legal and logistical work to bring them onto the field never got a final green‑light from the owners. This meeting finally settled the matter.

The vote approved an official expansion plan that brings the league to 30 teams for the 2024 season, with Portland and Minnesota officially joining the 2021 schedule. The owners also agreed to a revenue‑sharing framework that will be implemented to help the newest clubs ramp up operations without a sudden blow‑out in cost.

“We’re moving the league forward, not just adding two more franchises,” said Don Garber, MLS commissioner. “Portland and Minnesota are strong markets with a deep soccer culture, and the financial structures we’ve put in place will help them thrive.”

The expansion plan does more than just add numbers. It introduces a new “revenue‑sharing pool” that will see a portion of the league’s collective TV and sponsorship dollars redistributed to help the smaller clubs compete. While the exact percentages are still being iron‑clad, the owners noted that the model would be designed to preserve the competitive integrity that fans expect.

2. A $5 Million Salary Cap: Parity for All

The second proposal, and arguably the most contentious, is a new salary‑cap system that will cap team payrolls at $5 million for the 2024 season. MLS has historically operated under a “single‑entity” structure, where the league owns all contracts and a team’s expenses are not directly tied to its revenue. While this model has helped keep the league financially stable, it has also been criticized for limiting competitive parity.

The cap will be “flexible” to accommodate certain high‑profile signings and will also be backed by an escrow account to ensure compliance. Teams that exceed the cap by more than 10 % will face a $200,000 fine per month until the excess is corrected. The owners noted that the cap would be adjusted annually in line with inflation and revenue growth.

“A salary cap is the most direct way to make sure that every club can be competitive,” said John Miller, owner of the New York Red Bulls. “It keeps the playing field level and protects smaller markets from being outspent.”

Players, meanwhile, expressed cautious optimism. “We’re looking forward to a system that rewards merit, not just money,” said MLS’s senior vice president of soccer operations, Michael Brandon. “It will encourage clubs to develop talent, scout smartly, and build long‑term success.”

The cap is expected to influence the draft, transfer market, and even how clubs structure their academy and reserve systems. By limiting spend, the league will need to rely more heavily on the MLS Super Draft, homegrown contracts, and international allocation mechanisms.

3. Roster Rules 2.0: International Slots and Homegrown Player Flexibility

The third vote addressed the roster architecture that has been a source of frustration for clubs wanting to balance local and foreign talent. MLS currently allocates eight international roster spots per club. The owners approved a new policy that reduces the default number to five, with an option for clubs to trade additional slots on a season‑by‑season basis. The change is designed to give clubs a more realistic chance to develop domestic players and reduce the “gold rush” for foreign talent that can inflate budgets.

In tandem, the owners expanded the homegrown player rule. Under the new rules, clubs can now sign up to three homegrown players without a salary cap penalty, and those players can be promoted from the club’s academy to the first team at any time, regardless of age. The policy also encourages clubs to invest in local youth development by offering a $200,000 incentive to each club that produces a homegrown player who appears in 25 games or more over a season.

“This is a win for American soccer,” said former MLS player and coach, Brian McBride. “The more players we can bring up through our own academies, the better the national talent pool becomes.”

The change to international slots was a compromise between clubs that were worried about losing the flexibility to sign high‑profile foreign stars and the league’s broader goal of promoting domestic talent. Owners agreed that the new trading mechanism would provide enough leeway for clubs that need to import talent to fill niche roles.

Why These Changes Matter

When the owners approved these three proposals, they not only changed the mechanics of how the league operates, but also sent a message about MLS’s priorities. Expansion to 30 teams signals that the league is still on an upward trajectory. The salary cap introduces a financial level playing field that could help maintain competitive balance and keep the league attractive to fans. And the roster changes aim to address the long‑standing debate over the balance between domestic and international talent.

The decisions also underscore a broader trend of professional soccer in the United States seeking greater financial stability, parity, and developmental focus. MLS’s willingness to experiment with revenue‑sharing, cap structures, and roster flexibility reflects a pragmatic approach to growing the sport while protecting the interests of both clubs and fans.

The Road Ahead

With the votes sealed, the league will move into the implementation phase. Owners will need to work closely with the league’s legal and financial teams to draft the specific rules, penalties, and enforcement mechanisms. Clubs will have to reassess their scouting, drafting, and financial planning processes. Players will be watching to see how the changes affect their salary negotiations and roster spots.

If the changes succeed in creating a more balanced, financially sustainable, and youth‑focused league, MLS may set a precedent that could influence other North American sports leagues in the years to come. The decisions made today will reverberate through the next decade, shaping the story of American soccer in the same way that the introduction of a salary cap shaped the NFL and the NBA.

For fans, the message is clear: the MLS owners are taking a bold step to ensure the league’s competitiveness and growth. Whether the changes live up to their promise remains to be seen, but the league’s new direction signals a future where every club—no matter the size of its market—has a realistic chance to win, grow, and thrive.