HELLTOWN BEER: 2012-24 MLS Salary Cap, Roster Info

2024 MLS Roster Composition

A Major League Soccer club's active roster is comprised of up to 30 players. All 30 players are eligible for selection to the game-day squad during the regular season and playoffs.
In addition to the Salary Budget, each MLS club may spend additional funds on player compensation including money from a League-wide allocation pool (General Allocation Money), discretionary amounts of Targeted Allocation Money, the cost of Designated Players outside the Salary Budget, the cost of U22 Initiative Slots outside the Salary Budget, and money spent on the Supplemental Roster (roster slots 21-30).

Senior Roster

Up to 20 players, occupying roster slots 1-20, count against the club's 2024 Salary Budget of $5,470,000 and are referred to collectively as the club's Senior Roster.
Clubs are not required to fill roster slots 19 and 20, and clubs may spread their entire Salary Budget across 18 Senior Roster Players. A minimum Salary Budget Charge will be imputed against a club's Salary Budget for each unfilled Senior Roster slot below 18.
A club may have no more than 20 players on its Senior Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions.
The Maximum Salary Budget Charge for a single player is $683,750. (See Allocation Money section below for details on buying down a player's Salary Budget Charge.)

Supplemental Roster

The salaries of players on the Supplemental Roster (slots 21-30) do not count toward a club's Salary Budget.
A club may have no more than ten players on its Supplemental Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions. All Generation adidas players are Supplemental Roster players during the initial guaranteed term of their contract.
Slots 21-24:
Slots 21-24 may be filled with (i) Senior Minimum Salary Players ($89,716), which may include Homegrown Players, (ii) Generation adidas Players, (iii) any specifically designated players eligible for the MLS SuperDraft; or (iv) Homegrown Players earning more than the Senior Minimum Salary subject to the Homegrown Player Subsidy.
All players in slots 21-24 must be paid a base salary that is at least the Senior Minimum Salary ($89,716).
Slots 25-30:
Slots 25-30 may be filled with (i) players earning the Reserve Minimum Salary ($71,401), which may include Homegrown Players, (ii) Homegrown Players earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy, or (iii) Generation adidas Players (earning the Reserve Minimum Salary).
Reserve Minimum Salary Players must be 24 years or younger during the League Year (age of player is determined by year - not date - of birth).
These slots may not be filled with Senior Minimum Salary Players (unless they are Homegrown Players subject to the Homegrown Player Subsidy).
All players in slots 25-30 must be paid a base salary that is at least the Reserve Minimum Salary ($71,401).

Homegrown Player Subsidy

Homegrown Player(s) in Supplemental Roster slots 21-30 may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary (if occupying slots 25-30) or Senior Minimum Salary (if occupying slots 21-24).
Clubs may use up to $200,000 of their currently available Targeted Allocation Money or General Allocation Money to sign new Homegrown Players to their first MLS contract, subject to League review and approval. Targeted Allocation Money cannot be used on a Homegrown Player previously signed to MLS.

2024 Roster Compliance, Roster Freeze and Transfer Window Dates

The 2024 Roster Compliance Date is Friday, February 23 by 8 p.m. ET, at which time clubs must be roster and budget compliant heading into the start of the 2024 MLS season. Inter Miami CF and Real Salt Lake, who open the season on Wednesday, February 21, must be compliant by Tuesday, February 20.
The 2024 Roster Freeze Date is Friday, September 13, 2024, at which time clubs must submit their final 30-man roster. Rosters cannot be changed from that date through the day after MLS Cup, subject to Extreme Hardship.
The registration windows - the dates between which MLS may request the international transfer certificate of a player under contract in another country or trade players within MLS - are as follows:
Primary Transfer Window: Wednesday, January 31, 2024 – Tuesday, April 23, 2024
Secondary Transfer Window: Thursday, July 18, 2024 – Wednesday, August 14, 2024

Player Categories on the Roster

Domestic/International

Domestic Players
U.S.-based clubs: For U.S. clubs, a domestic player is either a U.S. citizen, a permanent resident (i.e., a Green Card holder), the holder of a certain other special status (e.g., has been granted refugee or asylum status) or a player who qualifies under the Homegrown International Rule. There is no limit as to the number of U.S. Domestic Players on a U.S. club's roster.
Canada-based clubs: For Canadian clubs, a domestic player is either a Canadian citizen or the holder of certain other special status (i.e., has been granted refugee or asylum status), a player who qualifies under the Homegrown International Rule, or a U.S. Domestic Player.
There is no limit as to the number of U.S. Domestic Players or Canadian Domestic Players on a Canadian club's roster; provided, however, a Canadian club is required to have a minimum of three Canadian Domestic Players on its roster at all times.
Homegrown International Rule
Any player who, at the time of their initial signing with MLS, meets the requirements to qualify as a Homegrown Player as a member of an MLS club academy, either in the U.S. or Canada, or has met similar requirements as a member of a Canadian Approved Youth Club, will count as a domestic player (i.e., he will not occupy an international roster slot) on both U.S. and Canadian club rosters provided that:
The player became a member of an MLS club academy, either in the U.S. or Canada, or a Canadian Approved Youth Club no later than the year in which he turned 15 years old; and
The player signs his first professional contract with MLS or an MLS club's affiliate (MLS NEXT Pro).
International Players
In 2024, a total of 233 international roster slots are divided among the 29 clubs. These roster slots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have less than eight during any given season. With trades, there is no limit on the number of international roster slots on each club's roster.
In addition, the following applies:
U.S.-based clubs: Any Player who obtains U.S. permanent residency while employed by MLS will be considered a domestic Player for the applicable Season if such residency is established or the Player has appeared for an immigrant visa interview by the opening of the Secondary Transfer Window (July 18, 2024)
Canada-based clubs: In addition to the International Roster Slots, each Canadian Club is permitted to designate up to three (3) International Players who have been under contract with MLS and registered with one or more Canadian clubs for at least one year who will not count toward the club’s International Roster Slots. In order to be eligible, the International Player must have met the contract and registration requirement by the opening of the Secondary Transfer Window (July 18, 2024)
Homegrown Players
Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of “Homegrown Player” on a club’s roster.
There is no limit to the number of Homegrown Players a club may sign in any given year.
Homegrown Players may occupy a slot on the Senior or Supplemental Roster.
Generation adidas
Generation adidas is a joint program between MLS and adidas that is dedicated to developing exceptional talent in a professional environment. Each year, a handful of top collegiate underclassmen and youth national team players are signed by the League with the majority of such players entering the League through the MLS SuperDraft. Until the end of the guaranteed term of his contract up to three years, Generation adidas players are on a club's Supplemental Roster.
Designated Player
The Designated Player rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge, with the club bearing financial responsibility for the amount of compensation above each player's Salary Budget Charge. Designated Players may be new players signed to MLS via the Discovery Process, or they may be re-signed existing players on a club's roster.
A player's Salary Budget Charge, and therefore Designated Player status, is generally determined by averaging all guaranteed amounts payable over the guaranteed term.
In 2024, a Designated Player who is at least 24 years old during the League Year will carry the Maximum Salary Budget Charge ($683,750) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $341,875.
Clubs may "buy down" the Salary Budget Charge of a Designated Player with General Allocation Money. The reduced budget charge may not be less than $150,000.
Clubs may trade a Designated Player or U22 Initiative Player, remain responsible for some or all future out of pocket costs, and shed the Designated Player or U22 Initiative Player slot designation under the following limitations:
Up to one Designated Player traded per year (two total “active” at any given time)
Up to one U22 Initiative Player traded per year (two total “active” at any given time)
Player may only be traded beginning in his second MLS season
Roster Slot Designation (Designated Player or U22 Initiative) must be held by one of the two trading teams
Young Designated Player
A Designated Player who is 23 years old (or younger than the age of 23) during the League Year (the age of the player is determined by year - not date - of birth) will carry the following Young Designated Player Salary Budget Charge:
Ages 20 and younger: $150,000
Ages 21-23: $200,000
If such a Young Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Young Designated Player Salary Budget Charge of $150,000.
Each club will be allotted two Designated Player roster slots. Clubs with two Designated Players may add a third Designated Player by paying $150,000 to the League, which shall be split among clubs with two or fewer occupied Designated Player slots for use as General Allocation Money in the following MLS Season. Clubs must pay the $150,000 fee every year in which a third Designated Player slot is occupied on the club's roster.
If a club uses the third Designated Player slot to sign a Young Designated Player, then the club will not be obligated to pay the $150,000 charge.
Designated Player slots are not tradable.

U22 Initiative Roster Slots

Number of Slots:
Each MLS team will have up to three U22 Initiative Slots that will each occupy one of the 20 existing Senior Roster Slots. The number of U22 Initiative Slots available to each team will be based on that team’s use of its third Designated Player slot.
If a Club has a vacant third Designated Player slot, the Club will have available three U22 Initiative Slots.
If a Club elects to sign a third Designated Player, the number of U22 Initiative Slots would be impacted in the following way:
If the third Designated Player is a Young Designated Player, the club will have all three U22 Initiative Slots.
If the third Designated Player is age 24 or older, yet is at, or below, Maximum Targeted Allocation Money Amount ($1,683,750), the club will have all three U22 Initiative Slots.
If the third Designated Player is age 24 or older and is above Maximum Targeted Allocation Money Amount ($1,683,750), the club will have one U22 Initiative Slot.
Eligibility for U22 Initiative Slot:
Age: A Player must be twenty-two years old or younger in the first year he is eligible to play in an MLS game (e.g., not eligible for 2024 if he turns 23 in 2024). A player who signs at age 22 or younger may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided that for non-Homegrown players, such player is on his initial contract. A Homegrown player may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided he must be on his first or second contract and the applicable contract must have been signed at age 22 or younger.
Contract: A player is eligible to occupy a U22 Initiative Slot if signing his first contract with MLS, provided that player meets age and compensation requirements, as either a Homegrown player, or, as an international or domestic player playing outside of MLS. A player will be eligible to occupy a U22 Initiative Slot during his second contract provided that he meets the age and compensation requirements and signed his first contract with MLS as either a Homegrown or SuperDraft player.
Compensation: A player’s salary may not exceed the Maximum Salary Budget Charge in any given year, including option years. A Homegrown or SuperDraft player on his second contract may earn up to $200,000 above the Maximum Salary Budget Charge in any given year, including option years.
In addition, Clubs may pay, without limit, additional amounts in the form of acquisition fees (i.e. transfer or loan fees).
U22 Initiative Slot Budget Charge:
Players occupying a U22 Initiative Slot will have a Salary Budget Charge that mirrors that of a Young Designated Player:
Ages 20 and younger: $150,000
Ages 21-25: $200,000
All such amounts above the first $150,000 or $200,000 accounted for on the Salary Budget will be paid on a discretionary basis by the Club.
Transfer of Player:
In the event a player occupying a U22 Initiative Slot is transferred outside of the League, 95% of the proceeds of the sale (after out-of-pocket amounts are recouped) will be paid to the Club and such amounts may be converted to General Allocation Money based on the below sliding scale:
Acquisition cost of the Player for coming into the League (e.g., both Loan and Transfer costs)
Revenue share convertible to GAM in 2024 (increases by five percent (5%) annually thereafter)
≤ $2,500,000
$1,215,506
$3,000,000
$972,405
$3,500,000
$729,324
$4,000,000
$486,202
$4,500,000
$243,101
≥ $5,000,000
$0
Reclassification of a Player from a U22 Initiative Slot:
To remove a U22 Initiative Slot classification, a Club may: transfer the player out of MLS, remove the player from a U22 Initiative Slot using Targeted Allocation Money or General Allocation Money, loan the player outside of MLS, utilize its one Buyout, or transition the player to a Designated Player slot.
If the contract of a player occupying a U22 Initiative Slot is renegotiated prior to its conclusion, the League will not reclassify the player and he may continue to occupy a U22 Initiative Slot until his initial contract would have otherwise expires depending on compensation.
Salary Limitation in Options and Years 26+
If a player’s contract includes Options, compensation during the Options may exceed the Maximum Salary Budget Charge only if it is in a year the player is no longer required to occupy a U22 Initiative Slot. These players would not be eligible to occupy a U22 Initiative Slot in the Option year regardless of age if the compensation exceeds the Maximum Salary Budget Charge.
If a player’s contract covers years in which he is no longer eligible to occupy a U22 Initiative Slot (i.e., the seasons of his 26+ birthday), the player’s compensation may exceed the Maximum Salary Budget Charge provided it is during an Option year.

Acquisition cost of the Player for coming into the League (e.g., both Loan and Transfer costs)	Revenue share convertible to GAM in 2024 (increases by five percent (5%) annually thereafter)
≤ $2,500,000	$1,215,506
$3,000,000	$972,405
$3,500,000	$729,324
$4,000,000	$486,202
$4,500,000	$243,101
≥ $5,000,000	$0

Special Discovery Players

In general, the total amount of the acquisition cost of a player is charged against the Salary Budget in the year in which it is paid. For one player on a club's roster (a "Special Discovery Player"), a club can amortize the total amount of acquisition costs (up to $500,000) over the term of the player's contract, including Option years, or over the term of the first and second contract, so long as the second contract is signed prior to the expiration of the first. A club may choose to amortize the acquisition costs evenly or in unequal installments. If the Club chooses unequal installments, no less than 10-percent of the amortized acquisition cost may be captured in any given League year of the player’s contract.
If a Special Discovery Player leaves MLS prior to the expiration of the term of his contract, any remaining unamortized acquisition costs would be charged immediately to a Club Salary Budget. If a transfer fee is received for the player, any unamortized acquisition costs, including the acquisition cost charged to the Club Salary Budget during the MLS season such transfer occurs, may be recouped prior to any sharing arrangement with the League. Any guaranteed compensation due to the player will continue to be charged to a Club Salary Budget.
Special Discovery Players must be 27 years old (or younger than the age of 27) during the League Year under consideration (the age of the player is determined by year - not date - of birth).
There may be no more than one Special Discovery Player per number of clubs in the League (i.e., 29 total Special Discovery Players across the League in 2024).
A club may have more than one Special Discovery Player on its Senior Roster at any given time if the club received the additional player(s) via trade. However, the club trading the Special Discovery Player may not sign a new Special Discovery Player until the traded Special Discovery Player's original contract expires, the player's contract is terminated, or all the amortized acquisition costs are accounted for in the Salary Budget Charge.
Targeted Allocation Money may be used on a Special Discovery Player if he qualifies.

Player Acquisition Mechanisms

Clubs may acquire players and add them to their rosters via the following mechanisms:

SuperDraft

The 2024 MLS SuperDraft presented by adidas consisted of three rounds of player selection.
MLS clubs may draft players through the MLS SuperDraft presented by adidas from a list of eligible players which may include:
Players who are collegiate sophomores and above;
Generation adidas players;
Any former college player who departed college with remaining eligibility since the conclusion of the college season approximately one (1) year prior to the SuperDraft (i.e., since the conclusion of the 2022 college season) in order to compete as a professional in a league domestically; and
Any other players specifically made available by the league (such as pre-signed College seniors or pre-signed internationals).
Clubs may nominate players for the League's Draft-Eligible List, and only players from that list may be selected.
The MLS SuperDraft order is set by taking the reverse order of the club standings at the end of each MLS season, taking postseason performance into account, with new expansion clubs at the top of the order.

SuperDraft Priority List

Unless claimed on Waivers, a player who was drafted by a particular club through the MLS SuperDraft and did not sign with the League is placed on that club's "SuperDraft Priority List" until December 31 of the year after the draft (i.e., for 2024 MLS SuperDraft, until December 31, 2025), after which the club loses the priority rights to sign the player.

Trades

Players, General Allocation Money, international roster slots, SuperDraft Priority players, Discovery Priority, and Homegrown Player priority in addition to selection position in MLS SuperDraft, Re-Entry Process, and Waivers may all be exchanged in trades approved by the League, provided all of the necessary rules regarding roster and Salary Budget compliance are met and the trade is completed during a valid trading period.
Primary Transfer Window and Secondary Transfer Window
During the season, trades that involve players must occur during either the Primary Transfer Window or Secondary Transfer Window.
RELATED: mlssoccer.com Transactions Tracker

Discovery Process

Discovery List
Pursuant to the Discovery Process, clubs may scout and sign players who are not yet under contract to MLS and who are not subject to another assignment mechanism (e.g., MLS SuperDraft). To sign a player through the Discovery Process, the club must first place the player on its Discovery List. A club may have up to five players on its Discovery List at any time and may remove or add players at any time. There is no limit to how many players a club can sign from its Discovery List. Expansion club San Diego FC may maintain seven Discovery List slots beginning January 1, 2024, through the 2025 Roster Compliance Date, at which point the number of slots will be reduced to five.
Players who were previously on the Allocation Ranking List are now eligible for the Discovery Process. Players transferred out of Major League Soccer will become discoverable one week from when the player's ITC is permanently transferred and the League has notified all clubs.
Clubs may not add the following players to their Discovery Lists:
Current MLS players
Players who have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)
Players for whom another club has a Right of First Refusal
Players who played at college during the college season immediately prior to the date of discovery, and were not on the MLS SuperDraft List, shall be placed on Waivers
Players who leave or forgo college with remaining eligibility by signing a professional soccer playing, and were not on the MLS SuperDraft List, contract shall be placed on Waivers and are non-Discoverable until one (1) year after the date he left or forwent college
Underage players (i.e., players under the age of 18 if domestic or under the age of 17 if outside of the U.S. or Canada)
Homegrown-eligible players (i.e., another club has achieved or is in the process of achieving Homegrown Priority over such a player)
Free Agents
Designated Player Requests
If a club wishes to add a player to its Discovery List whom the League determines will require a significant investment from the club, the League will, prior to placing that player on a club’s Discovery List, determine whether the club has the necessary intent, means, and ability to sign such a player. The League may contact the player’s current club (if applicable) and/or his authorized representative to determine the likelihood of reaching an agreement. If the League determines that there is no realistic chance of signing the player at that time he will not be discoverable.
Discovery Conflict Resolution
If one or more clubs attempt to add the same player to their respective Discovery Lists, the club that filed the claim on the earlier date will have the priority right to sign the player. If one or more clubs submit a discovery request on the same day, then the club with the lowest points-per-game in the current MLS regular season (all clubs must have played a minimum of three regular season games) will have the priority right to sign the player.
If a club wants to sign a player on the Discovery List of another club that has higher Discovery priority on the player, it may offer that club $50,000 in General Allocation Money in exchange for the right to sign the player. The club with the player on its Discovery List will then have five days (or three days during the Secondary Transfer Window) to either (i) accept the General Allocation Money and pass on the right to sign the player or (ii) make the player a genuine, objectively reasonable offer.

Related Party Transactions

All terms of any arrangements among an MLS club, a related party club, and a player to be signed to MLS shall be fully disclosed to the League. A player joining an MLS club from a related party club will calculate his Salary Budget Charge based on the compensation he is receiving from his related party club contract and any acquisition fees associated with his signing. The League will make a final determination, in its sole discretion, as to the Salary Budget Charge of such a player.

Homegrown Player Signings

A club may sign a player to a contract without subjecting him to the MLS SuperDraft if the player has been a member of that club’s youth academy for at least one year and has met the necessary requirements. Players joining MLS through this mechanism are known as Homegrown Players.
There is no limit on the number of Homegrown Players a club may sign in any given year.

Affiliate Priority Players

In addition to Homegrown Players and SuperDraft Priority Players, clubs may have priority for up to seven players from their respective affiliates (MLS NEXT Pro). Such players will not count towards the seven Discovery List slots. In order to retain priority on any additional affiliate players, such players must be added to an MLS club’s Discovery List.

Re-Entry Process

The Re-Entry Process is summarized below and subject to the 2020-2028 MLS Collective Bargaining Agreement.
The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is the reverse order of finish, taking into account playoff performance. Players who are available to be selected in Re-Entry Draft include all option decline and out of contract players who are 22 years old or older with at least one MLS service year and who are not eligible for Free Agency.
Stage One
Players who are available in Stage One of the Re-Entry Draft are:
Players who are at least 22 years old and have a minimum of one MLS service year whose options were not exercised by their clubs.
Players who are at least 22 years old and have a minimum of one MLS service year who are out of contract and whose club does not wish to re-sign them at a $15,000 increase or 10% increase in salary over his prior year’s salary.
Clubs must exercise the option for, or extend a Bona Fide Offer (i.e., $15,000 increase or 10% increase in salary over his prior year’s salary) to, all players selected in Stage One and may not select their own draft-eligible players. Should a player reject the offer, the drafting club will hold the Right of First Refusal for that player in MLS. Players with option years left on their contract will automatically be added to the drafting club's roster.
Stage Two
Players who are not selected in Stage One of the Re-Entry Draft will be made available in Stage Two. If a player is selected in Stage Two, the drafting club will be required to make a genuine offer to the player. If an agreement cannot be reached between the drafting club and the player, the drafting club will hold the Right of First Refusal for that player in MLS. Clubs may not select their own draft-eligible players in Stage Two until all other Clubs have declined to select such players.
Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.
A player may choose to opt out of the Re-Entry Process prior to Stage One and/or Stage Two of the Re-Entry Draft. In such instances, the Right of First Refusal for the player will remain with his previous club.

Free Agency

Free Agency will be conducted in accordance with the 2020-2028 MLS Collective Bargaining Agreement.

Waivers

A club may place a player on Waivers at any time during the regular season at which point he is made available to all other MLS clubs. The Waiver Claiming Period shall commence on the first business day after the League delivers notice to clubs and expires at 5 p.m. ET on the second business day. If a player is not selected off Waivers ("clears Waivers") then that player is available to all MLS clubs on a first-come, first-served basis.
Waiver Order
The Waiver Order is based on points per game once all clubs have played at least three MLS League Season games. If the Waiver takes place prior to all clubs playing in at least three MLS League Season games, priority is granted based upon the previous MLS season's performance, taking playoff performance into account first, with clubs eliminated from playoff contention at the same stage separated according to their point totals through the end of the regular season. New expansion clubs shall be at the bottom of the Waiver Order until all clubs have played at least three MLS League Season games.

Claiming an Out of Contract Player

If a club claims a player who was previously signed to an MLS contract but is no longer signed to an MLS contract, the club must issue the player a genuine offer within three business days.
Claiming a Guaranteed Player
If a player with a guaranteed contract is waived, any interested MLS club will have 48 hours from the notice of Waivers to claim the player by notifying the League of the intention to claim the player and the amount of the player's Salary Budget Charge they wish to assume. The player will be awarded based on a number of factors, including but not limited to, Waiver Order and which club is willing to absorb a Salary Budget Charge that is meaningfully higher than other clubs and at least $15,000 higher than Senior Minimum Salary. .
Players who are eligible to be placed on Waivers are as follows:
Contracted Players: Any player with an SPA.
Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the MLS SuperDraft list.
Remaining College Eligibility: A player who left or forgoes college with remaining eligibility (and was not on the MLS SuperDraft list). Such players will be discoverable one year after leaving or forgoing college with remaining eligibility.
Returning Players: A player returning to MLS who the League was unable to re-sign and his last MLS club does not wish to exercise their Right of First Refusal, or who was previously terminated without going through Waivers.
Unsigned Drafted Players: The day after the drafting club's first MLS regular season game, college players selected in that year's SuperDraft who have not returned to school or signed an MLS contract have the right to be placed on Waivers upon request. If an unsigned college player is placed on Waivers and is not claimed by another MLS club, he will return to his drafting club's College Protected List until the end of the College Protected Period.
Out-of-Contract/Option Decline Players: Any player whose contract has expired or option has been declined, is not eligible for the Re-Entry Process or Free Agency, and who was not offered a genuine offer by his former club. Such a player will be typically made available in a year-end Waiver Draft or prior to the start of the next MLS League Season.
Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent Waiver selections in any given season.

Affiliate Short-Term Agreements

A club may sign a player, age 25 or younger during the league season, from its affiliate (MLS NEXT Pro) to a maximum of four Short-Term Agreements (up to four-day contracts) each season (maximum of 16 days).
An individual player may be included on up to four MLS league season match rosters each season, however, that player may appear in no more than two MLS league season matches. An individual player may appear in any number of non-league games during the terms of his four Short-Term Agreements.
A club may roster up to four players on Short-Term Agreements per MLS league season match, so long as they are Homegrown Players or Players earning less than or equal to the MLS Senior Minimum Salary ($89,716) with the affiliate. This number will be reduced to one player per MLS league season match after Roster Freeze (inclusive of MLS Cup Playoffs). Additional players may also be signed to Short-Term Agreements for MLS league season games but only in cases of Extreme Hardship.
International Player limits still apply to Short-Term Agreements, excluding callups for cases of Extreme Hardship.

Extreme Hardship Call-ups

Clubs may add players to their roster in cases of "Extreme Hardship." Extreme Hardship exists when an MLS club has either:
Fewer than 16 outfield players available; OR
Has fewer than two goalkeepers available.
A club may sign players, on loan, to Short-Term Agreements (up to four-day contracts) for MLS league season games in cases of Extreme Hardship.

Season-Ending Injury

Season-Ending Injury List
If a player suffers a season-ending injury, a club may place that injured player on the Season-Ending Injury List and receive roster relief (i.e., an open roster slot). Once placed on the Season-Ending Injury List, the injured player will not be eligible to play for the club in any remaining competition during that MLS season (including any exhibition games or tournaments, including but not limited to: Leagues Cup, Campeones Cup, CONCACAF Champions Cup, Canadian Championship and Lamar Hunt U.S. Open Cup.
Season-Ending Injury Replacement Player
A club may replace an injured player that is on the Season-Ending Injury List with a replacement player in accordance with parameters below.
The club will remain responsible for the injured player's full Salary Budget Charge. Clubs are only able to receive Salary Budget relief (paid out of the club's own pocket) for a season-ending injury replacement under the following parameters:
The injured player must be formally placed on the Season-Ending Injury List prior to the opening of the Secondary Transfer Window. The replacement player must be declared as such when being added to the club’s roster and must be acquired by the Roster Freeze date (Sept. 13, 2024) and after the related injury occurred.
The Salary Budget Charge of the replacement player may not be more than the player who suffered the season-ending injury. If the injured player placed on the Season-Ending Injury List is a Designated Player, the club may replace such player with a Designated Player, provided that his Salary Budget Charge is not more than the player he is replacing. The replacement player’s charge will not be charged against the Club Salary Budget.
Clubs will only be allowed to sign one such replacement player per MLS league season.
If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.
Supplemental Season-Ending Injury
If a player on a club's Supplemental Roster suffers a season-ending injury, a club may replace that injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (e.g., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may be replaced by a player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). The Reserve Minimum Salary of such replacement player will be charged to the Club Salary Budget.
Accordingly, a club must have Salary Budget space to replace a player with a season-ending injury on the Supplemental Roster with a replacement player.
If the injured player occupies an international roster slot on the Supplemental Roster, the replacement player may also be an International Player.

Short-Term Injury Replacements

Injured List
If a player suffers an injury that will prohibit him from participating in six or more MLS league season games, a club can place that injured player on the Injured List. An injured player placed on the Injured List will remain unavailable for a minimum of six MLS league season games and may not participate in any exhibition games or tournaments during that period, including CONCACAF Champions Cup, Canadian Championship, Lamar Hunt U.S. Open Cup, Leagues Cup, and Campeones Cup games.
Senior Roster Players on the Injured List
If a player on a club's Senior Roster is put on the Injured List, the club may receive roster relief (i.e., an open roster slot). The club will not receive salary budget relief for that player and will be responsible for the injured player's full Salary Budget Charge. Only clubs that have or can create extra Salary Budget space will be able to temporarily replace players on the Injured List. A club must have priority over any replacement player it adds (e.g., via Discovery, Right of First Refusal, etc.)
If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.
NOTE: No changes may be made to a club's roster after the Roster Freeze Date (Sept. 13, 2024) and running through the day after MLS Cup. Nevertheless, a club may obtain players in accordance with the Extreme Hardship rules and procedures after the Roster Freeze Date.

