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Cosmos COO Stover details NASL antitrust battle with U.S. Soccer

erik stover

By SBI SOCCER

New York Cosmos COO Erik Stover certainly pulled no punches in discussing the proposed NASL lawsuit against U.S. Soccer.

At a recent Cosmos fan gathering, Stover stated that he believes that there is “a fundamental problem in the way soccer is run in this country”. In addition, the Cosmos COO revealed details regarding the potential lawsuit against U.S. Soccer, who the NASL accuses of adding a series of new standards to prevent the league from attaining Division 1 status.

“How can we ever be first division if you keep changing the rules,” Stover asked fans at a viewing party in New York City last week, “and your committee is made up of nine people from the MLS, someone from the USL, three from the Women’s league and [NASL Commissioner] Bill Peterson? How can we have a fair opportunity to grow?”

“In a sense, this is a game of chess,” Stover added. “NASL made the first move. Now we’re waiting for U.S. Soccer to make the next move. Obviously, you’re trying to win the game, but how you win the game, you don’t necessarily know for sure. It will start when the lawyers sit to have a meeting, and then the leaders of NASL will have a better understanding of what the next move is and what they hope to get out of it.”

Stover added that recent reports of the lawsuit fail to “scratch the surface” of changes that the league hopes to see enforced, although he admitted he wasn’t at liberty to go too far in specifics. In particular, Stover revealed that the NASL is challenging the alliance that has developed between the USSF and MLS.

Stover cited what he sees as a “stacking” of the USSF board with MLS operatives, as well as the duo’s shared sponsorships and MLS’ larger cut of television money.

Stover, who previously worked in MLS as managing director of the New York Red Bulls, also scoffed at a rule stating that that a Division I league must have at least 16 teams, while 75 percent of the teams in the league must have a population of at least two million, up from one million. In addition, all stadiums must have a seating capacity of 15,000.

“For example, the Premier League would not be first division under U.S. Soccer’s rules because Bournemouth stadium is below 15,000,” Stover said of the requirement. “La Liga wouldn’t be first division because Eibar and one other stadium isn’t 15,000. These rules that keep changing, with number of teams and sizes of stadiums and sizes of cities, Athletic Bilbao wouldn’t be allowed into an American first division and it’s crazy. It’s changed and it’s changed every year for three years.

“It’s not so much that we’re making an argument for first division right now. What we’re saying is, ‘How can we ever be first division if you keep changing the rules?”

Citing the team’s clash with the Red Bulls, and comments from the opposing coaching staff in the aftermath, Stover said the product on the field is at a first division level. Yet, Stover added that the current label of “second division” is hurting the Cosmos financially while making it harder to operate as a club.

With attorney Jeffrey Kessler leading the charge, Stover says the NASL is ready for “a game of chess” with the higher powers of soccer in America.

“Our lawyer is as good as they come and he doesn’t take cases he thinks he has a chance of losing,” Stover explained. “Kessler beat the NFL with the Tom Brady deflategate thing, and not a little bit, he whipped their ass. This guy is good.

“He’s won cases like this before. He’s one of the most renowned attorneys in this country. Just putting his name on the letter sent to U.S. Soccer, we know for a fact, sent fear through people’s minds.”

Comments

  1. ““The financial damage is significant,” Mr. Kessler told the Financial Times. “Simply put, the actions by U.S. Soccer are hindering the league’s earnings potential with advertisers, broadcasters and other business partners, who will pay top dollar only for Division I, regardless of the quality of play or passion of the fans.”

    The NASL went on to claim that second-division sanctioning causes difficulties in securing accesses to world-class tournaments and refereeing, while also proving to be a deterrent in adding top players and owners.”

    NASL claims proposed U.S. Soccer rules prevent league from attaining Division I status
    http://www.sbisoccer.com/2015/08/proposed-attaining-division.html

    as SilverRey said, above, it is a “chicken-and-egg” argument, according to kessler.

    ===================================================

    my 2 cents:

    stover says, ““and your committee is made up of nine people from the MLS, someone from the USL, three from the Women’s league and [NASL Commissioner] Bill Peterson? How can we have a fair opportunity to grow?””

    it sounds to me like stover is saying, “I’m angry that mls stacked the ussf board with its buddies BEFORE I HAD A CHANCE TO STACK IT WITH MY OWN BUDDIES.” doesn’t it?

    if I’m mls, I’m putting all of my buddies in the ussoccer board. I’m using all of my resources to squash nasl like a bug.

    if I’m nasl, i’m doing everything I can to get d1 status and supersize my league.

