Introduction to Soccer League Structures: Global Overview
The model and structure of soccer leagues in European countries, South American countries, and the United States differ significantly. League structure, how the competition is fostered, the player pathways, etc., all vary significantly and affect how the game evolves in these regions.
Leagues are structured in a tiered promotion and relegation system in European and South American countries. Their status depends on their performance in major leagues such as the English Premier League and the German Bundesliga.¹Teams from higher divisions face relegation if they perform poorly; on the other side, teams from lower divisions can be promoted if they perform well. This system provides players with opportunities to advance through different levels, aiming to enhance the growth of all divisions in the league. This structure promotes a competitive environment that intensifies the league and contributes to positive growth. In this league, every match counts, and every team matters. Similar to this, in South America, the framework of the leagues is set up to promote competitiveness and growth. Teams that perform well in their domestic leagues then have the opportunity to participate in international tournaments. The UEFA Champions League, for example, showcases the best teams from various countries on a sizeable competitive stage¹. This fosters motivation and growth to perform well and improve and provides a common goal that links soccer globally.¹
In contrast, the United States' MLS uses a closed system and does not use the promotion and relegation system. Clubs in the United States enter the league by purchasing a franchise slot. ² Therefore, teams do not face the possibility of relegation. This approach is more financially driven and stabilizes the league's investors. The strength of this structure is that the MLS offers a unique and stable business model. However, this limits the competitive dynamics seen in other international systems and restricts opportunities for players and teams to rise through competitive levels. Different from the fluid movement in European and South American leagues, the United States system lacks the ability for teams to earn their place in the league through performance. Instead, the teams are stagnant and often remain at the same level, with no real incentive to win and improve. Even if a team struggles to perform, they remain in the same tier unless they can expand through financial investments. Simultaneously, a team that performs well also remains in the same tier, with no real incentive to continue winning. This alters the competitive landscape and potentially stifles the growth and competition within the league.²
If the MLS were to adopt a more hybrid system that was able to incorporate elements of promotion and regulation into their already existing framework, it would change the landscape of soccer entirely. In this hybrid structure for example, teams from high- performing USL, the second teir of American soccer, would be granted opportunities to move into the MLS, just soley based off of their performance. This form of a system would cause a sense of urgency and competitiveness into the league that would motivate clubs at all levels to strive for excellence. For lower-division teams, this could serve as a pathway to greater visibility and resources, while MLS teams would face increased pressure to perform consistently or risk losing their status. At the same time, the league’s financial stability, built on its franchise model, could be preserved by implementing promotion and relegation only for a limited number of spots or using performance-based entry criteria. For example, franchise owners could be guaranteed a fixed tenure in the league before becoming subject to potential relegation, or the system could focus on expanding the MLS by rewarding top-performing lower-division teams with new slots instead of replacing existing ones. This hybrid approach would blend the opportunity of promotion and relegation with the security of a closed system, and create a more dynamic league that appeals to both fans and investors.
Footnotes
"How is European Soccer Structured with Leagues and Cup Competitions?" Bundesliga, 2023, https://www.bundesliga.com/en/faq/what-are-the-rules-and-regulations-of-soccer/how-is-european-soccer-structured-with-leagues-and-cup-competitions-10568.
Goldblatt, David. The Ball Is Round: A Global History of Soccer. Riverhead Books, 2008; Murray, W. J. The World's Game: A History of Soccer. University of Illinois Press, 1996; Szymanski, Stefan, and Andrew Zimbalist. National Pastime: How Americans Play Baseball and the Rest of the World Plays Soccer. Brookings Institution Press, 2005.