Ownership Restructure at Sporting Kansas City: Illig Family Reduces Stake

According to a report from Forbes, the Illig family will reduce their ownership stake in Sporting Kansas City to just below 10% under a new agreement. Meanwhile, Mallouk, who serves as the president and CEO of Creative Planning, will assume control of approximately 80% of the club. Despite this significant shift in ownership, the Illig family is expected to retain their positions within MLS governance and continue to oversee daily operations in the short term.

Despite the disparity in ownership percentages, the Illig family will uphold their roles as governor and alternate governor of the team, at least for the immediate future. Historically, Major League Soccer (MLS) has mandated that the controlling individual at each franchise hold at least 35% ownership; however, exceptions have been made, as evidenced by the case of LAFC’s rotating ownership group.

In a statement released on Friday afternoon, Sporting Kansas City confirmed, “There have been no changes in the management of the club, nor in the club’s ownership participation in MLS governance or league activities. The Illig family continues to lead the club’s shareholder group, manage the club on a day-to-day basis, and represent Sporting Kansas City on the MLS board of governors.”

This transaction comes amid a significant rise in MLS valuations, with the league now averaging nearly $700 million per team, and several franchises surpassing the $1 billion mark. Recent minority stake sales in cities like Columbus and Austin further underscore this upward trend.

On the field, Sporting Kansas City has faced challenges in qualifying for the playoffs in recent seasons; however, financially, the club remains one of the stronger performers in the league. With an increase in commercial partnerships and new revenue streams associated with the upcoming World Cup, this ownership transition reflects a broader confidence in the long-term business prospects of Major League Soccer.