The USL's planned three-tier system with promotion and relegation presents a significant challenge to MLS's traditional model, potentially reshaping the landscape of American soccer.

FIFA President Gianni Infantino is advocating for Major League Soccer (MLS) to adopt a promotion and relegation system, a standard practice in global soccer leagues, arguing it could enhance competition within the league.

However, MLS owners are concerned about the financial risks associated with relegation, as it could devalue franchises and deter investors who expect guaranteed top-tier status.

Currently, MLS operates as a closed league, similar to the NFL and NBA, with franchise fees exceeding $500 million, which discourages owners from supporting the risk of relegation.

Critics argue that MLS clubs lack the cultural roots necessary to survive relegation successfully, unlike traditional European clubs that thrive under competitive pressures.

The potential success of the United Soccer League's (USL) promotion and relegation model, set to be introduced by 2027, could force MLS to reconsider its structure, highlighting an urgent need for adaptation.

Despite MLS's current stability, with over 11 million attendees in 2024, a 2016 study indicated that 88% of U.S. soccer fans support the idea of promotion and relegation, suggesting a desire for increased stakes in the sport.

Infantino points to Wrexham AFC's remarkable rise from non-league to England's Championship, driven by celebrity owners Ryan Reynolds and Rob McElhenney, as a compelling example of how promotion and relegation can inspire underdog stories in soccer.

Wrexham's value has skyrocketed from $2.55 million in 2021 to an estimated $191 million by April 2025, marking a staggering 7,400% increase due to their successive promotions.

Despite Infantino's optimism that soccer will surpass all other U.S. sports in popularity within three to five years, a 2025 poll shows only 14% of Americans currently follow soccer, indicating skepticism about this prediction.

In a 2025 interview, Infantino emphasized the need for dialogue about changing the league structure, stating, 'It has to change... it must be discussed with common sense and a dialogue in a positive spirit.'