Why MLS clubs are finally choosing youth over fading stars

The MLS used to rely on aging European stars to drive interest. Now a wave of homegrown talent is driving the league’s growth.

The surge of MLS graduates making their mark in Europe’s top five leagues is no coincidence. Last season, former Vancouver Whitecap Alphonso Davies reached the pinnacle of club soccer, lifting the Champions League trophy in a treble-winning season at Bayern Munich. Along the way, the Canadian international collected a number of individual accolades, featuring in the UEFA Champions League Squad of the Season as well as being named Bundesliga Rookie of the Season.

But Davies’ success is just the tip of a growing MLS iceberg making waves across the Atlantic and it’s thanks to a shift in policy which now looks to develop the players of tomorrow rather than accommodate Europe’s aging stars.

From 2007, the MLS invested heavily in European stars and moderately in its youth but when competition emerged from China the balance shifted. Since its inception in 2004, the Chinese Super League has followed a similar commercial strategy to the MLS, attempting to sign older European stars to increase the commercial value of the league. Since the Super League had extensive financial backing from the Chinese government, MLS clubs began to be priced out and were forced to look locally to develop young players of their own.

Europe’s first Major League link was established with the highly publicized signing of David Beckham from Real Madrid. At the age of 32, Beckham was entering the final stage of an illustrious career but was the league’s first high-profile signing, eventually followed by the likes of Rooney, Kaka and Pirlo.

At the time of Beckham’s transfer, the MLS was quietly investing in its future by creating pathways for young players to move from academies into first teams. In 2007, U.S. Soccer introduced the development academy, a youth league that aimed to increase the amount of competitive soccer being played throughout the country and nurture talent that might otherwise go undiscovered. It was a league set up that helped young talents like Alphonso Davies and Christian Pulisic secure transfers to Europe and develop into world-class players.

The investment being made wasn’t exclusively financial, the Homegrown Player Rule introduced in 2008 allowed MLS clubs to sign players from their own development academies. While it’s common practice in Europe, it was a break from the traditional system in American sports whereby players are assigned via a draft system. This change gave clubs an incentive to invest in their academies, knowing they would reap the benefits of the players they developed. It also showed that the MLS was keen to develop a league that would compete with those in Europe, following a model that would ensure the MLS wouldn’t become detached from world soccer.

In the 2010s, talented young players were moving through the ranks of the American soccer system. As a result of structural changes, the pathways from grassroots to academies and beyond were being cleared of obstacles. When Beckham signed for the LA Galaxy, Alphonso Davies was at Edmonton Strikers while Christian Pulisic was on the cusp of a move to the PA Classics. With both in their formative years, they would go on to make the most of improved academy setups.

Even though the balance has shifted, expensive signings continue to be a feature of the MLS and from a commercial perspective, they hold significant importance. In the MLS, television rights aren’t such a lucrative form of revenue compared to established leagues in Europe. According to CNBC, the MLS’s current deal generates approximately $90 million per season, meanwhile, Europe’s four biggest broadcast deals generate over €1 billion each. In order to drive the value of these deals up, viewing figures are important and even though many signings are in their twilight years, they are still capable of that little bit of magic that entices new soccer fans.

For a while the Chinese Super League and the MLS looked to be on the same trajectory but it soon became clear that the market for European players on the quest for one last big paycheck wasn’t big enough for both of them. According to DW, in 2016 alone the Chinese Super League spent €470 million on transfers. It was an expansion backed by soccer fan and Chinese President, Xi Jinping, who has set ambitious targets for soccer in China aiming to become a soccer world superpower by 2050.

They were priced-out from a number of transfers but the MLS had a platform to build on at the youth level, as well as players coming through that could command significant transfer fees in the near future.

Despite the wage bill, Europe’s biggest stars sell shirts, tickets and increase the exposure of Major League Soccer. However, the MLS has recently found a new source of revenue in player sales. When Alphonso Davies became the most lucrative sale in MLS history on Jan. 1 2019, eyes were opened to an alternative way to generate money. With an initial fee of $13.5 million rising to $20 million with add-ons, it was enough to make the European football world sit up and take notice.

Prioritizing youth and development is paying dividends for the MLS in several ways

After securing transfers to Germany in 2019, Tyler Adams and Alphonso Davies have established themselves in the Bundesliga and this is a trend that looks set to continue. Brenden Aaronson, one of the United States’ most promising young players has agreed to join RB Salzburg from Philadelphia Union in January 2021 for an initial fee of $6 million, potentially rising to $9 million.

Inevitably, with a group of promising young players, American soccer fans will also have one eye on the national team which is due for a resurgence after success in the early 2000s. With Sergino Dest and Weston McKennie securing transfers to Barcelona and Juventus respectively, the USMNT’s best young players are gaining valuable experience alongside serial winners.

For an emerging league, success at the international level is invaluable, as Landon Donovan noted after a successful 2002 World Cup Campaign, “it certainly put MLS on the map.” After 20 years firmly “on the map,” the USMNT could be a catalyst for further domestic growth after Qatar 2022.  The MLS will be hoping that a deep run by a promising group of young players can inspire the next generation.

With youth investment proving successful, the MLS continues to support clubs in their own attempts. In April 2019, the league announced it would adopt FIFA’s Regulation on the Status and Transfer of Players (RSTP). This allows clubs who develop players who move on to other clubs the opportunity to recoup a fair sum of money. Solidarity payments rule that five percent of a player’s transfer fee be paid to clubs responsible for the player’s development if they are transferred before the end of their contract. Transfers between countries are also subject to training compensation which covers development costs for the selling club.

These new regulations exist as incentives for US academies to continue to develop players with the peace of mind that they will be compensated adequately if they eventually leave.

On top of financial aid, the MLS is also working hard to provide a competitive environment for young players. The MLS Next competition that launches in 2020 and replaces the U.S. Soccer Academy will cover under-13 to under-19 age groups. The leagues feature 489 teams including MLS and non-MLS academies and give young players from across the country access to quality coaching, facilities and competition.

Major League Soccer is set for further expansion and will comprise 30 teams by 2023. Each new team brings more opportunities to discover and nurture talented young players. With a proven formula, the MLS has shifted focus and gained a reputation for producing young players. The future is bright for Major League Soccer’s next generation