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The San Diego Loyal, a United Soccer League club owned in part by soccer legend Landon Donovan, will cease operations after the 2023 season, the league announced Thursday.

The franchise rights will be transferred “in the coming months,” per a league news release.

The action is being taken because a “viable near- and long-term stadium solution in the market did not materialize” in the San Diego area, the league said.

The Loyal are led by principal owner Andrew Vassiliadis and supporting owner Donovan. The club joined the USL Championship in 2020 and has played on campus at the University of San Diego.

“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 Justin Papadakis, the USL deputy CEO. “Despite collectively pursuing multiple potential options with SD Loyal’s leadership in the San Diego area, an appropriate stadium solution has not materialized.”

The team qualified for the USL Championship playoffs the past two years and currently is in playoff position in the 24-team league.

“Bottom line, no matter how well a team performs on the field, having the right stadium situation is essential for all professional sports teams,” Papadakis said. “We are working with our current and expansion clubs to develop soccer-specific stadiums that will ensure a strong commercial foundation for the clubs and give fans a place to call home for decades.”

–Field Level Media