The Major League Soccer has made significant progress of recent. The allure of the American top flight soccer league is making millionaires form ownership groups to buy into the franchising business.

The MLS is still far from the point where it can rake in serious revenue from sponsorships, game attendances and viewership. So why are owners readily paying $150 million in franchise fees to join in? Is there an underhand scam involved or better called a Ponzi scheme?

The European league games and arguably Asian top matches are reportedly raking in more profit from TV than their MLS counterparts, whilst the likes of Livefootballtickets.com also report that their is also more demand for footbal tickets to those matches. The MLS ratings are far from impressive. Primetime games in the MLS are rated lower than the ‘smallest’ games in the Premier League played on Saturday morning.

The MLS owners even need to spend money to get audience than make money from the teeming fans of MLS sides. Club owners aim to make money by riding on the wave of fanaticism but this is hardly the case in North America.

Other leagues that have diversified sources of revenue can afford top talents compared to MLS sides. The league can make decent returns for now in the short term from franchise owners shelling commitment fees but it this not similar to how a Ponzi scheme work? – Where unsuspecting people are lured in with initial reward and promises of greater ones that never really come.

Throw in the case of soccer specific stadiums in the MLS and more suspicions come in. The FC Cincinnati ownership deal has stalled over slowdown in the new stadium plans as there is over $100 million in funding gap. The city leaders have refused. Despite their 20,000 fan presence at a game – what can significantly help monetize the league compared to having large empty stadiums elsewhere.