Major League Soccer is set to make major changes to their roster rules as the impending FIFA Club World Cup and eventual Men’s World Cup approach in 2025 and 2026. These moves, as reported by sources at ESPN and The Athletic, are mean’t to give teams more flexibility in spending and management of rosters through certain situations.
Relaxing of Designated Player Rules
One of the staples of MLS for nearly 20 years has been the designated player rule. Affectionately referred to as the Beckham Rule when it first came into existence, the decree allows teams to have a max cap hit on a certain amount a player’s salary while the rest will not be applicable to the rules. This has allowed players like Thierry Henry, Zlatan Ibrahimovic, David Villa, Andrea Pirlo and others to make the move to the league without sinking the team’s finances with regards to the salary cap.
Over the years this rule has expanded from one to three designated players and now includes a “young-DP” rule that gives teams the ability to sign a fourth player should they be under a specific age. All of this will be changing very soon as the team owners voted to relax the strict rules currently in place. What that means necessarily remains to be seen. However it is likely that teams such as Inter Miami will be able to bring in more high-priced players, many of which have already been rumored to be in negotiations with the club.
For New York Red Bulls and NYCFC, this could be a game-changer in several ways. The Red Bulls have not been known for acquiring veteran talent. Expectations are that it won’t change. However, they will now have the ability to supplement their younger roster with more veteran players and flesh out the team in ways that the team has becoming known for. City, may be able to return to their high-spending ways, which in recent years has been geared more towards younger players with high potential.
Salary Cap Increase
The current MLS salary cap for 2024 sits at $5.7 million. The expectation following these meetings is that the amount will increase significantly in time for the European summer transfer window in just two months. What that number is remains a mystery. Rumors have swirled that the amount could be as high as $50 million per team, although there has been no confirmation of such an increase.
All that is known currently is that the cap is expected to increase by a sizable margin this season. Of course, this will need to be approved by the MLSPA (players union), which has yet to comment on any of the proposed changes that have come from these meetings.
An increase of any sort will see MLS teams become more competitive on the world stage. While the work done by teams has shown signs of success in international competitions, this boost will speed up the process of the league catching up with some of their rivals in Mexico and Europe.
GAM and TAM Aren’t Going Away
Allocation money, which is the mechanism by which teams have been able to move players within MLS, isn’t expected to go anywhere. The strict nature of how it is used may be revised. This area is one where there is the least amount of information. Currently, GAM (General Allocation Money) and TAM (Targeted Allocation Money) has been a tool for teams to buy down players to remain within the salary cap. It has also been a bargaining chip in trade talks for many clubs. Due to the league’s single-entity nature, transfers between teams are more complex than in other sports like most fans are accustomed to seeing.
How teams are able to handle contract buyouts will also be adjusted, creating more ease on the salary cap moving forward.
None of these changes have been confirmed by the league as of yet. However, news is expected to come soon on all of the changes that should create excitement for owners and fans a like.
Report: MLS Set for Major Roster Rule Changes
