Major League Soccer announced several key roster rule changes on Tuesday. Including the ability for teams to trade real cash for players for the first time in league history, the moves increase flexibility for teams to construct more competitive rosters.
Here are the key points:
1. Cash trades
Teams can now spend unlimited out-of-pocket funds to acquire players from within MLS. These funds are discretionary, meaning they come at the ownership's expense, and cannot be combined with General Allocation Money (GAM) or any other tradable asset.
Teams may only acquire two players a season via cash trades, and can only sell two players a season via cash trades. Additionally, if a club acquires a Designated Player or U22 Initiative player via a cash trade, the player must occupy the same roster designation for their new club.
2. Second contract buyout
Clubs may now buyout a second player's contract every season. Previously clubs could only buyout one contract to remove the charge from their budget. Clubs may exercise this buyout in-season or out-of-season, but if done in-season it must be done before the close of the secondary transfer window.
3. GAM no longer expires
General Allocation Money no longer has an expiration date. Previously, GAM expired three full windows after it was expired. This means that clubs could theoretically create a massive stockpile of GAM that could be used for years to come.
The only GAM that expires is the additional $2 million clubs receive at Roster Compliance Deadline for opting into the 2 DP / 4 U22 Initiative model. This GAM still must be used by the end of the season.
4. Designated Player Loans
If a club loans a DP out to an international club, and that club takes on their full salary, the MLS club will re-open that DP slot. Previously, loaned out DPs still occupied their roster spot, and only Young DP and U22 Initiative slots were eligible to be opened up via a loan.
5. Off-roster homegrown slots
Off-roster homegrown players can now play in up to six MLS matches per season, as well as in unlimited cup matches every year (Concacaf Champions Cup, Leagues Cup, US Open Cup, friendlies, etc). This change will allow homegrown players more opportunity to get real first-team minutes before being moved onto a club's senior or supplemental roster.
Previously, strict limitations were in place regarding how many matches off-roster homegrowns could play. Players must be under 21 in the calendar year and on their first MLS contract to be eligible for these matches, and once they are moved onto the senior or supplemental roster, they cannot be moved back.
6. Roster path declaration
Clubs may now change their roster path decision during the season. Previously, clubs had to choose either the Designated Player model (3 DPs + 3 U22s) or the U22 Initiative Player model (2 DPs + 4U22s + $2 million GAM) by roster compliance deadline.
Now, clubs can change their model in-season, provided they announce their choice prior to the end of the secondary transfer window. Clubs can only switch from the U22 model to the DP model if they have not spent more than $1 million of the GAM they received at roster compliance date, and if they switch from the DP model to the U22 model midseason, they will only receive $1 million for the remainder of the year.
7. Transfer window dates
MLS simultaneously announced the transfer window dates.
The primary transfer window will be open from Friday, January 31 to Wednesday, April 23.
The secondary transfer window will occur later than usual, now open from Thursday, July 24 to Thursday, August 21.
Clubs may still announce transfers outside of these windows, but they cannot register their International Transfer Certificates (ITCs) with FIFA outside of these windows, and players will not be eligible to play until then.