    ————————————————–
    my predictions:
    mls remains d1 and on ussf board (in bed together)
    usl gets d2 (fruit of the usl-mls partnership)
    at best, nasl stays d2 or maybe it drops to d3
    (this lawsuit fails; usl-mls partnership flourishes more;
    perhaps more teams leave nasl, nasl drops to d3?)

    i like nasl, don’t get me wrong.
    i think mls’s owners have more money than nasl’s owners
    and i think nasl is about 10 years too late.
    what they are doing might have worked 10 years ago, but not now, imo.
    just sayin’.

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  2. I am reminded of the old SNL sketch called “Sprockets” where Mike Meyers, the host of a bizarre German talk show, suddenly turns to his guest and says, “Your story has become tiresome.”

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  3. From the comments on here, one would think we have abandoned the free market in the US and shifted to communist control of the economy. So, is USSF like the politburo now or something?
    .
    Side question, since mls is making money from the television deals of the US men and women NTs, is this money going to any other leagues to support soccer in the US, or is it just limited to mls? Have to admit, looks like USSF is only assisting one league.

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    • The free market is what is currently playing out, and NASL is finding out that they cannot compete in that market. Thus, their efforts to catch up some other way. The best product often squashes the lesser product in the free market. That is what we are seeing here.

      Questions for you that I asked someone else above:
      a. How is the USSF holding NASL back? If NASL has the best model, then go for it and become great. Nobody is stopping them from competing in the market.
      b. If NASL believes that promotion and relegation is the way to go, why aren’t they currently implementing it or making a plan to implement it? They do not have to have MLS to make this happen.
      c. Why should USSF treat MLS and NASL equally when they have a working relationship with one while the other is trying to ruin that relationship and wedge its way in?
      d. Why should the USSF treat MLS and NASL equally if they believe that the MLS model is the best for the sustainable growth of the game in this country, and the NASL model is not sustainable and jeopardizes the progress that has been made?

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    • that is such sensationalist BS. the NASL can spend however much they want and even before any of these rules, they didn’t. even with the rules, they can.

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  4. Forget about suing the USSF, if the NASL wants to be considered a Division 1 league, the owners need to put their money up and build real stadiums and sign better players. Nothing is preventing them from doing this, other than their own lack of resources. Division 2 status from USSF is a label, not a ceiling.

    And Stover may not know this, but this country has quite a few good lawyers, and I bet the USSF has hired one (or several) of them.

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  5. I’m a 37 year old New Yorker, huge USMNT fan, follow both MLS and EPL closely. No bone to pick with NASL for all of their ambition. But truthfully, I can name three players in that league: Raul, Senna, and Adu! Oh and Danny Szetela, right? Who else ya got? Can’t be division 1 with that band of stars!

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  6. I’m not sure how having two D1 leagues would benefit US soccer as a whole. Blame USSF/MLS collusion all you want, but NASL franchises are by and large in second tier markets, most of them have little history or fan following, they have barely any stadium infrastructure to speak of. They’re adding new teams, sure, but they’re going to lose Minnesota and likely the league-owned Atlanta franchise, and it sounds like the Edmonton team is close to folding as well. The D1 rules may seem somewhat arbitrary, but honestly the only way NASL qualifies is if you drop standards all together. Why not have a second D1 league with 10 or so teams in small (mostly regional) markets with well less than 5k in average attendance playing on turf in rented stadiums? Sounds like a recipe for success on and off the field right there!

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    • I would add though… would it really matter if NASL was awarded first division status as well? Would investors really put in more? Would national team players, top youth talents, international stars be any more likely to want to play there? Would it result in an any appreciable bump in attendance, or even a national TV contract? No.

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      • All of those reasons are exactly why they are doing this.

        Legally, not having Div I status does affect who will sign, what type of tv contract they can pull in, etc., but it’s a chicken & egg argument. They are arguing that they can’t get themselves to D1 w/o all those things.

        Basically they are too impatient and want everything now, instead of growing it.

