From retirement league to top league? Gold rush feeling in MLS – “It is gigantic”

Spending at top 5 level 

Lothar Matthäus, David Beckham, Thierry Henry, Steven Gerrard, Andrea Pirlo, and Bastian Schweinsteiger: the list of international stars who have played the final years of their careers in Major League Soccer is long. Those stars gave the league a bad reputation as a retirement league. But that term has quickly become outdated. MLS has taken the next step in its development and is on course to become a top league—that, in turn, has also impacted the European market. 

“I would like to play in MLS,” said Paris Saint-Germain striker Neymar in February. “The season there is shorter, and I would have three more months off.” The comments of the Brazil international, who is still under contract until 2025, did not go over well with MLS commissioner Don Garber. 

“We don’t need to bring in a big-name player at the end of their career because they decided they want to retire in the MLS,” the 64-year-old said. “We want our story to be about young players coming here at the earliest stages or in the prime of their career and making our league their league of choice.”

A clear statement by Garber that underlines the image MLS wants to project. With the 2026 World Cup in Canada, Mexico, and the US in mind, the North American league intends to kick start the next level in its development. That might also include snubbing older stars like Neymar in favor of younger players that can still be developed. The average age of new player signings has constantly dropped: from 25.6 in 2017 to just 24.6 in 2022. 

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“There has been a rethinking process among many MLS clubs regarding transfers from abroad,” said Leonard Ahlrichs. In 2018, Ahlrichs became the youngest scout in Premier League history when he joined Blackburn Rovers as a 27-year-old. Nowadays, he is a player agent at SBE Management with a particular focus on MLS. “The time in which players go to the league to just extend their career for one or two more years is over. Clubs now target players who have not reached the zenith of their careers, players with the potential to be developed and sold with a profit. The league is growing with its players.”

The growth of the league is also visible in terms of transfer spending. MLS spent €173 million in new transfers over the last two windows, the seventh-highest among all leagues worldwide—despite the COVID-19 crisis. Only Europe’s top five leagues and the Russian Premier Liga are ahead of MLS in this ranking. Last winter, MLS was the second biggest spender behind the Premier League. In the most recent window, the North American league was once again behind only the EPL and Italy’s Serie A in terms of money spent on players.

“There are many reasons for the league’s growth,” Ahlrichs said. “The clubs’ ownership structure means that the clubs have far more considerable investment potential. Plus, the infrastructure of all clubs is at the same level as the Bundesliga; some clubs are even above that level. You just have to look at Atlanta’s facilities or what they are building in St. Louis, which is gigantic.” 

St. Louis consequential on their path to MLS: No PR signings planned

St. Louis CITY SC will become the 29^th  team when the club kicks off for the 2023 MLS season. Led by the German sporting director Lutz Pfannenstiel, the club has already finalized several transfers. Selmir Pidro (Sarajevo), Tomas Ostrak (1.FC Köln), João Klauss (Hoffenheim) and Roman Bürki (Borussia Dortmund) have already been introduced. Joakim Nilsson (Arminia Bielefeld) will also join the club but has not been officially announced. 

“We want to stay away from older big names PR type of moves,” Pfannenstiel recently said in an interview with Transfermarkt. “We will need to have fit players for the style of football we want to play. It would be counterproductive for us to have a big name who played his own game. Instead, we need to look at the long-term structure and the long-term success of this club.”

This undoubtedly echoes Ahlrichs’ opinion on the changing landscape of MLS in the transfer window. “The excellent and innovative training environment will make any player into an even better athlete—many European top clubs have also noticed that and heavily scout MLS,” Ahlrichs added. “But the American way of thinking also means that they don’t want to remain just a developing league; they want to compete with the rest of the world and the biggest clubs. To move to the MLS now means to be a part of that pathway.” 

Americans are marketing professionals, and Major League Soccer underlines this repeatedly

It also helps that many players see North America as an attractive destination. “If I would say that that isn’t a factor for players, I would have to lie,” Ahlrichs said. “Games in New York, Los Angeles, Florida, and Chicago—that’s not too bad, isn’t it? Also, professional sports in the US are pure entertainment. Even transfer announcements are big cinema. Americans are marketing professionals, and Major League Soccer underlines this repeatedly.”

