Forbes released their 2024 MLS valuation report earlier today, and the financial publication now pegs the club average at $658 million. That’s a 14% increase over the average MLS valuation of $577 million in 2023.
The report gives credit for the increase not just to Lionel Messi joining Inter Miami CF over the summer, although Messinomics is real — the World Cup winner increased the value of Miami by $403 million, making it the league’s second billion-dollar club according to Forbes. It also points to the Apple TV deal, additional revenue from Leagues Cup games, and a decision by the league to reduce their cut of ticket revenue to 10% from 33%. Those changes, according to Forbes, “helped power a 20% increase in average revenue across the league.”
This report comes close on the heels of the MLS valuations published by Sportico last week. In general, the Forbes report is more conservative. While Forbes values the average club at $658 million, Sportico puts it at $685. Forbes lists two billion-dollar clubs, LAFC and Mimi, while Sportico has another two above that benchmark, LA Galaxy and Atlanta United.
Here are five takeaways from the 2024 Forbes MLS Valuation report.
2024 MLS Club Valuations | Forbes
Rank | Club | Valuation | $ Change | % Change | Rank Change |
1 | LAFC | $1.2 billion | $200 million | 20% | — |
2 | Inter Miami | $1.03 billion | $600 million | 72% | + 9 |
3 | LA Galaxy | $950 million | $25 million | 3% | - 1 |
4 | Atlanta United | $900 million | $50 million | 6% | - 1 |
5 | NYCFC | $850 million | $50 million | 6% | - 1 |
6 | Seattle Sounders | $785 million | $115 million | 19% | + 2 |
7 | DC United | $775 million | $75 million | 11% | - 2 |
8 | Austin FC | $750 million | $70 million | 10% | - 1 |
9 | Toronto FC | $725 million | $35 million | 5% | - 3 |
10 | Charlotte FC | $690 million | $65 million | 10% | — |
11 | St. Louis City | $680 million | — | — | — |
12 | Philadelphia Union | $670 million | $95 million | 17% | + 1 |
13 | Portland Timbers | $660 million | $10 million | 2% | - 4 |
14 | FC Cincinnati | $650 million | $90 million | 16% | — |
15 | Columbus Crew | $640 million | $80 million | 16% | — |
16 | Sporting Kansas City | $630 million | $40 million | 7% | - 4 |
17 | Minnesota United | $600 million | $60 million | 11% | + 1 |
18 | Nashville SC | $570 million | $70 million | 14% | — |
19 | New York Red Bulls | $560 million | $35 milion | 7% | - 2 |
20 | Houston Dynamo | $530 million | $95 million | 22% | + 2 |
21 | New England Revolution | $520 million | $45 million | 10% | - 2 |
22 | Chicago Fire | $515 million | $90 million | 21% | + 1 |
23 | San Jose | $505 million | $55 million | 12% | + 3 |
24 | FC Dallas | $500 million | $100 million | 25% | + 2 |
25 | Real Salt Lake | $485 million | $45 million | 10% | - 4 |
26 | Orlando City | $475 million | $55 million | 13% | - 2 |
27 | CF Montréal | $430 million | $55 million | 55% | — |
28 | Vancouver Whitecaps | $420 million | $10 million | 2% | - 3 |
29 | Colorado Rapids | $400 million | $50 million | 14% | - 1 |
1. MLS vs S&P 500
If you go strictly by the numbers, the S&P 500 outperformed MLS in 2023. The average MLS valuation might have climbed 14%, but a standard-issue index fund would have given you a return of 23%
As for New York City FC, the year-over-year increase of just 6% isn’t so hot.
But the numbers favor MLS over time. NYCFC was valued at $225 million in 2016. If His Highness Sheikh Mansour bin Zayed Al Nahyan, who controls City Football Group, the parent company of NYCFC, had invested that sum in an S&P 500 index fund, he would now have just $549 million. The poor guy would’ve missed out on a cool $301 million.
NYCFC Valuation by Year
Year | Valuation | % Change | Rank | Source |
2024 | $850 million | 6% | #5 | Forbes |
2023 | $800 million | 18% | #4 | Forbes |
2022 | $680 million | 4% | #4 | Sportico |
2021 | $655 million | 70% | #5 | Sportico |
2020 | — | — | — | — |
2019 | $385 million | 39% | #7 | Forbes |
2018 | $278 million | .01% | #7 | Forbes |
2017 | $275 million | 22% | #4 | Forbes |
2016 | $225 million | – | #3 | Forbes |
2. The numbers are make-believeish
To quote from the post we ran on the Sportico report last week, “Both Sporitco and Forbes claim that they survey MLS executives and gain insider information based on granting anonymity. But neither publication publishes the raw numbers.”
That said, Forbes does include a little more (made-up?) data than Sportico by listing club revenue and operating income. According to Forbes, LAFC brought in $140 million in revenue and finished the year $9 million in the black; Inter Miami brought in $118 million and made a profit of $8 million.
3. NYCFC’s fortunes are tied to their stadium
NYCFC’s revenue was just $70 million, which is among the lowest of the clubs with the highest valuations. The reason is simple: Matchday revenue is limited because the club doesn’t own their stadium.
NYCFC must pay rent every match day, and share revenue on food and beverage sales. In addition, they have limited opportunities for branding and naming rights. Out of the top-ranked clubs only the Seattle Sounders, another organization that don’t own their stadium, have a similar operating income.
2024 MLS Club Revenues | Forbes
Rank | Club | Revenue | Operating Income |
1 | LAFC | $140 million | $9 million |
2 | Inter Miami | $118 million | $8 million |
3 | LA Galaxy | $95 million | $3 million |
4 | Atlanta United | $95 million | $9 million |
5 | Austin FC | $87 million | $3 million |
6 | DC United | $85 million | $10 million |
7 | Charlotte FC | $80 million | $6 million |
8 | Seattle Sounders | $75 million | $2 million |
9 | FC Cincinnati | $71 million | $10 million |
10 | St. Louis City | $70 million | - $2 million |
10 | NYCFC | $70 million | - $9 million |
4. NYCFC are operating at a loss
More to the point, NYCFC are operating at a loss, according to Forbes. They’re not the only ones. The publication has 17 clubs in the red.
NYCF aren’t bleeding money like Toronto FC (-$12 million), the Houston Dynamo (-$10 million), or the Vancouver Whitecaps (-$14 million). But they are among the least-profitable clubs in MLS.
5. Every MLS club should be worth at least $500 million
Once again, we’ll quote from the post we ran last week on the Sportico valuation:
When expansion side San Diego FC takes the field in 2025, they will be the 30th club to join MLS. The ownership group reportedly paid $500 million for the right to be a part of one of the two best leagues in North America. (Charlotte FC reportedly paid $325 million back in 2022.)
That puts the base price of every MLS club at $500 million. If real estate is about location, location, location, then that’s what every MLS club are worth simply for being in the school district.
That should be very concerning to clubs such as Real Salt Lake, Orlando City, CF Montréal, the Vancouver Whitecaps, and the Colorado Rapids. All of those clubs are worth less than the current MLS buy-in.