  7. I think the point many of you miss is this. Had the USSF not made MLS the D1 league, FIFA would not have given the US the 94 WC. Many here forget or never knew that this was the condition in which the US would get a World Cup. So why would USSF now allow another D1 league an oppertunity when they have that position filled?

    Seriously, where were these NASL owners when the league was intially expanding? Portland, Vancouver, Seattle, San Jose, and Montreal all got the memo and switched. Now the Cosmos are bitching because they bought into a D2 league. Way I see, this could be the second time that the Cosmos kill the NASL.

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    • yup and NASL can complain all they want but in the end, they destroyed them selves the first go around and this time around they aren’t putting out a product that is better than MLS. it’s that simple. NASL may not have the “D1” label but they can build a league where they still average 20,000+ in attendance and play in soccer stadiums. they can build out teams who spend $25M+ in payroll. they can do all of these things to prove themselves.

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  8. agree that nasl can’t even think about D1 status – they can’t even beat D3 USL teams in the open cup – losing 7 straight! prove it on the field first people!

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  9. Whoever compared Eibar and La Liga to the current situation in the US don’t understand how soccer works. La Liga is not the same as the Spanish Soccer Federation. La Liga just like MLS can exclude teams based on size of the city or the stadium. La Liga is a private organization. The lawsuit here is against US Soccer which is not a private company, it is supposed to represent the best interest of US soccer, democratic and inclusive. However right now it seems to be a puppet of MLS, a pretty shady arrangement.

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  10. Good on Stover for saying it like it is. USSF has to seperate itself from its improper ties to MLS and be truly independant, then stop moving the goalposts to protect the MLS monopoly and give a level representation at USSF instead of a MLS heavy one thats clearly(except to the MLS/Usl fanboys) unfair.

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    • a. How is the USSF holding NASL back? If NASL has the best model, then go for it and become great. Nobody is stopping them from competing in the market.
      b. If NASL believes that promotion and relegation is the way to go, why aren’t they currently implementing it or making a plan to implement it? They do not have to have MLS to make this happen.
      c. Why should USSF treat MLS and NASL equally when they have a working relationship with one while the other is trying to ruin that relationship and wedge its way in?
      d. Why should the USSF treat MLS and NASL equally if they believe that the MLS model is the best for the sustainable growth of the game in this country, and the NASL model is not sustainable and jeopardizes the progress that has been made?

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    • the only good thing to come out of his comment is bringing forward (reiterating) how many MLS hands are in USSF. there should be relatively even representation, otherwise it screams COI.

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  11. ” Stover said the product on the field is at a first division level”

    Is he freakin’ out of his mind? NASL was 0-7 in the US Open Cup vs. USL.

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    • NASL’s beaten MLS and Usl clubs previous to that one day of poor showing – you overvalue and read way too much into the 3rd Div Usl Farm/affiliate leagues wins that day, 3 of which were very lucky and could have gone either way. Enjoy the 3rd divs few wins while you can though, it won’t happen again.

      In other usoc matches this year, New York Cosmos defeated MLS’s NYCFC and Edmonton took the MLS caps to the brink. MLS/Usl fanboys will spin that though like always.

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      • How is beating NASL’s teams spinning anything. You went 0-7! Now you are saying it will never happen again. Maybe win first then talk smack. Yes occasionally NASL teams beat MLS teams. You and I both know that they do not when MLS teams are playing their 1st string lineups. Consistently beat MLS teams fielding their 1st team lineups and I will call NASL equal or better.

    • No offence AB but pro/rel currently does not work as a business model in this country. It doesn’t work too well in others either to be honest. How is the lack of pro/rel holding soccer back domestically? Attendance continues to rise as well as the number of teams, as well as player salaries and TV contracts. The evidence I have seen goes completely against what you are stating.

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  12. Why is USSF under any obligation to make anything fair for NASL? Aren’t they an independent organization? What’s to prevent them from just having the rule for D1 status say, “Your league must be named MLS”? They still wouldn’t have any kind of monopoly on soccer in the US, as other leagues would be free to compete. So there couldn’t be any claim of anti-trust violation. This suit seems very bizarre, and SBI’s continuing coverage of it even more so.

