Are MLS Teams Profitable

In short: some MLS teams are profitable, but most are not—yet the league as a whole is growing fast, in value, revenues, and assets. AtiGoal will take you through the financial performance of Major League Soccer clubs, the factors shaping their profits (or losses), and what may lie ahead.

What does the latest data say

Here’s a snapshot of the financial state of MLS teams today, based on the most recent reports and estimates:

• Valuations are booming. By early 2025, the average MLS franchise is worth around US$700–721 million.

Operating income varies a lot. Some teams are showing positive operating income, while others are running losses.

• -, only about 4 out of 29 MLS teams are cash flow positive or “profitable” in a straightforward sense.
• On the revenue side, sources include match-day ticket sales, merchandising, local sponsorships, and the growing value of media rights, plus revenue sharing by the league.

So: yes, some MLS teams are profitable, but many are not—profitability is far.

Why most MLS teams struggle to be truly profitable

To understand why profitability is rare, we need to examine the cost structures, revenue constraints, and unique MLS rules that make financial balance hard.

High fixed and variable costs

• Stadium and infrastructure costs: Building or renovating soccer-specific stadiums is expensive; maintenance, operations, and upgrades eat into revenues.
• Player wages and Designated Players: High-profile signings (e.g., Designated Player rule) come with big salaries, bonuses, and associated costs. Only some teams with big fan bases or strong commercial deals can support those.
• Travel, logistics, and geography: MLS is spread across large geographies; long flights, frequent travel for matches, and cross-border operations (US and Canada) drive up operational costs.

Revenue limitations

• Ticketing and attendance: Some clubs sell out often; others have much lower attendance, which limits match-day income.
• Media rights & sponsorships: While media deals are improving, they are still growing. Teams in smaller markets or without big stars may get less from media & sponsor deals.
• Revenue sharing and centralized structure: MLS’s single-entity structure means some revenue (TV, sponsorships, etc.) is shared. This helps stabilize weaker teams, but also means top teams may have less upside than they would in a more “free-market” environment.

Competitive & strategic pressures

• Expectation to sign stars: Fans expect big-name players (Messi, etc.), which drives spending. If the on-field success (which boosts revenues) doesn’t follow, the costs can outweigh gains.
• Expansion fees & valuation inflation: New franchises pay large fees, which boosts league-wide valuation, but those are ‘front-loaded’ and don’t directly translate into ongoing profitability for all teams.

Who is profitable, and what makes them different

A few MLS clubs are doing well financially, and we can see what they share.

• Clubs in large markets or with large fan bases tend to do better (e.g., LAFC, Inter Miami, LA Galaxy). They generate more in ticket sales, merchandising, sponsorships.
• Having a star player or big draw helps. Star power increases merch, media attention, sponsorships. Inter Miami’s valuation jump, for example, is heavily tied to big names and visibility.
• Owning or having deals for strong stadiums or real estate assets helps. Lower rent, more control over matchday revenue (food, parking, etc.), and the ability to monetize non-matchday events.
• Good cost control—managing wages, travel, and avoiding overinvesting in players beyond what revenues can support.

How “profitability” is defined—why it’s tricky

When we ask are MLS teams profitable, the answer depends heavily on what “profitable” means:

• Operating income vs net profit vs cash flow: A team might show operating income but still lose money after taxes, interest, depreciation, etc. Some analyses use simpler metrics, others more comprehensive ones.
• Valuation gains vs operating profits: Even teams not showing profit often gain value as assets—stadiums, brand, player contracts, real estate. That means even if they lose money yearly, they might be “profitable” in investment or valuation terms.
• Short-term losses for long-term gain: Many MLS teams accept losses in early years with the expectation of future returns.

Trends and outlook — is MLS moving toward more profitability?

Yes—there are signs MLS is becoming more financially stable overall. AtiGoal sees several trends that suggest more teams might become profitable, or at least reduce their losses:

• Rising media rights & streaming deals are increasing league-wide revenue. MLS’s national deals continue to grow.
• Stadium expansion / upgrades: Teams that own their stadiums or have favorable deals are increasing matchday and non-matchday revenue.
• Value of franchises increasing, which gives owners flexibility and leverage. The valuations themselves don’t guarantee profitability, but higher asset value can help with investment, credit, and revenue opportunities.
• Better cost regulation: Salary caps, roster rules, and centralized structures help limit runaway spending.

That said, for many clubs, especially those in smaller markets or with less star appeal, the gap between revenue and cost is still substantial.

Key numbers at a glance

Here are some recent data points that help frame the picture:

• League valuation average per club: approx US$700–720 million.
• Top clubs (e.g., LAFC, Inter Miami, LA Galaxy, Atlanta) have valuations over $1 billion.
• Number of teams operating with positive operating income vs losses: Many clubs show modest profits or break-even, but a majority show operating losses. For instance, in one Forbes‐based estimate, 16 of 30 teams did not make any profit last year.
• Payrolls: Some of the highest payroll MLS teams have gross player salary spend in the tens of millions (e.g. Inter Miami among the highest).

Conclusion

Are MLS teams profitable? In summary: a few are; most are not—at least not in the sense of making steady net profits. But many are improving, and the league’s financial health is on an upward trajectory. High valuations, growing revenues, better stadium setups, and smart investments mean the future looks stronger.

At AtiGoal, our goal is to help you understand not just the headlines—but the numbers behind the success and the struggle. If you’re curious about how a specific MLS team is doing financially, or want forecasts for clubs over the next few years, let us know—we can pull those together too.