• Loading stock data...
Thursday, October 9, 2025

$500M San Diego FC Debut Highlights Surging MLS Valuations

MLS grows to 30 teams this weekend, as expansion club San Diego FC makes its regular-season debut. Across the league, the cost of owning a franchise continues to rise.

San Diego FC
San Diego FC

MLS expansion club San Diego FC will make its regular-season debut Sunday at LAFC, as the league grows to 30 teams and franchise valuations continue to soar.

San Diego’s ownership group, led by British Egyptian entrepreneur Mohamed Mansour and the Sycuan Band of the Kumeyaay Nation (the first Native American ownership group in global soccer), agreed to pay an MLS-record $500 million expansion fee when it was awarded a team in 2023.

That’s up almost 54% from the previous MLS high of $325 million that Charlotte FC paid in 2019 (launched in 2022), and the same amount Bill Foley’s group paid ($500 million) for the Vegas Golden Knights when they entered the NHL in 2017.

“People are willing to invest a lot of money just to get into MLS,” San Diego FC co-owner and CEO Tom Penn tells Front Office Sports

Penn has some experience launching MLS clubs, as he was a cofounder, part-owner, and the first president of LAFC, which paid $110 million to enter MLS in 2014 and is now the most valuable team in the league, worth more than $1 billion. Penn exited and divested from LAFC in 2020.

Stateside State of Mind

Why is so much cash flowing into MLS? 

“In part because of the growth of the league itself, and the sport in America,” Penn says. “But also because of the construct of a closed league without promotion and relegation.” 

That latter part is key, after last week’s announcement from the second-tier United Soccer League about plans to launch its own Division I men’s professional league and potentially implement promotion and relegation as the vast majority of global soccer has.

“The rest of the world always sort of turns their nose up at that, and says it’s not a proper way to do things,” Penn says of the MLS structure. “But the truth is that these opportunities in American sport, across all leagues, these are like works of art—precious commodities. It’s like a Monet or a Renoir because only 30 of these exist, and you’re guaranteed to stay in that league. And therefore you have real value towards the lower end of the league.”

It’s that reason why someone like Mansour, who has a personal net worth of more than $3 billion, chose MLS to invest in. “When you see the league-wide valuation, it stacks up really, really favorably against other leagues in the world,” Penn says. 

Building From the Ground Up

San Diego will play its home matches at the largest soccer-specific venue in the U.S., the 35,000-capacity Snapdragon Stadium, which it shares with the NWSL’s San Diego Wave and the San Diego State football team.

Beyond the $500 million expansion fee, San Diego has invested roughly $150 million into its facilities, which include the newly opened Sharp HealthCare Performance Center that is part of the club’s 125,000-square-foot campus in El Cajon, Calif., on the Sycuan Reservation. 

That’s also where San Diego operates its youth academy, which is part of the Right to Dream system that Mansour owns and has campuses in Denmark, Egypt, and Ghana, where he also owns teams.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Mar 15, 2025; Buffalo, New York, USA; Vegas Golden Knights center Jack Eichel (9) reacts after scoring a goal during the third period against the Buffalo Sabres at KeyBank Center.

How Connor McDavid’s Extension Set Off a Wave of Big-Money Deals

Several notable contracts are completed in the wake of the superstar’s deal.
Sep 1, 2025; Chapel Hill, North Carolina, USA; North Carolina Tar Heels head coach Bill Belichick on the field before the game at Kenan Stadium

UNC’s Disastrous Season Continues With Report of NCAA Rules Violation

A UNC cornerbacks coach reportedly gave sideline passes to a player’s family.
Alexis Ohanian

Alexis Ohanian Tweaks Track Rivals With Promise of Instant Payments

Athletes will be paid minutes after finishing their races at Athlos.
Inside NCAA Headquarters located in Indianapolis on Friday, March 10, 2023. Ncaa President Charlie Baker

NCAA Approves Plan to Let D-I College Athletes Bet on Pro Sports

The proposal still needs to be approved by D-II and D-III committees.

Featured Today

Paul Cartier

Sports Organists Are Still Thriving in the Era of Raucous Arena Music

“When they walk out and they see a real organ guy, it’s like, ‘Wow.’”
Sep 27, 2025; Milwaukee, Wisconsin, USA; Milwaukee Brewers center fielder Jackson Chourio (11) rounds the bases after hitting a home run during the sixth inning against the Cincinnati Reds at American Family Field.
October 4, 2025

Milwaukee Moneyball: Brewers Are Beating MLB’s Deeper Pockets

Milwaukee is holding its own against big-budget competitors.
Kōloa Rum Company Rum Rusher
September 27, 2025

Panthers Bubbly, Jets Wine, Manning Whiskey: The Sports Booze Boom

A sommelier dives into the sports booze trend—and tries Jets wine.
Nov 17, 2024; Pittsburgh, Pennsylvania, USA; Pittsburgh Steelers fans wave Terrible Towels against the Baltimore Ravens during the fourth quarter at Acrisure Stadium
September 26, 2025

Steelers’ Irish Roots Are Deeper Than NFL Dublin Game

The Steelers have history and the foundation for a future in Ireland.
Oklahoma Sooners defensive back Woodi Washington (5) runs after a reception during the Armed Forces Bowl football game between the University of Oklahoma Sooners (OU) and the Navy Midshipmen at Amon G. Carter Stadium in Fort Worth, Texas, Friday, Dec. 27, 2024.
August 19, 2025

Oklahoma Selling Fans Tickets to Press Conferences

Press conference tickets for the Sooners’ season opener are already sold out.
September 3, 2025

Ohio State–Texas Showdown Was Most-Watched Week 1 CFB Game Ever

Fox drew 16.62 million viewers on Saturday afternoon.
Sponsored

How Jenny Just Is Shaping the Future of Sports Ownership

Jenny Just on bringing her investment experience to sports ownership.
August 11, 2025

NBA Christmas Schedule Leans on LeBron, Steph While Betting on Flagg

The Lakers, Warriors, and Rockets are all in action.
August 10, 2025

Bears CEO: Arlington Heights Only Local Location for New Stadium

The Bears currently play in Soldier Field in downtown Chicago.
August 8, 2025

Three Schools Sue Mountain West, Commish Over Withheld Funds

Boise State, Colorado State, and Utah State intensified the court battle.
Courtesy: Harlem Globetrotters
July 25, 2025

The Harlem Globetrotters Have Changed Hands Repeatedly, but Keep Making Money

The team is gearing up for its 100th season.