Lionel Messi's arrival in Major League Soccer (MLS) has generated significant attention and revenue for the league. However, concerns about the sustainability of this boost, given Messi's age and injury history, have emerged. Additionally, MLS is facing two lawsuits that could potentially have severe financial implications.
The first lawsuit, filed by the now-defunct North American Soccer League (NASL) against MLS and U.S. Soccer, alleges antitrust violations related to the division of the American soccer market. A federal court in Brooklyn has scheduled a trial for September. The second lawsuit involves promoter Relevent Sports, challenging an agreement between U.S. Soccer, FIFA, and MLS that prohibits international leagues from hosting regular season matches in the United States.
Understanding the structure of international and national soccer is crucial in this context. FIFA serves as the global governing body for soccer, with over 200 national associations as members. In the U.S., U.S. Soccer is recognized as the national governing body for the sport, regulating soccer activities in coordination with FIFA's policies.
In the U.S., professional men's soccer is divided into three levels: Division I (e.g., MLS), Division II (USL Championship), and Division III (e.g., MLS Next Pro, USL League 1). The NASL, which operated as a Division II league until 2017, alleges that its shutdown resulted from unlawful actions by MLS and USL to protect MLS from competition.
The NASL lawsuit, initiated in 2017, accuses U.S. Soccer and MLS of antitrust violations that led to the league's closure. Represented by experienced antitrust litigators, the NASL seeks significant damages that could pose financial risks for U.S. Soccer and MLS.
Meanwhile, the Relevent case challenges FIFA's policy prohibiting international leagues from hosting matches in the U.S., allegedly at the behest of MLS and U.S. Soccer. The Second Circuit Court of Appeals reinstated the case in 2023, prompting concerns about MLS' future revenues and market competition.
If the Relevent lawsuit proceeds, it could impact FIFA's rule and potentially allow international leagues to host matches in the U.S. MLS' resistance to such matches, while understandable, may face legal scrutiny under antitrust law. The outcome of these lawsuits could have far-reaching implications for the structure and competitiveness of professional soccer in the U.S.