Among the players, the South Americans first discovered the league’s potential. Instead of heading straight to Europe, many players are now making their first step abroad in MLS. “MLS is no longer a retirement league,” said Valentín Castellanos in a recent Transfermarkt interview. “Many young and talented players come here from South America to improve their game and use it as a platform to show themselves.” The 23-year-old won the Golden Boot in 2021, the MLS Cup with New York City FC, and was also voted the best player of the season by the TM-Community. “I enjoy playing in the league, it is more physical, more tactical, and I had to work harder every year to improve.” 

European players have also noticed MLS’ changing image, and the desire to play in the league has increased significantly. “The interest is there, and it is growing,” former Liverpool and Stuttgart star and now agent Philipp Degen noted. “Every transfer window, we see more players who feel that the league is not just a good option but also the desired destination.” 

One top European player, who has recently moved to MLS over a transfer to a top European league, is the Austrian national team player Ercan Kara. Last January, the striker opted to join Orlando City, where he has been involved in four goals in ten games. “Orlando is a very nice city,” Kara said. “The club is very professional and ambitious. We have huge targets here, and we fight hard to achieve them. MLS is a strong league, very robust with high quality. Many in Europe still haven’t taken notice. The league also highlights that the sport is growing. Football is popular here; the stadiums are full, which is very nice.” 

Kara turned down offers from teams in Europe’s top five leagues—Saint-Étienne were very interested in the striker. “Of course, the fact that an MLS club has beaten out a team from Europe’s top five shows the league’s development,” said Degen about his client’s choice. “MLS is a very competitive league. We believe that Ercan will be a success in Orlando and become a better player due to playing there. It was the overall package that convinced us. Ercan is ambitious; he wants to develop as a player, become better, and win titles. All that is possible in Orlando, so he was convinced that it was the right decision to sign a contract with the club.” 

The striker sees it as a step to a bigger league. “Of course, we have big targets; we want to reach the playoffs and play for the title,” Kara said. “The league has a few different mechanisms than European leagues, but the principle is the same: to win as many games as possible. I want to help my team by scoring goals and assists. We must grow as a team and be at our best when it matters the most in the playoffs.”

When a club believes a player can help them, then they have the financial abilities to make an excellent offer

In comparison with European teams, MLS has also become more competitive. Kara is expected to earn $2 million a season in Orlando. “MLS is the most transparent football league globally; all salaries are published,” Degen said. “When a club believes a player can help them, then they have the financial abilities to make an excellent offer. But that doesn’t mean that a player moving from Europe to MLS will earn more money. Clubs are cautious about finding a financial balance and having mechanisms that guarantee homogenous squad planning.” 

Originally used for old stars – MLS Designated Players have become younger

To ensure financial stability, the league has introduced a salary cap. That salary cap has grown to $4.9 million this year and will increase to $7 million by 2029. In reality, the squad spending is far higher thanks to mechanisms like the Designated Player rule and the U22 initiative that allows clubs to pay players significant salaries with a minimum budget charge. Inter Miami CF ($17.8m) and Toronto FC ($17.01m), for example, paid significantly more in salaries thanks to exceptions granted in the budget rules. 

Instead of allowing older stars to play out their final years, the league is now looking to make a transfer profit. One example is record transfer Miguel Almirón. Signed in 2017 by Atlanta United for just $8.25 million from Lanús, the Paraguayan midfielder was sold to Newcastle United two years later for $26.4 million.

“MLS is supposed to grow sustainably,” Ahlrichs said. “That’s why there are budget limitations.” That also means that a transfer to the league is more complicated than to other leagues. “Salary Cap, Designated Player, International Player Sports, and all those other special rules make transfers definitely more difficult. But because we believe the market is exciting, we have started years ago to build a big network of sporting directors and owners. Today I can say the work with MLS clubs and league administrators has become a daily business. I think there aren’t many other European player agencies that are as well established as we are. We are now even in a position where players come to us and ask us about a potential transfer to MLS, even though they are not part of our agency because they believe that would increase their chances.” Many of those players are now in their best years, Ahlrichs pointed out. “I am certain that Europe’s top teams will find that American clubs will compete with them for top players in ten years.”

