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Los Angeles FC (LAFC) have been valued at US$1 billion, with the defending Major League Soccer (MLS) champions topping Forbes’ list of MLS franchise valuations.
Confirmed:
- LAFC become MLS’ first billion-dollar franchise
- LAFC beat out city rivals the Los Angeles Galaxy (US$925 million) for top spot
- Atlanta United placed third with a valuation of US$850 million, ahead of New York City which is worth US$800 million
- DC United rounded off the top five with a valuation of US$700 million
- Colorado Rapids were valued at US$350 million and ranked last on Forbes’ list
- Since 2019, the average MLS team’s valuation has increased by 85 per cent to US$579 million. The average revenue for clubs was estimated at US$55 million
Context:
In Forbes’ previous list of valuations from 2019, LAFC were estimated to be worth US$475 million, with the latest ranking showcasing a remarkable leap in less than four years. The club has sold out every MLS regular season and playoff match since making its league debut in 2018.
Last year, LAFC reported US$116 million in revenue, which was a league-high amount. In January, the team agreed a ten-year stadium naming rights deal with the Bank of Montreal (BMO) reportedly worth US$100 million, highlighting LAFC’s continued commercial pull.
Coming next:
Despite their valuations, MLS teams will want to increase their revenues, with the current average still way off the amount generated by Europe’s elite soccer clubs.
It’s not just the average valuation for an existing MLS franchise that is going up. According to Forbes, the price tag for the next expansion team – likely Las Vegas or San Diego – is expected to be US$500 million.
