Full Breakdown
MLS and KKR Launch Hometown Soccer Holdings to Accelerate MLS NEXT Pro Growth
5/1/2026, 5:22:16 PM
Strategic Partnership Overview
Major League Soccer (MLS) and private-equity firm KKR announced the creation of Hometown Soccer Holdings (HSH), a joint venture that will serve as the commercial engine for MLS NEXT Pro. The partnership will centralize venue, ticketing, sponsorship, merchandising and other revenue-generating functions for participating clubs, while MLS clubs retain control of player-related operations. HSH will also spearhead the development of new soccer-specific stadiums in mid-size markets and the creation of distinct club brands.
Background and Rationale
MLS NEXT Pro launched in 2022 as a Division III development league linking MLS academies to first-team rosters. In its first five seasons the league has grown to 30 clubs (27 MLS affiliates, three independent teams) and produced 255 MLS first-team signings. The league’s owners approved the joint venture after months of discussion, seeing an opportunity to commercialize clubs that have historically operated as cost centers. The timing aligns with the 2026 FIFA World Cup, which MLS cites as a catalyst for expanding fan reach.
Leadership and Stakeholders
HSH is led by Tom Glick (CEO), former chief commercial officer of City Football Group and former president of New York City FC, and Chris Klein (President), a former MLS player and 12-year LA Galaxy president. MLS Commissioner Don Garber and MLS NEXT Pro President Ali Curtis endorsed the deal. KKR’s involvement is represented by Ted Oberwager, partner overseeing the firm’s gaming, entertainment, media and sports verticals.
Deal Structure and Financial Scope
The joint venture is a 50-50 partnership between MLS and KKR, with equity percentages expected to shift as additional capital is deployed. Specific financial terms were not disclosed, but Sportico reports an estimated $150-200 million in cash and equity components, including guaranteed operating losses. KKR’s broader sports portfolio totals nearly $9 billion in commitments since 2010 and includes high-school sports media (PlayOn), Varsity Brands, and the $1.4 billion Arctos Partners acquisition.
Operational Model and Market Expansion
HSH will own commercial rights for participating clubs, offering an optional “outsourced” model for MLS affiliates. Clubs that opt in retain soccer-operations control while HSH handles venue management, branding, ticketing, sponsorship and merchandising. The venture plans to build 6,000-8,000-seat multipurpose stadiums in markets lacking MLS franchises, citing examples such as the $88 million Mansfield, Texas stadium for FC Dallas’s North Texas SC and the $175 million Grand Rapids venue. HSH expects to launch several new teams each year, using a “unified platform” rather than retrofitting existing assets.
Impact on Player Development and U.S. Soccer Landscape
Centralized commercial resources are projected to increase revenue streams, enabling more robust player development pathways and broader geographic reach. By expanding into untapped markets, HSH aims to create local fan bases, stimulate economic activity, and strengthen the overall talent pipeline feeding MLS and national teams. The partnership is described as an “accelerant” for the league’s development program.
Official Statements
MLS officials emphasized that the partnership will deepen community connections, expand into new markets and enhance matchday experiences. KKR highlighted its “scale capital, sports expertise and long-term horizon” to build sustainable club value. HSH leadership framed the venture as a means to bring professional soccer to cities that “deserve a club of their own,” fostering local pride and economic impact.
Verbatim Quotes
- “Having KKR as a strategic partner is a significant step forward for MLS NEXT Pro and will strengthen player development across the U.S. and Canada,” — Don Garber, MLS Commissioner
- “This investment will contribute to our league’s broader trajectory; it strengthens our ability to provide more opportunities for players, expand into new markets, and to continue building a competitive professional environment that prepares the next generation of talent for success in MLS and beyond.” — Ali Curtis, President, MLS NEXT Pro
- “We believe that combining centralized technology infrastructure, strong local execution, and disciplined investment can help clubs strengthen fan connections, build long-term value, and create future-forward sports and entertainment experiences.” — Ted Oberwager, Partner, KKR
- “We believe every city deserves a professional club it can call its own, one that inspires local pride and contributes meaningful economic impact.” — Tom Glick, CEO, HSH
- “We think there are really good partnerships that can be built like this with soccer-first, multipurpose venues that are busy, vibrant parts of their communities where professional soccer and other sports and other live events are also happening,” — Tom Glick, CEO, HSH
Conflicting Reports and Information Gaps
Sources differ on the precise financial magnitude of KKR’s commitment: MLS announcements label the terms “undisclosed,” while Sportico estimates $150-200 million. The number of clubs that will ultimately opt into HSH’s commercial model remains unspecified, with MLS officials declining to provide an exact figure. Additionally, the joint venture does not currently include the three independent MLS NEXT Pro clubs, though future expansion to additional unaffiliated teams is mentioned.
Upcoming Milestones
HSH plans to announce initial stadium projects and new club brands in the coming months, with a phased rollout targeting several new teams per year. Municipal outreach for publicly funded stadiums is ongoing, and further details on equity adjustments and additional market entries are expected as the partnership matures.
