After rapid expansion to 12 teams, MLS faced severe financial difficulties. In 2002, the league contracted Tampa Bay Mutiny and Miami Fusion, dropping back to 10 teams. Some reports suggested MLS was losing $250 million.
The survival of MLS through this period is credited to committed owners like Phil Anschutz, Lamar Hunt, and Robert Kraft who absorbed losses. The league's eventual recovery and growth into a multi-billion-dollar enterprise makes this era a remarkable turnaround story.