New report suggests US soccer could benefit from promotion and relegation model

The introduction of a much-discussed promotion and relegation model into the MLS could have long-term benefits for fans, abortion player development and commercial revenues, store according to a new report published by business advisory firm Deloitte’s Sport Business division.

Despite an increase in public interest in soccer in the US, the number of players annual registered wit US Youth Soccer has barely risen since 2000.

Dan Jones, Head of the Sport Business Group at Deloitte, said of the report’s findings: “We believe the introduction of promotion and relegation into the existing league system could have numerous long term benefits, including increased attendances, increased broadcast audiences, improved commercial revenue and a positive impact on both elite players and grassroots participants.

“The current closed system has served MLS well in its early years, but as it matures it is reaching member capacity, preventing further expansion. Other challenges facing the current structure include growing fan interest in overseas leagues such as the English Premier League and a stagnation in the number of players annually registered with US Youth Soccer.

“Though the US soccer league system may not be ready for such a move immediately and its implementation may not appear urgent, the topic is worthy of greater exploration and debate. US soccer should properly consider the merits of introduction of promotion and relegation and a transition plan for its successful introduction in order to drive US soccer forward.”

The report highlighted the entertainment value would increase, based on polling fans, making more compelling matches both in stadia as well as on TV. 

Having a promotion and relegation model would also translate to increased broadcast revenue, match day revenue and fan interest.

Former General Manager of Major League Soccer side New York Red Bulls, Jerome De Bontin said: “The long-term growth potential for the sport is clear and it will take a proper pyramid of competitive professional clubs, with promotion & relegation for professional soccer to ever become profitable in the US and for the US to have a chance of winning the World Cup. Across the States there is a huge untapped market of potential soccer fans – an open league scenario would encourage them to engage with the game and help clubs to convert new supporters.”

Although the opening of the US soccer pyramid could present  number of “significant risks”, including the quality of soccer of promoted teams, stadium infrastructure and potential increase in player costs due to the increased competition. The report suggests, however, that these can be mitigated through careful consideration.