Why a Rule Change Will Allow MLS Clubs to Spend an Unlimited Amount on Players Within the League

Major League Soccer announced a host of new initiatives for the 2025 roster rules and regulations, including one that should help the league retain top talent moving forward.

MLS now allows clubs to use an unlimited amount of out-of-pocket funds, or cash, to trade for players. Clubs can now acquire players via trade without having to worry about using General Allocation Money or assets such as International Roster Spots moving forward. Though, there are some caveats.

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Clubs can only trade for two players each year, and trade away two players for cash each season for a total of four transactions. As well, if a trade is facilitated using cash, that is the only form of compensation allowed in the transaction. Finally, if a player is acquired via a cash trade that fills a Designated Player or U22 Initiative Player slot, that player must retain that designation at their new club for the duration of the guaranteed term of their contract. Clubs can also convert revenue acquired via cash trades to General Allocation Money.

Cash spent on a player acquisition via trade is applied to a player's Salary Budget charge.

"The new initiative creates additional opportunities for top players to remain within MLS, while further incentivizing player development and creating more pathways for MLS clubs to generate revenue on player movement," MLS said in the announcement.

MLS Contract Buyouts

MLS also now allows clubs to buy out two Guaranteed Contracts every year, including Designated Players, each year. Buyouts are done at a club's expense and can be conducted in-season, before the Secondary Transfer Window closes, or during the offseason.