The most significant changes in MLS are the modification affecting the number of Designated Players and signings under the age of 22.
The IS MLS Thursday announced the official implementation of some changes in the template ruleswhich aim to provide teams with more flexibility the way in which they build the campuses.
Between the approved changes with MLSsome of which ESPN previously reported, includes rest on the restrictions about combined number of Named and signed Players under 22.
Previously, teams with three overage designated players could only have one under-22 signing. Teams with two designated overage players may have up to three under-22 signings.
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Now teams can choose one of two paths. The first route allows teams to sign three Designated Players and three under-22 signings. The second path allows teams to have two CEOs and four U-22 signings along with an additional $2 million in general allocation funds. Teams must choose these paths at the start of each season, without making modifications in the middle of the campaign. With the changes set to take effect in mid-2024, teams will now choose their path for this season.
The changes came into effect when the summer transfer window opened on Thursday. Teams must choose which path they will take this year at the end of the summer transfer window, which is August 14.
“The new roster rules open the door for clubs to sign additional top players and more emerging stars, while providing great flexibility to invest across the entire roster,” said Todd Durbin, Executive Vice President of Strategy and MLS Player Relations. “We have a unique opportunity with the World Cup in two years. “These modifications, along with others being discussed for implementation in 2025 and beyond, will expand our league and increase fan engagement around the world.”
Designated Players allow teams to sign players whose total compensation and transfer fee are above the budget maximum charge. For 2024, that amount is $683,750. An under-22 signing is the same, but requires the player to be 22 years of age or younger during the first year they are eligible to play in an MLS game. If the player is under 20 years of age, the budget impact is $150,000, and if the player is older it will incur a budget charge of $200,000. An under 22 player transfer fee also does not apply to the salary budget.
Another change announced is the increase in the amount of general allocation money (GAM) that teams receive when players are transferred out of MLS. Teams can now retain $3 million during the season. Previously, teams retained $1.2 million per transaction, which penalized teams if they made one or two big moves.
The MLS Players Association had to accept the proposed changes. One previously reported change that was not implemented was an increase in the number of contract terminations allowed per season to two. Currently, teams are allowed to buy out one contract per year, which eliminates the player’s influence on the salary budget, although MLS is under financial pressure to continue paying the player’s salary. Some football directors opposed the proposal to reward teams for making mistakes.
With the United States set to co-host the 2026 World Cup alongside Canada and Mexico, as well as Lionel Messi’s contract expiring at the end of 2025, MLS has faced growing calls to open its collective purse strings to try to raise the bar. . of playing on the field. The coming months will show how effective these changes will be.
Of the three major changes, the modification affecting the number of Named and signed Under-22 Players is the most significant. The move is expected to benefit a team like Inter Miami CF, who are arguably the most aggressive organization when it comes to Designated Player and Under-22 signings, and have been juggling those designations to accommodate on the salary budget.