Troubled Major League Soccer club Chivas USA will cease operations, effective immediately, and will be replaced by a club that will begin play in the league in 2017, MLS announced on Monday.

The new ownership group -- which, according to SI.com, includes venture capitalist Henry Nguyen, Mandalay Entertainment Chairman and CEO Peter Guber, former NBA executive and current ESPN analyst Tom Penn, and current Cardiff City owner Vincent Tan -- will be officially introduced on Thursday. That announcement will also shed light on the group's plans to build a soccer stadium in the Los Angeles area.

"As part of our new strategy for Southern California -- a major hotbed of soccer participation and fan support -- we believe that engaging with a new ownership group which has the resources and local community ties, and a plan for a dedicated soccer-specific stadium, provides us with the best chance for success," MLS commissioner Don Garber said in a statement.

ESPNFC.com reported last month that MLS would shut down the club. Sources with knowledge of the situation said that players and staff were informed on Monday morning of the league's plans and that MLS said it would assist the club's employees in finding new jobs.

As for the players, the league announced that it will hold a dispersal draft "at a later date," while sources said MLS intends to hold the draft around Dec. 1. It is not clear at present whether expansion teams New York City FC and Orlando City will be included, as the source said there are still some details to be ironed out with the MLS players' union.

Striker Erick 'Cubo' Torres will remain in MLS, but it is unclear where he will play next season. Anne-Marie Sorvin/USA TODAY Sports

Sources also said that Mexico international striker Erick "Cubo" Torres -- who led Chivas USA in scoring this year with 15 goals -- is unlikely to be included in the draft. The league is in the process of exercising the option on Torres' contract, and sources have said Torres likely will be made a designated player. How Torres would then be allocated hasn't been determined.

The move to disband Chivas USA means the league will operate with 20 teams next year and will be composed of two 10-team conferences. With Orlando and New York City FC entering the league next year, Sporting Kansas City and the Houston Dynamo will move to the Western Conference.