‘USL has built something rare in American sports’ - League secures 'strategic investment' from BellTower Partners, led by ex-Carlyle Group CEO

The investment was reportedly made with an eye on helping the USL launch its yet-to-be-named Division One league and its announced plan of having promotion and relegation across its men's leagues, according to the Guardian. Financial terms of the investment were not disclosed. 

While promotion and relegation is common in global soccer, it hasn't taken effect in America yet. MLS has used a single-entity structure since its launch in 1996. 

As part of the investment, Lee will sit on the USL's Board of Directors as vice chairman, serving alongside league CEO Alec Papadakis and chairman Rob Hoskins. Papadakis expressed his excitement about having Lee on board. 

“Kewsong and BellTower are joining the USL at a moment of tremendous opportunity,” Papadakis said in a statement.  “The investment underscores their confidence in, and alignment with, our vision for the future of the USL. It strengthens our ability to deliver on that promise by advancing top-tier Division One, introducing promotion and relegation, and aligning American soccer more closely with the global game.

"As we enter this next chapter, we have charted a bold course for the sport in the United States. With Kewsong’s strategic perspective, operational acumen, and proven leadership, we gain an invaluable partner in the ongoing effort to bring that vision to life.”

Lee founded BellTower Partners in 2022, shortly after leaving his role as CEO at Carlyle Group. He spent more than two decades as an investor at Warburg Pincus, where he was a partner and member of the executive management Group. 

Since starting BellTower Partners, Lee has been involved in a number of investments, including sports. The firm bought into Patricof Co, which helps athletes identify investments and counts Travis and Jason Kelce, along with former NFL star J.J. Watt, among its clients.

Patricof notably guided Watt’s stake in English club Burnley. For the USL, BellTower’s most relevant tie is to United Sports Development Partners, the Connecticut developer behind Rhode Island FC’s Centreville Bank Stadium.

Lee noted the USL's significant potential and his commitment to helping the league reach the next step in its development. 

"The USL has built something rare in American sports - an independent, multi-tier league system of scale that is both high-growth and impactful,” Lee said in a statement. “We see durable demand for authentic, community-focused clubs; a favorable environment for public-private partnerships; and significant upside for all stakeholders as the USL continues to expand its men’s and women’s pathways. 

"We are excited to partner with the USL’s management team and share their commitment to realizing the USL’s next phase of its journey.”

The league noted in its statement that the investment comes at a time of "rapid momentum" as it aims to capitalize on the 2026 World Cup and the 2028 Olympics to expand.

The USL currently has a ecosystem with the Championship, League One, League Two on the men's side, and the  Super League and W league on the women's side.