Minnesota Aurora FC announces intent to become professional soccer club

A huge change in American top-division soccer could be afoot. 

On Monday afternoon, USL-W club Minnesota Aurora FC announced that it had "begun conversations with investors" in order to become a professional soccer club. 

In an open letter to its community owners, made public on the club's website, Aurora FC re-stated the philosophy of the club and a vague plan of the future they envision.

Here is the letter in full:

To our community owners,

Minnesota Women's Soccer launched with a few key beliefs: that there is a pent up demand to support women's soccer and that the business of women's soccer can be done differently.

For Community, By Community. That phrase means that we can build a women's soccer team that is here to support the overlapping communities around us and it means that we can build a grassroots juggernaut.

The last year and a half since our public launch have been an absolute whirlwind. We launched a community investment campaign completely unheard of in women's soccer, we played in front of record crowds, and our players ran to the final in absolute style. We knew this plan could work, and it has been so joyful watching just how our community has come together to build a completely unique soccer team.

And now it's time to talk about the future.

We believe that Minnesota Aurora can and should be a professional team. From the beginning, we always envisioned this club as being built differently, proving our concept, and then taking it to the highest levels possible. 

Because of the overwhelming community support in our first year, we now have the opportunity to pursue a professional team far sooner than we initially expected. 

We are excited to announce that the Aurora board has begun conversations with investors as part of the next steps to move to a professional league.

Our goal has always been to rewrite the script of women's soccer, to build a club that is a community asset, something we can all have stakes in. But professional soccer requires deep pockets and involves finding higher level investors. 

We want to be clear that we are currently exploring these paths. The specifics and logistics of what a future will look like are not set at this point.

We have been holding wonderfully productive conversations with potential investors who want to partner with us to build something new, who understand and share our mission.

Because these are early days, the specifics and logistics are not set at this point. Until then, we hope you'll understand why most of the details of this process cannot be shared publicly. 

Whatever the future holds, Aurora will continue to be a club For Community, By Community.

You'll be a part of that. We've built this together. We will continue together.

Who are MN Aurora FC?

Launched in 2021, the women-led Twin Cities team is 100% community-owned. A total of 3,080 people invested during an overwhelming community investment campaign. Selling single equal shares, the club raised $1,000,000 in investment funds in one of the most successful community investment campaigns in American soccer history.

In 2022, they competed in their inaugural season in the USL-W. Under head coach Nicole Lukic, they went undefeated in the regular season and playoffs before then losing in the Championship Final 2-1 after extra-time to Tormenta FC. The final was held at a sold-out TCO Stadium in Eagen, MN, with 5,600 people in attendance. 

How does a team turn fully professional? 

Transitioning into a fully professional soccer club isn't a simple process. In women's soccer in the United States, it is virtually unheard of. 

Right now Aurora FC competes in the USL-W, which is a pre-professional soccer league in North America focused on developing the next generation of women's talent both on and off the field.

The U.S. soccer federation has rules and regulations surrounding what sort of ownership groups can own and operate professional teams. Unless there are changes to the U.S. soccer regulations, then a fully community-owned model will not be accepted in the professional realm. 

Per U.S. Soccer professional leagues for the NWSL, owners need to demonstrate operational funds for three seasons. Evidence of this will be taken from the owner's financial history and tax returns. 

In addition to proof of assets and cash, each team is required to have a principal owner that claims a minimum 35% share of the club.  It is also mandatory for the principal owner to have a minimum net worth of $15,000,000 outside of the club's revenue. 

Lastly, the principal owner and all other minority owners are excepted to have a combined minimum net worth of $25,000,000. The U.S. Soccer Federation holds the right to audit these owners in order to establish whether they meet the requirements. 

At this time, all we know is that Aurora FC is looking for a separate investment in order to become a professional club. Per the club's statement, it's unclear how big a share of the club could be sold or for how much. 

Aurora FC is also not ruling out another community drive for renewed grassroots investment, like in 2021. On Monday, they stated they were "exploring" the possibility of reopening community shares.

The Minnesota club has also confirmed it has already spoken to the two professional women's soccer leagues in the U.S. - the USL-Super League and the NWSL - and has reported "positive conversations."

For now, though, Aurora FC is committed to the USL-W and will compete in its second season in the league in 2023. 

Still, need to know more? 

Here's a FAQ Aurora FC posted about their intentions. It hits on some key topics that they want people to know. Like is the club up for sale? And what does this mean for current community shareholders?

Here is the full FAQ via the MN Aurora FC website:

Which league will we be in?

In the next few years there will be two options for professional women’s soccer and we have had really positive conversations with both leagues. 

What is the difference between Aurora now & Aurora as a pro team?

We love what we are able to build at the pre-professional level and develop players. Becoming a professional team means that level of competition will increase dramatically. Moreover it provides a longer term stability for the club.

Does this mean we’re selling the club?

100% no. No one’s shares will be sold in this process. Any partnership with investors will bring money into the club through additional investment.

What does this mean for being a “community-owned” club?

From the beginning, we have envisioned building a club that is built differently and that we can be so successful that we can build it into a world-class club. We believe that we can create a model club that allows us to keep the transparency, accountability, and intimacy of a community-owned club while securing our financial future. We innovated to create our current club model and we will continue to innovate for the future.

How does this affect my investment?

For the time being, nothing about this process impacts your current ownership interest in Minnesota Aurora and community ownership remains an essential part of how we think this club will be different. It’s impossible to know what, exactly, the corporate structure of the club might look like in a professional league, but the Board of Directors remains committed to charting a new path forward in women’s soccer.

So why look for investors?

USSF Soccer regulations require professional clubs to have a single 35% owner who meets high standards of wealth. The reason for this is because professional soccer is very often not profitable and some investment groups had a checkered past. It is important to have a committed ownership group that can sustain losses and give much-needed stability to the future.

Will we have a say in who the majority owner is?

Our board is vetting all potential investors with specific intention to find investors who understand our mission and our values.  Approval of investment partners will happen with a vote from the board. Elections for the community owner seats on the board are currently underway.

Can I invest?

We are exploring the idea of doing a second round of community investment. We also understand that some people might see this announcement and be interested in being a significant investor. Significant investors will need to be able to easily prove a minimum net worth and income based on 10 years of tax returns as well as being able to make an investment at a minimum of $500,000. If you meet that criteria, please contact us at investment@mnaurora.com

Will this impact the 2023 season?

No! We are excited to continuing playing in the USL W in 2023 and welcome back all the fans and players. Information on schedule and tickets will be released early next year.