Methods of Removing a Player from a Roster

Waivers

Clubs may waive players at any time during the MLS season. A club may waive a Semi-Guaranteed Player at any time during the regular season until three business days prior to the Contract Guarantee Date. A club may waive a Guaranteed Player (at any time) or a Semi-Guaranteed Player (after the Contract Guarantee Date) only with League approval. Clubs may not waive a player between the Roster Freeze Date and MLS Cup.
Semi-Guaranteed Players waived on or after the Contract Guarantee Date and Guaranteed Players waived anytime, and who clear Waivers (i.e., not picked up by another club), will continue to have their respective Salary Budget Charges count against the applicable Club Salary Budgets.

Transfers and Loans

An MLS player may be transferred or loaned at any time to a non-MLS club (subject to the receiving club's applicable federation's transfer window), and subject to the consent of the player.

Transfer and Loan Fees

The revenue share from transfers or loans for clubs is as follows:
A club shall receive 95% of the corresponding transfer or loan fee revenue from any transaction, after it has recouped all out-of-pocket cash payments made by the club in connection to that player (if applicable).
Usage of Revenue
The club's share of transfer revenue may only be used as follows:
The club may assign up to $1,215,506 of the transfer/loan revenue as General Allocation Money.
Following the transfer of a Designated Player who meets TAM eligibility parameters, a club may now elect to receive a portion of transfer fees as General Allocations Money (GAM). Previously, any transfer or loan revenue from Designated Players could not be assigned as General Allocation Money. In the case of U22 Initiative Slot players, please refer to the section on U22 Initiative Roster Slots.
The remaining balance of the club's share (if any), and which cannot be traded, will be distributed by the League to the Club as cash.

Intraleague Loans

Clubs may loan players to another MLS club subject to the following:
A field player must be 24 years old (or younger than the age of 24) during the League Year (i.e., cannot turn twenty-five (25) during the League Year); a goalkeeper must be 28 years old (or younger than the age of 28) during the League Year (i.e., cannot turn twenty-eight (28) during the League Year).
Each club may loan up to two players to another MLS club per season.
The loan must be initiated during the Primary Transfer Window or Secondary Transfer Window.
Intraleague Loans that are initiated prior to the close of the Primary Transfer Window may allow the loaned player to be recalled during the Secondary Transfer Window as agreed upon between the two clubs. If recalled, such a player must remain with his original club for the remainder of the MLS season.
Except in an instance where the player is recalled as outlined above, he must remain with his new club for the entire MLS Season.
The player may compete against his former club during the MLS Season while on loan (includes MLS League Season games and all other competitions).

Loan of a Player by MLS

A club may loan any player from its Senior Roster or Supplemental Roster to a non-MLS club, subject to League discretion. During the loan period, the club will receive roster relief but not Salary Budget relief unless otherwise determined pursuant to the loan agreement.
If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS League Season games.
If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to Affiliate Club (MLS NEXT Pro)

All loans from MLS clubs to its affiliates must be free (i.e., no loan fees paid by MLS NEXT Pro affiliate clubs).
If an MLS player is loaned to an affiliate, such a player may not be paid more than the player's Salary Budget Charge without that compensation being captured on the MLS club's Salary Budget (including, but not limited to, performance bonus compensation).
An MLS club can receive roster relief and budget relief for a maximum of one player loaned to its MLS NEXT Pro affiliate or a lower-division club in the U.S. or Canada; provided, however, that:
The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);
The player's Salary Budget Charge is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and
The loan must be a season-long free loan;
The player has not appeared on a gameday roster for the MLS Club as of the beginning of the applicable loanee club’s season; and
The loan of the player to the loanee club must last for the remaining duration of the entire loanee club’s season; provided, however, that such a player may be recalled to his MLS club in the case of Extreme Hardship.

Buyout of Guaranteed Contract

A club may buyout one player (including a Designated Player) who has a Guaranteed Contract and free up the corresponding Salary Budget space each year. Such a buyout is at the club's expense and may apply to any mutually terminated contracted player or to a contract that remains in effect.
This buyout may be conducted in-season or during the offseason. If the buyout is conducted in-season, it must be concluded by the close of the Secondary Transfer Window.
Before a player is considered a buyout, the League in its discretion may place the player on Waivers to be made available to all clubs.
If a team no longer has its one buyout of a guaranteed contract, it may enter settlement discussions with a player, but such settlement shall continue to apply to the team’s Salary Budget. If said player is a Designed Player, he will continue to occupy a Designated Player position on the team’s roster.
Right of First Refusal
Subject to rules regarding the Re-Entry Draft and Free Agency, if a former MLS player, who the League previously attempted but was unable to re-sign, returns to MLS, his former club will have a Right of First Refusal.
That club will not have a Right of First Refusal if:
The club received any consideration in connection with the transfer of such player to a non-MLS club; or
The player was excluded from possible selection in the Expansion Draft.

Allocation Money

Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money

Each club receives an annual allotment of General Allocation Money. In 2024, that allotment is $2,585,000 per club.
A club may also receive General Allocation Money in the following cases:
Failure to qualify for the MLS Cup Playoffs
The transfer of a club’s player to non-MLS club outside MLS
Qualification for the CONCACAF Champions Cup
Expansion Clubs (see below)
Expansion Dilution (see below)
Designated Player charge distribution
In any year that the League adds one or more expansion clubs, (i) all clubs will receive an equal amount of General Allocation Money and (ii) any club that loses a player in the Expansion Draft will receive additional General Allocation Money. New expansion clubs receive a separate amount of General Allocation Money for their inaugural season.
General Allocation Money can be traded by clubs.

Buy-Down

Allocation Money can be used to "buy-down" a player's Salary Budget Charge as part of managing a club's roster, including buying down a Salary Budget Charge below the League maximum of $683,750. For example, a club may buy-down a player earning $700,000 to a Salary Budget Charge of $500,000 by using $200,000 of General Allocation Money.

Use against a Salary Budget Charge

A club can use General Allocation Money to reduce a player's Salary Budget Charge to the lesser of 50% of the Salary Budget Charge or $150,000. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee; a club may reduce 100% of a loan or transfer fee.

Targeted Allocation Money Available Per Year

2024: $2,400,000 per club
2025: $2,225,000 per club
2026: $2,125,000 per club
2027: $2,025,000 per club
Targeted Allocation Money may be used in the following ways:
Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the Maximum Salary Budget Charge.
Clubs may re-sign an existing player provided he is earning more than the Maximum Salary Budget Charge.
Clubs may use all or a portion of the available Targeted Allocation Money to convert a Designated Player to a non-Designated Player (assuming such player’s Salary Budget Charge meets the salary parameters described below) by buying down his Salary Budget Charge at or below the Maximum Salary Budget Charge.
A club retains the flexibility to convert a player previously bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.
Targeted Allocation Money may not be traded.

Salary Parameters

A player must earn more than 2024 Maximum Salary Budget Charge ($683,750) to qualify for Targeted Allocation Money. The compensation ceiling for such eligible players is set at $1,683,750 in 2024.
A player cannot have his Salary Budget Charge bought down below $150,000 using Targeted Allocation Money.
NOTE: To protect the interests of MLS and its clubs during discussions with prospective players or clubs in other leagues, amounts of Allocation Money currently held by each club will not be shared publicly. Only in the case of a trade will the amount of General Allocation Money involved be made public.
2024 Salary Budget Information
Club Salary Budget - $5,470,000
Maximum Salary Budget Charge - $683,750
Senior Minimum Salary - $89,716
Reserve Minimum Salary - $71,401
Designated Player Salary Budget Charge - $683,750
Second Designated Player Salary Budget Charge - $683,750
Third Designated Player Salary Budget Charge - $683,750
Young Designated Player Budget Charge (20 years old or younger during the League Year) - $150,000
Young Designated Player Budget Charge (21-23 years old during the League Year) - $200,000
Mid-Season Designated Player Salary Budget Charge - $341,875
Mid-Season Young Designated Player Salary Budget Charge (23 years old and younger) - $150,000
Maximum Targeted Allocation Money Amount - $1,683,750
U22 Spot Budget Charge (20 years old or younger during the League Year) - $150,000
U22 Spot Budget Charge (21-25 years old during the League Year) - $200,000
Player Professional Development Role
A Club may choose to designate, with prior League approval, to employ one Player per year in a professional development role.
The following parameters apply:
The Player’s professional development role must be approved prior to the Roster Compliance Date and last through the full season.
The Player must have responsibilities enabling him to develop skills in different parts of the Club’s business, including but not limited to coaching, scouting, front office duties, diversity liaison.
If the Player’s professional development role will include coaching responsibilities:
He must only have coaching responsibilities with respect to the MLS club’s affiliate and/or academy (i.e., cannot have coaching responsibilities with respect to the first team); and
He may not be on Loan to the MLS Club’s affiliate during the League Year in which he is serving in the professional development role, if the Player Coach has coaching responsibilities with respect to such Affiliate.
The Player must turn or be older than 25 years old during the League Year in which he is employed in the professional development role.
The Player may not be Loaned out for an extended period.
The MLS Club must designate a mentor within the MLS Club who will guide and monitor the Player’s development plan and process. The League may request detailed progress reports from the mentor throughout the course of the MLS Season. Failure to provide sufficient progress reports upon request by the League may result in the Player losing such professional development role designation and the MLS Club being prevented from designating another professional development role for at least five years.
The proposed compensation for the Player’s professional development duties must be commensurate with salaries for similar roles when taking into account the expected number of hours of such duties, including being commensurate with salaries paid to former League “player-coaches” if the professional development duties are coach-focused. Moreover, for professional development roles entered into after the 2022 MLS season is over, the League will not approve compensation that is over $75,000.
Required Information:
In order to obtain League approval, which may be granted by the League in its sole and absolute discretion, Clubs must provide the following:
Detailed job description, which must include, at a minimum:
if the Player will have coaching responsibilities, a requirement that the Player obtain a coaching certification (at least a B license) and detailed plan as to how the Player will obtain such coaching certification and whether the Player will assist with the MLS Club’s affiliate or academy players; and
Job responsibilities; and
Time commitment required.
Proposed compensation for duties and comparisons to salaries for similar roles when taking into account the expected number of hours of non-Player duties.
The League recognizes that certain positions may be more difficult to find comparable salaries, and the burden is on the Club to use best efforts to make correlations to other roles, leagues, etc. to present to the League.
The League will consider proposed compensation in light of former League Player-Coaches.
As a Player’s primary responsibility is as a Player, in no event shall a Player’s compensation for his non-Player duties exceed fifty percent (50%) of his Unadjusted Salary Budget Charge for the year.

Updates to the 2023 MLS Roster Rules & Regulations

By MLS Communications

Friday, Feb 24, 2023, 03:52 PM

As part of the annual review of the MLS Roster Rules and Regulations, the following changes to Roster Rules and Regulations were approved ahead of the 2023 MLS season.

Elimination of the Allocation Ranking List

The Allocation Ranking List and Order were eliminated during the 2022-23 offseason. Effective January 6, any players previously on the Allocation Ranking List will be assigned through the MLS Discovery Process. Future players transferred out of Major League Soccer will become discoverable one week from when the player’s International Transfer Certificate (ITC) is permanently transferred and the League has notified all clubs.

In lieu of holding the first position in the 2023 Allocation Ranking Order, St. Louis CITY SC has been provided the opportunity to retain right of first refusal over one player of their choosing who was on the Allocation Ranking List at the time of its dissolution.

Expansion of Intraleague Loans

Each MLS club is able to loan up to two players to another MLS club per season, an increase from the previous rule which allowed only one intraleague loan. A player on an intraleague loan will be eligible to compete against his former club.

Expansion of Player Buyout Policy

A club may buy out one Guaranteed Contract either in-season or during the offseason to make available the corresponding salary budget charge. Previously, clubs were only able to exercise their one buyout during the offseason and ahead of the Roster Compliance deadline.

Under the updated rule, the one buyout is in addition to the club’s ability to sign a player as a Season-Ending Injury Replacement.

If the buyout is conducted in-season, it must be concluded by the close of the Secondary Transfer Window of August 2, 2023.

Update to Season-Ending Injury Replacement Player Acquisitions

A club may replace an injured player that is on the Season-Ending Injury List with a replacement player in accordance with parameters below.

The club will remain responsible for the injured player's full Salary Budget Charge. Clubs are only able to receive Salary Budget relief (paid out of the club's own pocket) for a season-ending injury replacement under the following parameters:

The injured player must be formally placed on the Season-Ending Injury List prior to the opening of the Secondary Transfer Window (previously, teams were required to designate Season-Ending Injuries prior to the close of the Primary Transfer Window). The replacement player must be clearly designated as a Season-Ending Injury Replacement at the time the player is added to the club’s roster. The Season-Ending Injury Replacement Player must be acquired after the related injury occurred and must be added to the roster prior to the Roster Freeze date (Sept. 13, 2023).

The Salary Budget Charge of the replacement player may not be more than the player who suffered the season-ending injury. If the injured player placed on the Season-Ending Injury List is a Designated Player, the club may replace such player with a Designated Player, provided that his Salary Budget Charge is not more than the player he is replacing.

The replacement player’s charge will not be charged against the Club Salary Budget.

Clubs will only be allowed to sign one such replacement player per MLS League Season.

Update to Revenue Share from Transfers or Loans for Clubs

A club shall receive 95% of the corresponding transfer or loan fee revenue from any transaction, including those involving a Homegrown prayer or U22 Initiative player. If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue after it has recouped all out-of-pocket cash payments made by the club in connection to that player (if applicable).

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2023 MLS Roster Rules and Regulations

2023 MLS Roster Composition

A Major League Soccer club's active roster is comprised of up to 30 players. All 30 players are eligible for selection to the game-day squad during the regular season and playoffs.

In addition to the Salary Budget, each MLS club may spend additional funds on player compensation including money from a League-wide allocation pool (General Allocation Money), discretionary amounts of Targeted Allocation Money, the cost of Designated Players outside the Salary Budget, the cost of U22 Initiative Slots outside the Salary Budget, and money spent on the Supplemental Roster (roster slots 21-30).

Senior Roster

Up to 20 players, occupying roster slots 1-20, count against the club's 2023 Salary Budget of $5,210,000 and are referred to collectively as the club's Senior Roster.

Clubs are not required to fill roster slots 19 and 20, and clubs may spread their entire Salary Budget across 18 Senior Roster Players. A minimum Salary Budget Charge will be imputed against a club's Salary Budget for each unfilled Senior Roster slot below 18.

A club may have no more than 20 players on its Senior Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions.

The Maximum Salary Budget Charge for a single player is $651,250. (See Allocation Money section below for details on buying down a player's Salary Budget Charge.)

Supplemental Roster

The salaries of players on the Supplemental Roster (slots 21-30) do not count toward a club's Salary Budget.

A club may have no more than ten players on its Supplemental Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions. All Generation adidas players are Supplemental Roster players during the initial guaranteed term of their contract.

Slots 21-24:

Slots 21-24 may be filled with (i) Senior Minimum Salary Players ($85,444), which may include Homegrown Players, (ii) Generation adidas Players, (iii) any specifically designated players eligible for the MLS SuperDraft; or (iv) Homegrown Players earning more than the Senior Minimum Salary subject to the Homegrown Player Subsidy.

All players in slots 21-24 must be paid a base salary that is at least the Senior Minimum Salary ($85,444).

Slots 25-28:

Slots 25-28 may be filled with (i) players earning the Reserve Minimum Salary ($67,360), which may include Homegrown Players, (ii) Homegrown Players earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy, or (iii) Generation adidas Players (earning the Reserve Minimum Salary).

Reserve Minimum Salary Players must be 24 years or younger during the League Year (age of player is determined by year - not date - of birth).

These slots may not be filled with Senior Minimum Salary Players (unless they are Homegrown Players subject to the Homegrown Player Subsidy).

All players in slots 25-28 must be paid a base salary that is at least the Reserve Minimum Salary ($67,360).

Slots 29-30:

Slots 29 and 30 must be filled with Homegrown Players (i) earning the Reserve Minimum Salary ($67,360) or (ii) earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy.

All Players in roster slots 29-30 must be paid a base salary which is at least the Reserve Minimum Salary.

Homegrown Player Subsidy

Homegrown Player(s) in Supplemental Roster slots 21-30 may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary (if occupying slots 25-30) or Senior Minimum Salary (if occupying slots 21-24).

Clubs may use up to $200,000 of their currently available Targeted Allocation Money to sign new Homegrown Players to their first MLS contract, subject to League review and approval. Targeted Allocation Money cannot be used on a Homegrown Player previously signed to MLS.

2023 Roster Compliance, Roster Freeze and Transfer Window Dates

The 2023 Roster Compliance Date is February 24, 2023 by 8 p.m. ET, at which time clubs must be roster and budget compliant heading into the start of the 2023 MLS season.

The 2023 Roster Freeze Date is September 13, 2023, at which time clubs must submit their final 30-man roster. Rosters cannot be changed from that date through the day after MLS Cup, subject to Extreme Hardship.

The registration windows - the dates between which MLS may request the international transfer certificate of a player under contract in another country - are as follows:

Primary Transfer Window: Tuesday, January 31, 2023 – Monday, April 24, 2023

Secondary Transfer Window: Wednesday, July 5, 2023 – Wednesday, August 2, 2023

Player Categories on the Roster

Domestic/International

Domestic Players

U.S.-based clubs: For U.S. clubs, a domestic player is either a U.S. citizen, a permanent resident (i.e., a Green Card holder) by the Roster Compliance Date, the holder of a certain other special status (e.g., has been granted refugee or asylum status) or a player who qualifies under the Homegrown International Rule. There is no limit as to the number of U.S. Domestic Players on a U.S. club's roster.

There is no limit as to the number of U.S. Domestic Players or Canadian Domestic Players on a Canadian club's roster; provided, however, a Canadian club is required to have a minimum of three Canadian Domestic Players on its roster at all times.

Homegrown International Rule

Any player who meets the requirements to qualify as a Homegrown Player as a member of an MLS club academy, either in the U.S. or Canada, or has met similar requirements as a member of a Canadian Approved Youth Club, will count as a domestic player (i.e., he will not occupy an international roster slot) on both U.S. and Canadian club rosters provided that:

The player became a member of an MLS club academy, either in the U.S. or Canada, or a Canadian Approved Youth Club no later than the year in which he turned 15 years old; and

The player signs his first professional contract with MLS or an MLS club's affiliate (MLS NEXT Pro).

International Players

In 2023, a total of 233 international roster slots are divided among the 29 clubs. These roster slots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have less than eight during any given season. With trades, there is no limit on the number of international roster slots on each club's roster.

In addition, the three Canada-based MLS clubs are each allowed three additional non-domestic players on their active rosters, subject to the below.

U.S.-based clubs: Any Player who obtains U.S. permanent residency while employed by MLS will be considered a domestic Player for the applicable Season if such residency is granted or the Player has appeared for an immigrant visa interview by the Roster Compliance date (Feb. 24, 2023 at 8 p.m. ET)

Canada-based clubs: Any Player who obtains U.S. or Canadian permanent residency while employed by MLS will be considered a domestic Player for the applicable Season if such residency is granted or the Player has appeared for an immigrant visa interview by the Roster Compliance date (Feb. 24, 2023 at 8 p.m. ET).

In addition to the International Roster Slots, each Canadian Club is permitted to designate up to three (3) International Players who have been under contract with MLS and registered with one or more Canadian clubs for at least one year who will not count toward the club’s International Roster Slots. In order to be eligible, the International Player must have met the contract and registration requirement by the Roster Compliance date (Feb. 24, 2023 at 8 p.m. ET).

Homegrown Players

Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of “Homegrown Player” on a club’s roster.

There is no limit to the number of Homegrown Players a club may sign in any given year.

Homegrown Players may occupy a slot on the Senior or Supplemental Roster.

Homegrown Players on the Supplemental Roster may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary ($67,360) or the Senior Minimum Salary ($85,444).

Generation adidas

Generation adidas is a joint program between MLS and adidas that is dedicated to developing exceptional talent in a professional environment. Each year, a handful of top collegiate underclassmen and youth national team players are signed by the League with the majority of such players entering the League through the MLS SuperDraft. Until the end of the guaranteed term of his contract up to three years, Generation adidas players are on a club's Supplemental Roster.

Designated Player

The Designated Player Rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge, with the club bearing financial responsibility for the amount of compensation above each player's Salary Budget Charge. Designated Players may be new players signed to MLS via the Discovery Process, or they may be re-signed existing players on a club's roster.

A player's Salary Budget Charge, and therefore Designated Player status, is generally determined by averaging all guaranteed amounts payable over the guaranteed term.

In 2023, a Designated Player who is at least 24 years old during the League Year will carry the Maximum Salary Budget Charge ($651,250) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $325,625.

Clubs may trade a Designated Player or U22 Initiative Player, remain responsible for some or all future out of pocket costs, and shed the Designated Player or U22 Initiative Player slot designation under the following limitations:

Up to one Designated Player traded per year (two total “active” at any given time)

Up to one U22 Initiative Player traded per year (two total “active” at any given time)

Player may only be traded beginning in his second MLS season

Roster Slot Designation (Designated Player or U22 Initiative) must be held by one of the two trading teams

Young Designated Player

A Designated Player who is 23 years old (or younger than the age of 23) during the League Year (the age of the player is determined by year - not date - of birth) will carry the following Young Designated Player Salary Budget Charge:

Ages 20 and younger: $150,000

Ages 21-23: $200,000

If such a Young Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Young Designated Player Salary Budget Charge of $150,000.

Clubs may "buy down" the Salary Budget Charge of a Designated Player with General Allocation Money. The reduced budget charge may not be less than $150,000.

Each club will be allotted two Designated Player roster slots. Clubs with two Designated Players may add a third Designated Player by paying $150,000 to the League, which shall be split among clubs with two or fewer occupied Designated Player slots for use as General Allocation Money in the following MLS Season. Clubs must pay the $150,000 fee every year in which a third Designated Player slot is occupied on the club's roster.

If a club uses the third Designated Player slot to sign a Young Designated Player, then the club will not be obligated to pay the $150,000 charge.

Designated Player slots are not tradable.

U22 Initiative Roster Slots

Number of Slots:

Each MLS team will have up to three U22 Initiative Slots that will each occupy one of the 20 existing Senior Roster Slots. The number of U22 Initiative Slots available to each team will be based on that team’s use of its third Designated Player slot.

If a Club has a vacant third Designated Player slot, the Club will have available three U22 Initiative Slots.

If a Club elects to sign a third Designated Player, the number of U22 Initiative Slots would be impacted in the following way:

If the third Designated Player is a Young Designated Player, the club will have all three U22 Initiative Slots.

If the third Designated Player is age 24 or older, yet is at, or below, Maximum Targeted Allocation Money Amount ($1,651,250), the club will have all three U22 Initiative Slots.

If the third Designated Player is age 24 or older and is above Maximum Targeted Allocation Money Amount ($1,651,250), the club will have one U22 Initiative Slot.

Eligibility for U22 Initiative Slot:

Age: A Player must be twenty-two years old or younger in the first year he is eligible to play in an MLS game (e.g., not eligible for 2023 if he turns 23 in 2023). A player who signs at age 22 or younger may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided that for non-Homegrown players, such player is on his initial contract. A Homegrown player may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided he must be on his first or second contract and the applicable contract must have been signed at age 22 or younger.

Contract: A player is eligible to occupy a U22 Initiative Slot if signing his first contract with MLS, provided that player meets age and compensation requirements, as either a Homegrown player, or, as an international or domestic player playing outside of MLS. A player will be eligible to occupy a U22 Initiative Slot during his second contract provided that he meets the age and compensation requirements and signed his first contract with MLS as either a Homegrown or SuperDraft player.

Compensation: A player’s salary may not exceed the Maximum Salary Budget Charge in any given year, including option years. A Homegrown or SuperDraft player on his second contract may earn up to $200,000 above the Maximum Salary Budget Charge in any given year, including option years.

In addition, Clubs may pay, without limit, additional amounts in the form of acquisition fees (i.e. transfer or loan fees).

U22 Initiative Slot Budget Charge:

Players occupying a U22 Initiative Slot will have a Salary Budget Charge that mirrors that of a Young Designated Player:

Ages 20 and younger: $150,000

Ages 21-25: $200,000

All such amounts above the first $150,000 or $200,000 accounted for on the Salary Budget will be paid on a discretionary basis by the Club.

Transfer of Player:

In the event a player occupying a U22 Initiative Slot is transferred outside of the League, 100% of the proceeds of the sale (i.e., after out-of-pocket amounts are recouped) will be paid to the Club and such amounts may be converted to General Allocation Money based on the below sliding scale:

Acquisition cost of the Player for coming into the League (e.g., both Loan and Transfer costs)

Revenue share convertible to GAM in 2022 (increases by five percent (5%) annually thereafter)

≤ $2,500,000

$1,157,625

$3,000,000

$926,100

$3,500,000

$694,595

$4,000,000

$463,050

$4,500,000

$231,525

≥ $5,000,000

Minimum Slot Occupation Length:

A player must occupy a U22 Initiative Slot for a minimum of two seasons; provided, however, if the compensation (including acquisition fee, loan fee, and/or conditional compensation) amortized over the first three years is greater than the Maximum Salary Budget Charge, then he must occupy a U22 Initiative Slot for a minimum of three seasons.

Reclassification of a Player from a U22 Initiative Slot:

Prior to meeting the minimum slot occupation length, a Club may: transfer the player out of MLS, remove the player from a U22 Initiative Slot using Targeted Allocation Money, loan the player outside of MLS, utilize its one Off-Season Buyout, or transition the player to a Designated Player slot.

If the contract of a player occupying a U22 Initiative Slot is renegotiated prior to meeting the minimum slot occupation length, the League will not reclassify the player and he must continue to occupy a U22 Initiative Slot or Designated Player slot depending on compensation.

Salary Limitation in Options and Years 26+

If a player’s contract includes Options, compensation during the Options may exceed the Maximum Salary Budget Charge only if it is in a year the player is no longer required to occupy a U22 Initiative Slot. These players would not be eligible to occupy a U22 Initiative Slot in the Option year regardless of age if the compensation exceeds the Maximum Salary Budget Charge.

If a player’s contract covers years in which he is no longer eligible to occupy a U22 Initiative Slot (i.e., the seasons of his 26+ birthday), the player’s compensation may exceed the Maximum Salary Budget Charge provided it is during an Option year.

Special Discovery Players

In general, the total amount of the acquisition cost of a player is charged against the Salary Budget in the year in which it is paid. For one player on a club's roster (a "Special Discovery Player"), a club can amortize the total amount of acquisition costs (up to $500,000) over the term of the player's contract, including Option years, or over the term of the first and second contract, so long as the second contract is signed prior to the expiration of the first. A club my choose to amortize the acquisition costs evenly or in unequal installments. If the Club chooses unequal installments, no less than 10-percent of the amortized acquisition cost may be captured in any given League year of the player’s contract.

If a Special Discovery Player is transferred to a non-MLS Club prior to the expiration of the term of his contract, any remaining unamortized acquisition costs would be charged immediately to a Club Salary Budget. If a transfer fee is received for the player, any unamortized acquisition costs, including the acquisition cost charged to the Club Salary Budget during the MLS Season such transfer occurs, may be recouped prior to any sharing arrangement with the League. Any guaranteed compensation due to the player will continue to be charged to a Club Salary Budget.

Special Discovery Players must be 27 years old (or younger than the age of 27) during the League Year under consideration (the age of the player is determined by year - not date - of birth).

There may be no more than one Special Discovery Player per number of clubs in the League (i.e., 29 total Special Discovery Players across the League in 2023).

A club may have more than one Special Discovery Player on its Senior Roster at any given time if the club received the additional player(s) via trade. However, the club trading the Special Discovery Player may not sign a new Special Discovery Player until the traded Special Discovery Player's original contract expires, the player's contract is terminated, or all the amortized acquisition costs are accounted for in the Salary Budget Charge.

Targeted Allocation Money may be used on a Special Discovery Player if he qualifies.

Player Acquisition Mechanisms

Clubs may acquire players and add them to their rosters via the following mechanisms:

SuperDraft

The 2023 MLS SuperDraft consisted of three rounds of player selection. Any club that had received a fourth-round pick via trade was given a compensatory pick at the conclusion of the third round.

