KKR Invests in MLS NEXT Pro Through New Platform, Hometown Soccer Holdings
Event summary
- KKR is making a strategic investment in MLS NEXT Pro through a newly formed platform, Hometown Soccer Holdings (HSH).
- HSH will be led by Tom Glick (former Manchester City and Charlotte FC executive) and Chris Klein (former LA Galaxy President).
- KKR is deploying capital from its Ascendant Fund, part of its Americas Private Equity platform, with a track record of nearly $9 billion in sports investments since 2010.
- MLS NEXT Pro currently consists of 30 clubs, 27 MLS affiliates and 3 independent teams, with four additional independent teams joining in 2027.
The big picture
This investment signals a significant shift towards professionalizing the lower tiers of the U.S. soccer pyramid, mirroring the capital-intensive development models seen in European leagues. KKR’s $9 billion sports investment portfolio demonstrates a belief in the long-term growth potential of the sector, and this deal provides a platform for further expansion and commercialization of MLS NEXT Pro, particularly in anticipation of the 2026 World Cup.
What we're watching
- Market Expansion
- The success of HSH will hinge on its ability to identify and cultivate viable markets for MLS NEXT Pro teams, given the capital-intensive nature of stadium development and brand building.
- Execution Risk
- The combined experience of Glick and Klein is a positive, but the execution of HSH’s strategy – balancing centralized control with local market nuances – will be critical to its success.
- Governance Dynamics
- The structure of HSH, as a joint venture between a private equity firm and a major sports league, will require careful navigation of potentially conflicting priorities and long-term strategic goals.
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