Home
/
RELIGION & LIBERTY ONLINE
/
Understanding America’s anti-market soccer system
Understanding America’s anti-market soccer system
Oct 18, 2026 2:53 AM

The United States is globally known as the “father” of free enterprise. Even though the United States does not follow the same classical liberal principles implemented in its foundation, it still serves as a role model of a successful capitalist nation for many countries around the world . However, when es to men’s soccer — the world’s most popular sport — the United States faces difficulties adopting a liberal economic model.

The U.S. Soccer Federation adopts numerous anti-market strategies, such as quotas on the number of international players per team, which is also implemented in other countries. Yet, there is one element that makes U.S. soccer clearly distinct: the lack of a relegation/promotion system. Alongside Australia and India, the United States is one of the few countries in the world where leagues are not connected, and teams cannot be relegated to a lower division or promoted to a higher division.

The American soccer pyramid has a position. There are three professional divisions: the MLS (Major Soccer League) operating as the 1st division, the USL Championship (United Soccer League) as the 2nd division and both newly announced NISA (National Independent Soccer Association) and USL League One with Division 3 status. The rest of the lower leagues function under amateur status. The leagues cited above operate independently, in a close model based on licensing and franchising, showing the U.S. Soccer Federation failure in promoting mon system. This independent system contrasts with most countries around the world, where all the divisions are connected, allowing promotion and relegation based on performance. British soccer — often considered the petitive in the world — has eight professional divisions directly connected. Theoretically, a small town team located in the 8th division can work its way up and eventually win the desired Premier League (English first division).

Such system adopted in the United States prevents the main characteristic of a free enterprise petition. Teams on the top of the table in lower divisions have less incentives to invest and perform at the best of their capability, since they will never be promoted based on their performance. Similarly, teams on the bottle of the table — especially in the MLS — have less incentive to improve their game, since there is no fear of relegation. In a system of relegation and promotion, teams are always motivated to perform at the best of their ability, increasing the level of play and making the game more entertaining for fans. In fact, the most dramatic games in world soccer are the ones in which teams are fighting against relegation — popularly known as “relegation battle.” These games generate an unbelievable mobilization by clubs and fans, and small local clubs celebrate as a title their stay in top divisions.

In a global analysis, it is clear that a system with promotion and relegation petition and increases the quality of the game. The incentives of such a system make sense. Nonetheless, U.S. Soccer Federation is hesitant to adopt such measure because of a main financial obstacle: MLS. The league charges absurdly high fees of $150 million per team’s entrance, generating profits for both MLS and U.S. Soccer Federation and encouraging them to keep the current model. In reality, the fees charged by the MLS are barriers to enter the market, avoiding petition and generating a discriminatory market, where teams are placed in divisions based on capital invested, not performance. The current U.S. soccer system is a clear example of crony capitalism, where the big authority (U.S. Soccer Federation) colludes with the big business (MLS) by giving them exclusive benefits — division 1 status without relegation — in exchange for increased profits.

Fortunately, this discussion has gained increased popularity in the past years. In 2017, Miami FC and Kingston Stockade (NY) — two lower division clubs — filled a claim at the Court of Arbitration for Sport (CAS) requiring a promotion/relegation system. They argue that FIFA (International Federation of Football) requires the implementation of such a system in countries affiliated to them. In fact, Article Nine of the FIFA Regulations for the Applications of Statutes says:

A club’s entitlement to take part in a domestic league championship shall depend principally on sporting merit. A club shall qualify for a domestic league championship by remaining in a certain division or by being promoted or relegated to another at the end of a season.

The case is still being processed at CAS at the present moment. In the meanwhile, U.S. Soccer Federation President Carlos Cordeiro refuses to make ment about this issue when asked, which generated a letter signed by over 100 lower division clubs requiring an open discussion about U.S. Soccer closed leagues system. However, these clubs have no bargaining power and the U.S. Soccer Federation has not demonstrated interest in having any kind of debate.

The United States is internationally known for its success in sports — by far the country with the most Olympic medals in history. However, in the world’s most popular sport it has not many things to be proud of. Without the same cultural prestige of American football, baseball and basketball, men’s soccer has been slowly growing in the country, but never had a significant plishment to boost popularity. The United States has never been in a World Cup Final — Uruguay with a population of 3.5 million has won it twice — and has not even qualified to the last World Cup played in 2018.

Of course, the adoption of the relegation/promotion system is not the only transformation needed and will not solve all the problems faced by American soccer. Nonetheless, it will create a petitive environment, increasing the quality of the game and making the sport more attractive to Americans. It is time for the U.S. Soccer Federation to take the lead and decide if it wants to continue pursuing a system that only seeks profit, or if it wants to develop the sport, transitioning to a world-wide model that promotes petition in the market. If the chosen answer is the first one, I am afraid that the “beautiful game” has lost its essence.

