MLS's Closed League Structure Differs from Mexico's Promotion Fight
Five Mexican expansion clubs have appealed to the Court of Arbitration for Sport over the decision to keep Liga MX closed to promotion and relegation. The MLS has maintained a closed system since 1996, and a previous CAS ruling upheld it, but that precedent relies on the fact that MLS never had promotion and relegation. The Mexican clubs argue that the suspension of promotion was temporary and should be restored.
The CAS ruling that protected MLS in 2020 hinged on the league's historical status: it had operated as a closed system since its 1996 founding, so FIFA's merit-based promotion principle was not interpreted as applying retroactively. Mexico's situation differs because Liga MX traditionally featured promotion and relegation before the temporary suspension was enacted.
The current dispute centers on whether the suspension, which a prior CAS ruling determined covered seasons through 2025-26, should now expire and restore the traditional system. Club president Giovanni Solazzi emphasized that a second-division team's value derives from the possibility of reaching the top flight, suggesting the financial stakes extend beyond sporting competition.
This dispute could reshape the competitive and financial landscape of Mexican soccer. If the clubs prevail, Liga MX would face structural changes affecting team valuations, investment decisions, and fan engagement across lower divisions. Conversely, a closed system may provide stability for existing top-flight clubs but could diminish incentives for smaller-market teams and reduce the drama of promotion battles that traditionally draw fan interest.