KKR Makes Strategic Investment to Accelerate Growth of MLS NEXT Pro
π€ Major League Soccer (MLS) and global investment firm KKR have formed Hometown Soccer Holdings (HSH), a new joint platform to drive growth for MLS NEXT Pro.
π HSH is designed to serve as the commercial engine for MLS NEXT Pro, supporting stadium development and creating new club brands in underserved communities.
β½ The partnership aims to enhance fan experiences through high-energy matchday environments at venues with distinct local identities across the U.S. and Canada.
π Hometown Soccer Holdings will be led by Tom Glick as CEO and Chris Klein as President, bringing extensive experience from clubs like Manchester City FC and LA Galaxy.
π MLS NEXT Pro has seen significant player development success, with 255 players advancing to first-team MLS contracts since its inaugural 2022 season.
ποΈ The league currently operates with 30 teams in the 2026 season, including 27 MLS affiliates and three independent teams, with four more independent teams launching in 2027.
π Commissioner Don Garber stated the KKR investment strengthens player development across North America and reflects ambition to expand into new markets.
πΌ Ali Curtis, President of MLS NEXT Pro, highlighted that the partnership supports short- and long-term growth objectives on and off the field ahead of FIFA World Cup 2026.
π― Ted Oberwager from KKR emphasized combining centralized technology infrastructure with local execution to build long-term value for clubs.
π° KKR has committed nearly $9 billion to the sports sector since 2010 through its Americas Private Equity platform, including investments in digital gaming and media.
ποΈ HSH will collaborate with municipalities and civic leaders to develop new soccer stadiums that serve as anchors for professional soccer in their communities.
π’ Tom Glick noted that the platform's goal is expanding access to the game and investing in communities that support them.
π Future MLS-affiliated clubs joining the league in coming years include Forest City Cleveland, Jacksonville Armada FC, AC Grand Rapids, and The Island FC.
ποΈ Andalusian Sports Advisors acted as financial advisor to KKR and HSH, while Kirkland & Ellis LLP provided legal services for the investment.
βοΈ Moelis & Co. LLC served as financial advisor to MLS, with Proskauer Rose LLP acting as their legal advisor for the partnership.
- KKR announces a strategic investment to accelerate growth of MLS NEXT Pro, forming Hometown Soccer Holdings with seasoned executives Tom Glick and Chris Klein.
- The partnership serves as a commercial engine supporting stadium development in new communities, creating new club brands, and enhancing the fan experience at high-energy matchday environments.
- MLS Commissioner Don Garber highlighted that this investment will build and grow MLS NEXT Pro, expand into new markets, develop soccer-specific infrastructure, and elevate the matchday experience.
- Since its 2022 debut, MLS NEXT Pro has become a critical part of the ecosystem with 255 players signing first-team contracts in MLS and is expanding to 30 clubs starting in 2027.
- The timing aligns with FIFA World Cup 2026 in North America, strengthening the league's short- and long-term growth objectives both on and off the field.
- KKR's Ascendant Fund brings nearly $9 billion committed to sports since 2010, reflecting conviction in sports as a durable and growing global business.
- HSH will pursue development of new soccer stadiums designed to deliver best-in-class fan experiences and serve as long-term anchors for professional soccer in their communities.
- The platform aims to expand access to the game, investing in communities that support it, and bringing professional soccer closer to more fans across the country.
- Additional MLS-affiliated and independent clubs such as Forest City Cleveland, Jacksonville Armada FC, AC Grand Rapids, and The Island FC will join in the coming years ahead.
- KKR partners bring extensive experience including Manchester City FC, New York City FC, Charlotte FC, and Chelsea FC, ensuring strong local execution and modern operating models.
- This strategic partnership creates future-forward sports and entertainment experiences that build long-term value and strengthen fan connections.
- The collaboration supports disciplined investment to help clubs expand into new markets and prepare the next generation of talent for success in MLS and beyond.
- The partnership relies on the Ascendant Fund from KKR's Americas Private Equity platform, suggesting potential reliance on specific private equity structures that may face regulatory scrutiny or fundraising challenges.
- HSH plans to work with municipalities and civic leaders for stadium development, introducing significant execution risk given the history of failed stadium projects and local opposition in many U.S. markets.
- The article mentions additional clubs will join in the 'years ahead,' indicating a prolonged and uncertain expansion timeline that could delay expected growth returns.
- KKR's investment is described as being through its Ascendant Fund, which may imply an earlier-stage or higher-risk venture capital approach compared to traditional private equity stability.
- The reliance on 'best-in-class fan experiences' and 'modern, scalable operating models' for new communities highlights a premium cost structure that could make these new clubs vulnerable to underperformance if market adoption is slow.