Most draft prospects are NCAA college seniors who have exhausted their college eligibility. Generation adidas Players and non-collegiate international players are also eligible for selection in the MLS SuperDraft. Clubs may nominate players for the League's Draft-Eligible List, and only players from that list may be selected.

The MLS SuperDraft order is set by taking the reverse order of the club standings at the end of each MLS season, taking postseason performance into account, with new expansion clubs at the top of the order.

College Protected List

Unless claimed on Waivers, a player who was drafted by a particular club through the MLS SuperDraft and did not sign with the League is placed on that club's "College Protected List" until December 31 of the year after the draft (i.e., for MLS SuperDraft 2023, until December 31, 2024), after which the club loses the priority rights to sign the player.

Trades

Players, General Allocation Money, international roster slots, college protected player priority, Discovery Priority, and Homegrown Player priority in addition to selection position in MLS SuperDraft, Re-Entry Process, and Waivers may all be exchanged in trades approved by the League, provided all of the necessary rules regarding roster and Salary Budget compliance are met and the trade is completed during a valid trading period.

Primary Transfer Window and Secondary Transfer Window

During the season, trades that involve players must occur during either the Primary Transfer Window or Secondary Transfer Window.

RELATED: mlssoccer.com Transactions Tracker

Discovery Process

Discovery List

Pursuant to the Discovery Process, clubs may scout and sign players who are not yet under contract to MLS and who are not subject to another assignment mechanism (e.g., MLS SuperDraft). To sign a player through the Discovery Process, the club must first place the player on its Discovery List. A club may have up to seven players on its Discovery List at any time and may remove or add players at any time. There is no limit to how many players a club can sign from its Discovery List.

Players who were previously on the Allocation Ranking List will now be eligible for the Discovery Process. Future players transferred out of Major League Soccer will become discoverable one week from when the player's ITC is permanently transferred and the League has notified all clubs.

Clubs may not add the following players to their Discovery Lists:

Current MLS players

Players who have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)

Players for whom another club has a Right of First Refusal

Players who played at college or forwent college during the college season immediately prior to the date of discovery (If a player has completed or forgone his College eligibility in the season immediately prior to the date of his Discovery and was not on the MLS SuperDraft List, he shall be placed on Waivers)

Underage players (i.e., players under the age of 18 if domestic or under the age of 17 if outside of the U.S. or Canada)

Amateur members of the U.S. U-17 and U-20 or Canadian National Teams. MLS shall have an exclusive 45-day window after such players reach their respective 18th birthdays or graduate high school (whichever is later) to determine if these players will be pre-signed for the SuperDraft.

Players who (1) the League unsuccessfully attempted to pre-sign for the MLS SuperDraft, (2) the League did not attempt to sign for the SuperDraft, or (3) did not enter college will be non-discoverable for up to one year after forgoing college and will be placed on Waivers during this one-year period.

Homegrown-eligible players (i.e., another club has achieved or is in the process of achieving Homegrown Priority over such a player)

Free Agents

Designated Player Requests

If a club wishes to add a player to its Discovery List whom the League determines will require a significant investment from the club, the League will, prior to placing that player on a club’s Discovery List, determine whether the club has the necessary intent, means and ability to sign such a player. The League may contact the player’s current club (if applicable) and/or his authorized representative to determine the likelihood of reaching an agreement. If the League determines that there is no realistic chance of signing the player at that time he will not be discoverable.

Discovery Conflict Resolution

If one or more clubs attempt to add the same player to their respective Discovery Lists, the club that filed the claim on the earlier date will have the priority right to sign the player. If one or more clubs submit a discovery request on the same day, then the club with the lowest points-per-game in the current MLS Regular Season (all clubs must have played a minimum of three regular season games) will have the priority right to sign the player.

If a club wants to sign a player on the Discovery List of another club that has higher Discovery priority on the player, it may offer that club $50,000 in General Allocation Money in exchange for the right to sign the player. The club with the player on its Discovery List will then have five days (or three days during the Secondary Transfer Window) to either (i) accept the General Allocation Money and pass on the right to sign the player or (ii) make the player a genuine, objectively reasonable offer.

Related Party Transactions

All terms of any arrangements among an MLS club, a related party club, and a player to be signed to MLS shall be fully disclosed to the League. A player joining an MLS club from a related party club will calculate his Salary Budget Charge based on the compensation he is receiving from his related party club contract and any acquisition fees associated with his signing. The League will make a final determination, in its sole discretion, as to the Salary Budget Charge of such a player.

Homegrown Player Signings

A club may sign a player to a contract without subjecting him to the MLS SuperDraft if the player has been a member of that club’s youth academy for at least one year and has met the necessary training and retention requirements. Players joining MLS through this mechanism are known as Homegrown Players.

There is no limit on the number of Homegrown Players a club may sign in any given year.

Affiliate Priority Players

In addition to Homegrown Players and College Protected Players, clubs may have priority for up to seven players from their respective affiliates (MLS NEXT Pro / USL). Such players will not count towards the seven Discovery List slots. In order to retain priority on any additional affiliate players, such players must be added to an MLS club’s Discovery List.

Re-Entry Process

The Re-Entry Process is summarized below and subject to the long-form 2020-2028 MLS Collective Bargaining Agreement.

The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is the reverse order of finish in 2023, taking into account playoff performance. Players who are available to be selected in Re-Entry Draft include all option decline and out of contract players who are 22 years old or older with at least one MLS service year and who are not eligible for Free Agency.

Stage One

Players who are available in Stage One of the Re-Entry Draft are:

Players who are at least 22 years old and have a minimum of one MLS service year whose options were not exercised by their clubs.

Players who are at least 22 years old and have a minimum of one MLS service year who are out of contract and whose club does not wish to re-sign them at a $15,000 increase or 10% increase in salary over his prior year’s salary.

Clubs must exercise the option for, or extend a Bona Fide Offer (i.e., $15,000 increase or 10% increase in salary over his prior year’s salary) to, all players selected in Stage One and may not select their own draft-eligible players. Should a player reject the offer, the drafting club will hold the Right of First Refusal for that player in MLS. Players with option years left on their contract will automatically be added to the drafting club's roster.

Stage Two

Players who are not selected in Stage One of the Re-Entry Draft will be made available in Stage Two. If a player is selected in Stage Two, the drafting club will be required to make a genuine offer to the player. If an agreement cannot be reached between the drafting club and the player, the drafting club will hold the Right of First Refusal for that player in MLS. Clubs may not select their own draft-eligible players in Stage Two until all other Clubs have declined on selecting such players.

Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.

A player may choose to opt out of the Re-Entry Process prior to Stage One and/or Stage Two of the Re-Entry Draft. In such instances, the Right of First Refusal for the player will remain with his previous club.

Free Agency

Free Agency will be conducted in accordance with the MLS Collective Bargaining Agreement.

Waivers

A club may place a player on Waivers at any time during the regular season at which point he is made available to all other MLS clubs. The Waiver Claiming Period shall commence on the first business day after the League delivers notice to clubs and expires at 5 p.m. ET on the second business day. If a player is not selected off Waivers ("clears Waivers") then that player is available to all MLS clubs on a first-come, first-served basis.

Waiver Order

The Waiver Order is based on points per game once all clubs have played at least three MLS League Season games. If the Waiver takes place prior to all clubs playing in at least three MLS League Season games, priority is granted based upon the previous MLS season's performance, taking playoff performance into account first, with clubs eliminated from playoff contention at the same stage separated according to their point totals through the end of the regular season. New expansion clubs shall be at the bottom of the Waiver Order until all clubs have played at least three MLS League Season games.

Claiming an Out of Contract Player

If a club claims a player who was previously signed to an MLS contract but is no longer signed to an MLS contract, the club must issue the player a genuine offer within three business days.

Claiming a Guaranteed Player

If a player with a guaranteed contract is waived, any interested MLS club will have 48 hours from the notice of Waivers to claim the player by notifying the League of the intention to claim the player and the amount of the player's Salary Budget Charge they wish to assume. The player will be awarded based on a number of factors, including but not limited to, which club is willing to absorb the highest Salary Budget Charge. If the highest Salary Budget Charge is submitted by more than one club, the player will be awarded based on the Waiver Order.

Players who are eligible to be placed on Waivers are as follows:

Contracted Players: Any player with an SPA.

Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the MLS SuperDraft list.

Remaining College Eligibility: A player who left or forgoes college with remaining eligibility (and was not on the MLS SuperDraft list). Such players will be discoverable one year after leaving or forgoing college with remaining eligibility.

Returning Players: A player returning to MLS who the League was unable to re-sign and his last MLS club does not wish to exercise their Right of First Refusal, or who was previously terminated without going through Waivers.

Unsigned Drafted Players: The day after the drafting club's first MLS Regular Season game, college players selected in that year's SuperDraft who have not signed an MLS contract have the right to be placed on Waivers upon request. If an unsigned college player is placed on Waivers and is not claimed by another MLS club, he will return to his drafting club's College Protected List until the end of the College Protected Period.

Out-of-Contract/Option Decline Players: Any player whose contract has expired or option has been declined, is not eligible for the Re-Entry Process or Free Agency, and who was not offered a genuine offer by his former club. Such a player will be typically made available in a year-end Waiver Draft or prior to the start of the next MLS League Season.

Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent Waiver selections in any given season.

Affiliate Short-Term Agreements

A club may sign a player, age 25 or younger during the league season, from its affiliate (MLS NEXT Pro) to a maximum of four Short-Term Agreements (up to four-day contracts) each season (maximum of 16 days).

An individual player may be included on up to four MLS league season match rosters each season, however, that player may appear in no more than two MLS league season matches. An individual player may appear in any number of non-league games during the terms of his four Short-Term Agreements.

A club may roster up to four players on Short-Term Agreements per MLS league season match, so long as they are Homegrown Players or Players earning less than or equal to the MLS Senior Minimum Salary ($85,444) with the affiliate. This number will be reduced to one player per MLS league season match after Roster Freeze (inclusive of MLS Cup Playoffs). Additional players may also be signed to Short-Term Agreements for MLS league season games but only in cases of Extreme Hardship.

International Player limits still apply to Short-Term Agreements, excluding callups for cases of Extreme Hardship.

Extreme Hardship Call-ups

Clubs may add players to their roster in cases of "Extreme Hardship." Extreme Hardship exists when an MLS club has either:

Fewer than 16 outfield players available; OR

Has fewer than two goalkeepers available.

A club may sign players, on loan, to Short-Term Agreements (up to four-day contracts) for MLS League Season games in cases of Extreme Hardship.

Season-Ending Injury

Season-Ending Injury List

If a player suffers a season-ending injury, a club may place that injured player on the Season-Ending Injury List and receive roster relief (i.e., an open roster slot). Once placed on the Season-Ending Injury List, the injured player will not be eligible to play for the club in any remaining competition during that MLS season (including any exhibition games or tournaments, including but not limited to: Leagues Cup, Campeones Cup, CONCACAF Champions League, Canadian Championship and Lamar Hunt U.S. Open Cup.

Season-Ending Injury Replacement Player

A club may replace an injured player that is on the Season-Ending Injury List with a replacement player in accordance with parameters below.

The injured player must be formally placed on the Season-Ending Injury List prior to the opening of the Secondary Transfer Window. The replacement player must be declared as such when being added to the club’s roster and must be acquired by the Roster Freeze date (Sept. 13, 2023) and after the related injury occurred.

Clubs will only be allowed to sign one such replacement player per MLS League Season.

If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Supplemental Season-Ending Injury

If a player on a club's Supplemental Roster suffers a season-ending injury, a club may replace that injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (e.g., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may be replaced by a player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). The Reserve Minimum Salary of such replacement player will be charged to the Club Salary Budget.

Accordingly, a club must have Salary Budget space to replace a player with a season-ending injury on the Supplemental Roster with a replacement player.

If the injured player occupies an international roster slot on the Supplemental Roster, the replacement player may also be an International Player.

Short-Term Injury Replacements

Injured List

If a player suffers an injury that will prohibit him from participating in six or more MLS League Season games, a club can place that injured player on the Injured List. An injured player placed on the Injured List will remain unavailable for a minimum of six MLS League Season games and may not participate in any exhibition games or tournaments during that period, including CONCACAF Champions League, Canadian Championship, Lamar Hunt U.S. Open Cup, Leagues Cup, and Campeones Cup games.

Senior Roster Players on the Injured List

If a player on a club's Senior Roster is put on the Injured List, the club may receive roster relief (i.e., an open roster slot). The club will not receive salary budget relief for that player and will be responsible for the injured player's full Salary Budget Charge. Only clubs that have or can create extra Salary Budget space will be able to temporarily replace players on the Injured List. A club must have priority over any replacement player it adds (e.g., via Discovery, Right of First Refusal, etc.)

If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Clubs may not trade for Salary Budget space to replace a player added to the Injured List.

Supplemental Roster Players on the Injured List

If a player on a club's Supplemental Roster suffers an injury that will place such a player on the Injured List, the club may replace the injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (e.g., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may only be replaced by a player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). Such Reserve Minimum Salary will be charged to the Club Salary Budget. Therefore, a club must have Salary Budget space to replace the injured player on the Supplemental Roster or Reserve Roster with a Injured List Replacement Player. The club must also ensure it has the necessary roster space and Club Salary Budget available when the player is removed from the Injured List.

NOTE: No changes may be made to a club's roster after the Roster Freeze Date (September 13, 2023) and running through the day after MLS Cup. Nevertheless, a club may obtain players in accordance with the Extreme Hardship rules and procedures after the Roster Freeze Date.

Methods of Removing a Player from a Roster

Waivers

Clubs may waive players based on performance at any time during the MLS season. A club may waive a Semi-Guaranteed Player at any time during the regular season until three business days prior to the Contract Guarantee Date. A club may waive a Guaranteed Player (at any time) or a Semi-Guaranteed Player (after the Contract Guarantee Date) only with League approval. Clubs may not waive a player between the Roster Freeze Date and MLS Cup.

Semi-Guaranteed Players waived on or after the Contract Guarantee Date and Guaranteed Players waived anytime, and who clear Waivers (i.e., not picked up by another club), will continue to have their respective Salary Budget Charges count against the applicable Club Salary Budgets. The club waiving the player will not receive a replacement player.

Transfers and Loans

An MLS player may be transferred or loaned at any time to a non-MLS club (subject to the receiving club's applicable federation's transfer window), and subject to the consent of the player.

Upon loaning a player, clubs will receive roster relief but not Salary Budget relief unless otherwise agreed to in the loan agreement.

Transfer and Loan Fees

The revenue share from transfers or loans for clubs is as follows:

A club shall receive 95% of the corresponding transfer or loan fee revenue from any transaction, after it has recouped all out-of-pocket cash payments made by the club in connection to that player (if applicable).

Usage of Revenue

The club's share of transfer or loan fee revenue may only be used as follows:

The club may assign up to $1,157,625 of the transfer/loan revenue as General Allocation Money. In the case of Designated Players, transfer/loan revenue may not be assigned as General Allocation Money. In the case of U22 Initiative Slot players, please refer to the section on U22 Initiative Roster Slots.

The remaining balance of the club's share (if any), and which cannot be traded, will be distributed by the League to the Club as cash.

Intraleague Loans

Clubs may loan up to two players to another MLS club subject to the following:

A field player must be 24 years old (or younger than the age of 24) during the League Year (i.e., cannot turn twenty-five (25) during the League Year); a goalkeeper must be 28 years old (or younger than the age of 28) during the League Year (i.e., cannot turn twenty-eight (28) during the League Year).

Each club may loan up to two players to another MLS club per season.

The loan must be initiated during the Primary Transfer Window or Secondary Transfer Window.

Intraleague Loans that are initiated prior to the close of the Primary Transfer Window may allow the loaned player to be recalled during the Secondary Transfer Window as agreed upon between the two clubs. If recalled, such a player must remain with his original club for the remainder of the MLS season.

Except in an instance where the player is recalled as outlined above, he must remain with his new club for the entire MLS Season.

The player may compete against his former club during the MLS Season while on loan (includes MLS League Season games and all other competitions).

Loan of a Player by MLS

A club may loan any player from its Senior Roster or Supplemental Roster to a non-MLS club, subject to League discretion. During the loan period, the club will receive roster relief but not Salary Budget relief unless otherwise determined in the loan agreement.

If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS League Season games.

If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to Affiliate Club (MLS NEXT Pro / USL)

All loans from MLS clubs to its affiliates must be free (i.e., no loan fees paid by MLS NEXT Pro / USL affiliate clubs).

If an MLS player is loaned to an affiliate, such a player may not be paid more than the player's Salary Budget Charge without that compensation being captured on the MLS club's Salary Budget (including, but not limited to, performance bonus compensation).

An MLS club can receive roster relief and budget relief for a maximum of one player loaned to its MLS NEXT Pro or USL affiliate or a lower-division club in the U.S. or Canada; provided, however, that:

The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);

The player's Salary Budget Charge is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and

The loan must be a season-long free loan;

The player has not appeared on a gameday roster for the MLS Club as of the beginning of the applicable loanee club’s season; and

The loan of the player to the loanee club must last for the remaining duration of the entire loanee club’s season; provided, however, that such a player may be recalled to his MLS club in the case of Extreme Hardship.

Buyout of Guaranteed Contract

A club may buyout one player (including a Designated Player) who has a Guaranteed Contract and free up the corresponding Salary Budget space each year. Such a buyout is at the club's expense and may apply to any mutually terminated contracted player or to a contract that remains in effect.

This buyout may be conducted in-season or during the offseason. If the buyout is conducted in-season, it must be concluded by the close of the Secondary Transfer Window.

Before a player is considered a buyout, the League in its discretion may place the player on Waivers to be made available to all clubs.

If a team no longer has its one buyout of a guaranteed contract, it may enter settlement discussions with a player, but such settlement shall continue to apply to the team’s Salary Budget. If said player is a Designed Player, he will continue to occupy a Designated Player position on the team’s roster.

Right of First Refusal

Former MLS Player

Subject to rules regarding the Re-Entry Draft and Free Agency, if a former MLS player, who the League previously attempted but was unable to re-sign, returns to MLS, his former club will have a Right of First Refusal.

That club will not have a Right of First Refusal if:

The club received any consideration in connection with the transfer of such player to a non-MLS club; or

The player was excluded from possible selection in the Expansion Draft.

College Protected Player

A “College Protected Player” is a player who was selected in the MLS SuperDraft, provided his drafting club offered him a contract and the contract offer was refused by the player. If his club does not offer him a contract after being on trial, the player will have the option to be placed on Waivers on the date following the drafting club's first MLS Regular Season game. If no club is prepared to sign him off Waivers, the player will be placed on the drafting club's "College Protected List" until December 31 in the year following the draft in question, after which date the club loses the rights to sign the player.

Allocation Money

Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money

Each club receives an annual allotment of General Allocation Money. In 2023, that allotment is $1,900,000 per club.

A club may also receive General Allocation Money in the following cases:

Failure to qualify for the MLS Cup Playoffs

The transfer of a club’s player to non-MLS club outside MLS

Qualification for the CONCACAF Champions League

Expansion Clubs (see below)

Expansion Dilution (see below)

Designated Player charge distribution

In any year that the League adds one or more expansion clubs, (i) all clubs will receive an equal amount of General Allocation Money and (ii) any club that loses a player in the Expansion Draft will receive additional General Allocation Money. New expansion clubs receive a separate amount of General Allocation Money for their inaugural season.

General Allocation Money can be traded by clubs.

Buy-Down

Allocation Money can be used to "buy-down" a player's Salary Budget Charge as part of managing a club's roster, including buying down a Salary Budget Charge below the League maximum of $651,250. For example, a club may buy down a player earning $700,000 to a Salary Budget Charge of $500,000 by using $200,000 of General Allocation Money.

Use against a Salary Budget Charge

A club can use General Allocation Money to reduce a player's Salary Budget Charge to the lesser of 50% of the Salary Budget Charge or $150,000. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee; a club may reduce 100% of a loan or transfer fee.

Targeted Allocation Money Available Per Year

2023: $2,720,000 per club

2024: $2,400,000 per club

2025: $2,225,000 per club

2026: $2,125,000 per club

2027: $2,025,000 per club

Targeted Allocation Money may be used in the following ways:

Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the Maximum Salary Budget Charge.

Clubs may re-sign an existing player provided he is earning more than the Maximum Salary Budget Charge.

Clubs may use all or a portion of the available Targeted Allocation Money to convert a Designated Player to a non-Designated Player (assuming such player’s Salary Budget Charge meets the salary parameters described below) by buying down his Salary Budget Charge at or below the Maximum Salary Budget Charge. If Targeted Allocation Money is used to free up a Designated Player slot, the club must simultaneously sign a new Designated Player or U22 Initiative Slot player, subject to League approval.

A club retains the flexibility to convert a player previously bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.

Clubs may use up to $200,000 of currently approved Targeted Allocation Money to sign new Homegrown Players to their first MLS contract. It cannot be used on Homegrown Players previously signed to MLS.

Targeted Allocation Money may not be traded.

Salary Parameters

A player must earn more than 2023 Maximum Salary Budget Charge ($651,250) to qualify for Targeted Allocation Money. The compensation ceiling for such eligible players is set at $1,651,250 in 2023.

A player cannot have his Salary Budget Charge bought down below $150,000 using Targeted Allocation Money.

Targeted Allocation Money expires after four full Transfer Windows.

NOTE: To protect the interests of MLS and its clubs during discussions with prospective players or clubs in other leagues, amounts of Allocation Money currently held by each club will not be shared publicly. Only in the case of a trade will the amount of General Allocation Money involved be made public.

2023 Salary Budget Information

Club Salary Budget - $5,210,000

Maximum Salary Budget Charge - $651,250

Senior Minimum Salary - $85,444

Reserve Minimum Salary - $67,360

Designated Player Salary Budget Charge - $651,250

Second Designated Player Salary Budget Charge - $651,250

Third Designated Player Salary Budget Charge - $651,250

Young Designated Player Budget Charge (20 years old or younger during the League Year) - $150,000

Young Designated Player Budget Charge (21-23 years old during the League Year) - $200,000

Mid-Season Designated Player Salary Budget Charge - $325,625

Mid-Season Young Designated Player Salary Budget Charge (23 years old and younger) - $150,000

Maximum Targeted Allocation Money Amount - $1,651,250

U22 Spot Budget Charge (20 years old or younger during the League Year) - $150,000

U22 Spot Budget Charge (21-25 years old during the League Year) - $200,000

Player Professional Development Role

A Club may choose to designate, with prior League approval, to employ one Player per year in a professional development role.

The following parameters apply:

The Player’s professional development role must be approved prior to the Roster Compliance Date and last through the full season.

The Player must have responsibilities enabling him to develop skills in different parts of the Club’s business, including but not limited to coaching, scouting, front office duties, diversity liaison.

If the Player’s professional development role will include coaching responsibilities:

He must only have coaching responsibilities with respect to the MLS club’s affiliate and/or academy (i.e., cannot have coaching responsibilities with respect to the first team); and

He may not be on Loan to the MLS Club’s affiliate during the League Year in which he is serving in the professional development role, if the Player Coach has coaching responsibilities with respect to such Affiliate.

The Player must turn or be older than 25 years old during the League Year in which he is employed in the professional development role.

The Player may not be Loaned out for an extended period.

The MLS Club must designate a mentor within the MLS Club who will guide and monitor the Player’s development plan and process. The League may request detailed progress reports from the mentor throughout the course of the MLS Season. Failure to provide sufficient progress reports upon request by the League may result in the Player losing such professional development role designation and the MLS Club being prevented from designating another professional development role for at least five years.

The proposed compensation for the Player’s professional development duties must be commensurate with salaries for similar roles when taking into account the expected number of hours of such duties, including being commensurate with salaries paid to former League “player-coaches” if the professional development duties are coach-focused. Moreover, for professional development roles entered into after the 2022 MLS Season is over, the League will not approve compensation that is over $75,000.

Required Information:

In order to obtain League approval, which may be granted by the League in its sole and absolute discretion, Clubs must provide the following:

Detailed job description, which must include, at a minimum:

if the Player will have coaching responsibilities, a requirement that the Player obtain a coaching certification (at least a B license) and detailed plan as to how the Player will obtain such coaching certification and whether the Player will assist with the MLS Club’s affiliate or academy players; and

Job responsibilities; and

Time commitment required.

Proposed compensation for duties and comparisons to salaries for similar roles when taking into account the expected number of hours of non-Player duties.

The League recognizes that certain positions may be more difficult to find comparable salaries, and the burden is on the Club to use best efforts to make correlations to other roles, leagues, etc. to present to the League.

The League will consider proposed compensation in light of former League Player-Coaches.

As a Player’s primary responsibility is as a Player, in no event shall a Player’s compensation for his non-Player duties exceed fifty percent (50%) of his Unadjusted Salary Budget Charge for the year.

2022 MLS Roster Composition

A Major League Soccer club's active roster is comprised of up to 30 players. All 30 players are eligible for selection to the game-day squad during the regular season and playoffs.

Senior Roster

Up to 20 players, occupying roster slots 1-20, count against the club's 2022 Salary Budget of $4,900,000 and are referred to collectively as the club's Senior Roster.

A club may have no more than 20 players on its Senior Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions.

The Maximum Salary Budget Charge for a single player is $612,500. (See Allocation Money section below for details on buying down a player's Salary Budget Charge.)

Supplemental Roster

The salaries of players on the Supplemental Roster (slots 21-30) do not count toward a club's Salary Budget.

Slots 21-24:

Slots 21-24 may be filled with (i) Senior Minimum Salary Players ($84,000), which may include Homegrown Players, (ii) Generation adidas Players, (iii) any specifically designated players eligible for the MLS SuperDraft; or (iv) Homegrown Players earning more than the Senior Minimum Salary subject to the Homegrown Player Subsidy .

All players in slots 21-24 must be paid a base salary that is at least the Senior Minimum Salary ($84,000).

Slots 25-28:

Slots 25-28 may be filled with (i) players earning the Reserve Minimum Salary ($65,500), which may include Homegrown Players, (ii) Homegrown Players earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy, or (iii) Generation adidas Players (earning the Reserve Minimum Salary).

Reserve Minimum Salary Players must be 24 years or younger during the League Year (age of player is determined by year - not date - of birth).

These slots may not be filled with Senior Minimum Salary Players (unless they are Homegrown Players subject to the Homegrown Player Subsidy)..

All players in slots 25-28 must be paid a base salary that is at least the Reserve Minimum Salary ($65,500).

Slots 29-30:

Slots 29 and 30 must be filled with Homegrown Players (i) earning the Reserve Minimum Salary ($65,500) or (ii) earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy.

All Players in roster slots 29-30 must be paid a base salary which is at least the Reserve Minimum Salary.

Homegrown Player Subsidy

2022 Roster Compliance, Roster Freeze and Transfer Window Dates

The 2022 Roster Compliance Date is February 25, 2022 by 8 p.m. ET, at which time clubs must be roster and budget compliant heading into the start of the 2022 MLS season.

The 2022 Roster Freeze Date is September 2, 2022, at which time clubs must submit their final 30-man roster. Rosters cannot be changed from that date through the day after MLS Cup, subject to Extreme Hardship.

The registration windows - the dates between which MLS may request the international transfer certificate of a player under contract in another country - are as follows:

Primary Transfer Window: Thursday, February 10, 2022 – Wednesday, May 4, 2022

Secondary Transfer Window: Thursday, July 7, 2022 – Thursday, August 4, 2022

Player Categories on the Roster

Domestic/International

Domestic Players

There is no limit as to the number of U.S. Domestic Players or Canadian Domestic Players on a Canadian club's roster; provided, however, that a Canadian club is required to have a minimum of three Canadian Domestic Players on its roster at all times.

Homegrown International Rule

The player became a member of an MLS club academy, either in the U.S. or Canada, or a Canadian Approved Youth Club no later than the year in which he turned 15 years old; and

The player signs his first professional contract with MLS or an MLS club's affiliate (MLS NEXT Pro / USL ).

International Players

In 2022, a total of 224 international roster slots are divided among the 28 clubs. These roster slots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have less than eight during any given season. With trades, there is no limit on the number of international roster slots on each club's roster.

In addition, beginning in 2022, the three Canada-based MLS clubs will each be allowed three additional non-domestic players on their active rosters, subject to the below.