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    • You just made the argument for NASL by what you said, “Why is USSF under any obligation to make anything fair for NASL? Aren’t they an independent organization?” Why does the USSF obligated to make decisions to benefit MLS. Aren’t they an independent organization?

      USSF highly favors MLS in all aspects of the national soccer scene. The USSF and MLS are supposed to be separate entities, yet the majority of the board are MLS affiliated, they share sponsorships and negotiate combined, and they continue to force MLS’ impression of what soccer should look like in America as the only way to operate. They helped MLS and USL reach agreement for developmental players, which by the way I think is fantastic for soccer.

      …but why hasn’t USSF tried to help NASL in similar ways? That’s the question that needs answering.

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      • USSF has an interest in growing the game in this country. Maybe they believe that the MLS model is the best way to grow the game, and the NASL model is not a good way (or as good of a way) to grow the game. Why should they be obligated to show equal treatment to two different ways when they believe that one is better than the other?

        To go deeper, why do they need to show equal treatment to two leagues when they have been working closely with one for 20+ years, and the other is brand new and has been trying to undermine the first one with whom they had an established relationship?

        NASL seems like they delusional and desperate. If they want to be big time, then follow the model that they proclaim is so much better and become big time. It’s almost like they are seeing reality and understand that there is no way to grow as big as MLS so they are trying desperate measures…

  13. The suit against the USSF will most likely be dismissed as they cannot show how the USSF requirements for a stadium size increase precludes their ascension to Division 1. Nor is the requirement unfair, as 22 teams in the MLS already meet it. The USSF is within it’s rights to close loopholes that would allow lower division teams, who do not meet requirements for Division one status, receive entitlements due to antiquated standards. They have no right to be “grandfathered in” under old requirements. I see no sense in a litigation strategy. The Cosmos and by extension, the NASL are not even a good Division 2 league. In reality, the NASL is looking for “go-away” money from the MLS and USSF to settle the suit. We all know that a litiginous or “troll under the bridge” strategy may appear to some to be succesful strategy, vis a vis, patent trolls, but if your depending on this to drive revenue streams to your leagues via more attendance and tv right, well good luck with that.

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  14. NASL has a point; not that they are deserving as D1 – they are clearly 2nd rate and not much better than D3 USL – but that MLS has an inequitable hold on USSF and are using their influence to eliminate NASL.

    Also how does MLS qualify as D1? Salt Lake, Columbus and San Jose metro areas are all under 2m.. I think the D1 qualifications should continue to rise in terms of club finances, stadia, club assets and abilities but the city you are located in should not determine your ability to fight at your highest level. – see Green Bay Packers, RSL, Portland Timbers, Lille in France, Gladbach is the 72nd largest city in Germany and smaller than Dayton OH, Munich isn’t even over 2m!

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    • Actually the San Jose metro area (which is actually the San Jose-Sunnyvale-Santa Clara metropolitan area) has a population of 2 million. Get your facts straight. San Jose is also the 3rd largest city in California, and the 10th largest city in the U.S.

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    • NASL have an inflated ego of themselves with little sense of reality but they do bring up good points. Like you I agree with your qualifiers except for the one about population. Also there should be a change in how the USSF board is set up.

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      • I have no issues with the stadium requirements-top division clubs should be playing in facilities that reflect the same. However the population requirement is infuriating…it brings up an alarming situation for US Soccer. I’m a US Nat Fan first and while MLS is a nice distraction, limiting exposure to only MLS size markets is a National Team killer-we need more teams and more academies playing younger players. MLS is business first and their priority is maximizing revenue not developing top national team players and if they are in bed with the USSF watch out national team fans; we could very well end up like our friends across the pond in England-great revenue generating league with a poor development/national team pool.

    • There are 7.7 million people in the San Francisco Bay area which is where the San Jose earthquakes draw from. It’s one of the biggest media markets in the country. Like the 49ers their stadium is in Santa Clara and like the 49ers they draw from the ENTIRE Bay area. From as far away as Fairfield, Walnut Creek, Marin County, San Francisco, Dublin.

      And this comparing things to tiny European towns is kinda pointless. Bournemouth is a less than 1/4 the size of Columbus, Ohio. And Columbus is a small market in the U.S. Town the size of Bournemouth, may not even be feasible to support a team.

