But Southern California won't be without a second franchise for long. On Thursday, the league is expected to announce the formation of a new club that will begin play in 2017. The ownership group of that franchise will be headed by Henry Nguyen, a Vietnamese American venture capitalist, and Mandalay Entertainment CEO Peter Guber, a co-owner of the Dodgers and the NBA's Golden State Warriors.
The decision to fold Chivas USA was made in a unanimous vote of the MLS Board of Governors early this month. The league will conduct a dispersal draft of players on the Chivas USA roster next month before the Dec. 1 deadline for exercising player contract options.
For the last eight months the league had been acting as Chivas' caretaker while it searched for a new ownership group. Mark Abbott, the MLS president and deputy commissioner, met with 15 prospective ownership groups before recommending the Nguyen-Guber team to the league's owners.