U.S.-based clubs: Any player who does not qualify as a U.S. Domestic Player in a U.S. club by the Roster Compliance date (Feb. 25, 2022 at 8 p.m. ET) shall be considered an International Player and must occupy an international roster slot on a U.S. club's roster for the full season. For avoidance of doubt, an International Player may not be converted to a Domestic Player if he receives a green card after the Roster Compliance Date (Feb. 25, 2022 at 8 p.m. ET).

Canada-based clubs: Any player who does not qualify as a U.S. Domestic Player or a Canadian Domestic Player by the Roster Compliance date (Feb. 25, 2022 at 8 p.m. ET) shall be considered an International Player and must occupy an international roster slot on a Canadian club's roster for the full season. For avoidance of doubt, an International Player may not be converted to a Domestic Player if he receives permanent residency after the Roster Compliance Date (Feb. 25, 2022 at 8 p.m. ET).

In addition to the International Roster Slots, each Canadian Club will be permitted to designate up to three (3) International Players who have been under contract with MLS and registered with one or more Canadian clubs for at least one year who will not count toward the club’s International Roster Slots. In order to be eligible, the International Player must have met the contract and registration requirement by the Roster Compliance date (Feb. 25, 2022 at 8 p.m. ET).

Homegrown Players

Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of “Homegrown Player” on a club’s roster.

There is no limit to the number of Homegrown Players a club may sign in any given year.

Homegrown Players may occupy a slot on the Senior or Supplemental Roster.

Homegrown Players on the Supplemental Roster may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary ($65,500) or the Senior Minimum Salary ($84,000).

Generation adidas

Designated Player

The Designated Player Rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge, with the club bearing financial responsibility for the amount of compensation above each player's Salary Budget Charge. Designated Players may be new players signed to MLS via the Allocation Ranking List or the Discovery Process, or they may be re-signed existing players on a club's roster.

A player's Salary Budget Charge, and therefore Designated Player status, is generally determined by averaging all guaranteed amounts payable over the guaranteed term.

In 2022, a Designated Player who is at least 24 years old during the League Year will carry the Maximum Salary Budget Charge ($612,500) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $306,250.

Up to one Designated Player traded per year (two total “active” at any given time)

Up to one U22 Initiative Player traded per year (two total “active” at any given time)

Player may only be traded beginning in his second MLS season

Roster Slot Designation (Designated Player or U22 Initiative) must be held by one of the two trading teams

Young Designated Player

Ages 20 and younger: $150,000

Ages 21-23: $200,000

If such a Young Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Young Designated Player Salary Budget Charge of $150,000.

Clubs may "buy down" the Salary Budget Charge of a Designated Player with General Allocation Money. The reduced budget charge may not be less than $150,000.

If a club uses the third Designated Player slot to sign a Young Designated Player, then the club will not be obligated to pay the $150,000 charge.

Designated Player slots are not tradable.

U22 Initiative Roster Slots

Number of Slots:

If a Club has a vacant third Designated Player slot, the Club will have available three U22 Initiative Slots.

If a Club elects to sign a third Designated Player, the number of U22 Initiative Slots would be impacted in the following way:

If the third Designated Player is a Young Designated Player, the club will have all three U22 Initiative Slots.

If the third Designated Player is age 24 or older, yet is at, or below, Maximum Targeted Allocation Money Amount ($1,612,500), the club will have all three U22 Initiative Slots.

If the third Designated Player is age 24 or older and is above Maximum Targeted Allocation Money Amount ($1,612,500), the club will have one U22 Initiative Slot.

Eligibility for U22 Initiative Slot:

Age: A Player must be twenty-two years old or younger in the first year he is eligible to play in an MLS game (e.g., not eligible for 2022 if he turns 23 in 2022). A player who signs at age 22 or younger may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided that for non-Homegrown players, such player is on his initial contract. A Homegrown player may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided he must be on his first or second contract and the applicable contract must have been signed at age 22 or younger.

\Compensation: \A player’s salary may not exceed the Maximum Salary Budget Charge in any given year, including option years. A Homegrown or SuperDraft player on his second contract may earn up to $200,000 above the Maximum Salary Budget Charge in any given year, including option years.

In addition, Clubs may pay, without limit, additional amounts in the form of acquisition fees (i.e. transfer or loan fees).

U22 Initiative Slot Budget Charge:

Players occupying a U22 Initiative Slot will have a Salary Budget Charge that mirrors that of a Young Designated Player:

Ages 20 and younger: $150,000

Ages 21-25: $200,000

All such amounts above the first $150,000 or $200,000 accounted for on the Salary Budget will be paid on a discretionary basis by the Club.

Transfer of Player:

Acquisition cost of the Player for coming into the League (e.g., both Loan and Transfer costs)

Revenue share convertible to GAM in 2022 (increases by five percent (5%) annually thereafter)

≤ $2,500,000

$1,050,000

$3,000,000

$840,000

$3,500,000

$630,000

$4,000,000

$420,000

$4,500,000

$210,000

≥ $5,000,000

Minimum Slot Occupation Length:

Reclassification of a Player from a U22 Initiative Slot:

Salary Limitation in Options and Years 26+

Special Discovery Players

Special Discovery Players must be 27 years old (or younger than the age of 27) during the League Year under consideration (the age of the player is determined by year - not date - of birth).

There may be no more than one Special Discovery Player per number of clubs in the League (i.e., 28 total Special Discovery Players across the League in 2022).

Targeted Allocation Money may be used on a Special Discovery Player if he qualifies.

Player Acquisition Mechanisms

Clubs may acquire players and add them to their rosters via the following mechanisms:

Allocation Process

Allocation Ranking List

The Allocation Process is the mechanism used to determine which club has first priority to acquire a player listed on the Allocation Ranking List. This list will consist of (i) select U.S. Men's National Team players, (ii) select youth U.S. National Team players, and/or (iii) former MLS players returning to MLS after joining a non-MLS club for an outgoing transfer fee of $500,000 or more. For clarity, any returning player who is eligible for Free Agency will not be assigned via the Allocation Process, but rather will be included on the Free Agency eligible list. Generally, the League will update the Allocation Ranking List once a year (typically after the conclusion of the MLS Regular Season), but may make additional updates in its sole discretion, including, but not limited to, adding players transferred out of MLS and top U.S. youth national team players.

Allocation Ranking Order

The Allocation Ranking Order is set by taking the reverse order of the club's standings at the end of each MLS Season, taking playoff performance into account, with the new expansion clubs at the top of the order.

Once the club uses its allocation ranking to acquire a player, it drops to the bottom of the list. A ranking can be traded, provided that part of the compensation received in return is the other club's ranking. At all times, each club is assigned one ranking. The rankings reset at the end of each MLS season.

Any updates to the Allocation Ranking List or Allocation Ranking Order will be reflected at www.mlssoccer.com/news/mls-allocation-process.

SuperDraft

The 2022 MLS SuperDraft consisted of three rounds of player selection. Any club that had received a fourth-round pick via trade was given a compensatory pick at the conclusion of the third round.

College Protected List

Unless claimed on Waivers, a player who was drafted by a particular club through the MLS SuperDraft and did not sign with the League is placed on that club's "College Protected List" until December 31 of the year after the draft (i.e., for MLS SuperDraft 2022, until December 31, 2023), after which the club loses the priority rights to sign the player.

Trades

Players, General Allocation Money, Allocation Rankings, international roster slots, college protected player priority, Discovery Priority, and Homegrown Player priority in addition to selection position in MLS SuperDraft, Re-Entry Process, and Waivers may all be exchanged in trades approved by the League, provided all of the necessary rules regarding roster and Salary Budget compliance are met and the trade is completed during a valid trading period.

Primary Transfer Window and Secondary Transfer Window

During the season, trades that involve players must occur during either the Primary Transfer Window or Secondary Transfer Window.

RELATED: mlssoccer.com Transactions Tracker

Discovery Process

Discovery List

Pursuant to the Discovery Process, clubs may scout and sign players who are not yet under contract to MLS and who are not subject to another assignment mechanism (e.g., Allocation Process, MLS SuperDraft). To sign a player through the Discovery Process, the club must first place the player on its Discovery List. A club may have up to seven players on its Discovery List at any time and may remove or add players at any time. There is no limit to how many players a club can sign from its Discovery List.

Clubs may not add the following players to their Discovery Lists:

Current MLS players

Players on the Allocation Ranking List

Players who have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)

Players for whom another club has a Right of First Refusal

Underage players (i.e., players under the age of 18 if domestic or under the age of 17 if outside of the U.S. or Canada)

Players who (1) the League unsuccessfully attempted to pre-sign for the MLS SuperDraft, (2) the League did not attempt to sign for the SuperDraft, (3) are not on the Allocation Ranking List, or (4) did not enter college will be non-discoverable for up to one year after forgoing college and will be placed on Waivers during this one-year period.

Homegrown-eligible players (i.e., another club has achieved or is in the process of achieving Homegrown Priority over such a player)

Free Agents

Designated Player Requests

Discovery Conflict Resolution

Related Party Transactions

Homegrown Player Signings

There is no limit on the number of Homegrown Players a club may sign in any given year.

Affiliate Priority Players

Re-Entry Process

The Re-Entry Process is summarized below and subject to the long-form 2020-2028 MLS Collective Bargaining Agreement.

The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is the reverse order of finish in 2022, taking into account playoff performance. Players who are available to be selected in Re-Entry Draft include all option decline and out of contract players who are 22 years old or older with at least one MLS service year and who are not eligible for Free Agency.

Stage One

Players who are available in Stage One of the Re-Entry Draft are:

Players who are at least 22 years old and have a minimum of one MLS service year whose options were not exercised by their clubs.

Stage Two

Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.

Free Agency

Free Agency will be conducted in accordance with the MLS Collective Bargaining Agreement.

Waivers

Waiver Order

Claiming an Out of Contract Player

If a club claims a player who was previously signed to an MLS contract but is no longer signed to an MLS contract, the club must issue the player a genuine offer within three business days.

Claiming a Guaranteed Player

Players who are eligible to be placed on Waivers are as follows:

Contracted Players: Any player with an SPA.

Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the MLS SuperDraft list.

Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent Waiver selections in any given season.

Affiliate Short-Term Agreements

A club may sign a player, age 25 or younger during the league season, from its affiliate (MLS NEXT Pro / USL) to a maximum of four Short-Term Agreements (up to four-day contracts) each season (maximum of 16 days).

A club may roster up to four players on Short-Term Agreements per MLS league season match, so long as they are Homegrown Players or Players earning less than or equal to the MLS Senior Minimum Salary ($84,000) with the affiliate. This number will be reduced to one player per MLS league season match after Roster Freeze (inclusive of MLS Cup Playoffs). Additional players may also be signed to Short-Term Agreements for MLS league season games but only in cases of Extreme Hardship.

International Player limits still apply to Short-Term Agreements, excluding callups for cases of Extreme Hardship.

Extreme Hardship Call-ups

Clubs may add players to their roster in cases of "Extreme Hardship." Extreme Hardship exists when an MLS club has either:

Fewer than 16 outfield players available; OR

Has fewer than two goalkeepers available.

A club may sign players, on loan, to Short-Term Agreements (up to four-day contracts) for MLS League Season games in cases of Extreme Hardship.

Season-Ending Injury

Season-Ending Injury List

Season-Ending Injury Replacement Player

A club may replace an injured player that is on the Season-Ending Injury List with a new replacement player in accordance with parameters below.

The club will remain responsible for the injured player's full Salary Budget Charge. Clubs may execute a trade to create Salary Budget space in order to sign such a replacement player. This is the only circumstance in which a club may trade for Salary Budget space. Clubs are only able to receive Salary Budget relief (paid out of the club's own pocket) for a season-ending injury under the following parameters:

The injured player must be earning at least $100,000 per annum.

The injured player must have suffered the season-ending injury prior to the close of the Primary Transfer Window and the new player must be acquired as of such date.

The replacement player may earn up to $250,000 but not more than the player who suffered the season-ending injury.

The replacement player’s charge will be billed back to the club.

Clubs will only be allowed to sign one such replacement player per MLS League Season.

If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Supplemental Season-Ending Injury

Accordingly, a club must have Salary Budget space to replace a player with a season-ending injury on the Supplemental Roster with a replacement player.

If the injured player occupies an international roster slot on the Supplemental Roster, the replacement player may also be an International Player.

Short-Term Injury Replacements

Injured List

Senior Roster Players on the Injured List

If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Clubs may not trade for Salary Budget space to replace a player added to the Injured List.

Supplemental Roster Players on the Injured List

NOTE: No changes may be made to a club's roster after the Roster Freeze Date (September 2, 2022) and running through the day after MLS Cup. Nevertheless, a club may obtain players in accordance with the Extreme Hardship rules and procedures after the Roster Freeze Date.

Methods of Removing a Player from a Roster

Waivers

Clubs may waive players based on performance at any time during the MLS season. A club may waive a Semi-Guaranteed Player at any time during the regular season until 3 business days prior to the Contract Guarantee Date. A club may waive a Guaranteed Player (at any time) or a Semi-Guaranteed Player (after the Contract Guarantee Date) only with League approval. Clubs may not waive a player between the Roster Freeze Date and MLS Cup.

Transfers and Loans

An MLS player may be transferred or loaned at any time to a non-MLS club (subject to the receiving club's applicable federation's transfer window), and subject to the consent of the player.

Upon loaning a player, clubs will receive roster relief but not Salary Budget relief unless otherwise agreed to in the loan agreement.

Transfer and Loan Fees

The revenue share from transfers or loans for clubs is as follows:

A club shall receive 95% of the corresponding transfer or loan fee revenue from any transaction involving a player that is NOT a Homegrown Player or a U22 Initiative Slot Player.

If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue until it has recouped all out-of-pocket cash payments made by the club in connection to that player prior to any sharing arrangement with the League. After such recoup, the club’s share of the revenue may be used to fund a club’s discretionary spend (e.g. player development costs, TAM Players, Designated Players, U22 Initiative Slot Player) or may be taken as cash and may not be taken as allocation.

A club shall receive 100% of the corresponding transfer or loan fee revenue from any transaction involving a Homegrown Player or a U22 Initiative Slot Player.

Usage of Revenue

The club's share of transfer or loan fee revenue may only be used as follows:

The club may assign up to $1,102,5000 of the transfer/loan revenue as General Allocation Money. In the case of Designated Players, transfer/loan revenue may not be assigned as General Allocation Money. In the case of U22 Initiative Slot players, please refer to the section on U22 Initiative Roster Slots.

The remaining balance of the club's share (if any), and which cannot be traded, will be distributed by the League to the Club as cash.

Intraleague Loans

Clubs may loan a player to another MLS club subject to the following:

A field player must be 24 years old (or younger than the age of 24) during the League Year (i.e., cannot turn twenty-five (25) during the League Year); a goalkeeper must be 28 years old (or younger than the age of 28) during the League Year (i.e. cannot turn twenty-eight (28) during the League Year).

Each club may only loan one player to another MLS club per season.

The loan must be initiated during the Primary Transfer Window or Secondary Transfer Window.

Except in an instance where the player is recalled as outlined above, he must remain with his new club for the entire MLS Season.

The player may not compete against his former club during the MLS Season while on loan (includes MLS League Season games and all other competitions).

Intraleague Loans may include an option to make them permanent.

Loan of a Player by MLS

If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS League Season games.

If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to Affiliate Club (MLS NEXT Pro / USL)

All loans from MLS clubs to its affiliates must be free (i.e., no loan fees paid by MLS NEXT Pro / USL affiliate clubs).

The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);

The player's Salary Budget Charge is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and

The loan must be a season-long free loan;

The player has not appeared on a gameday roster for the MLS Club as of the beginning of the applicable loanee club’s season; and

Buyout of Guaranteed Contract

A club may buyout one player (including a Designated Player) who has a Guaranteed Contract during the offseason and free up the corresponding Salary Budget space. Such a buyout is at the club's expense.

A club may not free up space in the Salary Budget with a buyout of a player's contract during the season. If a club buys out a player's contract during the season, the buyout amount will be charged against the club's Salary Budget.

Right of First Refusal

Former MLS Player

That club will not have a Right of First Refusal if:

The club received any consideration in connection with the transfer of such player to a non-MLS club; or

The player was excluded from possible selection in the Expansion Draft.

College Protected Player

Allocation Money

Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money

Each club receives an annual allotment of General Allocation Money. In 2022, that allotment is $1,625,000 per club.

A club may also receive General Allocation Money in the following cases:

Failure to qualify for the MLS Cup Playoffs

The transfer of a club’s player to non-MLS club outside MLS

Qualification for the CONCACAF Champions League

Expansion Clubs (see below)

Expansion Dilution (see below)

Designated Player charge distribution

General Allocation Money can be traded by clubs.

Buy-Down

Allocation Money can be used to "buy-down" a player's Salary Budget Charge as part of managing a club's roster, including buying down a Salary Budget Charge below the League maximum of $612,500. For example, a club may buy down a player earning $700,000 to a Salary Budget Charge of $500,000 by using $200,000 of General Allocation Money.

General Allocation Money can also be applied in the following circumstances:

To sign players new to MLS (that is, a player who did not play in MLS during the previous season).

To re-sign an existing MLS player.

To off-set acquisition costs (loan and transfer fees).

In connection with the extension of a player's contract for the second year provided the player was new to MLS in the immediately prior year.

To reduce the Salary Budget Charge of a Designated Player to a limit of $150,000.

To reduce the Salary Budget Charge of a Player whose Salary Budget Charge exceeds the Maximum Salary Budget Charge to a limit of $150,000.

Use against a Salary Budget Charge

A club cannot use General Allocation Money to reduce more than 50% of a player's Salary Budget Charge. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee; a club may reduce 100% of a loan or transfer fee.

Targeted Allocation Money Available Per Year

2022: $2,800,000 per club

2023: $2,720,000 per club

2024: $2,400,000 per club

2025: $2,225,000 per club

2026: $2,125,000 per club

2027: $2,025,000 per club

Targeted Allocation Money may be used in the following ways:

Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the Maximum Salary Budget Charge.

Clubs may re-sign an existing player provided he is earning more than the Maximum Salary Budget Charge.

A club retains the flexibility to convert a player previously bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.

Targeted Allocation Money may not be traded.

Salary Parameters

A player must earn more than 2022 Maximum Salary Budget Charge ($612,500) to qualify for Targeted Allocation Money. The compensation ceiling for such eligible players is set at $1,612,500 in 2022.

A player cannot have his Salary Budget Charge bought down below $150,000 using Targeted Allocation Money.

Targeted Allocation Money expires after four full Transfer Windows.

2022 Salary Budget Information

Club Salary Budget - $4,900,000

Maximum Salary Budget Charge - $612,500

Senior Minimum Salary - $84,000

Reserve Minimum Salary - $65,500

Designated Player Salary Budget Charge - $612,500

Second Designated Player Salary Budget Charge - $612,500

Third Designated Player Salary Budget Charge - $612,500

Young Designated Player Budget Charge (20 years old or younger during the League Year) - $150,000

Young Designated Player Budget Charge (21-23 years old during the League Year) - $200,000

Mid-Season Designated Player Salary Budget Charge - $306,250

Mid-Season Young Designated Player Salary Budget Charge (23 years old and younger) - $150,000

Maximum Targeted Allocation Money Amount - $1,612,500

U22 Spot Budget Charge (20 years old or younger during the League Year) - $150,000

U22 Spot Budget Charge (21-23 years old during the League Year) - $200,000

Player Professional Development Role

A Club may choose to designate, with prior League approval, to employ one Player per year in a professional development role.

The following parameters apply:

The Player’s professional development role must be approved prior to the Roster Compliance Date and last through the full season.

If the Player’s professional development role will include coaching responsibilities:

He must only have coaching responsibilities with respect to the MLS club’s affiliate and/or academy (i.e., cannot have coaching responsibilities with respect to the first team); and

The Player must turn or be older than 25 years old during the League Year in which he is employed in the professional development role.

The Player may not be Loaned out for an extended period.

Required Information:

In order to obtain League approval, which may be granted by the League in its sole and absolute discretion, Clubs must provide the following:

Detailed job description, which must include, at a minimum:

Job responsibilities; and

Time commitment required.

Proposed compensation for duties and comparisons to salaries for similar roles when taking into account the expected number of hours of non-Player duties.

The League will consider proposed compensation in light of former League Player-Coaches.

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2021 Roster Rules and Regulations

A Major League Soccer club's active roster is comprised of up to 30 players. All 30 players are eligible for selection to the game-day squad during the regular season and playoffs.

Senior Roster

Up to 20 players, occupying roster slots 1-20, count against the club's 2021 Salary Budget of $4,900,000 and are referred to collectively as the club's Senior Roster.

A club may have no more than 20 players on its Senior Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions.

The Maximum Salary Budget Charge for a single player is $612,500. (See Allocation Money section below for details on buying down a player's Salary Budget Charge.)

Supplemental Roster

The salaries of players on the Supplemental Roster (slots 21-30) do not count toward a club's Salary Budget.

Slots 21-24

Slots 21-24 may be filled with (i) Senior Minimum Salary Players ($81,375 in 2021), which may include Homegrown Players, (ii) Generation adidas Players, (iii) any specifically designated players eligible for the MLS SuperDraft; or (iv) Homegrown Players earning more than the Senior Minimum Salary subject to the Homegrown Player Subsidy .

All players in slots 21-24 must be paid a base salary that is at least the Senior Minimum Salary ($81,375).

Slots 25-28

Slots 25-28 may be filled with (i) players earning the Reserve Minimum Salary ($63,547 in 2021), which may include Homegrown Players, or (ii) Homegrown Players earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy.

Reserve Minimum Salary Players must be 24 years or younger during the League Year (age of player is determined by year - not date - of birth).

These slots may not be filled with Senior Minimum Salary Players (unless they are Homegrown Players subject to the Homegrown Player Subsidy) or Generation adidas Players.

All players in slots 25-28 must be paid a base salary that is at least the Reserve Minimum Salary ($63,547).

Slots 29-30

Slots 29 and 30 must be filled with Homegrown Players (i) earning the Reserve Minimum Salary ($63,547 in 2021) or (ii) earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy.

All Players in roster slots 29-30 must be paid a base salary which is at least the Reserve Minimum Salary.

Homegrown Player Subsidy

2021 Roster Compliance, Roster Freeze and Transfer Window Dates

The 2021 Roster Compliance Date is April 16, 2021 (or April 15, 2021 for clubs playing MLS matches on April 16, 2021), at which time clubs must be roster and budget compliant heading into the start of the 2021 MLS season.

The 2021 Roster Freeze Date is September 15, 2021, at which time clubs must submit their final 30-man roster. Rosters cannot be changed from that date through the day after MLS Cup.

The registration windows - the dates between which MLS may request the international transfer certificate of a player under contract in another country - are as follows:

Primary Transfer Window: Wed., March 10 – Tues., June 1, 2021

Secondary Transfer Window: Wed., July 7 – Thurs., August 5, 2021

PLAYER CATEGORIES ON THE ROSTER

Domestic/International

In 2021, a total of 216 international roster slots are divided among the 27 clubs. These roster slots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have less than eight during any given season. With trades, there is no limit on the number of international roster slots on each club's roster.

Domestic Players

U.S.-based clubs: For U.S. clubs, a domestic player is either a U.S. citizen, a permanent resident (i.e., a Green Card holder), the holder of a certain other special status (e.g., has been granted refugee or asylum status) or a player who qualifies under the Homegrown International Rule by the opening of the Secondary Transfer Window in 2021 (July 7, 2021). There is no limit as to the number of U.S. Domestic Players on a U.S. club's roster.

Canada-based clubs: For Canadian clubs, a domestic player is either a Canadian citizen or the holder of certain other special status (i.e., has been granted refugee or asylum status), a player who qualifies under the Homegrown International Rule, or a U.S. Domestic Player by the opening of the Secondary Transfer Window in 2021 (July 7, 2021). There is no limit as to the number of Canadian Domestic Players on a Canadian club's roster.

Homegrown International Rule

The player became a member of an MLS club academy, either in the U.S. or Canada, or a Canadian Approved Youth Club no later than the year in which he turned 15 years old; and

The player signs his first professional contract with MLS or an MLS club's USL affiliate.

International Players

U.S.-based clubs: Any player who does not qualify as a U.S. Domestic Player in a U.S. club by the opening of the Secondary Transfer Window in 2021 (July 7, 2021) shall be considered an International Player and must occupy an international roster slot on a U.S. club's roster for the full season. For avoidance of doubt, an International Player may not be converted to a Domestic Player if he receives a green card after the opening of the Secondary Transfer Window.

Canada-based clubs: Any player who does not qualify as a U.S. Domestic Player or a Canadian Domestic Player by the opening of the Secondary Transfer Window in 2021 (July 7, 2021) shall be considered an International Player and must occupy an international roster slot on a Canadian club's roster for the full season. For avoidance of doubt, an International Player may not be converted to a Domestic Player if he receives permanent residency after the opening of the Secondary Transfer Window.

Homegrown Players

Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of “Homegrown Player” on a club’s roster.

There is no limit to the number of Homegrown Players a club may sign in any given year.

Homegrown Players may occupy a slot on the Senior or Supplemental Roster.

Homegrown Players on the Supplemental Roster may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary ($63,547 in 2021) or the Senior Minimum Salary ($81,375 in 2021).

Generation adidas

Designated Player

The Designated Player Rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge, with the club bearing financial responsibility for the amount of compensation above each player's Salary Budget Charge. Designated Players may be new players signed to MLS via the Allocation Ranking List or the Discovery Process, or they may be re-signed existing players on a club's roster.

A player's Salary Budget Charge, and therefore Designated Player status, is generally determined by averaging all guaranteed amounts payable over the guaranteed term.

In 2021, a Designated Player who is at least 24 years old during the League Year will carry the Maximum Salary Budget Charge ($612,500) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $306,250.

Young Designated Player

Ages 20 and younger: $150,000

Ages 21-23: $200,000

If such a Young Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Young Designated Player Salary Budget Charge of $150,000.

Clubs may "buy down" the Salary Budget Charge of a Designated Player with General Allocation Money. The reduced budget charge may not be less than $150,000.

If a club uses the third Designated Player slot to sign a Young Designated Player, then the club will not be obligated to pay the $150,000 charge.

Designated Player slots are not tradable.

U22 Initiative Roster Slots

Number of Slots:

If a Club has a vacant third Designated Player slot, the Club will have available three U22 Initiative Slots.

If a Club elects to sign a third Designated Player, the number of U22 Initiative Slots would be impacted in the following way:

If the third Designated Player is a Young Designated Player, the club will have all three U22 Initiative Slots.

If the third Designated Player is age 24 or older, yet is at, or below, Maximum Targeted Allocation Money Amount ($1,612,500), the club will have all three U22 Initiative Slots.

If the third Designated Player is age 24 or older and is above Maximum Targeted Allocation Money Amount ($1,612,500), the club will have one U22 Initiative Slot.

Eligibility for U22 Initiative Slot:

Age: A Player must be twenty-two years old or younger in the first year he is eligible to play in an MLS game (e.g., not eligible for 2021 if he turns 23 in 2021). A player who signs at age 22 or younger may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided that for non-Homegrown players, such player is on his initial contract. A Homegrown player may continue to occupy a U22 Initiative Slot through the year in which he turns 25, provided he must be on his first or second contract and the applicable contract must have been signed at age 22 or younger.

In addition, Clubs may pay, without limit, additional amounts in the form of acquisition fees (i.e. transfer or loan fees).

U22 Initiative Slot Budget Charge:

Players occupying a U22 Initiative Slot will have a Salary Budget Charge that mirrors that of a Young Designated Player:

Ages 20 and younger: $150,000

Ages 21-23: $200,000

All such amounts above the first $150,000 or $200,000 accounted for on the Salary Budget will be paid on a discretionary basis by the Club.

