San Diego receives MLS expansion team - What will happen to Las Vegas?

Major League Soccer is set to announce its 30th team in mid-May, and according to various media reports, the league is set to expand to San Diego ahead of Las Vegas. ESPN reported in late April that San Diego was now carrying the momentum to become the next MLS expansion franchise. Major League Soccer announced expansion to San Diego at an event held at Snapdragon Stadium on May 18. No club name has been announced but the MLS expansion side has registered a domain name under San Diego FC and it is not clear whether that name will be placeholder or more. 

“We are thrilled to welcome San Diego to Major League Soccer as our 30th team,” MLS Commissioner Don Garber said in a statement issued by the league. “For many years we have believed San Diego would be a terrific MLS market due to its youthful energy, great diversity, and the fact that soccer is an essential part of everyday life for so many people. Mohamed Mansour and the Sycuan Tribe have an incredible vision for building a club that will inspire and unite soccer fans throughout the city and region.

According to a report by the San Diego Union-Tribune the expansion led by the Egyptian billionaire Mansour and the local Sycuan tribe hugely impressed the MLS decision makers. The newspaper also reported that San Diego will pay an expansion fee of $500 million, significantly more than the €325m paid by Charlotte FC and the €200m paid by St. Louis CITY SC. The San Diego bid won out against Las Vegas, which also hoped to win a team in this round of expanion. The league sees the bid as the more attractive because, unlike Vegas, San Diego has a stadium ready. Owned by San Diego State University, Snapdragon Stadium is a ready-made MLS facility. 

MLS to San Diego – Snapdragon is a ready-made facility 

The facility is already home to the NWSL team San Diego Wave FC, and Transfermarkt understands that a big European side might play a friendly at the stadium this summer. “We’ve been having very good discussions,” San Diego State Athletic Director John David Wicker said to the San Diego Union-Tribune when asked about an MLS club moving to the stadium. “Based on the soccer we’re having this summer, it shows that this venue is truly built for great soccer, and getting MLS is the last real piece of the puzzle.”

There are still some question marks regarding San Diego. First, the stadium might require some upgrades. Usually, the league requires facilities to be roofed, and even though most games are now on Saturday night to comply with the new Apple TV deal, some of the stands might need to be roofed—although local reports suggest that this might not be necessary. The stadium will also need some minor upgrades to be more soccer-specific. Nonetheless, unlike Vegas, San Diego has a facility ready, and with a capacity of 35,000 seats, Snapdragon is an ideal size for MLS. 

One question that remains regarding San Diego is what will happen to the USL Championship side San Diego Loyal SC? “Our plan is simple,” San Diego Loyal chairman Andrew Vassiliadis said in a statement issued regarding MLS expansion into his club’s market. “We aren’t going anywhere.” The statement also added that Vassiliadis and MLS legend Landon Donovan, who is the Executive Vice President of Soccer Operations at Loyal, remain committed to the market. In other words, at present, the USL club is not involved in expansion talks and has no interest in folding to create room for another club in the market. 

San Diego Loyal going nowhere – What will happen to Las Vegas

The future of San Diego Loyal is just one question going forward. The other question is the future of Las Vegas. There is no doubt that MLS remains interested in what is one of the fastest-growing sports markets in North America. The National Hockey League (NHL) opened the door in 2017 when the Golden Knights became an instant success. The National Football League (NFL) has since followed when the Oakland Raiders moved to the city in 2020. The Major League Baseball side Oakland A’s now have a deal in place to build a stadium in Vegas as well and are set to move to the city in 2027.

Suddenly, MLS, which was on course to become the second or third league to move to Sin City, is finding Vegas an increasingly crowded market. Even with Allegiant Stadium hosting national team games, the lack of a soccer-specific stadium is an issue. Nonetheless, Aston Villa co-owners Wes Edens and Nassef Sawiris are interested in expanding MLS to Las Vegas and have trademarked the name Las Vegas Villains. 

In other words, Vegas remains on the market, and there are several avenues to get a team there. Transfermarkt understands that at least one ownership group has investigated selling their club, moving the door for relocation. That, however, would mean that owners would miss out on a significant expansion fee. Another route, therefore, would be expanding beyond 30 teams, which would open the door for additional markets and allow for additional expansion fees for the current owners. “So, once we’ve decided we’re going to expand our league to cover the geography of the US and Canada, there is no reason to think we should not go larger, but right now, we have no plans for that, yet,” MLS commissioner Don Garber said in February. “We have a lot of big cities in this country that have no team.”