Ahead of the opening of the Major League Soccer transfer window on January 31, the league announced significant rule changes that could affect how teams spend money on players moving clubs within the league. In trading, a club can use unlimited pocket funds to trade players who are already within the league. Previously, this required the use of general allocation funds, players, or a combination of other mechanisms that are limited.
While there is a limit of only two players a team can acquire and trade through this mechanism in a season, it allows for successful moves that do not prevent a team from doing more with its roster. An example of this could end up involving Atlanta United. Their search for a designated player at the forward position could lead to a record buy, as the Five Stripes have reportedly already made an offer to sign Emmanuel Latte Lath from Middlesbrough, but this would not stop them from pairing him with someone like the Portland Timbers. ‘Evander in an interleague trade.
Previously, it would be difficult to transfer a designated player via trade because there isn’t enough available through league mechanisms to compensate the team that loses a player, but as an owner they can go directly into their pockets to acquire someone. , increases the levels of inter-league deals that can be made significantly. For the team selling a player, the proceeds from these deals can be converted into GAM, allowing them to immediately use them to bolster their roster.
It seems like it’s only a matter of time until this mechanism is used to acquire a player, but let’s take a quick look at some of the other rule changes.
MLS Spending Changes
Outside of the GAM received through the U22 initiative, it no longer has an expiration date, allowing teams to accumulate it to use as they wish. Previously, GAM only lasted three transfer windows and adds to the flexibility that will be provided to teams. Now there is also a second contract termination for clubs, since before there was only one. If a designated player is loaned to a club internationally, that will now also open up that spot for use. Teams can now also change whether they want to use the two- or three-designated player model during the season instead of having deadlines during which those changes must be made.
The key word here is flexibility. While teams are still restricted to adjusting their salaries under the spending cap, changes like this will make the league more competitive on a global scale, at least when it comes to teams with owners who aren’t afraid to open their wallets to fund creation. of templates. . It can create drawbacks to parity, but if MLS wants to compete in things like the Club World Cup, the best teams need to focus on how they can compete with others around the world. In fact, this is an open and limited transfer market that can help keep stars in MLS.
The decline of parity
For teams that have gotten by on the strength of their academies by adding outsiders like Philadelphia Union and FC Dallas, this is a move that could make it harder for them to compete without investment. Since this is such a new mechanism, there’s no guarantee that savvy owners will continue to do the same thing with domestic players, but if there are concerns about the changes, that’s one of them.
Without the threat of relegation, teams that don’t spend have nothing to lose, but it’s also a risk the league must take. Having more avenues to acquire talent is a good thing for the league and could be the first step in eliminating some of the roster restrictions in the league. MLS has fallen behind Liga MX in spending and last season began to see players like Cade Cowell and Brandon Vázquez poached by Mexico.
As long as Vázquez is back, mechanisms like this give national teams the same opportunity to get those players back. If it eventually also aligns with MLS transfer windows running at the same time as Europe, then it would be a whole new market. That means a lot of projection, but it’s also the direction the league has been taking.
Looking ahead to 2026, MLS is uniquely positioned to capitalize on domestic soccer interest in the run-up to the World Cup. Being able to ensure there is as much talent within the league before then is critical and this will help achieve this. How teams use it is something to monitor, but while more needs to be done to really move MLS forward, the ability to spend more is a good thing.