Transfer of Player:

Acquisition cost of the Player for coming into the League (e.g., both Loan and Transfer costs)

Revenue share convertible to GAM in 2021 (increases by five percent (5%) annually thereafter)

Acquisition cost of the Player

Revenue share convertible to GAM

≤ $2,500,000

$1,050,000

$3,000,000

$840,000

$3,500,000

$630,000

$4,000,000

$420,000

$4,500,000

$210,000

≥ $5,000,000

Minimum Slot Occupation Length:

Reclassification of a Player from a U22 Initiative Slot:

Salary Limitation in Options and Years 26+

SPECIAL DISCOVER PLAYERS

Special Discovery Players must be 27 years old (or younger than the age of 27) during the League Year under consideration (the age of the player is determined by year - not date - of birth).

There may be no more than one Special Discovery Player per number of clubs in the League (i.e., 27 total Special Discovery Players across the League in 2021).

Targeted Allocation Money may be used on a Special Discovery Player if he qualifies.

PLAYER ACQUISITION MECHANISMS

Clubs may acquire players and add them to their rosters via the following mechanisms:

Allocation Process

Allocation Ranking List

The Allocation Process is the mechanism used to determine which club has first priority to acquire a player listed on the Allocation Ranking List. This list will consist of (i) select U.S. Men's National Team players, (ii) select youth U.S. National Team players, and/or (iii) former MLS players returning to MLS after joining a non-MLS club for an outgoing transfer fee of $500,000 or more. Generally, the League will update the Allocation Ranking List once a year (typically after the conclusion of the MLS Regular Season), but may make additional updates in its sole discretion, including, but not limited to, adding players transferred out of MLS and top U.S. youth national team players.

Allocation Ranking Order

Any updates to the Allocation Ranking List or Allocation Ranking Order will be reflected at mlssoccer.com/news/mls-allocation-process

SuperDraft

The 2021 MLS SuperDraft consisted of three rounds of player selection. Any club that had received a fourth-round pick via trade was given a compensatory pick at the conclusion of the third round.

College Protected List

Unless claimed on Waivers, a player who was drafted by a particular club through the MLS SuperDraft and did not sign with the League is placed on that club's "College Protected List" until December 31 of the year after the draft (i.e., for the 2021 MLS SuperDraft, until December 31, 2022), after which the club loses the priority rights to sign the player.

Trades

Players, General Allocation Money, Allocation Rankings, international roster slots, college protected player priority, Discovery Priority, and Homegrown Player priority in addition to selection position in the MLS SuperDraft , Re-Entry Process, and Waivers may all be exchanged in trades approved by the League, provided all of the necessary rules regarding roster and Salary Budget compliance are met and the trade is completed during a valid trading period.

Primary Transfer Window and Secondary Transfer Window

During the season, trades that involve players must occur during either the Primary Transfer Window or Secondary Transfer Window.

Discovery Process

Discovery List

Clubs may not add the following players to their Discovery Lists:

Current MLS players

Players on the Allocation Ranking List

Players who have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)

Players for whom another club has a Right of First Refusal

Underage players (i.e., players under the age of 18 if domestic or under the age of 17 if outside of the U.S. or Canada)

Homegrown-eligible players (i.e., another club has achieved or is in the process of achieving Homegrown Priority over such a player)

Free Agents

Designated Player Requests

Discovery Conflict Resolution

Related Party Transactions

Homegrown Player Signings

There is no limit on the number of Homegrown Players a club may sign in any given year.

USL Priority Players

In addition to Homegrown Players and College Protected Players, clubs may have priority for up to three players from their respective United Soccer League (USL) affiliates. In order to retain priority on any additional USL affiliate players, such players must be added to an MLS club’s Discovery List and will not count towards the seven Discovery List slots.

Re-Entry Process

The Re-Entry Process is summarized below and subject to the long-form 2020-2028 MLS Collective Bargaining Agreement.

The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is the reverse order of finish in 2021, taking into account playoff performance. Players who are available to be selected in Re-Entry Draft include all option decline and out of contract players who are 22 years old or older with at least one MLS service year and who are not eligible for Free Agency.

Stage One

Players who are available in Stage One of the Re-Entry Draft are:

Players who are at least 22 years old and have a minimum of one MLS service year whose options were not exercised by their clubs.

Stage Two

Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.

Free Agency

Free Agency will be conducted in accordance with the MLS Collective Bargaining Agreement.

Waivers

Waiver Order

Claiming an Out of Contract Player

If a club claims a player who was previously signed to an MLS contract but is no longer signed to an MLS contract, the club must issue the player a genuine offer within three business days.

Claiming a Guaranteed Player

Players who are eligible to be placed on Waivers are as follows:

Contracted Players: Any player with an SPA.

Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the MLS SuperDraft list.

Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent Waiver selections in any given season.

USL Short-Term Agreements

A club may sign players from its USL affiliate to Short-Term Agreements (up to four-day contracts) for CONCACAF Champions League, Canadian Championship, Lamar Hunt U.S. Open Cup, Leagues Cup, Campeones Cup, and exhibition matches. A club may sign a player to a maximum of four Short-Term Agreements each season (maximum of 16 days).

Players may also be signed to Short-Term Agreements for MLS League Season games but only in cases of Extreme Hardship.

Extreme Hardship Call-ups

Clubs may add players to their roster in cases of "Extreme Hardship." Extreme Hardship exists when an MLS club has:

Fewer than 16 outfield players available

OR has fewer than two goalkeepers available.

A club may sign players, on loan, to Short-Term Agreements (up to four-day contracts) for MLS League Season games only in cases of Extreme Hardship.

Season-Ending Injury

Season-Ending Injury List

Season-Ending Injury Replacement Player

A club may replace an injured player that is on the Season-Ending Injury List with a new replacement player in accordance with parameters below.

The injured player must be earning at least $100,000 per annum.

The injured player must have suffered the season-ending injury prior to the close of the Primary Transfer Window and the new player must be acquired as of such date.

The replacement player may earn up to $250,000 but not more than the player who suffered the season-ending injury.

The replacement player’s charge will be billed back to the club.

Clubs will only be allowed to sign one such replacement player per MLS League Season.

If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Supplemental Season-Ending Injury

Accordingly, a club must have Salary Budget space to replace a player with a season-ending injury on the Supplemental Roster with a replacement player.

If the injured player occupies an international roster slot on the Supplemental Roster, the replacement player may also be an International Player.

Short-Term Injury Replacements

Injured List

Senior Roster Players on the Injured List

If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Clubs may not trade for Salary Budget space to replace a player added to the Injured List.

Supplemental Roster Players on the Injured List

NOTE: No changes may be made to a club's roster after the Roster Freeze Date (September 15, 2021) and running through the day after MLS Cup. Nevertheless, a club may obtain players in accordance with the Extreme Hardship rules and procedures after the Roster Freeze Date.

METHODS OF REMOVING A PLAYER FROM A ROSTER

Waivers

Transfers and Loans

An MLS player may be transferred or loaned at any time to a non-MLS club (subject to the receiving club's applicable federation's transfer window), and subject to the consent of the player.

Upon loaning a player, clubs will receive roster relief but not Salary Budget relief unless otherwise agreed to in the loan agreement.

Transfer and Loan Fees

The revenue share from transfers or loans for clubs is as follows:

A club shall receive 95% of the corresponding transfer or loan fee revenue from any transaction involving a player that is NOT a Homegrown Player or a U22 Initiative Slot Player.

A club shall receive 100% of the corresponding transfer or loan fee revenue from any transaction involving a Homegrown Player or a U22 Initiative Slot Player.

Usage of Revenue

The club's share of transfer or loan fee revenue may only be used as follows:

The club may assign up to $1,050,000 of the transfer/loan revenue as General Allocation Money. In the case of Designated Players, transfer/loan revenue may not be assigned as General Allocation Money. In the case of U22 Initiative Slot players, please refer to the section on U22 Initiative Roster Slots.

The remaining balance of the club's share (if any), and which cannot be traded, will be distributed by the League to the Club as cash.

Intraleague Loans

Clubs may loan a player to another MLS club subject to the following:

The player must be 24 years old (or younger than the age of 24) during the League Year (i.e., cannot turn twenty-five (25) during the League Year).

Each club may only loan one player to another MLS club per season.

The loan must be initiated during the Primary Transfer Window or Secondary Transfer Window.

Except in an instance where the player is recalled as outlined above, he must remain with his new club for the entire MLS Season.

The player may not compete against his former club during the MLS Season while on loan (includes MLS League Season games and all other competitions).

Intraleague Loans may include an option to make them permanent.

Loan of a Player by MLS

If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS League Season games.

If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to USL Affiliate

All loans from MLS clubs to USL affiliates must be free (i.e., no loan fees paid by USL affiliate clubs).

If an MLS player is loaned to a USL affiliate, such a player may not be paid more than the player's Salary Budget Charge without that compensation being captured on the MLS club's Salary Budget (including, but not limited to, performance bonus compensation).

An MLS club can receive roster relief and budget relief for a maximum of one player loaned to its USL affiliate or a lower-division club in the U.S. or Canada; provided, however, that:

The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);

The player's Salary Budget Charge is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and

The loan must be a season-long free loan;

The player has not appeared on an 18-man gameday roster for the MLS Club as of the beginning of the applicable loanee club’s season; and

Buyout of Guaranteed Contract

RIGHT OF FIRST REFUSAL

Former MLS Player

That club will not have a Right of First Refusal if:

The club received any consideration in connection with the transfer of such player to a non-MLS club; or

The player was excluded from possible selection in the Expansion Draft.

College Protected Player

ALLOCATION MONEY

Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money

Each club receives an annual allotment of General Allocation Money. In 2021, that allotment is $1,525,000 per club.

A club may also receive General Allocation Money in the following cases:

Failure to qualify for the MLS Cup Playoffs

The transfer of a club’s player to non-MLS club outside MLS

Qualification for the CONCACAF Champions League

Expansion Clubs (see below)

Expansion Dilution (see below)

Designated Player charge distribution

General Allocation Money can be traded by clubs.

Buy-Down

Allocation Money can be used to "buy-down" a player's Salary Budget Charge as part of managing a club's roster, including buying down a Salary Budget Charge below the League maximum of $612,500. For example, a club may buy down a player earning $700,000 to a Salary Budget Charge of $500,000 by using $200,000 of General Allocation Money.

General Allocation Money can also be applied in the following circumstances:

To sign players new to MLS (that is, a player who did not play in MLS during the previous season).

To re-sign an existing MLS player.

To off-set acquisition costs (loan and transfer fees).

In connection with the extension of a player's contract for the second year provided the player was new to MLS in the immediately prior year.

To reduce the Salary Budget Charge of a Designated Player to a limit of $150,000.

To reduce the Salary Budget Charge of a Player whose Salary Budget Charge exceeds the Maximum Salary Budget Charge to a limit of $150,000.

Use against a Salary Budget Charge

Targeted Allocation Money Available Per Year

2021: $2,800,000 per club

2022: $2,800,000 per club

2023: $2,720,000 per club

2024: $2,400,000 per club

2025: $2,225,000 per club

2026: $2,125,000 per club

2027: $2,025,000 per club

Targeted Allocation Money may be used in the following ways:

Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the Maximum Salary Budget Charge.

Clubs may re-sign an existing player provided he is earning more than the Maximum Salary Budget Charge.

A club retains the flexibility to convert a player previously bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.

Clubs may use up to $200,000 of currently approved Targeted Allocation Money (amounts through 2021) to sign new Homegrown Players to their first MLS contract. It cannot be used on Homegrown Players previously signed to MLS.

Targeted Allocation Money may not be traded.

Salary Parameters

A player must earn more than 2021 Maximum Salary Budget Charge ($612,500) to qualify for Targeted Allocation Money. The compensation ceiling for such eligible players is set at $1,612,500 in 2021.

A player cannot have his Salary Budget Charge bought down below $150,000 using Targeted Allocation Money.

Targeted Allocation Money expires after four full Transfer Windows.

2021 SALARY BUDGET INFORMATION

Club Salary Budget - $4,900,000

Maximum Salary Budget Charge - $612,500

Senior Minimum Salary - $81,375

Reserve Minimum Salary - $63,547

Designated Player Salary Budget Charge - $612,500

Second Designated Player Salary Budget Charge - $612,500

Third Designated Player Salary Budget Charge - $612,500

Young Designated Player Budget Charge (20 years old or younger during the League Year) - $150,000

Young Designated Player Budget Charge (21-23 years old during the League Year) - $200,000

Mid-Season Designated Player Salary Budget Charge - $306,250

Mid-Season Young Designated Player Salary Budget Charge - $150,000

Maximum Targeted Allocation Money Amount - $1,612,500

U22 Spot Budget Charge (20 years old or younger during the League Year) - $150,000

U22 Spot Budget Charge (21-23 years old during the League Year) - $200,000

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2020 MLS Roster Composition

A Major League Soccer club's active roster is comprised of up to 30 players. All 30 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

In addition to the Salary Budget, each MLS club may spend additional funds on player compensation including money from a League-wide allocation pool (General Allocation Money and Targeted Allocation Money), the cost of Designated Players outside the Salary Budget, and money spent on the Supplemental Roster (roster slots 21-30).

Senior Roster

Up to 20 players, occupying roster slots 1-20, count against the club's 2020 Salary Budget of $4,900,000 and are referred to collectively as the club's Senior Roster.

Clubs are not required to fill roster slots 19 and 20, and clubs may spread their entire Salary Budget across 18 Senior Roster Players. A minimum Salary Budget Charge will be imputed against a club's Salary Budget for each unfilled Senior Roster slot below 18.

A club may have no more than 20 players on its Senior Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions.

The Maximum Salary Budget Charge for a single player is $612,500. (See Allocation Money section below for details on buying down a player's Salary Budget Charge.)

Supplemental Roster

The salaries of players on the Supplemental Roster (slots 21-30) do not count toward a club's Salary Budget.

A club may have no more than ten players on its Supplemental Roster, subject to the Season-Ending Injury, Injured List, and Loan exceptions. All Generation adidas players are Supplemental Roster players until they graduate from the program.

Slots 21-24

Slots 21-24 may be filled with (i) Senior Minimum Salary Players ($81,375 in 2020), which may include Homegrown Players, (ii) Generation adidas Players, (iii) any specifically designated players eligible for the MLS SuperDraft; or (iv) Homegrown Players earning more than the Senior Minimum Salary subject to the Homegrown Player Subsidy.

All players in slots 21-24 must be paid a base salary that is at least the Senior Minimum Salary ($81,375).

Slots 25-28

Slots 25-28 may be filled with (i) players earning the Reserve Minimum Salary ($63,547 in 2020) or (ii) Homegrown Players earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy.

Reserve Minimum Salary Players must be 24 years or younger during the League Year (age of player is determined by year - not date - of birth).

These slots may not be filled with Senior Minimum Salary Players or Generation adidas Players.
All players in slots 25-28 must be paid a base salary that is at least the Reserve Minimum Salary ($63,547).

Slots 29-30

Slots 29 and 30 must be filled with Homegrown Players and will follow the same roster and budget rules as Homegrown Players occupying roster slots 25-28.

Homegrown Player Subsidy

Homegrown Player(s) in Supplemental Roster slots 21-30 may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary (if occupying slots 25-30) or Senior Minimum Salary (if occupying slots 21-24).

Clubs may use up to $200,000 of their currently available Targeted Allocation Money to sign new Homegrown Players to their first MLS contract, subject to League review and approval. Targeted Allocation Money cannot be used on a Homegrown Player previously signed to MLS.

2020 Roster Compliance, Roster Freeze and Transfer Window Dates

The 2020 Roster Compliance Date is February 28, 2020, at which time clubs must be roster and budget compliant heading into the start of the 2020 MLS season.

The 2020 Roster Freeze Date is September 1, 2020, at which time clubs must submit their final 30-man roster. Rosters cannot be changed from that date through the day after MLS Cup.

The registration windows - the dates between which MLS may request the international transfer certificate of a player under contract in another country - are as follows:

Primary Transfer Window: February 12, 2020 to May 5, 2020
Secondary Transfer Window: July 7, 2020 to August 5, 2020

Player Categories on the Roster

Domestic/International

In 2020, a total of 208 international roster slots are divided among the 26 clubs. In 2008, each MLS club was given the right to have eight international players on its roster and each subsequent expansion club was given the right to have eight international roster slots for its inaugural season. These roster slots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have less than eight during any given season. With trades, there is no limit on the number of international roster slots on each club's roster.

Domestic Players

U.S.-based clubs: For U.S. clubs, a domestic player is either a U.S. citizen, a permanent resident (i.e., a Green Card holder), the holder of a certain other special status (e.g., has been granted refugee or asylum status) or a player who qualifies under the Homegrown International Rule. There is no limit as to the number of U.S. Domestic Players on a U.S. club's roster.

Canada-based clubs: For Canadian clubs, a domestic player is either a Canadian citizen or the holder of certain other special status (i.e., has been granted refugee or asylum status), a player who qualifies under the Homegrown International Rule, or a U.S. Domestic Player. There is no limit as to the number of Canadian Domestic Players on a Canadian club's roster.

There is no limit as to the number of U.S. Domestic Players or Canadian Domestic Players on a Canadian club's roster; provided, however, that a Canadian club is required to have a minimum of three Canadian Domestic Players on its roster at all times.

Homegrown International Rule

Any player who meets the requirements to qualify as a Homegrown Player as a member of an MLS club academy, either in the U.S. or Canada, or has met similar requirements as a member of a Canadian Approved Youth Club+, will count as a domestic player (i.e., he will not occupy an international roster slot) on both U.S. and Canadian club rosters provided that:

the player became a member of an MLS club academy, either in the U.S. or Canada, or a Canadian Approved Youth Club no later than the year in which he turned 15 years old; and
the player signs his first professional contract with MLS or an MLS club's USL affiliate.
+MLS will work in coordination with the Canadian Soccer Association to identify qualifying Canadian Approved Youth Clubs that meet specific standards in relation to competition, environment and coaching. These Canadian Approved Youth Clubs may or may not be affiliated with an MLS club.

International Players

U.S.-based clubs: Any player who does not qualify as a U.S. Domestic Player in a U.S. club shall be considered an International Player and must occupy an international roster slot on a U.S. club's roster.
Canada-based clubs: Any player who does not qualify as a U.S. Domestic Player or a Canadian Domestic Player shall be considered an International Player and must occupy an international roster slot on a Canadian club's roster.

Homegrown Players

Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of “Homegrown Player” on a club’s roster.

There is no limit to the number of Homegrown Players a club may sign in any given year.
Homegrown Players may occupy a slot on the Senior or Supplemental Roster.
Homegrown Players on the Supplemental Roster may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary ($63,547 in 2020) or the Senior Minimum Salary ($81,375 in 2020).

Generation adidas

Generation adidas is a joint program between MLS and adidas that is dedicated to developing exceptional talent in a professional environment. Each year, a handful of top collegiate underclassmen and youth national team players are signed by the League with the majority of such players entering the League through the MLS SuperDraft. Until a player graduates from the program, Generation adidas players are on a club's Supplemental Roster.

Designated Player
The Designated Player Rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge, with the club bearing financial responsibility for the amount of compensation above each player's Salary Budget Charge. Designated Players may be new players signed to MLS via the Allocation Ranking List or the Discovery Process, or they may be re-signed existing players on a club's roster.

A player's Salary Budget Charge, and therefore Designated Player status, is generally determined by averaging all guaranteed amounts payable over the guaranteed term, or if the guaranteed term is less than three years, then averaging all amounts payable over three years.

In 2020, a Designated Player who is at least 24 years old during the League Year will carry the Maximum Salary Budget Charge ($612,500) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $306,250.

Young Designated Player

A Designated Player who is 23 years old (or younger than the age of 23) during the League Year (the age of the player is determined by year - not date - of birth) will carry the following Young Designated Player Salary Budget Charge:

Ages 20 and younger: $150,000
Ages 21-23: $200,000

If such a Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Young Designated Player Salary Budget Charge of $150,000 if he is a Young Designated Player and $306,250 if he is not a Young Designated Player.

Clubs may "buy down" the Salary Budget Charge of a Designated Player with General Allocation Money. The reduced budget charge may not be less than $150,000.

Each club will be allotted two Designated Player roster slots. Clubs with two Designated Players may add a third Designated Player by paying $150,000 to the League, which shall be split among clubs with two or fewer occupied Designated Player slots for use as General Allocation Money in the following MLS Season. Clubs must pay the $150,000 fee every year in which a third Designated Player slot is occupied on the club's roster.

If a club uses the third Designated Player slot to sign a Young Designated Player, then the club will not be obligated to pay the $150,000 charge.

Designated Player slots are not tradable.

Special Discovery Players

In general, the total amount of the acquisition cost of a player is charged against the Salary Budget in the year in which it is paid. For one player on a club's roster (a "Special Discovery Player"), a club can amortize the total amount of acquisition costs (up to $500,000) over the term of the player's contract.

Special Discovery Players must be 27 years old (or younger than the age of 27) during the League Year under consideration (the age of the player is determined by year - not date - of birth).

There may be no more than one Special Discovery Player per number of clubs in the League (i.e., 26 total Special Discovery Players across the League in 2020).

A club may have more than one Special Discovery Player on its Senior Roster at any given time if the club received the additional player(s) via trade. However, the club trading the Special Discovery Player may not sign a new Special Discovery Player until the traded Special Discovery Player's original contract expires, the player's contract is terminated, or all the amortized acquisition costs are accounted for in the Salary Budget Charge.

Targeted Allocation Money may be used on a Special Discovery Player if he qualifies.

Player Acquisition Mechanisms

Clubs may acquire players and add them to their rosters via the following mechanisms:

Allocation Process

Allocation Ranking List: The Allocation Process is the mechanism used to determine which club has first priority to acquire a player listed on the Allocation Ranking List. This list will consist of (i) select U.S. Men's National Team players, (ii) select youth U.S. National Team players, and/or (iii) former MLS players returning to MLS after joining a non-MLS club for an outgoing transfer fee of $500,000 or more. Generally, the League will update the Allocation Ranking List once a year (typically after the conclusion of the MLS Regular Season), but may make additional updates in its sole discretion, including, but not limited to, adding players transferred out of MLS and top U.S. youth national team players.

Allocation Ranking Order: The Allocation Ranking Order is set by taking the reverse order of the club's standings at the end of each MLS Season, taking playoff performance into account, with the new expansion clubs at the top of the order.

Once the club uses its allocation ranking to acquire a player, it drops to the bottom of the list. A ranking can be traded, provided that part of the compensation received in return is the other club's ranking. At all times, each club is assigned one ranking. The rankings reset at the end of each MLS season.

Any updates to the Allocation Ranking List or Allocation Ranking Order will be reflected at www.mlssoccer.com/allocation.

SuperDraft

The 2020 MLS SuperDraft consisted of four rounds for a total of 75 player selections. The first two rounds were conducted on January 9, 2020, and the final two rounds took place on January 13, 2020. All rounds were facilitated via conference call.

Most draft prospects are NCAA college seniors who have exhausted their college eligibility. Generation adidas Players and non-collegiate international players are also eligible for selection in the MLS SuperDraft. Clubs may nominate players for the League's Draft-Eligible List, and only players from that list may be selected.

The MLS SuperDraft order is set by taking the reverse order of the club standings at the end of each MLS season, taking postseason performance into account, with new expansion clubs at the top of the order.

College Protected List

Unless claimed on Waivers, a player who was drafted by a particular club through the MLS SuperDraft and did not sign with the League is placed on that club's "College Protected List" until December 31 of the year after the draft (i.e., for the 2020 MLS SuperDraft, until December 31, 2021), after which the club loses the priority rights to sign the player.

Trades

Players, MLS SuperDraft picks, General Allocation Money, Allocation Rankings and international roster slots may all be exchanged in trades approved by the League, provided all of the necessary rules regarding roster and Salary Budget compliance are met and the trade is completed during a valid trading period.

Primary Transfer Window and Secondary Transfer Window
During the season, trades that involve players must occur during either the Primary Transfer Window (2020: February 12 – May 5) or Secondary Transfer Window (2020: July 7 – August 5). RELATED: mlssoccer.com Transactions Tracker

Discovery Process

Discovery List: Pursuant to the Discovery Process, clubs may scout and sign players who are not yet under contract to MLS and who are not subject to another assignment mechanism (e.g., Allocation Process, MLS SuperDraft). To sign a player through the Discovery Process, the club must first place the player on its Discovery List. A club may have up to seven players on its Discovery List at any time and may remove or add players at any time. There is no limit to how many players a club can sign from its Discovery List.

Clubs may not add the following players to their Discovery Lists:

Current MLS players

Players on the Allocation Ranking List

Players who have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)

Players for whom another club has a Right of First Refusal

Players who played at college or forwent college during the college season immediately prior to the date of discovery (If a player has completed or forgone his College eligibility in the season immediately prior to the date of his Discovery and was not on the MLS SuperDraft List, he shall be placed on Waivers)

Underage players (i.e., players under the age of 18 if domestic or under the age of 17 if outside of the U.S. or Canada)

Amateur members of the U.S. U-17 and U-20 National Teams. MLS shall have an exclusive 45-day window after such players reach their respective 18th birthdays or graduate high school (whichever is later) to determine if these players will be pre-signed for the SuperDraft or be placed on the Allocation Ranking List.

Players who (1) the League unsuccessfully attempted to pre-sign for the MLS SuperDraft, (2) the League did not attempt to sign for the SuperDraft, (3) are not on the Allocation Ranking List, or (4) did not enter college will be non-discoverable for up to one year after forgoing college and will be placed on Waivers.

Designated Player Requests: If a club wishes to add a player to its Discovery List whom the League determines will require a significant investment from the club, the League will, prior to placing that player on a club's Discovery List, determine whether the club has the necessary intent, means and ability to sign such a player. The League may contact the player’s current club (if applicable) and/or his authorized representative to determine the likelihood of reaching an agreement. If the League determines that there is no realistic chance of signing the player at that time he will not be discoverable.

Discovery Conflict Resolution: If one or more clubs attempt to add the same player to their respective Discovery Lists, the club that filed the claim on the earlier date will have the priority right to sign the player. If one or more clubs submit a discovery request on the same day, then the club with the lowest points-per-game in the current MLS Regular Season (all clubs must have played a minimum of three regular season games) will have the priority right to sign the player.

If a club wants to sign a player on the Discovery List of another club that has higher Discovery priority on the player, it may offer that club $50,000 in General Allocation Money in exchange for the right to sign the player. The club with the player on its Discovery List will then have five days (or three days during the Secondary Transfer Window) to either (i) accept the General Allocation Money and pass on the right to sign the player or (ii) make the player a genuine, objectively reasonable offer.

Related Party Transactions

All terms of any arrangements among an MLS club, a related party club, and a player to be signed to MLS shall be fully disclosed to the League. A player joining an MLS club from a related party club will calculate his Salary Budget Charge based on the compensation he is receiving from his related party club contract and any acquisition fees associated with his signing. The League will make a final determination, in its sole discretion, as to the Salary Budget Charge of such a player.

Homegrown Player Signings

A club may sign a player to a contract without subjecting him to the MLS SuperDraft if the player has been a member of that club's youth academy for at least one year and has met the necessary training and retention requirements. Players joining MLS through this mechanism are known as Homegrown Players.

There is no limit on the number of Homegrown Players a club may sign in any given year.

USL Priority Players

In addition to Homegrown Players and College Protected Players, clubs may have priority for up to three players from their respective United Soccer League (USL) affiliates. In order to retain priority on any additional USL affiliate players, such players must be added to an MLS club's Discovery List.

Re-Entry Process

The Re-Entry Process is summarized below and subject to ratification of the 2020 MLS Collective Bargaining Agreement.

The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is the reverse order of finish in 2020, taking into account playoff performance. Players who are available to be selected in Re-Entry Draft include all option decline and out of contract players who are 22 years old or older with at least one MLS service year and who are not eligible for Free Agency.

Stage One: Players who are available in Stage One of the Re-Entry Draft are:

Players who are at least 22 years old and have a minimum of one MLS service year whose options were not exercised by their clubs.

Players who are at least 22 years old and have a minimum of one MLS service year who are out of contract and whose club does not wish to re-sign them at a $15,000 increase or 10% increase in salary over his prior year’s salary.

Clubs must exercise the option for, or extend a Bona Fide Offer (i.e., $15,000 increase or 10% increase in salary over his prior year’s salary) to, all players selected in Stage One and may not select their own draft-eligible players. Should a player reject the offer, the drafting club will hold the Right of First Refusal for that player in MLS. Players with option years left on their contract will automatically be added to the drafting club's roster.

