Strategic investment groups are eyeing MLS Next Pro, the second-tier soccer league launched by Major League Soccer (MLS) in 2022. With its unique structure and vast potential, this league represents a significant opportunity for expansion and growth within the American soccer ecosystem. Diamond Baseball Holdings, backed by Silver Lake, has been exploring the possibility of acquiring multiple teams to build a formidable portfolio similar to its success in baseball. Meanwhile, Tom Glick’s group has also engaged in discussions with various stakeholders to assess the commercial viability of consolidating ownership in MLS Next Pro.

Discover the Untapped Potential of MLS Next Pro

The Evolution of MLS Next Pro

The launch of MLS Next Pro in 2022 marked a pivotal moment in the development of professional soccer in the United States. This lower-division circuit was designed to bridge the gap between youth academies and first-tier clubs while introducing new markets to the sport. By fostering a pipeline for talent and expanding the reach of MLS, Next Pro serves as a critical component in the league's long-term strategy. The league's innovative approach has already begun to bear fruit, attracting attention from both fans and investors alike.The primary objective of MLS Next Pro is twofold. First, it aims to provide a seamless transition for young players moving from academies to professional ranks. Second, it seeks to expand the footprint of MLS by tapping into untapped markets. For instance, Huntsville City FC, affiliated with Nashville SC, has established roots in Alabama, thereby broadening the league's appeal. While these teams may not yet generate substantial profits, they play an indispensable role in nurturing talent and building fanbases.

Commercial Opportunities Abound

Investors see immense potential in MLS Next Pro due to its distinct structure compared to MLS. Unlike the single-entity model of MLS, where the league owns all teams, Next Pro operates under a more traditional ownership framework. Each team is independently owned, allowing owners to retain local revenue streams from sponsorships and ticket sales. This autonomy presents lucrative opportunities for strategic investors looking to capitalize on the growing popularity of soccer in the U.S.Moreover, the league benefits from national assets, such as the $2.5 billion media deal with Apple, which covers MLS Next Pro matches. This partnership ensures widespread visibility and exposure, further enhancing the league's commercial appeal. Investors like Diamond Baseball Holdings recognize the value in acquiring multiple franchises to create economies of scale. Owning several teams could lead to synergies in sales, venue management, and personnel, ultimately driving profitability and growth.

Potential Challenges and Considerations

Despite the promising outlook, there are challenges that investors must navigate. The talks remain at an early stage, and no concrete deals have materialized yet. Owners are likely to insist on retaining control over the sporting aspects of their teams, including coaching decisions and player acquisitions. This arrangement would ensure that each club can maintain its unique identity and competitive edge.Charles Altchek, president of MLS Next Pro, acknowledged the league's commitment to exploring new opportunities. "We have ambitious plans for MLS Next Pro and are committed to identifying and capitalizing on new opportunities," he stated. The league is actively considering strategic partnerships that align with its goals to accelerate growth and success. However, transparency and trust will be crucial in securing buy-in from current owners and stakeholders.

Diamond Baseball Holdings: A Blueprint for Success

Diamond Baseball Holdings has set a precedent with its successful acquisition of over 40 minor league baseball teams. Initially launched by Endeavor in 2021, the group was later sold to Silver Lake for $280 million following concerns from the MLB players union. Since then, DBH has continued to expand its portfolio, acquiring teams like the Rancho Cucamonga Quakes and the Brooklyn Cyclones. This track record positions DBH as a formidable player in the sports investment landscape, making it a natural fit for MLS Next Pro.Tom Glick’s extensive experience across various professional sports adds another layer of credibility to the investment discussions. Having held key roles in football, baseball, basketball, and soccer, Glick brings a wealth of knowledge and expertise. His involvement in launching NYCFC and his tenure at Tepper Sports & Entertainment highlight his ability to drive innovation and growth. As the conversation around MLS Next Pro continues to evolve, Glick’s insights could prove invaluable in shaping the future of the league.