The Dallas soccer landscape is undergoing a seismic shift as the City of Dallas terminates its long-standing relationship with MLS side FC Dallas in favor of USL Championship expansion franchise Atlético Dallas. This dramatic move represents more than just a changing of the guard – it’s a calculated financial decision with significant implications for the future of soccer in North Texas.
At the heart of this decision lies a straightforward business calculation: the city wasn’t making enough money from its partnership with FC Dallas. The new arrangement promises to be more lucrative and aims to revitalize iconic venues like the Cotton Bowl while potentially transforming the community’s relationship with professional soccer.
Atlético Dallas: Aims to shake up the landscape
Set to debut in 2027, Atlético Dallas represents an ambitious vision for soccer in the city. Led by founder Matt Valentine and backed by co-founders Sam Morton, Luther Ott, and Dan McAlone, the club has positioned itself as a community-focused enterprise aiming to bring professional soccer back to Dallas proper.
The team will initially call the historic 92,100-capacity Cotton Bowl home – a strategic choice that connects the new franchise with the city’s sporting heritage while potentially offering a more accessible location than FC Dallas’ Toyota Stadium in Frisco. This move comes amid ongoing discussions about the structure of the American soccer pyramid and the USL’s growing ambitions.
Plans for a $70 million soccer complex in Garland that would include a 10,000-seat stadium, eight soccer fields, and extensive training facilities further highlight the seriousness of this venture and its long-term ambitions for establishing deep roots in the Dallas soccer community.
Financial motivations behind the shake-up
The city’s decision boils down to basic economics. Dallas Deputy Mayor Pro Tem Adam Bazaldua described the move as “rectifying long-standing sweetheart deals” that weren’t benefiting taxpayers adequately. The numbers tell the story: the city spent $6.9 million on fees, expenses, and utilities under the FC Dallas agreement while receiving only $766,000 in revenue.
The new arrangement with Atlético Dallas guarantees a minimum of $1.2 million in revenue over three years, with proceeds earmarked for Cotton Bowl renovations and Fair Park improvements. The team will pay at least $100,000 annually to operate MoneyGram Soccer Park and will cover field lighting costs that previously burdened the city budget.
This shift reflects the evolving landscape of soccer team valuations and municipal partnerships, with cities increasingly seeking arrangements that better protect taxpayer interests.
Timeline of events
The transition from FC Dallas to Atlético Dallas didn’t happen overnight. The process began with the USL awarding an expansion team to Garland in November 2024, followed by the establishment of a youth academy system in April 2025 through a partnership with Renegades Soccer Club. The club officially unveiled its name and logo in May 2025.
The Dallas Park Board approved the deal with Atlético Dallas in early June 2025, with final City Council approval coming on June 11, 2025. FC Dallas received six months’ notice of contract termination, setting the stage for Atlético Dallas to begin play in 2027.
Impact and reactions
FC Dallas officials, including Chairman Dan Hunt and COO/CFO Jimmy Smith, have expressed dismay at the decision, arguing that they had presented the city with a superior financial arrangement. They claim their proposal would have returned 25% of proceeds to the city compared to Atlético Dallas’ 15% offer.
For FC Dallas, the impact extends beyond revenue loss from MoneyGram Soccer Park – their youth development programs may face challenges without guaranteed access to these facilities. Dallas Park Director John Jenkins and other city officials maintain that the new contract better serves taxpayer interests.
A gamble on the future
This decision represents a calculated risk for Dallas, a city with a checkered history in professional soccer. While Atlético Dallas offers enticing financial terms and a vision for bringing soccer back to the city center, questions remain about the long-term viability of a USL Championship team competing in a market with an established MLS franchise.
The implications extend beyond Dallas, potentially offering insights into the financial health of lower-league clubs and their municipal partnerships nationwide. For soccer fans in North Texas, this brave new world promises excitement, uncertainty, and a fascinating chapter in the region’s sporting history.
Whether this bold move will prove a masterstroke or misstep for Dallas remains to be seen, but one thing is certain – the soccer landscape in North Texas will never be the same.