Stage Two: Players who are not selected in Stage One of the Re-Entry Draft will be made available in Stage Two. If a player is selected in Stage Two, the drafting club will be required to make a genuine offer to the player. If an agreement cannot be reached between the drafting club and the player, the drafting club will hold the Right of First Refusal for that player in MLS. Clubs may not select their own draft-eligible players in Stage Two until all other Clubs have declined on selecting such players.

Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.

A player may choose to opt out of the Re-Entry Process prior to Stage One and/or Stage Two of the Re-Entry Draft. In such instances, the Right of First Refusal for the player will remain with his previous club.

Free Agency
Free Agency will be conducted in accordance with the 2020 MLS Collective Bargaining Agreement.

Waivers
A club may place a player on Waivers at any time during the regular season at which point he is made available to all other MLS clubs. The Waiver Claiming Period shall commence on the first business day after the League delivers notice to clubs and expires at 5 p.m. ET on the second business day. If a player is not selected off Waivers ("clears Waivers") then that player is available to all MLS clubs on a first-come, first-served basis.

Waiver Order: The Waiver Order is based on points per game once all clubs have played at least three MLS League Season games. If the Waiver takes place prior to all clubs playing in at least three MLS League Season games, priority is granted based upon the previous MLS season's performance, taking playoff performance into account first, with clubs eliminated from playoff contention at the same stage separated according to their point totals through the end of the regular season. New expansion clubs shall be at the bottom of the Waiver Order until all clubs have played at least three MLS League Season games.

Claiming an Out of Contract Player
If a club claims a player who was previously signed to an MLS contract but is no longer signed to an MLS contract, the club must issue the player a genuine offer within three business days.

Claiming a Guaranteed Player
If a player with a guaranteed contract is waived, any interested MLS club will have 48 hours from the notice of Waivers to claim the player by notifying the League of the intention to claim the player and the amount of the player's Salary Budget Charge they wish to assume. The player will be awarded based on a number of factors, including but not limited to, which club is willing to absorb the highest Salary Budget Charge. If the highest Salary Budget Charge is submitted by more than one club, the player will be awarded based on the Waiver Order.

Players who are eligible to be placed on Waivers are as follows:

Contracted Players: Any player with an SPA.
Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the MLS SuperDraft list.
Remaining College Eligibility: A player who left or forgoes college with remaining eligibility (and was not on the MLS SuperDraft list). Such players will be discoverable one year after leaving or forgoing college with remaining eligibility.
Returning Players: A player returning to MLS who the League was unable to re-sign and his last MLS club does not wish to exercise their Right of First Refusal.
Unsigned Drafted Players: The day after the drafting club's first MLS Regular Season game, college players selected in that year's SuperDraft who have not signed an MLS contract have the right to be placed on Waivers upon request. If an unsigned college player is placed on Waivers and is not claimed by another MLS club, he will return to his drafting club's College Protected List until the end of the College Protected Period.
Out-of-Contract/Option Decline Players: Any player whose contract has expired or option has been declined, is not eligible for the Re-Entry Process or Free Agency, and who was not offered a genuine offer by his former club. Such a player will be typically made available in a year-end Waiver Draft or prior to the start of the next MLS League Season.
Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent Waiver selections in any given season.

USL Short-Term Agreements
A club may sign players from its USL affiliate to Short-Term Agreements (up to four-day contracts) for CONCACAF Champions League, Canadian Championship, Lamar Hunt U.S. Open Cup, Leagues Cup, Campeones Cup, and exhibition matches. A club may sign a player to a maximum of four Short-Term Agreements each season (maximum of 16 days).

Players may also be signed to Short-Term Agreements for MLS League Season games but only in cases of Extreme Hardship.

Extreme Hardship Call-ups
Clubs may add players to their roster in cases of "Extreme Hardship." Extreme Hardship exists when an MLS club has:

fewer than four available outfield substitutes (less than 14 outfield players available)
OR has fewer than two goalkeepers available.
USL Player Short-Term Agreements in cases of Extreme Hardship
A club may sign players from its USL affiliate (on loan) to Short-Term Agreements (up to four-day contracts) for MLS League Season games only in cases of Extreme Hardship.

A club may sign a player to a maximum of four Short-Term Agreements each season (maximum of 16 days). During such time, the player may play in any CONCACAF Champions League, Canadian Championship, Lamar Hunt U.S. Open Cup, Leagues Cup, Campeones Cup, and exhibition matches.

Season-Ending Injury
Season-Ending Injury List: If a player suffers a season-ending injury, a club may place that injured player on the Season-Ending Injury List and receive roster relief (i.e., an open roster slot). Once placed on the Season-Ending Injury List, the injured player will not be eligible to play for the club in any remaining competition during that MLS season (including any exhibition games or tournaments, CONCACAF Champions League, Canadian Championship and Lamar Hunt U.S. Open Cup games).

Season-Ending Injury Replacement Player: A club may replace an injured player that is on the Season-Ending Injury List with a new replacement player in accordance with parameters below.

The club will remain responsible for the injured player's full Salary Budget Charge. Clubs may execute a trade to create Salary Budget space in order to sign such a replacement player. This is the only circumstance in which a club may trade for Salary Budget space. Clubs are only able to receive Salary Budget relief (paid out of the club's own pocket) for a season-ending injury under the following parameters:

The injured player must be earning at least $100,000 per annum.
The injured player must have suffered the season-ending injury prior to the close of the Primary Transfer Window and the new player must be acquired as of such date.
The replacement player may earn up to $250,000 but not more than the player who suffered the season-ending injury.
A credit in the amount of the replacement player’s charge will be applied to the player who suffered the Season-Ending Injury. The club shall reimburse the League an amount equal to such credit.
Clubs will only be allowed to sign one such replacement player per MLS League Season.
If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Supplemental Season-Ending Injury
If a player on a club's Supplemental Roster suffers a season-ending injury, a club may replace that injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (e.g., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may be replaced by a player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). The Reserve Minimum Salary of such replacement player will be charged to the Club Salary Budget.

Accordingly, a club must have Salary Budget space to replace a player with a season-ending injury on the Supplemental Roster with a replacement player.

If the injured player occupies an international roster slot on the Supplemental Roster, the replacement player may also be an International Player.

Short-Term Injury Replacements
Injured List
If a player suffers an injury that will prohibit him from participating in six or more MLS League Season games, a club can place that injured player on the Injured List. An injured player placed on the Injured List will remain unavailable for a minimum of six MLS League Season games and may not participate in any exhibition games or tournaments during that period, including CONCACAF Champions League, Canadian Championship, Lamar Hunt U.S. Open Cup, Leagues Cup, and Campeones Cup games.

Senior Roster Players on the Injured List
If a player on a club's Senior Roster is put on the Injured List, the club may receive roster relief (i.e., an open roster slot). The club will not receive salary budget relief for that player and will be responsible for the injured player's full Salary Budget Charge. Only clubs that have or can create extra Salary Budget space will be able to temporarily replace players on the Injured List. A club must have priority over any replacement player it adds (e.g., via Discovery, Right of First Refusal, etc.)

If the injured player occupies an international roster slot on the Senior Roster, the replacement player may also be an International Player.

Clubs may not trade for Salary Budget space to replace a player added to the Injured List.

Supplemental Roster Players on the Injured List
If a player on a club's Supplemental Roster suffers an injury that will place such a player on the Injured List, the club may replace the injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (e.g., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may only be replaced by a player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). Such Reserve Minimum Salary will be charged to the Club Salary Budget. Therefore, a club must have Salary Budget space to replace the injured player on the Supplemental Roster or Reserve Roster with a Injured List Replacement Player. The club must also ensure it has the necessary roster space and Club Salary Budget available when the player is removed from the Injured List.

NOTE: No changes may be made to a club's roster after the Roster Freeze Date (September 1, 2020) and running through the day after MLS Cup. Nevertheless, a club may obtain players in accordance with the Extreme Hardship rules and procedures after the Roster Freeze Date.

Methods of Removing a Player from a Roster
Waivers
Clubs may waive players based on performance at any time during the MLS season. A club may waive a Semi-Guaranteed Player at any time during the regular season until 3 business days prior to the Contract Guarantee Date. A club may waive a Guaranteed Player (at any time) or a Semi-Guaranteed Player (after the Contract Guarantee Date) only with League approval. Clubs may not waive a player between the Roster Freeze Date and MLS Cup.

Semi-Guaranteed Players waived on or after the Contract Guarantee Date and Guaranteed Players waived anytime, and who clear Waivers (i.e., not picked up by another club), will continue to have their respective Salary Budget Charges count against the applicable Club Salary Budgets. The club waiving the player will not receive a replacement player.

Transfers and Loans
An MLS player may be transferred or loaned at any time to a non-MLS club (subject to the receiving club's applicable federation's transfer window), and subject to the consent of the player.

Upon loaning a player, clubs will receive roster relief but not Salary Budget relief unless otherwise agreed to in the loan agreement.

Transfer and Loan Fees
The revenue share from transfers or loans for clubs is as follows:

A club shall receive 95% of the corresponding transfer or loan fee revenue (including agent fees and other expenses), from any transaction involving a player that is NOT a Homegrown Player.
If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue until it has recouped all out-of-pocket cash payments made by the club in connection to that player prior to any sharing arrangement with the League. After such recoup, the transfer or loan of the Designated Player shall be treated as any other transfer with the club receiving 95% of the corresponding transfer or loan fee revenue.
A club shall receive 100% of the corresponding transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Homegrown Player.
All remaining portions of the transfer or loan revenue fees are retained by the League.
Usage of Revenue
The club's share of transfer or loan fee revenue may only be used as follows:

The club may assign up to $1,000,000 of the transfer/loan revenue as General Allocation Money. (in the case of Designated Players, such assignment of Allocation Money can only take place after the club has received 100% of its out-of-pocket investment).
The remaining balance of the club's share (if any), and which cannot be traded, will be available for use by clubs in the following ways:
Against the expenses incurred by the club in relation to the costs of an existing or new Designated Player; or
With League approval, against an expense that (i) would not otherwise have been incurred by the club; and (ii) reasonably represents an investment in the League or club (e.g., youth development and training facilities).
Intraleague Loans
Clubs may loan a player to another MLS club subject to the following:

The player must be 24 years old (or younger than the age of 24) at the time of the loan.
Each club may only loan one player to another MLS club per season.
The loan must be initiated during the Primary Transfer Window or Secondary Transfer Window.
Intraleague Loans that are initiated prior to the close of the Primary Transfer Window may allow the loaned player to be recalled during the Secondary Transfer Window as agreed upon between the two clubs. If recalled, such a player must remain with his original club for the remainder of the MLS season.
Except in an instance where the player is recalled as outlined above, he must remain with his new club for the entire MLS Season.
The player may not compete against his former club during the MLS Season while on loan (includes MLS League Season games and all other competitions).
Intraleague Loans may include an option to make them permanent.
Loan of a Player by MLS
A club may loan any player from its Senior Roster or Supplemental Roster to a non-MLS club, subject to League discretion. During the loan period, the club will receive roster relief but not Salary Budget relief unless otherwise determined in the loan agreement.

If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS League Season games.

If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to USL Affiliate
All loans from MLS clubs to USL affiliates must be free (i.e., no loan fees paid by USL affiliate clubs).
If an MLS player is loaned to a USL affiliate, such a player may not be paid more than the player's Salary Budget Charge without that compensation being captured on the MLS club's Salary Budget (including, but not limited to, performance bonus compensation).
An MLS club can receive roster relief and budget relief for a maximum of one player loaned to its USL affiliate or a lower-division club in the U.S. or Canada; provided, however, that:
The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);
The player's Salary Budget Charge is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and
The loan must be a season-long free loan; and
The MLS club may not utilize a right to recall over the player during the remainder of the MLS League Season; provided, however, that such a player may be recalled to his MLS club in the case of Extreme Hardship.
Right of Recall
If a player is loaned from an MLS club to a USL affiliate with a right of recall incorporated into the loan agreement, then that player may be recalled by the MLS club at any point during the MLS Regular Season subject to MLS roster guidelines (e.g., available international roster slots, roster space). There are no restrictions on the number of times such a player may be recalled.

Contract Expiration
When a player's contract expires, the player no longer counts against the roster or Salary Budget of the club in question. Subject to the Re-Entry and Free Agency rules, a club retains the Right of First Refusal on the player indefinitely following the expiration of a contract provided attempts were made to re-sign the player.

Buyout of Guaranteed Contract
A club may buyout one player (including a Designated Player) who has a Guaranteed Contract during the offseason and free up the corresponding Salary Budget space. Such a buyout is at the club's expense.

A club may not free up space in the Salary Budget with a buyout of a player's contract during the season. If a club buys out a player's contract during the season, the buyout amount will be charged against the club's Salary Budget.

Right of First Refusal
Former MLS Player
Subject to rules regarding the Re-Entry Draft and Free Agency, if a former MLS player, who the League previously attempted but was unable to re-sign, returns to MLS, his former club will have a Right of First Refusal.

That club will not have a Right of First Refusal if:

The club received any consideration in connection with the transfer of such player to a non-MLS club; or
The player was excluded from possible selection in the Expansion Draft.
College Protected Player
A “College Protected Player” is a player who was selected in the MLS SuperDraft, provided his drafting club offered him a contract and the contract offer was refused by the player. If his club does not offer him a contract after being on trial, the player will have the option to be placed on Waivers on the date following the drafting club's first MLS Regular Season game. If no club is prepared to sign him off Waivers, the player will be placed on the drafting club's "College Protected List" until December 31 in the year following the draft in question, after which date the club loses the rights to sign the player.

Allocation Money
Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money
Each club receives an annual allotment of General Allocation Money. In 2020, that allotment is $1,525,000 per club.

A club may also receive General Allocation Money in the following cases:

Failure to qualify for the MLS Cup Playoffs
The transfer of a club’s player to non-MLS club outside MLS
Qualification for the CONCACAF Champions League
Expansion Clubs (see below)
Expansion Dilution (see below)
Designated Player charge distribution
In any year that the League adds one or more expansion clubs, (i) all clubs will receive an equal amount of General Allocation Money and (ii) any club that loses a player in the Expansion Draft will receive additional General Allocation Money. New expansion clubs receive a separate amount of General Allocation Money for their inaugural season.

General Allocation Money can be traded by clubs.

Buy-Down
Allocation Money can be used to "buy-down" a player's Salary Budget Charge as part of managing a club's roster, including buying down a Salary Budget Charge below the League maximum of $612,500. For example, a club may buy down a player earning $700,000 to a Salary Budget Charge of $500,000 by using $200,000 of General Allocation Money.

General Allocation Money can also be applied in the following circumstances:

To sign players new to MLS (that is, a player who did not play in MLS during the previous season).
To re-sign an existing MLS player.
To off-set acquisition costs (loan and transfer fees).
In connection with the extension of a player's contract for the second year provided the player was new to MLS in the immediately prior year.
To reduce the Salary Budget Charge of a Designated Player to a limit of $150,000.
To reduce the Salary Budget Charge of a Player whose Salary Budget Charge exceeds the Maximum Salary Budget Charge to a limit of $150,000.
Use against a Salary Budget Charge
A club cannot use General Allocation Money to reduce more than 50% of a player's Salary Budget Charge. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee; a club may reduce 100% of a loan or transfer fee.

Targeted Allocation Money
Targeted Allocation Money has been distributed to MLS clubs in accordance with the below.

Discretionary Targeted Allocation Money Available Per Year
2020: $2.8 million per club
2021: $2.72 million per club
2022: $2.4 million per club
Targeted Allocation Money may be used in the following ways:

Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the Maximum Salary Budget Charge.
Clubs may re-sign an existing player provided he is earning more than the Maximum Salary Budget Charge.
Clubs may use all or a portion of the available Targeted Allocation Money to convert a Designated Player to a non-Designated Player (assuming such player’s Salary Budget Charge meets the salary parameters described below) by buying down his Salary Budget Charge at or below the Maximum Salary Budget Charge. If Targeted Allocation Money is used to free up a Designated Player slot, the club must simultaneously sign a new Designated Player at an investment equal to, or greater than, the player he is replacing.
A club retains the flexibility to convert a player previously bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.
Clubs may use up to $200,000 of currently approved Targeted Allocation Money (amounts through 2020) to sign new Homegrown Players to their first MLS contract. It cannot be used on Homegrown Players previously signed to MLS.
Targeted Allocation Money may not be traded.

Salary Parameters
A player must earn more than 2020 Maximum Salary Budget Charge ($612,500) to qualify for Targeted Allocation Money. The compensation ceiling for such eligible players is set at $1,612,500 in 2020.

A player cannot have his Salary Budget Charge bought down below $150,000 using Targeted Allocation Money.

Targeted Allocation Money expires after four full Transfer Windows.

NOTE: To protect the interests of MLS and its clubs during discussions with prospective players or clubs in other leagues, amounts of Allocation Money currently held by each club will not be shared publicly. Only in the case of a trade will the amount of General Allocation Money involved be made public.

2020 Salary Budget Information
Club Salary Budget $4,900,000
Maximum Salary Budget Charge $612,500
Senior Minimum Salary $81,375
Reserve Minimum Salary $63,547
Designated Player Salary Budget Charge $612,500
Second Designated Player Salary Budget Charge $612,500
Third Designated Player Salary Budget Charge $612,500
Young Designated Player Budget Charge (20 years old or younger during the League Year) $150,000
Young Designated Player Budget Charge (21-23 years old during the League Year) $200,000
Mid-Season Designated Player Salary Budget Charge $306,250
Mid-Season Young Designated Player Salary Budget Charge $150,000
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2019 MLS Roster Composition

A Major League Soccer club's active roster is comprised of up to 30 players. All 30 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

In addition to the Salary Budget, each MLS club may spend additional funds on player compensation including money from a League-wide allocation pool (General Allocation Money and Targeted Allocation Money), the cost of Designated Players outside the Salary Budget, and money spent on the Supplemental and Reserve Rosters (roster slots 21-30).

On-Budget: Senior Roster
Up to 20 players, occupying roster slots 1-20, count against the club's 2019 Salary Budget of $4,240,000, and are referred to collectively as the club's Senior Roster.

Clubs are not required to fill roster slots 19 and 20, and clubs may spread their entire Salary Budget across 18 Senior Roster Players. A minimum Salary Budget Charge will be imputed against a club's Salary Budget for each unfilled Senior Roster slot below 18.
A club may have no more than 20 players on its Senior Roster, subject to the Season-Ending Injury Replacement, Injury List, and Loan exceptions.
The Maximum Salary Budget Charge for a single player is $530,000. (See Allocation Money section below for details on buying down a player's Salary Budget Charge)
Off-Budget: Supplemental and Reserve Rosters

The salaries of players on the Supplemental Roster (slots 21-24) and Reserve Roster (slots 25-30) do not count toward a club's Salary Budget.

Supplemental Roster

Players occupying roster slots 21-24 do not count against the club's Salary Budget, and are referred to collectively as the club's Supplemental Roster. A club may have no more than four players on its Supplemental Roster, subject to the Season-Ending Injury Replacement, Injury List, and Loan exceptions.

Slots 21-24 may be filled with (i) Senior Minimum Salary Players ($70,250 in 2019), which may include Homegrown Players, (ii) Generation adidas Players, (iii) any specifically Designated Players eligible for the MLS SuperDraft; or (iv) Homegrown Players earning more than the Senior Minimum Salary subject to the Homegrown Player Subsidy.
All Generation adidas players are Supplemental Roster players until they graduate from the program.
All players on the Supplemental Roster must be paid a base salary that is at least the Senior Minimum Salary ($70,250).
Reserve Roster

Players occupying roster slots 25-28 may be filled with players earning either (i) the Reserve Minimum Salary ($56,250 in 2019) or (ii) Homegrown Players earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy.
Reserve Minimum Salary Players must be 24 years or younger during the League Year (age of player is determined by year - not date - of birth).
These slots may not be filled with Senior Minimum Salary Players or Generation adidas Players.
All players in slots 25-28 must be paid a base salary that is at least the Reserve Minimum Salary ($56,250).
Reserve Roster slots 29 and 30

Players occupying roster slots 29 and 30 must be Homegrown Players and will follow the same roster and budget rules as Homegrown Players occupying Reserve Roster slots 25-28.
Treatment of Homegrown Players on a Club's Roster

If a Homegrown Player is initially added to a club's Supplemental Roster or Reserve Roster and subsequently moved to the Senior Roster, he may only be moved back to the Supplemental Roster or Reserve Roster if he is earning either (i) the Senior Minimum Salary or (ii) Reserve Minimum Salary.

Homegrown Player Subsidy

Homegrown Player(s) in roster slots 21-30 may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary (if occupying slots 25-30) or Senior Minimum Salary (if occupying slots 21-24).
Clubs may use up to $200,000 of their currently available Targeted Allocation Money (i.e., amounts awarded through 2019) to sign new Homegrown Players to their first MLS contract, subject to League review and approval. Targeted Allocation Money cannot be used on a Homegrown Player previously signed to MLS.
The 2019 Roster Compliance Date is March 1, 2019, at which time clubs must be roster and budget compliant heading into the start of the 2019 MLS season.
The 2019 Roster Freeze Date is August 30, 2019, at which time clubs must submit their final 30-man roster. Rosters cannot be changed from that date through the day after MLS Cup.
The registration windows - the dates between which MLS may request the transfer certificate of a player under contract in another country - are as follows:

Primary Transfer Window: February 13, 2019 to May 7, 2019
Secondary Transfer Window: July 9, 2019 to August 7, 2019
Player Categories on the Roster
Domestic/International
In 2019, a total of 192 international roster slots are divided among the 24 clubs. In 2008, each MLS club was given the right to have eight international players on its roster and each subsequent expansion club was given the right to have eight international roster slots for its inaugural season. These roster slots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have less than eight. There is no limit on the number of international roster slots on each club's roster.

Domestic Players

U.S.-based clubs: For U.S. clubs, a domestic player is either a U.S. citizen, a permanent resident (Green Card holder) or the holder of certain other special status (i.e., has been granted refugee or asylum status) or a player who qualifies under the Homegrown International Rule. There is no limit as to the number of U.S. Domestic Players on a U.S. club's roster.
Canada-based clubs: For Canadian clubs, a domestic player is either a Canadian citizen or the holder of certain other special status (i.e., has been granted refugee or asylum status), a player who qualifies under the Homegrown International Rule*, or a U.S. Domestic Player. There is no limit as to the number of Canadian Domestic Players on a Canadian club's roster.
There is no limit as to the number of U.S. Domestic Players or Canadian Domestic Players on a Canadian club's roster; provided, however, that a Canadian club is required to have a minimum of three Canadian Domestic Players on its roster at all times.
Homegrown International Rule

Any player who meets the requirements to qualify as a Homegrown Player as a member of an MLS club academy, either in the U.S. or Canada, or has met similar requirements as a member of a Canadian Approved Youth Club+ , will count as a domestic player (i.e., he will not occupy an international roster slot) on both U.S. and Canadian club rosters provided that:

the player became a member of an MLS club academy, either in the U.S. or Canada, or a Canadian Approved Youth Club in the year prior to the year in which he turns 16; and
the player signs his first professional contract with MLS or an MLS club's USL affiliate.
+ MLS will work in coordination with Canada Soccer to identify qualifying Canadian Approved Youth Clubs that meet specific standards in relation to competition, environment and coaching. These Canadian Approved Youth Clubs may or may not be affiliated with an MLS club.

International Players

U.S.-based clubs: Any player who does not qualify as a U.S. Domestic Player in a U.S. club shall be considered an International Player, and must occupy an international roster slot on a U.S. club's roster.
Canada-based clubs: Any player who does not qualify as a U.S. Domestic Player or a Canadian Domestic Player shall be considered an International Player, and must occupy an international roster slot on a Canadian club's roster.
Homegrown Players
Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of “Homegrown Player” on a club’s roster.

There is no limit to the number of Homegrown Players a club may sign in any given year.
Homegrown Players may occupy a slot on the Senior, Supplemental or Reserve Roster.
If a Homegrown Player is initially added to a club's Supplemental Roster or Reserve Roster and subsequently moved to the Senior Roster, he cannot be moved back to the Supplemental Roster or Reserve Roster except if he is earning either (i) the Senior Minimum Salary or (ii) Reserve Minimum Salary.
Homegrown Players on either the Supplemental Roster or the Reserve Roster may earn (including achievable bonuses) in aggregate each year up to $125,000 above the Reserve Minimum Salary ($56,250 in 2019) or the Senior Minimum Salary ($70,250 in 2019).
Generation adidas & Generation adidas Canada
Generation adidas and Generation adidas Canada are joint programs between MLS and adidas that are dedicated to developing exceptional talent in a professional environment. Each year, a handful of top collegiate underclassmen and youth national team players are signed by the League with the majority of such players entering the League through the MLS SuperDraft. In the case that a player was to join the League during the regular season, he would be put through Waivers or enter through the Allocation Process (if on the Allocation Ranking List). Until a player graduates from the program, Generation adidas players are on a club's Supplemental Roster and are not charged against the club's Salary Budget.

Designated Player
The Designated Player Rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge, with the club bearing financial responsibility for the amount of compensation above each player's Salary Budget Charge. Designated Players may be new players signed to MLS via the Allocation Ranking List, Discovery Process or can be re-signed existing players on a club's roster.

A player's Salary Budget Charge, and therefore Designated Player status, is determined by averaging all amounts payable over the guaranteed contract term excluding option years.

Option year compensation is not included in the Salary Budget Charge calculation unless the option includes an automatic performance trigger whose terms would elevate a player's category from non-Designated Player to Designated Player status. In such a case, the option year will be considered part of the guaranteed contract term.

Option year compensation is not included in the Salary Budget Charge (in determining Designated Player status) if the automatic trigger is based upon a performance target of at least 65% MLS League Season starts.

In 2019, a Designated Player who is at least 24 years old during the League Year will carry the Maximum Salary Budget Charge ($530,000) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $265,000.

Young Designated Player

A Designated Player who is 23 years old (or younger than the age of 23) during the League Year (the age of the player is determined by year - not date - of birth) will carry the following Young Designated Player Salary Budget Charge:

Ages 20 and younger: $150,000
Ages 21-23: $200,000
If such a Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Young Designated Player Salary Budget Charge of $150,000 regardless of age.
Clubs may "buy down" the Salary Budget Charge of a Designated Player with General Allocation Money. The reduced charge may not be less than $150,000.

Each MLS Club will be allotted two Designated Player roster slots. Clubs with two Designated Players may add a third Designated Player by paying $150,000 to the League, which shall be split among clubs with two or fewer occupied Designated Player slots for use as General Allocation Money the following MLS Season. Clubs must pay the $150,000 fee every year in which a third Designated Player slot is occupied on the club's roster.

If a club uses the third Designated Player slot to sign a Young Designated Player, then the club will not be obligated to pay the $150,000 charge.

Designated Player slots are not tradable.

Special Discovery Players
In general, the total amount of the acquisition cost of a player is charged against the Salary Budget in the year in which it is paid. For one player on a club's roster (a "Special Discovery Player"), a club can amortize the total amount of acquisition costs (up to $500,000) over the term of the player's contract.

Special Discovery Players must be 27 years old (or younger than the age of 27) during the League Year under consideration (the age of the player is determined by year - not date - of birth).
There may be no more than one Special Discovery Player per number of clubs in the League (i.e., 23 total Special Discovery Players across the League in 2019).
A club may have more than one Special Discovery Player on its Senior Roster at any given time if the club received the additional player(s) via trade. However, the club trading the Special Discovery Player may not sign a new Special Discovery Player until the traded Special Discovery Player's original contract expires, the player's contract is terminated, or all the amortized acquisition costs are accounted for in the Salary Budget Charge.
Targeted Allocation Money may be used on a Special Discovery Player if he qualifies.
Player Acquisition Mechanisms
Clubs may acquire players and add them to their rosters via the following mechanisms:

Allocation Process

Allocation Ranking List: The Allocation Process is the mechanism used to determine which MLS club has first priority to acquire a player listed on the Allocation Ranking List. This list will consist of (i) select U.S. Men's National Team players, (ii) select youth U.S. National Team players, and/or (iii) former MLS players returning to MLS after joining a non-MLS club for a transfer fee greater than $500,000. Generally, the Allocation Ranking List will be updated once a year on the day after the conclusion of the MLS regular season. The Allocation Ranking List will only be edited during the year if a player is transferred out of the League or if a top youth national team player is added to the list.