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  15. Here’s my main problem with his complaint: Is he speaking on behalf of all of NASL or for NY Cosmos? I assume Cosmos are the deep pockets behind the litigation. For whatever reason, MLS decided not to invite Cosmos to the party several years ago and instead decided to start a second team from scratch. That decision always puzzled me, considering Cosmos is a global brand, but I figured MLS had a good reason for going with NYCFC instead.

    And so Cosmos is stuck in this ridiculous scenario of building a team that has some pretty decent players and acting like they’re hot stuff in the soccer world when, in reality, no one really cares about them. Apparently they finally realized this, and they want to throw a fit.

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    • What’s the evidence that Cosmos are a “global brand”? I sure haven’t seen any. How’d the USFL fare after their antitrust lawsuit against the NFL? Great right?

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      • There is a perception that if asked to name a US soccer team, that a majority of peeps around the world would name the Cosmos first. I don’t know if this has ever been backed with evidence. One could certainly argue, that most of the people who heard of the original Cosmos are quickly dying off and younger generations have never heard of the new Cosmos, unless passed down through campfire stories, hieroglyphs and emoticons by their ancestors.

      • I’d bet $10, more people are aware of the Galaxy than the Cosmo.

        Also I believe the reason the Cosmo aren’t in MLS is because they didn’t want to give up their independence in regards to branding and sharing potential $$$.

      • The Cosmos awareness does get passed down to the younger generation – a 20 year old at my work knew who they were from his parents and through reading internet info although he’s not a follower of the NASL (or MLS). He mainly follows Bundesliga.

  16. This could be soccer’s version of NFL / AFL merger in the not so distant future? Or … maybe a promotion / relegation setup between MLS / NASL with some type of revenue sharing? Or … I’m too caffeinated today?

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    • you’ll never see relegation in MLS because they don’t want it.
      Second, the two leagues have different business philosophies. The MLS want controlled spending something like the NFL that has parity and over a period every team has a chance to win. NASL and especially the Cosmos want unrestrained spending like in England because they think they can be the one dominant team forever. I don’t see them ever cooperating. And Relegation will NEVER happen. MLS has stated as much.

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    • are you suggesting an analogy, or an ad you see? I see an ad for Magic kingdom and one of Omar Gonzalez advertising trident with Spanish words. Both of these have an analogical relation to Stover, of someone immersed in fantasy and foreign concepts

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      • Because NASL decided not to cooperate with MLS and USL to build the soccer pyramid in N. America and instead decided to focus on trying to knock MLS off the D1 pedestal they’re now finding themselves being slowly suffocated by MLS and USL and consequently forced into this type of desperate legal frivolity. Stover/NASL=roaring kitten.

    • Who cares about the stadium size, La Liga would fail the 2 million population requirments. These rules are ridiculous and protect MLS from competition. Once you start noticing that many MLS stakeholders occupy various key positions at the USSF, it does not look pretty.

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      • the only thing sketchy is DISPROPORTIONATE number of MLS stakeholders in key positions of the USSF. it smells bad.

        that all said, needing a certain % of teams in a market with a metro population of 2 million in the US isn’t that ridiculous. clearly NASL does not have a problem if that number is 1 million. so the idea behind this parameter is not the problem, they just don’t like the number. in any event, the rule does allow for a certain % outside of that number so teams in markets like Green Bay (to make an NFL comparison) are given a fair shot.

        i also don’t get the claim that MLS is protecting itself from competition. NASL is not providing any sort of legit competition. NASL needs to have a lot in place to be a TRUE competitor of MLS. so this rule, at least for the foreseeable future, is not actually the real problem.

      • Even if the NASL only controls 1/4 of the US soccer American landscape compared to MLS they still provoke MLS to provide a more quality product for the fans at a lower price in order to maintain their dominance.

        MLS wants to corner the market so they control everything and anything soccer based in the US which will only lead to more expensive product for fans.

        Ticket prices will be raised, the stadium experience will more expensive and even merchandise.

        Competition is better for the consumer Its an old adage that will always hold true

      • how are they being prevented from doing that (providing a quality product at a lower price) as a D2? i mean, that is essentially the entire point of lower divisions. to see less quality for less money…

        in a typical business i would agree that competition is better. but this is sports and is not the case in ANY country for ANY sport. EPL is D1, so it’s more expensive than the Championship. Bundesliga is D1 and more expensive than 2.Bundesliga. so how is MLS being more expensive than our D2 any different?! D1 means higher expenses. to cover those expenses, pricing is going to be higher. this isn’t some crazy idea. it’s the reality!

