North Carolina FC announces exit from NASL; club to join USL

Cary, N.C. — Eight years ago this month, the owners of the Carolina RailHawks were among six disgruntled participants in the United Soccer Leagues top division, then called USL-1, who announced they were leaving to form a new second division professional soccer league. That upstart endeavor became the North American Soccer League, named after the iconic soccer league of the 1970s and 1980s.

Today, the North Carolina FC, the RailHawks’ soccer successor, announced it is leaving the NASL to return to the USL. Carolina was the last of those original six breakaway clubs remaining in the NASL.

Speaking to WRALSportsFan, NCFC owner Steve Malik says this decision is in the best interests of his club and professional soccer in the Triangle.

“The move is consistent with our mission, which is that we want to field teams at the highest possible level,” Malik says. “The USL is a league that, in recent years, has proven its growth and stability. I think this will allow our club to grow, and that’s on a parallel path with us securing a new downtown Raleigh stadium and eventually earning a new Major League Soccer franchise.”

The move means North Carolina FC will enter a league comprising 30-plus teams throughout the country, including erstwhile regional rivals in Charlotte, Charleston, and Richmond, as well as teams in Georgia, Florida, Tennessee.

“People love those rivalries, which date back in some cases to the late 1990s,” Malik says. “I think those rivalries are fueled by the growth of the sport in our region. There’s a lot of passion in our cities when you can face off against rival cities. You get to travel to those games, and I think that’s going to help soccer in our region. Our fans recognize that and appreciate not just the regional but national competition. It looks like the [USL] will grow to 34 teams [in 2018], and to play against more teams than we have in a single season ever before will make for more diverse and entertaining competition.”

The U.S. Soccer Federation sanctioned the USL as a Division III professional soccer league from 2011 through 2016, as the NASL remained the sole Division II league. This year, the USSF provisionally sanctioned both the USL and NASL as Division II pro leagues. On Sept. 3, the USSF Board of Directors voted to deny the NASL’s application for D2 sanctioning in 2018, and it invited the league to apply for D3 status.

Instead, the NASL filed an antitrust lawsuit against the USSF. On Nov. 4, Judge Margo Brodie of the U.S. Eastern District Court of New York entered an order denying the NASL’s request for a preliminary injunction allowing it to retain D2 sanctioning during the pendency of their lawsuit, including 2018. The NASL appealed Judge Brodie’s order. Meanwhile, the USL’s application for Division II remains pending before the USSF.

This year, 30 teams competed in the USL; by comparison, eight teams competed in the NASL. Since Malik purchased Carolina in October 2015, eight teams have left the NASL: one joined MLS, two joined the USL, one left to play in the NPSL amateur ranks, and five shuttered operations, including the San Francisco Deltas, which won this year’s NASL championship last Sunday.

“As a club, we really worked hard for the growth of the NASL for seven years,” Malik says. “In my time [with the league], I can certainly say that. With that said, we need to look at what’s best for our organization as we move forward. We feel joining USL is really better for us as we work towards our goals.”

One reason often posited for joining the USL is lower club expenses as compared to other pro leagues, including the NASL. While Malik says that factor may exist, “our biggest reasons to make this switch really aren’t about cost savings.”

“They’re about looking forward and creating value and excitement around soccer, and I think that drives the revenue line and creates the potential for an MLS franchise,” Malik says. “That’s when the finances make a lot more sense … Sure, it’ll be less expensive to drive to Charlotte than to fly to Edmonton, Puerto Rico, or San Francisco. But in a budget the size that we’re talking about, are those the reasons you make a move like this? No. We’re about investing in the long-term. Sure, we’ll take expense cuts like any business will. But those aren’t the biggest factors why we [left].”

North Carolina FC’s departure from the NASL was rumored for weeks before it was confirmed in court on Oct. 31 during the NASL’s preliminary injunction hearing. As is common with breakups, the club’s departure has also engendered the rancor of some NASL insiders, chiefly New York Cosmos owner Rocco Commisso. Beyond owning NCFC and the NWSL’s North Carolina Courage, Malik sits on the USSF Board of Directors. Although he and other conflicted board members are recused from any discussion and votes involving pro league sanctioning, Malik has become a target of Commisso and others who assert Malik did not do enough to promote NASL expansion.

On two New York-based podcasts last week, Commisso reiterated his ire about Malik, although he declined to provide further specifics to buttress his consternation.

“It has no merit, and I’m embarrassed for him,” Malik responds when asked about Commisso’s claims. “And I’m going to act with grace.”

Malik similarly declines to discuss procedural details regarding his departure from the NASL. That said, he rebuffs attacks on his fiduciary responsibility and personal character.

“Throughout the process, we followed the appropriate procedures and protocols that were set forth by all the various parties, from USSF to NASL to USL,” Malik says. “As there is ongoing litigation, I don’t want to get into or comment on any specifics, but I can tell you that our team and myself have acted with transparency and respect to our partners.

“Apparently, the [NASL] lawsuit might continue,” Malik continues, “and I would expect in discovery that the date of [NCFC’s] withdrawal letter and all those many details that people want to create theories about, that’s all going to be plain and evident. I feel very confident that as those details come out, one thing you can count on is that we acted with integrity throughout the whole process.”

The USL includes at least 11 so-called “MLS 2” teams wholly or principally owned by a Major League Soccer team and populated by MLS reserve players. The newest MLS 2 team, owned by Atlanta United FC, will also enter the USL next year. Most of the other USL teams have formed a player-loan affiliation partnership with particular MLS clubs that do not operate MLS 2 teams.

Malik says he has no news or announcements about becoming an MLS affiliate at this time.

“We’re looking at the fifth-year anniversary of the partnership between MLS and the USL, and it’s exponentially improved over time,” Malik says. “We look at that as a positive.”

Due to a similar league sanctioning saga during the last offseason, North Carolina FC’s competition status for 2017 wasn’t finalized until early January. With the club’s league designation for 2018 now settled, it hopes for a longer marketing push for next season. In addition, North Carolina FC President and General Manager Curt Johnson would not confirm whether last year’s NASL-approved player contracts—including any guarantees and options that come with them—are now valid or void. However, he says signing all players to USL contracts is among his many housekeeping matters.

For his part, Malik is is shelving the past while looking ahead to North Carolina FC’s future.

“We appreciate the time we spent in the NASL,” Malik says. “We’re very respectful of the league, and we wish the NASL well as they pursue their goals. At the same time, we said we want to play at the highest level, we’ve been consistent in doing what’s best for our market and long-term strategic goals, and this is a move that makes a lot of sense. We’re excited about it.”