Allocation Ranking Order: The Allocation Ranking Order is set by taking the reverse order of the club's standings at the end of each MLS Season, taking playoff performance into account, with the new expansion clubs at the top of the order.

Once the club uses its allocation ranking to acquire a player, it drops to the bottom of the list. A ranking can be traded, provided that part of the compensation received in return is the other club's ranking. At all times, each club is assigned one ranking. The rankings reset at the end of each MLS season.

Any updates to the Allocation Ranking List or Allocation Ranking Order will be reflected at www.mlssoccer.com/allocation.

SuperDraft: The 2019 MLS SuperDraft consisted of four rounds for a total of 75 player selections. The first two rounds took place on January 11, 2019 in Philadelphia, PA and the final two rounds took place on January 14, 2019 via conference call.

Most draft prospects are NCAA college seniors who have exhausted their college eligibility. Generation adidas Players and non-collegiate international players are also eligible for selection in the MLS SuperDraft. Clubs may nominate players for the League's Draft-Eligible List, and only players from that list may be selected.

The MLS SuperDraft order is set by taking the reverse order of the club standings at the end of each MLS season, taking postseason performance into account, with new expansion clubs at the top of the order.

College Protected List: Unless claimed on waivers, a player who was drafted by a particular club through the MLS SuperDraft and did not sign with the League, is placed on that club's "College Protected List" until December 31 of the year after the draft, after which the club loses the priority right to sign the player.

Trades: Players, MLS SuperDraft picks, General Allocation Money and Targeted Allocation Money, Allocation Rankings and international roster slots may all be exchanged in trades approved by the League, provided all of the necessary rules regarding roster and Salary Budget compliance are met and the trade is completed during a valid trading period.

Primary Transfer Window and Secondary Transfer Window: During the season, trades that involve players must occur during either the Primary Transfer Window (2019: February 13 – May 7) or Secondary Transfer Window (2019: July 9 – August 7). RELATED: mlssoccer.com Transactions Tracker

Discovery Process

Discovery List: Pursuant to the Discovery Process, clubs may scout and sign players who are not yet under contract to MLS and who are not subject to another assignment mechanism (e.g., Allocation Process, MLS SuperDraft). To sign a player through the Discovery Process, the club must first place the player on its Discovery List. A club may have up to seven unsigned players on its Discovery List at any time and may remove or add players at any time. There is no limit to how many players a club can sign from its Discovery List.

Clubs may not add the following players to their Discovery Lists:

Players on the Allocation Ranking List
Players who have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)
Players for whom another club has a Right of First Refusal
Players who played at college or forwent college during the college season immediately prior to the date of discovery (If a player has completed or forgone his College eligibility in the season immediately prior to the date of his Discovery and was not on the MLS SuperDraft List, he shall be placed on Waivers)
Minors; i.e., players under the age of 18
Amateur members of the U.S. U-17 and U-20 National Teams. MLS shall have an exclusive 45-day window after such players reach their respective 18th birthdays or graduate high school (whichever is later) to determine if these players will be signed for the SuperDraft or be placed on the Allocation Ranking List.
Players who the League (1) unsuccessfully attempted to pre-sign for the MLS SuperDraft, (2) did not attempt to sign for the SuperDraft, (3) are not on the Allocation Ranking List, or (4) do not enter college will be non-discoverable for up to one year after forgoing college and will be placed on Waivers.
Designated Player Requests: If a club wishes to add a player to its Discovery List whom the League determines will require a significant investment from the club, the League will, prior to placing that player on a club's discovery list, determine whether the club has the necessary intent, means and ability to sign such a player. The club must submit confirmation in writing to the League that if the League and player should reach an agreement, the club is prepared to make the necessary financial investment. If the club does not submit that information, then the club does not have priority on that player and the player will continue to be discoverable by all clubs. With written confirmation from the club, the League will contact the player's authorized representative. If the League determines that there is no realistic chance of signing the player at that time he will not be discoverable.

Discovery Conflict Resolution: If one or more clubs try to add the same player to their respective Discovery Lists, the club that filed the claim first will have the priority right to sign the player. If one or more clubs submit a discovery request on the same day, then the club with the lowest points-per-game in the current MLS Regular Season (all clubs must have played a minimum of three regular season games) will have the priority right to sign the player.

If a club attempts to sign a player on its Discovery List and is unable to do so, the club retains the Right of First Refusal to acquire the player if he is later signed by the League for four full Transfer Windows.

If a club wants to sign a player on the Discovery List of another club, it may offer that club $50,000 in General Allocation Money in exchange for the right to sign the player. The club with the player on its Discovery List will then have five days (or three days during the Secondary Transfer Window) to either (i) accept the General Allocation Money and give up the right to sign the player or (ii) make the player a genuine, objectively reasonable offer.

Related Party Transactions

All terms of any arrangements among an MLS Club, a related party club, and a player to be signed to MLS shall be fully and fairly disclosed to the League. The player's Salary Budget Charge will generally be calculated based upon the related party club's contractual terms with the player (including any acquisition costs). The League will make a final determination, in its sole discretion, as to the Salary Budget Charge of such a player.

Homegrown Player Signings

A club may sign a player to a contract without subjecting him to the MLS SuperDraft if the player has been a member of that club's youth academy for at least one year and has met the necessary training and retention requirements. Players joining MLS through this mechanism are known as Homegrown Players.

There is no limit to the number of Homegrown Players a club may sign in any given year.

USL Priority Players

In addition to Homegrown Players and College Protected Players – clubs may have priority for up to three players from their respective United Soccer League (USL) affiliates. In order to retain priority on any additional USL affiliate players, such players must be added to an MLS club's Discovery List.

Re-Entry Process

The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is the reverse order of finish in 2019, taking into account playoff performance.

Stage One: Players who are available in Stage One of the Re-Entry Draft are:

Players who are at least 23 years old and have a minimum of three MLS service years whose options were not exercised by their clubs (available at option salary for 2020).
Players who are at least 25 years old with a minimum of four years of MLS experience who are out of contract and whose club does not wish to re-sign them at their previous salary (available for at least their 2019 salary).
Free Agents who choose to participate
Clubs must exercise the option for, or extend a Bona Fide Offer to, all players selected in Stage One and may not select their own draft-eligible players. Should a player reject the offer, the drafting club will hold the Right of First Refusal for that player in MLS. Players with option years left on their contract will automatically be added to the drafting club's roster.

Stage Two: Players who are not selected in Stage One of the Re-Entry Draft will be made available in Stage Two. If a player is selected, the drafting club will be required to make a genuine offer to the player within seven days. If an agreement cannot be reached between the drafting club and the player, the drafting club will hold the Right of First Refusal for that player in MLS. Clubs may not select their own draft-eligible players in Stage Two until all other Clubs have declined on selecting such players.

Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.

A player may choose to opt out of the Re-Entry Process prior to Stage One and/or Stage Two of the Re-Entry Draft. In such instances, the Right of First Refusal for the player will remain with his previous club.

Free Agency

Free Agency will be conducted in accordance with the current MLS Collective Bargaining Agreement.

Waivers

A club may place a player on Waivers at any time during the regular season at which point he is made available to all other clubs. The Waiver Claiming Period shall commence on the first business day after the League delivers notice to clubs and expires at 5 p.m. ET on the second business day. If a player is not selected off Waivers ("clears Waivers") then that player is available to all clubs on a first-come, first-served basis.

Waiver Order: The Waiver Order is based on points per game once all clubs have played at least three MLS League games. If the Waiver takes place prior to all clubs playing in at least three League games, priority is granted based upon the previous year's performance, taking playoff performance first, with clubs eliminated from playoff contention at the same stage separated according to their point totals through the end of the regular season. New expansion clubs shall be at the bottom of the Waiver Order until all clubs have played at least three games.

Claiming an Out of Contract Player

If a club claims a player who is not currently signed to an MLS contract, the club must issue the player a Genuine Offer within three calendar days.

Claiming a Guaranteed Player

If a player with a guaranteed contract is waived, any interested MLS club will have 48 hours from the notice of waivers to claim the player by notifying the League of the intention to claim the player and the amount of the player's Salary Budget Charge they wish to assume. The player will be awarded based on a number of factors, including but not limited to, which club is willing to absorb the highest Salary Budget Charge. If the highest Salary Budget Charge is submitted by more than one club, the player will be awarded to the club with the lowest points-per-game average.

Players who are eligible to be placed on Waivers are as follows:

Any player waived by a club during the current MLS season
Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the MLS SuperDraft list.
Remaining College Eligibility: A player who left or forgoes college with remaining eligibility (and was not on the MLS SuperDraft list). Such players will be discoverable one year after leaving or forgoing college with remaining eligibility.
Returning Players: A player returning to MLS who the League was unable to re-sign and his last MLS club does not wish to exercise their Right of First Refusal.
Unsigned Drafted Players: The day after the drafting club's first MLS Regular Season game, college players selected in that year's SuperDraft who have not signed an MLS contract have the right to be placed on Waivers upon request. If an unsigned college player is placed on Waivers, and is not claimed by another MLS club, he will return to his drafting club's College Protected List until the end of the College Protected Period.
Any player whose contract has expired or option has been declined, is not eligible for the Re-Entry Process or Free Agency, and his former club does not wish to make him a genuine offer. Such a player will be typically made available in a year-end Waiver Draft or prior to the start of the next MLS League Season.
Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent waiver selections in any given season, regardless of its points-per-game total.

USL Short-Term Agreements

A club may sign players from its USL affiliate to Short-Term Agreements (up to four-day contracts) for CONCACAF Champions League, Canadian Championship, Lamar Hunt U.S. Open Cup, and exhibition matches. A club may sign a player to a maximum of four Short-Term Agreements each season (maximum of 16 days).

Players may also be signed to Short-Term Agreements for MLS League Season games but only in cases of Extreme Hardship.

Extreme Hardship Call-ups

Clubs may add players to their roster in cases of "Extreme Hardship." Extreme Hardship exists when an MLS club has:

fewer than four available outfield substitutes (less than 14 outfield players available)
OR has fewer than two goalkeepers available.
USL Player Short-Term Agreements in cases of Extreme Hardship: A club may sign players from its USL affiliate (on loan) to Short-Term Agreements (up to four-day contracts) for MLS League Season games only in cases of Extreme Hardship.

A club may sign a player to a maximum of four Short-Term Agreements each season (maximum of 16 days). During such time, the player may play in any CONCACAF Champions League, Canadian Championship, Lamar Hunt U.S. Open Cup, and exhibition matches.

Season-Ending Injury
Season-Ending Injury List

If a player suffers a season-ending injury, a club may place that injured player on the Season-Ending Injury List and receive roster relief (i.e., an open roster slot). Once placed on the Season-Ending Injury List, the injured player will not be eligible to play for the club in any remaining competition during that MLS season (including any exhibition games or tournaments, CONCACAF Champions League, Canadian Championship and Lamar Hunt U.S. Open Cup game). If the player placed on the Season-Ending Injury List recovers prior to the end of the MLS season, that player may only play in games for the club's USL affiliate.

Season-Ending Injury Replacement Player

A club may replace an injured player that is on the Season-Ending Injury List with a new player (a "Season-Ending Injury Replacement Player") in accordance with parameters below.

The club will remain responsible for the injured player's full Salary Budget Charge. Clubs may execute a trade to create Salary Budget space in order to sign a Season-Ending Injury Replacement Player. This is the only circumstance in which a club may trade for Salary Budget space. Clubs are only able to receive Salary Budget relief (paid out of the club's own pocket) for a season-ending injury under the following parameters:

The injured player must be earning at least $100,000 per annum.
The injured player must have suffered the season-ending injury prior to the close of the Primary Transfer Window and the new player must be signed as of such date.
The Season-Ending Injury Replacement Player may earn up to $250,000 but not more than the player who suffered the season-ending injury.
The club is ultimately responsible for the payment of the replacement player's salary (which will not be charged to the club's budget).
Clubs will only be allowed to sign one such Season-Ending Injury Replacement Player a year.
If the injured player occupies an international roster slot, the Season-Ending Injury Replacement Player may also be an International Player and occupy such a slot.

Supplemental and Reserve Season-Ending Injury

If a player on a club's Supplemental Roster or Reserve Roster suffers a season-ending injury, a club may replace that injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (i.e., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may be replaced by a player earning the Reserve Minimum Salary (subject to the Club Salary Budget). The Reserve Minimum Salary will be charged to the Club Salary Budget.

Accordingly, a club must have Salary Budget space to replace a player with a season-ending injury on the Supplemental Roster with a Season-Ending Injury Replacement Player.

An international player occupying an international roster slot who is added to the Season-Ending Injury List may be replaced with an international player.

Short-Term Injury Replacements
Injury List

If a player suffers an injury that will prohibit him from participating in six or more MLS games, a club can place that injured player on the Injury List. An injured player placed on the Injury List will remain unavailable for a minimum of six MLS games and may not participate in any exhibition games or tournaments, including CONCACAF Champions League, Canadian Championship and Lamar Hunt U.S. Open Cup games.

Senior Roster Players on the Injury List

If a player on a club's Senior Roster is put on the Injury List, the club may receive roster relief (i.e., an open roster slot). The club will not receive budget relief for that player and will be responsible for the injured player's full Salary Budget Charge. Only clubs that have or can create extra Salary Budget space will be able to temporarily replace players on the Injury List. A club must have priority over any replacement player it adds (Discovery, Right of First Refusal, etc.)

An international player occupying an international roster slot who is added to the Injury List may be replaced with an international player.

Clubs may not trade for Salary Budget space for a player added to the Injury List.

Supplemental and Reserve Roster Players on the Injury List

If a player on a club's Supplemental Roster or Reserve Roster suffers an injury that will place such a player on the Injury List, the club may replace the injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (i.e., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may only be replaced by a player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). Such Reserve Minimum Salary will be charged to the Club Salary Budget. Therefore, a club must have Salary Budget space to replace the injured player on the Supplemental Roster or Reserve Roster with an Injury List Replacement Player. The club must also ensure it has the necessary roster space and Club Salary Budget available when the player is removed from the Injury List.

NOTE: No changes may be made to a club's roster after the Roster Freeze Date (August 30, 2019) and running through the day after MLS Cup. Nevertheless, a club may obtain players in accordance with the Extreme Hardship rules and procedures to replace players who are injured or otherwise legitimately unavailable after the Roster Freeze Date.

Methods of Removing a Player from a Roster
Waivers

Clubs may waive players based on performance at any time during the MLS season. A club may waive a Semi-Guaranteed Player at any time during the regular season until 48 hours prior to the Contract Guarantee Date. A club may waive a Guaranteed or Semi-Guaranteed Player after the Contract Guarantee Date only with League approval. Clubs may not waive a player between the Roster Freeze Date and MLS Cup.

Semi-Guaranteed Players waived on or after the Contract Guarantee Date of any League Year and Guaranteed Players waived anytime, and who clear waivers (i.e., not picked up by another club), will continue to have their Salary Budget Charge count against the Club Salary Budget. The club waiving the player will not receive a replacement player.

Transfers and Loans

An MLS player may be transferred or loaned at any time to a non-MLS club (subject to the receiving club's applicable Federation's transfer window), and subject to the consent of the player. Upon loaning a player, clubs will receive roster relief but not Salary Budget relief unless otherwise agreed to in the loan agreement.

Transfer and Loan Fees

The revenue share from transfers or loans for clubs is as follows:

A club shall receive three quarters (3/4) of the corresponding transfer or loan fee revenue (including agent fees and other expenses), from any transaction involving a player that is NOT a Homegrown Player, Generation adidas Player, or player acquired via the MLS SuperDraft.
If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue until it has recouped all out-of-pocket cash payments made by the club in connection to that player prior to any sharing arrangement with the League. After such recoup, the transfer or loan of the Designated Player shall be treated as any other transfer with the club receiving three quarters (3/4) of the corresponding transfer or loan fee revenue.
A club shall receive 100 percent of the corresponding transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Homegrown Player (regardless of service years).
A club shall receive the transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Generation adidas Player or player acquired via the MLS SuperDraft based on the number of MLS service years:
MLS Service Years Transfer/Loan Fee Revenue to Club
1 1/3
2 1/2
3+ 3/4
All remaining portions of the transfer or loan revenue fees are retained by the League.
Usage of Revenue

The club's share of transfer or loan fee revenue may only be used as follows:

The club may assign up to $750,000 of the transfer/loan revenue as General Allocation Money. (In the case of Designated Players, such assignment of Allocation Money can only take place after the club has received 100% of its out-of-pocket investment).
The remaining balance of the club's share (if any), and which cannot be traded, will be available for use by clubs in the following ways:
Against the expenses incurred by the club in relation to the costs of an existing or new Designated Player; or
With League approval, against an expense that (i) would not otherwise have been incurred by the club; and (ii) reasonably represents an investment in the League or club (e.g., youth development and training facilities)
Intraleague Loans

Clubs may loan a player to another MLS club subject to the following:

The player must be 24 years old (or younger than the age of 24) at the time of the loan.
Each club may only loan one player to another MLS club per season.
The loan must be initiated during the Primary Transfer Window or Secondary Transfer Window.
Intraleague Loans that are initiated prior to the close of the Primary Transfer Window may allow the loaned player to be recalled during the Secondary Transfer Window as agreed upon between the two clubs. If recalled, such a player must remain with his original club for the remainder of the MLS season.
Except in an instance where the player is recalled as outlined above, he must remain with his new club for the entire MLS Season.
The player may not compete against his former club during the MLS Season while on loan (includes MLS games and all other competitions).
Intraleague Loans may include an option to make them permanent.
Loan of a Player by MLS

A club may loan any player from its Senior Roster, Supplemental Roster or Reserve Roster to a non-MLS club at any time during the League Year under consideration, subject to League discretion. During the loan period, the club will receive roster relief but not Salary Budget relief unless otherwise determined in the loan agreement.

If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS games.

If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to USL Affiliate

All loans from MLS clubs to USL affiliates must be free (i.e., no loan fees paid by USL affiliate clubs).
If that an MLS player is loaned to a USL affiliate, such a player may not be paid more than the player's MLS Salary Budget Charge without that compensation being captured on the MLS club's Salary Budget (including, but not limited to, performance bonus compensation).
An MLS club can receive roster relief and budget relief for a maximum of one player loaned to its USL affiliate; provided, however, that:
The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);
The player's Salary Budget Charge is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and
The loan of the player to the USL affiliate must last for the duration an entire USL season; provided, however, that such a player may be recalled to his parent MLS club only in the case of Extreme Hardship.
Right of Recall

If a player is loaned from an MLS club to a USL affiliate with a Right of Recall incorporated into the loan agreement, then that player may be recalled by the parent MLS club at any point during the MLS Regular Season subject to MLS roster guidelines (e.g., available international roster slots, roster space). There are no restrictions on the number of times such a player may be recalled.

Contract Expiration

When a player's contract expires, the player no longer counts against the roster or Salary Budget of the club in question. Subject to the Re-Entry and Free Agency rules, a club retains the Right of First Refusal on the player indefinitely following the expiration of a contract provided attempts were made to re-sign the player.

Buyout of Guaranteed Contract

A club may buy out one player who has a Guaranteed Contract (including a Designated Player’s) during the offseason and free up the corresponding Salary Budget space. Such a buyout is at the club's expense.

A club may not free up space in the Salary Budget with a buyout of a player's contract during the season. In the case a club buys out a player's contract during the season, the buyout amount will be charged against the club's Salary Budget.

Right of First Refusal
Former MLS Player

Subject to rules regarding the Re-Entry Draft and Free Agency, if a former MLS player, who the League previously attempted but was unable to re-sign, returns to MLS, his former club will have a Right of First Refusal.

That club will not have a Right of First Refusal if:

The club received General Allocation Money in connection with the transfer of such a player to a non-MLS club;
The club received a transfer fee in connection with the transfer of such player to a non-MLS club; or
The player was excluded from possible selection in the Expansion Draft (e.g., retired player)
New Player

If the League on behalf of an MLS club makes a Genuine Offer to a new player but is unable to sign him, that club will have a Right of First Refusal if the player later signs with MLS. This process applies to players the League attempts to sign. If the player is subsequently signed, and the club does not exercise its Right of First Refusal, the player will be assigned via the Waiver Process unless otherwise determined by the League depending on the type of player.

For a new player the League attempted to sign through the Discovery Process, the Right of First Refusal will last for four full Transfer Windows. Upon the conclusion of the four full Transfer Windows, that player will be Discoverable again.

For those players on a club's Right of First Refusal list and who were previously on a club's Discovery List, the Discovery Conflict Resolution Process shall apply (i.e., posting of $50,000 in General Allocation Money).

Holding a Right of First Refusal applies only within MLS and does not indicate holding of the player's International Transfer Certificate.

College Protected Player

A “College Protected Player” is a player who was selected in the MLS SuperDraft, provided his drafting club offered him a contract and the contract offer was refused by the player. If his club does not offer him a contract after being on trial, the player will have the option to be placed on Waivers on the date following the drafting club's first MLS Regular Season game. If no club is prepared to sign him off Waivers, the player will be placed on the drafting club's "College Protected List" until December 31 in the year following the draft in question, after which date the club loses the rights to sign the player.

Allocation Money
Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money

Each club receives an annual allotment of General Allocation Money. In 2019, that allotment is $200,000 per club.

A club may also receive General Allocation Money in the following cases:

Failure to qualify for the MLS Cup Playoffs ($200,000 per club)
The transfer of a club’s player to non-MLS club outside MLS
Qualification for the CONCACAF Champions League ($140,000 per club)
Expansion Clubs (see below)
Expansion Dilution (see below)
Designated Player charge distribution
In any year that the League adds one or more expansion clubs, (i) all clubs will receive an equal amount of General Allocation Money and (ii) any club that loses a player in the Expansion Draft will receive additional General Allocation Money. New expansion clubs receive a separate amount of General Allocation Money for their inaugural season.

General Allocation Money can be traded by clubs.

Buy-Down

Allocation Money can be used to "buy-down" a player's Salary Budget Charge as part of managing a club's roster, including buying a Salary Budget Charge below the League maximum of $530,000. For example, a club may "buy down" a player earning $500,000 to a Salary Budget Charge of $300,000 by using $200,000 of General Allocation Money.

General Allocation Money can also be applied in the following circumstances:

To sign players new to MLS (that is, a player who did not play in MLS during the previous season).
To re-sign an existing MLS player.
To off-set acquisition costs (loan and transfer fees).
In connection with the extension of a player's contract for the second year provided the player was new to MLS in the immediately prior year.
To reduce the Salary Budget Charge of a Designated Player to a limit of $150,000.
Use against a Salary Budget Charge

A club cannot use General Allocation Money to reduce more than 50 percent of a player's Salary Budget Charge. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee. A club may reduce 100 percent of a loan or transfer fee.

Targeted Allocation Money

Targeted Allocation Money has been distributed to MLS clubs in accordance with the below.

Mandatory Targeted Allocation Money Invested by Year

2015: $500,000 per club
2016: $800,000 per club
2017: $1.2 million per club
2018: $1.2 million per club
2019: $1.2 million per club
Expansion clubs joining the League in 2019 will receive a prorated amount of the initial 2015 investment (i.e., $100,000 per year through 2019). In 2019, FC Cincinnati will receive $200,000 of the initial allotment.

Discretionary Targeted Allocation Money Available Per Year

2018: $2.8 million per club
2019: $2.8 million per club
MLS clubs have the flexibility to spend up to an additional $2.8 million of Targeted Allocation Money, on a discretionary basis funded by the club, per year since 2018.

Targeted Allocation Money may be used in four ways:

Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the Maximum Salary Budget Charge.
Clubs may re-sign an existing player provided he is earning more than the Maximum Salary Budget Charge.
Clubs may use all or a portion of the available Targeted Allocation Money to convert a Designated Player to a non-Designated Player by buying down his Salary Budget Charge at or below the Maximum Salary Budget Charge. If Targeted Allocation Money is used to free up a Designated Player slot, the club must simultaneously sign a new Designated Player at an investment equal to, or greater than, the player he is replacing.
A club retains the flexibility to convert a player bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.
Clubs may use up to $200,000 of currently approved Targeted Allocation Money (amounts through 2019) to sign new Homegrown Players to their first MLS contract. It cannot be used on Homegrown Players previously signed to MLS.
A club may trade its Mandatory Targeted Allocation Money to another club.

Salary Parameters

A player must earn more than 2019 Maximum Salary Budget Charge ($530,000) to qualify for Targeted Allocation Money. The compensation ceiling for such eligible players is set at $1,530,000 per year.

A player cannot have his Salary Budget Charge bought down below $150,000 using Targeted Allocation Money.

Targeted Allocation Money and General Allocation Money may not be used in combination when signing or re-signing a player. One of either Targeted Allocation Money or General Allocation Money may be used on a player in a single season, not both.

Targeted Allocation Money expires after four full Transfer Windows.

NOTE: To protect the interests of MLS and its clubs during discussions with prospective players or clubs in other leagues, amounts of Allocation Money held by each club will not be shared publicly. Only in the case of a trade will the amount of Targeted Allocation Money involved be made public.

2019 Salary Budget Information
Club Salary Budget $4,240,000
Maximum Salary Budget Charge $530,000
Senior Minimum Salary $70,250
Reserve Minimum Salary $56,250
Designated Player Salary Budget Charge $530,000
Second Designated Player Salary Budget Charge $530,000
Third Designated Player Salary Budget Charge 530,000
Young Designated Player Budget Charge (20 years old or younger during the League Year) $150,000
Young Designated Player Budget Charge (21-23 years old during the League Year) $200,000
Mid-Season Designated Player Salary Budget Charge $265,000
Mid-Season Young Designated Player Salary Budget Charge $150,000
2017 Salary Budget Information

Club Salary Budget: $3,845,000
Maximum Salary Budget Charge: $480,625
Senior Minimum Salary: $65,000
Reserve Minimum Salary: $53,000
Designated Player Salary Budget Charge: $480,625
Second Designated Player Salary Budget Charge: $480,625
Third Designated Player Salary Budget Charge: $480,625
Youth Designated Player Budget Charge (20 years old or younger during the League Year): $150,000
Youth Designated Player Budget Charge (21-23 years old during the League Year): $200,000
Mid-Season Designated Player Salary Budget Charge: $240,312
Mid-Season Youth Designated Player Salary Budget Charge: $150,000

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2017 MLS Roster Composition

A Major League Soccer club's active roster is comprised of up to 30 players. All 30 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

In addition to the salary budget, each MLS Club spends additional funds on player compensation including money from a league-wide allocation pool (General & Targeted Allocation Money), the cost of Designated Players outside the salary budget, and money spent on the Supplemental and Reserve Rosters (roster spots 21-30).

On-Budget: Senior Roster

Up to 20 players, occupying roster spots 1-20, count against the club's 2017 salary budget of $3,845,000, and are referred to collectively as the club's Senior Roster.

Roster spots 19 and 20 are not required to be filled, and teams may spread their salary budget across only 18 Salary Budget Players. A minimum salary budget charge will be imputed against a team's salary budget for each unfilled senior roster spot below 18.
A Club may have no more than twenty Players on its Senior Roster, subject to the Season-ending Injury Replacement, Disabled List, and loan exceptions.
The maximum budget charge for a single player is $480,625. (See Allocation Money section below for details on buying down a player's budget charge.)
Off-Budget: Supplemental and Reserve Rosters

The salaries of players on the Supplemental Roster (spots 21-24) and Reserve Roster (spots 25-30) do not count toward a club's Salary Budget.

Supplemental Roster

Players occupying roster spots 21-24 do not count against the club's salary budget, and are referred to collectively as the club's Supplemental Roster. A Club may have no more than four players on its Supplemental Roster, subject to the Season-ending Injury Replacement, Disabled List, and loan exceptions.