Featured Image: Home page photo published under Creative Commons Attribution-Share Alike 4.0 International:

Sounders FC vs Sporting Kansas City

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Who’s Afraid of Free Trade?
In answer to the query in the headline of this week’s Acton Commentary, “Who’s Afraid of Free Trade?”, I submit the following: the ecumenical movement. Note the following news item from Ecumenical News International: Church groups mount week of action to transform global trade Geneva (ENI). Faith groups have joined activists around the globe in calling for fair, equitable and just trade policies while urging churches to join a Trade Week of Action that seeks to promote alternatives to the...
Gandalf in Brussels?
French president Nicholas Sarkozy has mended the formation of a “Council of the Wise,” which would have the task of “elaborating proposals for the future development of Europe.” A recent survey by the Bertelsmann Foundation finds a lot of support for the idea in France, the UK, and Germany. I suppose there are various ways to read this. One, hinted at by the survey story linked above, is that people in the EU are uneasy about the direction Europe is...
Sixteenth Century Society 2007
I’m preparing to travel to Minneapolis later this week to present a paper at the annual conference of the Sixteenth Century Society, which is a major academic society focusing on the study of the early modern period. I’ll attempt to blog from the conference as I have opportunity and there is information of relevant interest to the PowerBlog audience. Posted after the jump is my tentative schedule, including which sessions I’ll be attending (full conference program is in PDF form...
Global Warming Consensus Alert: “Most Evidence Suggests the Contrary”
“Global warming doesn’t matter except to the extent that it will affect life — ours and that of all living things on Earth. And contrary to the latest news, the evidence that global warming will have serious effects on life is thin. Most evidence suggests the contrary.” The quote is from Dr. Daniel Botkin, professor emeritus in the Department of Ecology, Evolution, and Marine Biology at the University of California, Santa Barbara. I guess we can add him to the...
Are Public Schools a Bad Investment?
Besides my two years of living abroad in Egypt, I spent my entire elementary and upper school existence in the public schools. My experience with the public schools in Hawaii and Mississippi were rather atrocious. To read one experience I encountered in the public schools in Hawaii, check out this Acton blog post. Mississippi has a wonderful and generous culture, and the people have strong values. In fact, I love Mississippi. The state’s public schools, however, could often be described...
Francis Asbury & The Rise of American Methodism
Francis Asbury was so well-known in early America that letters addressed to “Bishop Asbury, United States of America” were delivered to him. During his life, Methodist Bishop Asbury (1745-1816) is said to have preached well over 16,000 sermons and traveled nearly 300,000 miles on horseback alone. The explosion of Methodism in the United States after the American Revolution, and during the Second Great Awakening is well documented in the history of the church. When Asbury arrived in the colonies, Methodists...
Belgium No More?
If you haven’t been following this story, now might be a good time to look into it – Belgium may be dividing into two separate entities sooner rather than later, with Brussels possibly ing an independent city-state in the process: Belgium is the host country for the EU project, and the bureaucrats in Brussels are terrified that the epicenter of European anti-nationalism may be about to break apart due to national differences. Also, free-market-oriented Flanders, where 60-percent of the population...
Top 50 Catholic High Schools Announced for 2007
Today the Acton Institute announced it fourth annual selection of theCatholic High School Honor Roll, the best 50 Catholic secondary schools in the United States. The purpose of the Honor Roll is to recognize and encourage excellence in Catholic secondary education. It is a critical resource for parents and educators that honors those schools that excel in three categories: academic excellence, Catholic Identity, and civic education. To see a list of the top 50 schools, as well as lists of...
Is Benedict XVI “The Green Pope”?
Kishore Jayabalan, the Director of Acton’s Rome office, took to the airwaves this morning on Relevant Radio’s Morning Air program to discuss recent media speculation about Pope Benedict XVI’s statements on the moral responsibility of Catholics to care for creation. Does this make Benedict “green”? Or is this simply a continuation of long-standing Vatican policy dating to the pontificate of John Paul II and prior? Kishore answers those questions and sheds light on how the Holy See approaches environmental issues...
The Religious Left and Class Warfare
In my three and a half years as a student at Asbury Theological Seminary, I encountered more anti-capitalist rhetoric than I may have experienced in my entire life up to that point. Before Asbury, I attended a state and secular university, Ole Miss, where socialist propaganda was largely out of fashion. Acton President Rev. Robert Sirico is quoted in a new piece titled, “The Religious Left, Reborn” by Steven Malanga. The article appears in the autumn issue of City Journal....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved