Chivas USA has been axed from the MLS to make way for a new franchise, believed to be funded by Cardiff City owner Vincent Tan.
Chivas USA has been cut from the MLS as the league plans to expand in Los Angeles.
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The California-based side entered the MLS in 2004 and established as a sister club to Mexican giant Chivas Guadalajara.
Chivas has finished bottom of the Western Conference in each of its past four seasons, and it is believed they have been removed in the hope to make way for a more competitive franchise in 2017.
MLS commissioner Don Garber said in a statement that it was difficult to wield the axe on Chivas, and thanked the club and its fans for it commitment to the league and the sport.
He wrote: “After conducting a comprehensive strategic review of the market and Chivas USA’s operations, we will announce that effective this afternoon, Chivas USA will cease operations.
“This was a very difficult decision. We want to thank you, the fans, for 10 years of unconditional support.
“We are grateful for your commitment to the club and to the sport.
“I believe strongly that a new MLS Los Angeles team with passionate local ownership and an inclusive approach targeting all soccer/sports fans will be very successful.
“I believe that our new strategy for Los Angeles provides the best opportunity for success and is the best way to connect with an engaged and impassioned fan base in Southern California.
“I am confident that this new direction will help us achieve our goal of becoming one of the top leagues in the world.”