Photo Courtesy of United Soccer League
The United Soccer League is preparing for one of the most ambitious transformations in American professional soccer. With USL Premier and a three-tier promotion and relegation system targeted for 2028, the league hopes to establish a structure where clubs can rise and fall based on results rather than expansion fees. But recent developments across its existing divisions suggest the biggest challenge may not be implementing promotion and relegation itself, but ensuring clubs can financially survive within it.
An October 23 investigation by GOAL revealed that USL officials have explored approximately 10 different approaches to promotion and relegation, while continuing discussions with U.S. Soccer over Division I sanctioning requirements. The league’s long-term vision calls for approximately 20 clubs in both Premier and the Championship, with League One operating through a more regionalized structure. Yet the number of clubs moving between divisions, potential promotion playoffs and financial protections for relegated teams remain unresolved publicly.
For clubs considering Premier, those uncertainties complicate long-term planning. Sacramento Republic FC and Detroit City FC are both developing stadiums capable of meeting Division I capacity requirements, including Sacramento’s planned 20,000-seat Railyards venue. Neither organization has publicly committed to joining Premier, although the absence of an announcement does not establish whether either has applied. The question is less about their ambition and more about the financial and competitive framework they would be entering.
While some clubs prepare for potential opportunities at the top of the pyramid, others are reportedly struggling to maintain their place at the bottom. Independent reporting indicates that Corpus Christi FC and Westchester SC could cease professional operations following the 2026 League One season. Neither departure has been formally confirmed, but the reports follow previous exits by Northern Colorado Hailstorm, Central Valley Fuego and South Georgia Tormenta.
The underlying concern extends beyond individual clubs. League One organizations often operate in smaller markets, with limited stadium capacity, modest attendance and fewer commercial revenue opportunities. Corpus Christi, for example, entered the league without its proposed soccer-specific stadium, restricting its ability to generate revenue through premium seating and other events. Westchester faced the challenge of establishing a sustainable audience in a crowded New York-area sports market. If clubs cannot consistently cover the costs of operating in Division III, promotion into a more expensive national competition could create additional financial exposure rather than simply reward sporting success.
Financial pressures may also be influencing decisions in the Championship. Reporting from Beyond the 90 has raised the possibility of multiple clubs voluntarily moving to League One, with Miami FC among those mentioned. No such moves have been officially announced, and the suggestion that as many as four clubs are considering the change remains unconfirmed. Still, the possibility illustrates a significant tension within USL’s proposed structure: clubs may already be seeking lower operating costs before sporting relegation becomes part of the system.
The economics help explain why. Championship clubs face national travel expenses, higher staffing and player compensation requirements, and the challenge of generating enough local revenue to support those obligations. League One’s proposed regional structure could reduce some of those costs, making voluntary movement attractive to organizations whose financial resources no longer align with Championship operations. However, dropping a division could also mean reduced sponsorship value, ticket demand and commercial visibility, making it far from a guaranteed solution.
USL has begun addressing these issues through a new collective bargaining agreement and a five-year revenue-sharing model. The CBA establishes a $42,000 minimum annual compensation package for Championship players in 2026, while Premier’s minimum begins at $67,500 in 2028, with eligible housing benefits included in those figures. The revenue-sharing agreement introduces distributions from national media rights, sponsorships and expansion-related income, providing clubs with an additional potential source of financial support.
What remains unclear is how much money clubs will actually receive and how those distributions will change between divisions. That distinction is critical. A club promoted into Premier could face higher payroll and operating requirements before its commercial revenue catches up, while a relegated club could lose income while remaining responsible for contracts negotiated at the higher level. Without adequate transitional protections, the financial consequences of promotion and relegation could extend well beyond a club’s position in the standings.
USL must also reconcile sporting movement with U.S. Soccer’s professional league standards. Premier is expected to require Division I sanctioning, which currently includes a minimum 15,000-seat stadium standard alongside ownership and market requirements. A League One or Championship club could earn promotion on the field without meeting those standards, raising questions about whether exemptions, stadium upgrades or alternative arrangements would be necessary. These decisions could ultimately determine how accessible the system is to smaller organizations.
For Sacramento, the planned Railyards stadium offers a potential advantage through greater capacity, premium seating and year-round event revenue. But Republic’s long-term position will depend partly on the financial health of the competition around it. A successful Premier needs credible opponents, stable ownership groups and a functioning pathway between divisions, not simply a collection of ambitious clubs with suitable stadiums.
USL has made meaningful progress toward its proposed transformation, establishing new labor standards, revenue sharing and a framework for three connected professional divisions. Yet the reported instability in League One, potential voluntary movement from the Championship and unanswered questions surrounding Premier membership suggest that the league’s financial model still faces a significant test.
Promotion and relegation can create new opportunities and meaningful sporting consequences, but it cannot independently solve the economic challenges facing American lower-division soccer. As USL approaches 2028, its success may ultimately depend less on how many clubs move between divisions and more on whether those clubs have the financial foundation to withstand the move.