The development has been carried by the fact that the sport has become more popular in the US and Canada—especially with younger people. MLS teams have grown their fan base, and attendance figures grew significantly until the outbreak of the pandemic. When David Beckham arrived in the league, the average attendance was between 15,000 and 16,000; in the years before the pandemic, the number had grown to between 21,000 and 22,000. 

“All numbers indicate that the league is growing in the right direction,” Ahlrichs said. “The league is, of course, not at the same level as the big leagues, but people feel the excitement and want to be part of something special. The World Cup in 2026 will be another milestone. I am also certain that the dominance by the NFL and NBA is no longer certain.” 

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Just as is the case in the NBA and NHL, the 28 MLS teams are distributed among two Conferences, split into East and West. Every team plays 34 games, twice against every team in their own conference and eight more games against teams from the other conference. The seven first teams from each conference qualify for the playoffs; there is no promotion or relegation—even if that has been discussed in the last few years. 

“I doubt there will be promotion and relegation,” Transfermarkt North America Area Manager Manuel Veth said. “The club owners pay up to $500 million for a license; you don’t risk that sort of investment. The focus is rather on further expansion. Las Vegas will be the 30^th team, especially as gambling has been liberalized in North America.” In terms of league structure, the focus is on more internationalization. 

MLS is very much aware of that fact and wants to benefit from it

The Concacaf Champions League aside, the Leagues Cup will also be reformed. All MLS and the Mexican Liga MX teams will be part of the competition, which will be played in a World Cup modus. Both leagues will take a break when the tournament is on. The three best teams will qualify for the Champions League. 

“Liga MX is the most-watched league in the US,” Veth said. “MLS is very much aware of that fact and wants to benefit from it.” But playing games in Europe is not an option now. “I think MLS is very much aware that the focus must be on North America. When it comes to the TV audience, the league, after all, competes not just with Liga MX but also with the English Premier League in terms.”

More MLS talents because of soccer’s growing popularity in the US & Canada

The enthusiasm of a young generation has also helped the league’s growth. The increased amount of US talent is one big reason, according to Ahlrichs. “Football is the biggest participation sport in the United States,” said Ahlrichs. “Plus, there is more experience when it comes to identifying talents, partly because of foreign coaches and the sheer mass of active players. Domestic clubs want to benefit by giving the players a platform to make their first steps as professionals.”

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In 2022 the league introduced MLS Next Pro, a farm league that is supposed to give players more opportunities to play and be developed. Officially a third division, the league kicked off with 21 teams; 20 are MLS farm teams. Only Rochester New York FC is an independent club—more are expected to be added, however. Eight more teams will be added next year. “We’re really excited about our plans and our visions for this new league, and the onus is on us to build this league the right way, both with our teams and with independent teams over time, and create a competition and manage a competition that achieves all of our goals from a developmental perspective and a growth perspective,” said MLS Next Pro president Charles Altchek.

Austria’s national team striker Kara is currently experiencing the new and old MLS at Orlando City. The club also signed highly talented 22-year-old Facundo Torres as a Designated Player ahead of this season. But Kara’s partner upfront is 32-year-old Alexandre Pato. Signed for €24 million as a 17-year-old in 2007 by Milan, Pato was the most expensive player of his age group for a long time. The Brazilian assisted Kara for his first goal. 

“He is an outstanding player,” Kara said. “You can see the quality every day in training. I am happy to play with him and learn from him. We have perfect chemistry. I think this much has been evident on the pitch. He is also a great personality off the pitch. I am happy to play with him.” 

Kara, however, admitted that he needed some time to get acclimatized to the warm weather in Florida. “It took some time to get used to the warm weather, the lifestyle, the new language—not just English, but many people speak Spanish,” Kara said. “But from a sporting and personal perspective, everything has been going very well. We are very comfortable here and happy we made the step to Orlando.” 

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