Matthew Glenesk

IndyStar

In late January, the Indy Eleven submitted a bid to play in American soccer's top tier.

Today, the Eleven's current home, the North American Soccer League, found out it will be stripped of its Division II status and will likely drop to Division III, if it survives at all.

The NASL, which has enjoyed Division II status during its seven-year run, was dealt a major blow by the U.S. Soccer Federation.

“We’re disappointed in the decision, of course, like everyone in the NASL," said Eleven President Jeff Belskus. "We’re focused on the 2017 season and we’re committed to delivering the best possible soccer experience, and we continue to evaluate our options."

So what are the Eleven's options?

“We’re going to continue to sort those out and continue to evaluate them," Belskus said.

The most logical move would be for the Eleven to join the United Soccer League (USL). Though on Tuesday, Belskus said the Eleven have had no conversations with any other league regarding 2018. The USL, which was granted provisional Division II status in January (along with the NASL), has the backing of Major League Soccer.

Asked if the Eleven will field a team next year, Belskus added, "My expectation is that we’re going to play, but we continue to take things as they come.”

Calls to USSF have not been returned.

After the news broke regarding U.S. Soccer's decision, the NASL released a statement..

"The NASL is disappointed with the decision and does not believe that the federation acted in the best interest of the sport. U.S. Soccer’s decision negatively affects many stakeholders in soccer: fans, players, coaches, referees, business partners, and the NASL club owners who have invested tens of millions of dollars promoting the sport. The decision also jeopardizes the thousands of jobs created by the NASL and its member clubs."

During the offseason, the NASL lost three teams to other leagues and two more teams folded because of financial concerns. What was once a 12-team league has just eight clubs (San Francisco joined as an expansion team this season). Tuesday's news will only add to the defections, casting the league's future viability into doubt.

In January, the NASL was granted provisional Division II status, along with the USL, which had been in the third division. At the time, neither league met the minimum requirements for Division II status, but they were given a year to prove they deserved to remain second-division leagues. According to the USSF Professional Standards, Division II leagues must have 12 teams.

• MORE: Indy Eleven's MLS bid won't come easily – or cheaply

The USL is seen as a much more viable Division II option and has the support of MLS. Twenty of the 30 teams in USL have affiliations with MLS clubs. Some of the USL teams are owned and operated by their MLS parent clubs, while others are affiliated with MLS teams, aiding in player development. USL clubs include nearby FC Cincinnati and Louisville City FC.

According to website FiftyFive.One, "several clubs are either in talks or working through the logistics of decamping to the USL. North Carolina FC, sources say, is in advanced talks while Indy Eleven is at least exploring the possibility."

Although there are benefits to having second- or third-division status, there is no promotion/relegation in the United States, so clubs don't move up or down the leagues based on individual season performances. Second-division clubs may have advantages with advertisers and be able to lure more talented players.

Belskus points to the team's MLS expansion bid to illustrate the franchise's long-term desires.

"Clearly we’ve applied for MLS, Division I, so that’s where we think the future is here," he said.

• BRIGGS: It's crunch time for Eleven's MLS expansion bid

The lack of any positive movement on a new stadium has pretty much put an end to the Eleven's Major League Soccer hopes. MLS has requirements of new franchises, and among them is an approved stadium plan — something Indy doesn't have.

MLS has left its timeline for selecting the final two expansion teams somewhat open-ended, which Belskus said offers hope that the league could give Indy Eleven until next year to finalize a stadium plan. But that time might not help. Indiana lawmakers previously have expressed reluctance to take up stadium financing in a nonbudget year — which next year will be.

The Eleven reached last year's NASL championship match, but are 5-9-8 combined this season and are in last place in the fall season with a 1-1-4 record through six games.

IndyStar reporter James Briggs contributed to this story.