        D1 will ALWAYS be the place to see premier athletes play in whatever sport. and no matter the sport, there is a single “premier” division in any country. that’s just the model sports work off of.

      • You insist that one is the second division and the other the first, but the truth is that the only reason MLS is deemed the fist is because of their inter twining with USSF and their effort to corner the market The reality is that the NASL has always rejected the title because they don’t see themselves as a second division league but a competitor equal to MLS, even though they are much smaller.

        They have no competing teams in any city besides ones where they believe a legitimate foothold can be had like NYC or Miami because of their unwillingness to share a market and grown they brand. Recruiting teams and players has become a common cause for MLS (the latter for the NASL) because of the need to grow or maintain their brand, which only further emphasis my point that the they see themselves as rivals

      • Maybe MLS is considered first division because when it began there was NO OTHER division. With the A league recently folding, NCAA would have been considered D2 in 1996.

        MLS did the hard work and went through the rough times. The league is finally starting to bear some of its fruit. But NASL should just be able to waltz right in and be on level ground?

        The histories of the two leagues should be examined too. MLS has been a wild success under one system. NASL failed miserably under the opposite.

      • “the truth is that the only reason MLS is deemed the fist is because of their inter twining with USSF”

        that’s not even remotely true and shows your disregard for the history of our leagues.

        FIFA required a league be started in order to have the World Cup and the A-League (1995), which was formed from the old APSL (1990), was the D1 league but was not on solid footing. there was no NASL at that time and there was no desire from investors to resurrect it. So MLS (1996) was created instead and the United States Interregional Soccer League (USISL, 1990) was determined to be the D2 league (along with the APSL) and the name changed to United States International Soccer League in 1995. That, of course, was then split into two divisions itself…one pro (Professional League) and one semi-pro (Premier Division). From there they created the Select League in 1996. All of that, coupled with the announcement of MLS, meant that the USISL and APSL were competing for D2 and it was hurting both. So they merged with the USISL Select League in 1997 to form the USISL A-League which was considered D2. Then, in 1999 USISL renamed itself USL and the USISL A-League renamed itself the USL A-League. In 2005, the USL A-League turned into USL First Division and the USL Second Division started going by that name (prior to that name, it had many names over the years).

        So 10 years after the WC, NASL is still completely irrelevant. It wasn’t until 2009 that NASL should up again and in doing so, grabbed D2 from USL First Division. that did not go over so well so in 2010 the USSF Division 2 Professional League was created. after that, NASL ended up winning the “D2 battle” over USL. so in 2011 the USL settled for D3 which also resulted in them merging their D1 and D2 teams into a single league, USL Pro. not very pro/rel supportive of NASL…

        To this day, USL remains D2, NASL D2, and MLS D1. In other words, the incredible number of mergers and constantly changing landscape of all those leagues, in addition to FIFA sanctions, meant MLS needed to be created under FIFA standards. They complied and as such, USSF gave them D1.

        “The reality is that the NASL has always rejected the title because they don’t see themselves as a second division league but a competitor equal to MLS, even though they are much smaller.”

        NASL, in 2009 certainly did not reject D2. They even went on to fight USL as I described above. A fight that meant an entirely new/temporary league needed to be created for that year…

        “They have no competing teams in any city besides ones where they believe a legitimate foothold can be had like NYC or Miami because of their unwillingness to share a market and grown they brand.”

        Again, not true. The cities NASL are targeting right now, and this report came out just THIS week, are cities where MLS teams are but the stadium is in the suburbs. NASL sees an opportunity there. And that’s fair because MLS has taken NASL teams.

  17. Great, I never viewed them as second division, make them first too

    But what does that mean? CCL spot?
    Come on, I love NASL, but that is wrong to believe that is deserved.

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    • sounds like he stood up. If he can’t get division 1 status, he should form two new teams in Canada- Quebec &Hamilton. He then can pay off whoever necessary to gain division status in Canada for the then 4 Canadian teams in NASL.

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