MLS rejected $4 billion deal which wanted promotion/relegation

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Major League Soccer has confirmed it brushed aside a $4 billion TV deal which insisted on promotion and relegation coming into place in North America’s top-flight.

A report from the Sports Business Journal stated that the owner of NASL side Miami FC Riccardo Silva gave a presentation to the league and owners on June 26, offering a 10-year deal for the domestic and international TV rights from 2023 with one clause: promotion and relegation had to become commonplace in MLS.

Of course, Silva, who founded the media company MP & Silva who put in the bid, would love for there to be promotion and relegation in MLS as his team cannot currently rise above the second-tier NASL.

Jeff Carlisle from ESPN has the following statement from Dan Courtemanche, MLS executive vice president of communications.

“As was stated to Mr. Silva both in person and in a subsequent letter, Major League Soccer is prohibited contractually from engaging in discussions about our media rights with other distributors. We are not in a position, nor are we interested, in engaging with Mr. Silva on his proposal.”

“It is also important to note that since its inception, MLS, like the other North American leagues, has dealt directly with its domestic broadcast partners, rather than through agents and brokers. This ensures that the league and its partners can structure an agreement that addresses all elements, such as scheduling, marketing and digital distribution, that are required for a successful partnership.”

This deal would quadruple the current annual TV deal MLS has with Fox, ESPN and Univision, but it has been stated that no new deal can be discussed until at least 2021.

With cities across the U.S. and Canada lining up to pay the $150 million MLS expansion fee, league commission Don Garber has stated multiple times that promotion and relegation is not needed in the U.S. Soccer pyramid.

With USL and NASL now both second-tier, the only way they can become a top-tier franchise is by buying into MLS with two markets set to be selected later this year from 12 current expansion bids, plus David Beckham’s franchise in Miami still pushing ahead with plans to join the league.