How MLS Works | A Complete Guide to Major League Soccer

How MLS works

Major League Soccer (MLS) is one of the fastest growing football competitions in the world, but its structure is quite different from European leagues. Unlike the Premier League or La Liga, where teams operate independently and fight to avoid relegation, MLS follows a franchise model with salary caps, playoffs, and unique roster rules. Understanding how MLS works is essential for new fans and even experienced football followers who want to know about the league’s system.

MLS Structure and Format

MLS consists of teams divided into two conferences, Eastern and Western. Unlike the traditional European league format where teams play a round-robin season and the one with the most points (3 for a win, 1 for a draw and 0 for a loss) wins, MLS follows a regular season + playoffs system.

How MLS works
The 2025 MLS clubs

The regular season runs from late February to October, with teams playing a mix of conference and inter-conference matches, to ensure variety and competitive balance across the league. Points determine the standings and the top 8 teams from each conference qualify for the MLS Cup Playoffs, which take place from October to December.

The playoff system is what makes MLS unique. Instead of a single league winner, teams compete in an elimination-style knockout tournament, resulting in the MLS Cup final, which determines the league champion. This system keeps things exciting until the very end, as even lower placed teams have a chance to win it all.

How MLS works
The LA Galaxy squad after winning the MLS Cup final in 2024

To add even more competition, MLS introduced the Supporters’ Shield, awarded to the team with the best regular season record. However, most teams and fans value winning the MLS Cup more.

How MLS Teams Acquire Players

SuperDraft and Homegrown Players

Unlike in Europe, where young players rise through club academies or get signed by any team, MLS has a SuperDraft system, inspired by American sports leagues like the NBA and NFL. Each year, teams select top college players, with weaker teams getting earlier picks to promote parity.

Alongside the draft, MLS clubs also develop talent through homegrown players, who come from their academies. These players often sign professional contracts with their hometown teams without going through the draft. Some notable MLS homegrown stars include Alphonso Davies and Ricardo Pepi.

How MLS works
Ricardo Pepi playing in the MLS for his boyhood club FC Dallas

Transfers and Free Agency

Transfers in MLS work differently than in most leagues. While clubs can buy and sell players like in Europe, the league technically owns all player contracts, which means negotiations involve both teams and MLS itself.

MLS has also introduced a limited form of free agency, allowing experienced players to move within the league once their contracts expire. However, free agency rules are much stricter than in Europe, where players have more freedom to negotiate with clubs of their choice.

MLS Expansion and Franchise System

One of the most distinctive features of how MLS works is its franchise model. Unlike most football leagues that have a fixed number of teams with promotion and relegation, MLS expands by adding new franchises, similar to the NBA or NFL.

When a new city wants a team, investors must pay an expansion fee to join the league. Recent expansion teams include St. Louis City SC, Inter Miami and San Diego FC. The number of MLS teams continues to grow, with the league aiming to expand beyond its current 30 teams.

How MLS works
San Diego FC CEO and sporting director presenting the new MLS club in their stadium

While MLS expansion has increased the league’s popularity and financial power, some fans argue that how the MLS works, with the lack of promotion and relegation limits competition. Unlike in England or Spain, where lower-league teams can rise to the top division, MLS is a closed league where teams cannot be relegated.

How MLS Differs from European Leagues

The biggest difference between how MLS works vs European leagues is the structure. Most top leagues in Europe have a single-table format, where the team with the most points at the end of the season is crowned champion. In MLS, the playoffs decide the winner, meaning a team could finish 7th in the regular season and still win the MLS Cup.

Another major difference in how MLS works is the lack of promotion and relegation. European leagues allow teams to move between divisions based on performance, while MLS remains a fixed league with expansion teams joining through investment rather than sporting prestations.

Financially, MLS operates under a centralized system where the league, rather than individual clubs, owns player contracts. This prevents financial dominance by a few clubs, as seen in the Premier League, where teams like Manchester City and Chelsea can outspend their rivals.

However, MLS is starting to attract bigger stars and increase competition. With the arrival of players like Lionel Messi and Sergio Busquets, the league’s reputation is growing, and it could eventually close the gap with Europe’s top leagues.

How MLS works
Ex FC Barcelona stars playing for Inter Miami in the MLS

Conclusion

MLS is a unique and rapidly growing league with a different structure than traditional football leagues. Its playoff format, franchise expansion, and player acquisition rules make it stand out from European football. While some aspects of the league remain controversial, such as the lack of promotion and relegation, MLS continues to evolve and attract top talent from around the world.

As the league expands and more international stars arrive, MLS could become one of the most exciting football leagues globally. Whether you love the system or prefer the European model, one thing is certain, MLS is here to make their name. We hope you have a better understanding on how MLS works after reading our blog!

What do you think about How MLS Works? Do you prefer its format, or do you think it should adopt a European-style system? Let us know in the comments or join the conversation on Instagram! If you like to read more of our blogs, check out our blog archive!

Tags:

No responses yet

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top