MLS announces expansion process, including timeline and fees

Major League Soccer Commissioner Don Garber announced plans Thursday for the league’s expansion to 28 teams, including a deadline for owners to apply and a new franchise fee.

The fee for the two teams expected to be granted in 2017 is jumping to $150 million. Garber also set a Jan. 31, 2017, deadline for interested potential owners or ownership groups to apply.

The league has expanded to 22 teams with the addition of Atlanta United FC and Minnesota United FC, which will debut next season.

Las Vegas had pitched a franchise during last round of expansion, but the city council wouldn’t receive approval for a soccer-only stadium.

The Los Angeles Football Club will join the league in 2018 as the 23rd team. The league announced it is “making progress” on plans to add a team in Miami — the high-profile bid that includes David Beckham — that would bring the league to 24.

Minnesota paid a $100 million franchise fee. In contrast, Toronto paid a $10 million fee in 2006. The fee does not cover the entire investment that owners will incur in starting up a franchise, like coaching staff salaries and stadium costs.

Following the meeting Thursday of the MLS Board of Governors in New York, Garber said the two new expansion teams, slated to start play by 2020, would be announced in late 2017. The timeline and fees for the two additional franchises were not yet set.

“Since announcing plans to expand to 28 clubs late last year, many potential ownership groups have contacted us, and numerous public officials have stated their desire to bring an MLS expansion team to their city,” Garber said in a prepared statement. “We look forward to reviewing expansion applications in the coming months and conducting formal meetings in 2017 with possible team owners.”

Current MLS owners approved the expansion process. Some 10 markets have expressed interest in an MLS team, including Sacramento, California; St. Louis; San Antonio, Texas; Detroit and San Diego.

Sacramento is considered one of the strongest candidates. The USL side, the Sacramento Republic, hosted Garber for a rally in April to demonstrate the city’s enthusiasm for a top-level team. The city already has an agreement on a public-private soccer-specific stadium.

Quicken Loans Inc. founder Dan Gilbert, along with Detroit Pistons owner Tom Gores, first announced a bid for a Detroit MLS team in April, with plans for a $1 billion mixed-use stadium.

Another strong bid is expected from St. Louis. The potential ownership group for SC St. Louis includes former Bain Capital managing director Paul Edgerley and Jim Kavanaugh, owner of St. Louis FC of the USL.

The Review-Journal contributed to this article.