Berg rejects promotion and relegation
Larry Berg, the incoming Major League Soccer commissioner, has made his stance clear before he even steps into the office. During his introductory press conference yesterday, Berg effectively killed any lingering hope that the North American league would shift toward a promotion and relegation model. While global fans often demand the volatility of an open pyramid, Berg remains committed to the current closed-shop structure.
He takes the reins from Don Garber on January 1, 2027, but the philosophy remains unchanged. Berg pointed to the current stability of the league as a primary reason for maintaining the status quo. He frames the current model as the best way to protect owner investment and ensure growth across all markets.
Don’t expect the league to adopt the promotion and relegation system seen in league systems throughout the world anytime soon.
The logic behind the closed shop
For supporters of the domestic game, this is hardly a surprise, but it marks a definitive end to the cycle of speculation that accompanies every new leadership change. The closed-shop system prevents the financial risk associated with dropping into lower divisions, which remains the primary driver for high-dollar franchise valuations in the US. By doubling down on this, Berg is signaling to current investors that their assets remain protected from market volatility.
The reality is that owners in the league view the risk of relegation as a deal-breaker for the franchise model. Without the threat of relegation, clubs can focus on long-term capital improvement projects, stadium financing, and local broadcast deals without worrying about the catastrophic revenue drop-off that ruins clubs in Europe's second or third tiers. Berg understands that his primary task is keeping the existing board happy, not appeasing fans of traditional sporting meritocracy.
The challenge of fan apathy
However, sticking to the current model brings its own set of problems. Many mid-table clubs currently finish their seasons with nothing to play for by September, as playoff spots drift out of reach and the lack of a relegation threat renders the bottom of the table meaningless. This creates a vacuum of intensity that European leagues avoid precisely because of the promotion-relegation mechanic.
If Berg wants to capture a larger share of the global audience, he has to fix the lack of consequence in the bottom half of the standings. Relying on a closed league structure may secure the boardrooms, but it often kills the drama for the average viewer. There is a glaring hole in the stakes of a mid-October Tuesday night match between two teams sitting in 12th and 13th place.
What comes next for the league
Berg has been handed a league that is currently valued at all-time highs. His mandate is to grow the pie, not to experiment with the fundamental recipe. Expect the next few years under his leadership to focus on media rights expansion and international brand recognition rather than structural overhaul.
The decision to avoid promotion and relegation is a safe play, but safe plays rarely build the kind of cultural momentum that truly moves the needle. Berg has inherited a stable vehicle, but he still needs to figure out how to make the product feel less like a closed corporation and more like a high-stakes sporting contest. If he continues to ignore the calls for more competitive pressure, he might find the domestic audience plateauing just as the league reaches its prime years.
Ultimately, the move to hire Berg suggests the league is satisfied with its current trajectory. They want an operator who can manage the massive growth initiated during the Garber era rather than an agent of radical change. For the time being, the MLS will remain an outlier on the global stage, prioritizing business security over the inherent chaos of an open pyramid. It is a business-first approach that defines the modern North American sporting environment perfectly.
