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After making their USL Championship debut in 2020, San Diego Loyal's run in the American second division will be coming to an end as they are set to fold at the end of the season. The league announced that their franchise rights will be transferred due to the club not having a viable stadium solution. Founded by U.S. Soccer legend Landon Donovan and Warren Smith, the Loyal became one of the top sides in the league and currently occupy a playoff place in the Western Conference of the USL Championship.

Major League Soccer awarded an expansion side to San Diego that will begin play in 2025 at Snapdragon Stadium which is currently used by the San Diego State Aztecs football team and the San Diego Wave of the NWSL. That decision provided direct competition to the Loyal looking to move out of Torero Stadium where their current home games are played. 

"Having a modern, commercially viable stadium solution is vital to our clubs' long-term success and is a pillar of the USL's growth strategy," said USL Deputy CEO Justin Papadakis in a league statement. "Despite collectively pursuing multiple potential options with SD Loyal's leadership in the San Diego area, an appropriate stadium solution has not materialized."

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While the club has played in front of sold-out crowds at Torero Stadium, a permanent solution was needed and it's not something that the club has been able to figure out. Making USL playoffs each of the last two seasons, the Loyal have been successful even after Donovan moved from being both the head coach and sporting director and into a front-office role but it's something that shows how tough it is for USL to compete in similar markets as Major League Soccer.

"Over the last six months, myself, Ricardo Campos, and a small part of my team have been looking at all viable options up and down the coast for us to find solutions for an academy, a training facility, for a stadium from oceanside down to the border, we've looked at everything and left no stone unturned," club chairman Andrew Vassiliadis said. "Unfortunately, after looking at all of that, I've come to the conclusion that this will be the last season for the club."

According to the league, there will be more information about the transfer of franchise rights in the coming months. The stadium was needed as each USL stadium is required to hold at least 5,000 fans and the lease at Torero Stadium wasn't a favorable one, according to ESPN.  

The Loyal have 10 remaining games of the regular season which they plan to play to close out their final season strong with another playoff berth.