MLR – August 2025 Updates

MLR’s 2026 Season: What Two Team Dropouts Mean for the League

It’s a bit of old news now but New Orleans have announced they won’t compete in MLR 2026 and the two California franchises LA and San Diego have merged to form the California Legion, so down from 11 teams to 9 teams as it stands now. There doesn’t look like there’s any activity on a possible BC based franchise and how will potential investors react to the recent news. As a side note we heard the South America semi-pro league Super Rugby Americas has a buy in of less than $500K, compare that to the purported $10M buy in for MLR. Rather than hash over what’s already been written, we just threw the question to Grok for its “thoughts”, its analysis below

Question: Two teams have dropped out of the MLR league for the next season, what do you make of that?

Grok Answer:

The withdrawal of two teams from Major League Rugby (MLR) for the 2026 season—NOLA Gold ceasing operations and the San Diego Legion and Rugby Football Club Los Angeles (RFCLA) merging into the California Legion—reduces the league from 11 teams in 2025 to 9 teams in 2026, continuing a trend of contraction from a peak of 13 teams in 2022. This shift highlights both challenges and strategic adjustments within MLR as it navigates the competitive U.S. sports landscape. Here’s what this means for the league.

Financial Pressures and Market Challenges

MLR teams face significant financial hurdles, competing against giants like the NFL and MLS. The exit of NOLA Gold and the San Diego-RFCLA merger reflect these pressures:

• Sustainability Issues: NOLA Gold’s 4-12 record in 2025 and the Dallas Jackals’ 2024 closure highlight high travel costs, low salaries, and basic facilities, as noted by The Guardian.
• Investor Confidence: Owners invest $70 million annually, but repeated closures may deter new investors, as Reddit fans note the league’s instability is a hard sell.
• Critical View: MLR’s reliance on owner funding without strong revenue streams suggests an unsustainable model. Rapid expansion to 13 teams in 2022, followed by multiple closures, indicates poor franchise vetting.

Impact on League Competitiveness

A smaller league impacts MLR’s reach and competitive balance:

• Reduced Team Count: A 9-team league limits geographic reach and fan base. The California Legion merger may strengthen one team, but losing NOLA Gold weakens the South’s rugby presence.
• Playoff Structure Concerns: Reddit fans criticize the 2025 playoff format, where weaker teams qualify. With only 9 teams, MLR must refine this to ensure quality.
• Critical View: The merger risks diluting local rivalries, as San Diego and Los Angeles fans may feel disconnected from the California Legion. Losing NOLA Gold erodes MLR’s historical continuity.

Strategic Opportunities

Despite challenges, the changes offer growth potential:

• California Legion’s Potential: Backed by Ma’a Nonu, the California Legion unifies rugby across San Diego, Los Angeles, and Orange County, tapping into California’s strong rugby culture.
• Focus on Stability: Reddit fans hope a 9-team season avoids further contraction. MLR’s ESPN deal and Grassroots Development Incentive program signal long-term growth.
• Critical View: The merger may mask financial weaknesses, and uncertainty around teams like Utah Warriors and Miami Sharks suggests ongoing risks.

Implications for U.S. Rugby and World Rugby

The team reduction impacts MLR’s role in U.S. rugby’s growth:

• World Cup Ambitions: With the U.S. hosting the 2031 and 2033 Rugby World Cups, a 9-team MLR may limit player development opportunities, as the MLR Players Association seeks solutions for affected athletes.
• Global Perception: World Rugby’s investment in MLR is critical, but closures could raise doubts about its viability as competitors eye U.S. markets.
• Critical View: MLR’s reliance on foreign players (up to ten per team) may boost competitiveness but could hinder domestic talent growth, unlike early MLS, which faced similar challenges.

Conclusion

The reduction to 9 teams in 2026 reflects MLR’s growing pains but also its potential to adapt. Financial instability demands a sustainable model, and the California Legion merger could strengthen California’s rugby market if executed well. However, losing NOLA Gold and consolidating teams risk alienating fans and shrinking the league’s footprint. MLR must prioritize stability, refine its playoff structure, and leverage its ESPN deal to build momentum for the World Cups. Without these steps, further contraction could jeopardize its role in U.S. rugby’s growth.

Published on August 4, 2025 | Sources:

Americas Rugby News,
The Guardian,
Major League Rugby,
Wikipedia,
Reddit,