Can the new San Diego Major League Soccer team be a financial …

San Diego has been awarded the 30th team in Major League Soccer, marking the first time since the Chargers left the city that it will have two teams in the five biggest sports leagues.
The ownership team, led by Egyptian billionaire Mohamed Mansour and the Sycuan band of the Kumeyaay Nation, are said to be paying a $500 million expansion fee. That’s on top of the cost to attract talent, market the team and everything else that goes with the effort.
Revenue, valuation and attendance vary greatly across clubs. Chicago Fire averages 12,958 weekly attendance, whereas Atlanta United FC gets around 47,213.
Overall revenue is also mixed. Los Angeles FC brought in $116 million in revenue in 2022, said Forbes, for a total operating revenue of $8 million. More than half the teams had negative operating revenue that year. Forbes said the Chicago Fire lost $18 million in 2022.
Q: Can the new San Diego MLS team be a financial success?
Chris Van Gorder, Scripps Health
YES: Mr. Mansour is a very successful businessman and understands soccer. I am sure he has analyzed this transaction carefully. He is well-connected to the automobile industry, which could bode well for advertising. But it will be a big task, as he and his partners are paying $175 million more than the Charlotte Football Club franchise went for in 2017 and $100 million more than what was paid for Real Salt Lake in 2022.
Norm Miller, University of San Diego
Not participating this week.
Jamie Moraga, Franklin Revere
YES: San Diego has shown that it’s a soccer town with the San Diego Wave’s record-breaking accomplishments and a perfect facility for MLS like Snapdragon Stadium. Leadership from MLS along with team ownership including Sycuan, Mansour Group, and Manny Machado should add to the team’s success. With the World Cup coming in 2026, having our MLS team have its inaugural season in 2025 is also great timing. The momentum is there for San Diego to embrace and support our MLS team.
David Ely, San Diego State University
YES: The potential fan base in the region for professional soccer is large, which should translate into significant revenues derived from ticket and other game-related sales. The popularity of MLS teams will receive a boost in 2026 from the FIFA World Cup hosted by the U.S., Canada, and Mexico. The recent 10-year, $2.5 billion broadcast deal between MLS and Apple demonstrates the growing value of membership in the professional league.
Ray Major, SANDAG
YES: San Diego is a perfect place for an MLS expansion. We have a new stadium, perfect soccer weather, and community interest. Professional soccer valuation is growing at an extremely fast pace, making it a great investment for owners. The global appeal of soccer coupled with the upcoming 2026 World Cup, which the U.S. is co-hosting with Mexico and Canada, will boost soccer’s popularity more than any other event before, drawing fans to the games and ensuring financial success for the expansion team and for the region’s economy.
Caroline Freund, UC San Diego School of Global Policy and Strategy
YES: Given the passion for the sport across the border and in L.A., why not in San Diego, too? The excitement around 2026 North America World Cup will add momentum. To facilitate San Diego should adopt the term “football,” like the rest of the world, even as the rest of the country sticks with soccer. We can become trendsetters, and kickstart MLS fever and build that loyal audience faster than you can say “Gooooooooooal”!
Haney Hong, San Diego County Taxpayers Assoc.
YES: There are a few advantages for the new San Diego MLS team. We sit on the border, so our market is really the larger San Diego-Baja California population. The stadium is in Mission Valley and easy to get to by car or transit. And finally, we don’t have the Chargers around, so there are fewer professional athletic events competing with them. I think they’ll be fine financially.
Kelly Cunningham, San Diego Institute for Economic Research
YES: Considering San Diego’s international population, including Tijuana and along the Pacific rim, provides the right ingredients for Major League Soccer to be financially successful here. The progressive youth development plan drawing both locally and across the world seems a good approach for developing players in exceptionally desirable San Diego. The caution is San Diego has an extensive history of supporting sports teams when successful, but easily turning to other interests when teams do not win.
Lynn Reaser, economist
YES: Los Angeles probably has the most similar demographics and had positive operating MLS revenue in 2022. The expansion team firm’s approach to creating a sports academy to develop youth will generate future players and interest in the game. The firm’s experience in other markets is a plus. San Diego’s proximity to Mexico should help boost attendance at Snapdragon stadium.
Phil Blair, Manpower
YES: I think there is pent-up demand in San Diego to support a major league soccer team. It is such a favorite sport in this nation for all ages of children. These children will be excited to attend games with their families and see their favorite players.
Gary London, London Moeder Advisors
Not participating this week.
Alan Gin, University of San Diego
YES: The success of the Wave and the Loyal in terms of drawing fans shows that San Diego can support soccer. To that can be added potential fans crossing the border from Mexico. The key will be for the team to be successful on the field, as there tends to be some front-runnerism among local fans. It helps that the ownership has deep pockets, which means that debt service for the $500 million expansion fee will not be a financial burden.
Bob Rauch, R.A. Rauch & Associates
YES: MLS will be a financial success in San Diego. San Diego is a great sports town and can support soccer at multiple levels due to the tremendous interest our youth has in soccer at all levels.
Kirti Gupta, Qualcomm
Not participating this week.
James Hamilton, UC San Diego
YES: Revenue might exceed non-interest operating expenses after a few years. San Diego is a major market without a pro football or basketball team, and soccer is growing in popularity. Residents of Tijuana might also come to view this as their team. The owners also hope to get significant income from other features of the proposed complex. But all that leaves a pretty meager return to capital, and if the investment is debt-financed, it could easily go bust.
Austin Neudecker, Weave Growth
YES: I am excited by the announcement. The financial viability of the club seems substantially improved after the requirement to build a new stadium was removed. The challenge will be balancing the team‘s payroll, winning games, and building a devoted fanbase that turns out 20,000 to 30,000 fans per game. I hope the team will leverage the proximity to the Xolos, promote heavy to the child leagues, and participate in the community.
Have an idea for an EconoMeter question? Email me at phillip.molnar@sduniontribune.com. Follow me on Twitter: @PhillipMolnar
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