Slots 21-24 may be filled with (i) Senior Minimum Salary Budget Charge Players ($65,000 in 2017) which may include Homegrown Players, (ii) Generation adidas Players, or (iii) any specifically Designated Players eligible for the MLS SuperDraft.
All Generation adidas players are Supplemental Roster players until they graduate.
All Players on the Supplemental Roster must be paid a base salary which is at least the Senior Minimum Salary: $65,000.
Reserve Roster

Players occupying roster spots 25-28 may be filled with Players earning either (i) the Reserve Minimum Salary ($53,000 in 2017) or (ii) Homegrown Players earning more than the Reserve Minimum Salary subject to the Homegrown Player Subsidy.
Reserve Minimum Salary Players must be 24-years-old or younger during the league year. (Age of player is determined by year - not date - of birth.)
These slots may not be filled with Senior Minimum Salary Players or Generation adidas Players.
All Players in slots 25-28 must be paid a base salary which is at least the Reserve Minimum Salary: $53,000.
Reserve Roster spots 29 and 30

Players occupying roster spots 29 and 30 must be Homegrown Players and will follow the same roster and budget rules as Homegrown Players occupying Reserve Roster spots 25-28.
Treatment of Homegrown Players on a Club's Roster

If a Homegrown Player is initially added to a club's Supplemental or Reserve Roster and subsequently moved to the Senior Roster, they may only be moved back to the Supplemental or Reserve Roster if they are earning either (i) the Senior Minimum Salary or (ii) Reserve Minimum Salary.

Homegrown Player Subsidy

Homegrown Player(s) in roster slots 21-30 may earn in aggregate each year up to $125,000 above the Reserve Minimum Salary (if occupying spots 25-30) or Senior Minimum Salary (if occupying spots 21-24)
Clubs may use up to $200,000 of their currently available Targeted Allocation Money (i.e., amounts awarded through 2017) to sign new Homegrown Players to their first MLS contract, subject to League review and approval. Targeted Allocation Money cannot be used on a Homegrown Player previously signed to MLS.
2017 Roster Compliance, Freeze and Transfer Window Dates

The 2017 Roster Compliance Date is March 1, 2017, at which time teams must be roster and budget compliant heading into the start of the 2017 MLS season.
The 2017 Roster Freeze Date is September 15, 2017, at which time teams must submit their final 30-man roster that cannot be changed through the day after MLS Cup.
The registration windows - the dates between which MLS may request the transfer certificate of a player under contract in another country - are as follows:

Primary Transfer Window: February 14 to May 8, 2017
Secondary Transfer Window: July 10 to August 9, 2017
Player Categories on the Roster

Domestic/International

In 2017, a total of 176 international roster spots are divided among the 22 clubs. In 2008, each MLS Club was given the right to have eight international players on their roster and expansion Clubs were given the right to have eight international spots for their inaugural season. These spots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have fewer than eight. There is no limit on the number of international roster spots on each club's roster.

Domestic Players

U.S.-based Clubs: For U.S. Clubs, a domestic player is either a U.S. Citizen, a permanent resident (Green Card holder) or the holder of certain other special status (e.g., has been granted refugee or asylum status) or a player who qualifies under the Homegrown International Rule*. There is no limit as to the number of U.S. Domestic Players on a U.S. Club's Roster.
Canada-based Clubs: For Canadian Clubs, a domestic player is either a Canadian Citizen or the holder of certain other special status (e.g., has been granted refugee or asylum status), a player who qualifies under the Homegrown International Rule*, or a U.S. Domestic Player. There is no limit as to the number of Canadian Domestic Players on a Canadian club's roster.
There is no limit as to the number of U.S. Domestic Players or Canadian Domestic Players on a Canadian club's roster; provided, however, that a Canadian Club is required to have a minimum of three Canadian Domestic Players on its roster at all times.
Homegrown International Rule

Any player who meets the requirements to qualify as a Homegrown Player as a member of an MLS club academy, either in the U.S. or Canada, or has met similar requirements as a member of a Canadian Approved Youth Club+, will count as a domestic player (i.e., he will not occupy an international spot) on both U.S. and Canadian club rosters provided that:

The player became a member of an MLS club academy, either in the U.S. or Canada, or a Canadian Approved Youth Club in the year prior to the year in which he turns 16;
AND the player signs his first professional contract with MLS or an MLS club's USL affiliate.
+MLS will work in coordination with Canada Soccer to identify qualifying Canadian Approved Youth Clubs that meet specific standards in relation to competition, environment, and coaching. These Canadian Approved Youth Clubs may or may not be affiliated with an MLS club.

International Players

U.S.-based Clubs: Any Player who does not qualify as a U.S. Domestic Player in a U.S. Club shall be considered an International Player, and must occupy an international slot on a U.S. Club's Roster.
Canada-based Clubs: Any Player who does not qualify as a U.S. Domestic Player or a Canadian Domestic Player shall be considered an International Player, and must occupy an international slot on a Canadian Club's Roster.
Homegrown Players

Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of "Homegrown Player" on a club's roster.

There is no limit to the number of Homegrown Players a club may sign in a given year.
Homegrown Players may occupy a spot on the Senior, Supplemental, or Reserve Roster.
If a Homegrown Player is initially added to a Club's Supplemental or Reserve Roster and subsequently moved to the Senior Roster, he cannot be moved back to the Supplemental or Reserve Roster except if he is earning either (i) the Senior Minimum Salary Budget Charge or (ii) Reserve Minimum Salary Budget Charge.
Homegrown Player(s) on either the Supplemental Roster or the Reserve Roster may earn (including achievable bonuses) in aggregate each year up to $125,000 above the Reserve Minimum Salary ($53,000 in 2017) or the Senior Minimum Salary ($65,000 in 2017).
Generation adidas & Generation adidas Canada

Generation adidas and Generation adidas Canada are joint programs between MLS and adidas that are dedicated to developing exceptional domestic talent in a professional environment. Each year, a handful of top domestic collegiate underclassmen and youth national team players are signed by the league with the majority of such players entering the league through the SuperDraft. In the case that a player were to join the league during the regular season, he would be put through Waivers or enter through the Allocation Process (if on the Allocation Ranking List). Until a player graduates from the program, Generation adidas players are on a club's Supplemental Roster and are not charged against the team's salary budget.

Designated Player

The Designated Player Rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the maximum budget charge, with the club bearing financial responsibility for the amount of compensation above each player's budget charge. Designated Players may be new players signed to MLS via the Allocation Ranking List, Discovery Process or can be re-signed existing players on a team's roster.

A player's budget charge, and therefore Designated Player status, is determined by averaging all amounts payable over the guaranteed contract term excluding option years.

Option year compensation is not included in the budget charge calculation unless the option includes an automatic performance trigger whose terms would elevate a player's category from non-DP to Designated Player status. In such a case, the option year will be considered part of the guaranteed contract term.

Option year compensation is not included in the budget charge (in determining DP status) if the automatic trigger is based upon a performance target of at least 65% MLS League Season starts.

In 2017, a Designated Player that is 24-years-old or older during the league year will carry the Maximum Budget Charge ($480,625) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $240,312.

Young Designated Player

A Designated Player 23 years old or younger during the league year (age of player is determined by year - not date - of birth) will carry the following Young Designated Player Budget Charge:

Ages 20 and younger: $150,000
Ages 21-23: $200,000
If such Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Youth Designated Player Salary Budget Charge of $150,000 regardless of age.
Clubs may "buy down" the budget charge of a Designated Player with General Allocation money. The reduced charge may not be less than $150,000.

Each MLS Club shall be allotted two Designated Player slots. Clubs with two Designated Players may add a third Designated Player by paying $150,000 to the league which shall be split among clubs with two or fewer occupied Designated Player slots for use as General Allocation Money the following MLS Season. Clubs must pay the $150,000 fee every year in which a third Designated Player spot is occupied on the club's roster.

If a club uses the third Designated Player slot to sign a Young Designated Player, then the Club will not be obligated to pay the $150,000 charge.

Designated Player spots are not tradable.

Special Discovery Players

In general, the total amount of the acquisition cost of a player is charged against the salary budget in the year in which it is paid. For one player on a club's roster (a "Special Discovery Player"), a club is able to amortize the total amount of acquisition costs (up to $500,000) over the term of the player's contract.

Special Discovery Players must be 27-years-old or younger during the league year under consideration.
There may be no more than one Special Discovery Player per number of clubs in the league (i.e., 22 total Special Discovery Players in 2017).
A club may have more than one Special Discovery Player on its Senior Roster at any given time if the club received the additional player(s) via trade. However, the Club trading the Special Discovery Player may not sign a new Special Discovery Player until the traded Special Discovery Player's original SPA expires, the player's contract is terminated, or all the amortized acquisition costs are accounted for in the Budget Charge.
Targeted Allocation Money may be used on a Special Discovery Player if he qualifies.
Player Acquisition Mechanisms

MLS teams may acquire players and add them to their rosters via the following mechanisms:

Allocation Process

Allocation Ranking List

The Allocation Process is the mechanism used to determine which MLS Club has first priority to acquire a player listed on the Allocation Ranking List. The list will consist of (i) select U.S. Men's National Team players, (ii) elite youth U.S. National Team players, or (iii) former MLS players returning to MLS after joining a non-MLS club for a transfer fee greater than $500,000. Generally, the Allocation Ranking List will be updated once a year on the day after the conclusion of the MLS regular season. The Allocation Ranking List will only be edited during the year if a player is transferred out of the league or if a top youth national team player is added to the list.

Allocation Ranking Order

The Allocation Ranking Order is set by taking the reverse order of the club's standings at the end of each MLS Season, taking playoff performance into account, with the new expansion clubs at the top of the order.

Once the club uses its allocation ranking to acquire a player, it drops to the bottom of the list. A ranking can be traded, provided that part of the compensation received in return is the other club's ranking. At all times, each club is assigned one ranking. The rankings reset at the end of each MLS League season.

Any updates to the Allocation Ranking List or Allocation Ranking Order will be reflected at www.mlssoccer.com/allocation.

SuperDraft

The 2017 MLS SuperDraft consisted of four rounds for a total of 81 player selections. The first two rounds took place on Jan. 13 in Los Angeles, CA and the final two rounds took place on Jan. 17 via conference call.

The majority of draft prospects are NCAA college seniors who have exhausted their college eligibility. Generation adidas players and non-collegiate international players are also eligible for selection in the SuperDraft. Clubs may nominate players for the League's Draft-Eligible List, and only players from that list may be selected.

The SuperDraft order is set by taking the reverse order of the club standings at the end of each MLS season, taking postseason performance into account, with new expansion clubs at the top of the order.

College Protected List

Unless claimed on waivers, a player who was drafted by a particular team through the SuperDraft and did not sign with the League, is placed on that team's "College Protected List" until December 31st of the year after the draft, after which the team loses the priority to sign the player.

Trades

Players, SuperDraft picks, General and Targeted Allocation Money, Allocation Rankings and International Player Slots may all be exchanged in trades approved by the MLS League Office, provided all of the necessary rules regarding roster and salary budget compliance are met and the trade is completed during a valid trading period.

Primary Transfer Window and Secondary Transfer Window

During the season trades that involve players must occur during either the Primary Transfer Window (2017: February 14 – May 8) or Secondary Transfer Window (2017: July 10 – August 9).

RELATED: mlssoccer.com Transactions Tracker

Discovery Process

Discovery List

Pursuant to the Discovery Process, clubs scout and sign players who are not yet under contract to MLS and who are not subject to another assignment mechanism (e.g., Allocation Process, SuperDraft). To sign a player through the Discovery Process, the club must first place the player on its Discovery List. A club may have up to seven unsigned players on its Discovery List at any time and may remove or add players at any time. There is no limit to how many players a club can sign from its Discovery List.

Clubs may not add the following players to their Discovery Lists:

Players on the Allocation Ranking List
Players that have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)
Players for whom another club has Right of First Refusal
Players that played at college or forwent college during the college season immediately prior to the date of discovery. (If a player has completed or forgone his College eligibility in the season immediately prior to the date of his Discovery and was not on the MLS SuperDraft List, he shall be placed on Waivers.)
Minors: players under the age of 18
Amateur members of the U.S. U-17 and U-20 National Team. MLS shall have an exclusive 45-day window after such players reach their 18th birthday or graduate high school (whichever is later) to determine if these players will be signed for the SuperDraft or be placed on the Allocation Ranking List.
Players who the league (1) unsuccessfully attempted to pre-sign for the SuperDraft (2) did not attempt to sign for the SuperDraft, (3) are not on the Allocation Ranking List, or (4) do not enter college will be non-discoverable for up to one year after forgoing college and will be placed on Waivers.
Designated Player Requests

If a club wishes to add a player to its Discovery List whom the league determines will require a significant investment from the club, the league will, prior to placing that player on a team's discovery list, determine whether the club has the necessary intent, means and ability to sign such player. The club must submit confirmation in writing to the league that if the league and player should reach an agreement, the club is prepared to make the necessary financial investment. If the club does not submit that information, then the club does not have priority on that player and the player will continue to be discoverable by all teams. With written confirmation from the club,the league will contact the player's authorized representative. If the league determines that there is no realistic chance of signing the player at that time he will not be discoverable.

Discovery Conflict Resolution

If one or more clubs try to add the same player to their Discovery Lists, the club that filed the claim first will have the priority right to sign the player. If one or more clubs submit a discovery request on the same day, then the club with the lowest points-per-game in the current MLS regular season (all clubs must have played a minimum of three regular season games) will have the priority right to sign the player.

If a club attempts to sign a player on its Discovery List and is unable to do so, the club retains the Right of First Refusal to acquire the player in the event he is later signed by the League for four full Transfer Windows.

If a club wants to sign a player on the Discovery List of another team, it may offer that team $50,000 in General Allocation Money in exchange for the right to sign the player. The team with the player on its Discovery List will then have five days (or three days during the Secondary Transfer Window) to either (i) accept the General Allocation Money and give up the right to sign the player or (ii) make the player a genuine, objectively reasonable offer.

Related Party Transactions

All terms of any arrangements among an MLS Club, a related party club, and a Player to be signed to MLS shall be fully and fairly disclosed to the League Office. The player's MLS budget charge will generally be calculated based upon the related party club's contractual terms with the player (including any acquisition costs). The League Office shall make a final determination, in its sole discretion, as to the budget charge of such Player.

Homegrown Players Signings

A club may sign a player to a contract without subjecting him to the MLS SuperDraft if the player has been a member of a club's youth academy for at least one year and has met the necessary training and retention requirements. Players joining MLS through this mechanism are known as Homegrown Players.

There is no limit to the number of Homegrown Players a club may sign in a given year.

USL Priority Players

In addition to Homegrown Players and College Protected Players – clubs may have priority for up to three players from their USL affiliate. In order to retain priority on any additional USL affiliate players, such players must be added to an MLS club's Discovery List.

Re-Entry Process

The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is reverse order of finish in 2017, taking into account playoff performance.

Stage One

Players who are available in Stage One of the Re-Entry Draft are:

Players who are at least 23-years-old and have a minimum of three MLS service years whose options were not exercised by their clubs (available at option salary for 2018).
Players who are at least 25-years-old with a minimum of four years of MLS experience who are out of contract and whose club does not wish to re-sign them at their previous salary (available for at least their 2017 salary).
Free Agents that choose to participate
Clubs must exercise the option for, or extend a Bona Fide Offer to, all players selected in Stage One and may not select their own draft-eligible players. Should a player reject the offer, the drafting club will hold the Right of First Refusal for that player in MLS. Players with option years left on their contract will automatically be added to the drafting club's roster.

Stage Two

Players who are not selected in Stage One of the Re-Entry Draft will be made available in Stage Two. If a player is selected, the drafting club will be required to make a genuine offer to the player within seven days. In the event that an agreement cannot be reached between the drafting club and the player, the drafting club will hold the Right of First Refusal for that player in MLS. Clubs may not select their own draft-eligible players in Stage Two until all other Clubs have declined on selecting such players.

Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.

A player may choose to opt out of the Re-Entry Process prior to Stage One and/or Stage Two of the Re-Entry Draft. In such instances, the Right of First Refusal for the Player will remain with his previous club.

Free Agency

Free Agency will be conducted in accordance with the current MLS CBA.

Waivers

A club may place a player on Waivers at any time during the regular season at which point he is made available to all other clubs. The Waiver Claiming Period shall commence on the first business day after the League delivers notice to teams and expires at 5 p.m. ET on the second business day. If a player is not selected off of Waivers ("clears Waivers") then that player is available to all clubs on a first-come, first-served basis.

Waiver Order

The Waiver Order is based on points per game once all clubs have played at least three MLS League games. If the Waiver takes place prior to all clubs playing in at least three League games, priority is granted based upon the prior year's performance, taking playoff performance first, with clubs eliminated from playoff contention at the same stage separated according to their point totals through the end of the regular season. New expansion clubs shall be at the bottom of the Waiver Order until all clubs have played at least three games.

Claiming an Out of Contract Player

If a club claims a player who is not currently signed to an MLS contract, the club must issue the player a Genuine Offer within three days.

Claiming a Guaranteed Player

If a player with a guaranteed contract is waived, any interested MLS club will have 48 hours from the notice of waivers to claim the player by notifying the League Office of the intention to claim the player and the amount of the player's salary budget charge. The player will be awarded to the club willing to absorb the highest salary budget charge. In the event that the highest salary budget charge is submitted by more than one club, the player will be awarded to the club with the lowest points per game average.

Players who are eligible to be placed on Waivers are as follows:

Any player waived by an MLS club during the current MLS season
Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the SuperDraft list.
Remaining College Eligibility: A player who left or forgoes college with remaining eligibility (and was not on the MLS SuperDraft list). Such players will be discoverable one year after leaving or forgoing college with remaining eligibility.
Returning Players: A player returning to MLS who the league was unable to re-sign and his last MLS club does not wish to exercise their Right of First Refusal.
Unsigned Drafted Players: The day after the drafting club's first MLS regular season game, college players selected in that year's SuperDraft that have not signed an MLS contract have the right to be placed on waivers upon request. If an unsigned college player is placed on waivers, and is not claimed by another MLS Club, he will return to his drafting Club's College Protected List until the end of the College Protected Period.
Any player whose contract has expired or option has been declined, is not eligible for the Re-Entry Process or Free Agency, and their former club does not wish to make them a genuine offer. Such players will be typically made available in a yearend Waiver Draft or prior to the start of the next MLS league season.
Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent waiver selections in a given season, regardless of its points-per-game total.

USL Short Term Agreements

MLS clubs may sign players from their USL affiliate to Short Term Agreements (up to four-day contracts) for CONCACAF Champions League, AMWAY Canadian Championship, U.S. Open Cup, and exhibition matches. An MLS club may sign a player to a maximum of four short term agreements each season (maximum of 16 days).

Players may also be signed to Short Term Agreements for MLS league season games but only in cases of Extreme Hardship.

Extreme Hardship Call-ups

Clubs may add players to their roster in cases of "Extreme Hardship." Extreme Hardship exists when an MLS club has:

fewer than four available outfield substitutes (less than 14 outfield players available)
OR has fewer than two goalkeepers available.
USL Player Short Term Agreements in cases of Extreme Hardship

Clubs may sign players from their USL affiliate (on loan) to a Short Term Agreement (up to four-day contracts) for MLS league season games only in cases of Extreme Hardship.

An MLS club may sign a player to a maximum of four Short Term Agreements each season (maximum of 16 days). During such time, the player may play in any U.S. Open Cup games, CONCACAF Champions League games, and exhibition games.

Season-Ending Injury

Season-ending Injury List

In the event a player suffers a season-ending injury, a club may place that injured player on the Season-ending Injury List and receive roster relief (i.e., an open roster spot). Once placed on the Season-ending Injury List, the injured player will not be eligible to play for the club in any remaining competition during that MLS season (including any exhibition games or tournaments, CONCACAF Champions League, AMWAY Canadian Championship and U.S. Open Cup game). In the event that a player placed on the Season-ending Injury List recovers prior to the end of the MLS season, that player may only play in games for the club's USL affiliate.

Clubs that have, or can create, extra budget space may fill the open roster slot with a replacement player, a "Season-ending Injury Replacement Player".

In the event the injured player occupies an International slot, the Season-ending Injury Replacement Player may also be an International Player and occupy such slot.

Budget Charge for Season-ending Injuries

The club will remain responsible for the injured player's full Salary Budget Charge. Clubs may execute a trade to create budget space in order to sign a Season-ending Injury Replacement Player. This is the only circumstance in which a club may trade for Salary Budget space.

MLS clubs are only able to receive budget relief (paid out of the club's own pocket) for a season-ending injury under the following parameters:

The injured player must be earning at least $100,000 per annum.
The injured player must have suffered the season ending injury prior to the close the Primary Transfer Window and the new player must be signed as of such date.
The Season-ending Injury Replacement Player may earn up to $250,000 but not more than the player who suffered the season-ending injury.
The club is ultimately responsible for the payment of the replacement player's salary (which will not be charged to the club's budget).
MLS clubs will only be allowed to sign one such Season-ending Injury Replacement Player a year.
Supplemental and Reserve Season-ending Injury

In the event a Player on a club's Supplemental or Reserve Roster suffers a Season-ending Injury, a club may replace that injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (i.e., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may be replaced by a Player earning the Reserve Minimum Salary (subject to the Club Salary Budget). The Reserve Minimum Salary will be charged to the Club Salary Budget.

Accordingly, a Club must have salary budget space to replace a Player with a Season-ending Injury on the Supplemental Roster with a Season-ending Injury Replacement Player.

An international player occupying an international slot who is added to the Season may be replaced with an international player.

Short-Term Injury Replacements

Disabled List

In the event a player suffers an injury that will prohibit him from participating in six or more MLS games, a club can place that injured player on the Disabled List. An injured player placed on the Disabled List will remain unavailable for a minimum of six MLS games and may not participate in any exhibition games or tournaments, including CONCACAF Champions League, AMWAY Canadian Championship and U.S. Open Cup games.

Senior Roster Players on the Disabled List

If a player on a club's Senior Roster is put on the Disabled List, the club may receive roster relief (i.e., an open roster slot). The club will not receive budget relief for that player and will be responsible for the injured player's full salary budget charge. Only clubs that have or can create extra salary budget space will be able to temporarily replace players on the Disabled List. A club must have priority over any replacement player it adds (Discovery, Right of First Refusal, etc.)

An international player occupying an international slot who is added to the Disabled List may be replaced with an international player.

Clubs may not trade for salary budget space for a player added to the Disabled List.

Supplemental and Reserve Roster Players on the Disabled List

In the event a player on a club's Supplemental or Reserve Roster suffers an injury that will place such Player on the Disabled List, the club may replace the injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (e.g., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may only be replaced by a Player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). Such Reserve Minimum Salary will be charged to the Club Salary Budget. Therefore, a Club must have Salary Budget space to replace the injured Player on the Supplemental or Reserve Roster with a Disabled List Replacement Player. The Club must also ensure it has the necessary Roster space and Club Salary Budget available when the Player is removed from the Disabled List.

NOTE: No changes may be made to a club's roster during the period beginning on September 15, 2017 (day after Roster Freeze Date) through the day after MLS Cup. Nevertheless, a team may obtain players in accordance with the Extreme Hardship rules and procedures to replace players who are injured or otherwise legitimately unavailable after the Roster Freeze Date.

Methods of Removing a Player from a Roster

Waivers

Clubs may waive players based on performance at any time during the MLS season. A club may waive a Semi-Guaranteed Player at any time during the regular season until 48-hours prior to the Contract Guarantee Date. A club may waived a Guaranteed or Semi-Guaranteed Player after the Contract Guarantee Date only with League approval. Clubs may not waive a player between the Roster Freeze Date and MLS Cup.

Semi-Guaranteed Players waived on or after the Contract Guarantee Date of any League year and Guaranteed Players waived anytime, and who clear waivers (i.e., not picked up by another club), will continue to have their Salary Budget Charge count against the Club Salary Budget. The club waiving the player will not receive a replacement player except through the Discovery Process.

Transfers and Loans

An MLS player may be transferred or loaned at any time to a non-MLS club (subject to that club's Federation's transfer window), and subject to the consent of the player. Upon loaning a player, clubs will receive roster relief but not salary budget relief unless otherwise agreed to in the loan agreement.

Transfer and Loan Fees

The revenue share from transfers or loans for clubs is as follows:

A club shall receive two-thirds (2/3) of the corresponding transfer or loan fee revenue (including agent fees and other expenses), from any transaction involving a player that is NOT a Homegrown Player, Generation adidas Player, or player acquired via the MLS SuperDraft.
If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue until it has recouped all of the out-of-pocket cash payments made by the club in connection to that player prior to any sharing arrangement with the league. After such recoup, the transfer or loan of the Designated Player shall be treated as any other transfer with the club receiving two-thirds (2/3) of the corresponding transfer or loan fee revenue.
A club shall receive three-fourths (3/4) the corresponding transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Homegrown Player (regardless of service years).
A club shall receive the transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Generation adidas Player or player acquired via the MLS SuperDraft based on the number of MLS service years:
MLS Service Years Transfer/Loan Fee Revenue to Club
1 1/3
2 1/2
3+ 2/3 All remaining portions of the transfer or loan revenue fees are retained by the league.
Usage of Revenue

The club's share of transfer or loan fee revenue may only be used as follows:

The club may assign up to $650,000 of the transfer/loan revenue as General Allocation Money. (In the case of Designated Players, such assignment of Allocation Money can only take place after the club has received 100% of their out-of-pocket investment)
The remaining balance of the club's share (if any), and which cannot be traded, will be available to be used by clubs in the following ways:
Against the expenses incurred by the club in relation to the costs of an existing or new Designated Player
With league approval, clubs can use the revenue against an expense that would (i) would not otherwise have been incurred by the club; and (ii) reasonably represents an investment in the league or club (e.g., youth development and training facilities).
Intraleague Loans

Teams may loan a player to another MLS club subject to the following:

The player must be 24 years old or younger at the time of the loan.
Each MLS club may only loan one player to another MLS club per season.
The loan must be initiated during the Primary or Secondary Transfer Window.
Intraleague Loans that are initiated prior to the close of the Primary Transfer Window may allow the loaned player to be recalled during the Secondary Transfer Window as agreed upon between the two clubs. If recalled, such player must remain with his original club for the remainder of the MLS season.
The player must remain with his new club for the entire MLS Season.
The player may not compete against his former club during the MLS Season while on loan (includes MLS games and all other competitions).
Intraleague loans may include an option to make them permanent.
Loan of a Player by MLS

A club may loan any player from its Senior, Supplemental Roster or Reserve Roster to a non-MLS club at any time during the league year under consideration, subject to league discretion. During the loan period, the club will receive roster relief but not salary budget relief unless otherwise determined in the loan agreement.

If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS games.

If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to USL Affiliate

All loans from MLS clubs to USL affiliates must be free (i.e., no loan fees paid by USL affiliate clubs).
In the event that an MLS player is loaned to a USL affiliate club, such player may not be paid in excess of the player's MLS budget charge without that compensation being captured on the MLS club's Salary Budget (including, but not limited to, performance bonus compensation).
An MLS club can receive roster relief and budget relief for a maximum of one player loaned to its USL affiliate; provided, however, that:
The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);
The player's Salary Budget Charge is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and
The loan of the player to the USL affiliate must last for the duration an entire USL season; provided, however, that in the event that such loaned player is a goalkeeper, he may be recalled to his parent MLS club only in the case of Extreme Hardship.
Right of Recall

If a player is loaned from a MLS Club to a USL affiliate with a Right of Recall incorporated into the agreement, then that player may be recalled by the parent MLS Club at any point during the MLS regular season subject to MLS roster compliance guidelines (e.g., available international slots, roster space). There are no restrictions on the amount of time such player may be recalled.

Contract Expiration

When a player's contract expires, the player no longer counts against the roster or budget of the club in question. Subject to the Re-Entry and Free Agency rules, a club retains the Right of First Refusal on the player indefinitely following the expiration of a contract provided attempts were made to re-sign the player.

Buyout of Guaranteed Contract

A club may buy out one player who has a Guaranteed Contract (including a DP's) during the offseason and free up the corresponding budget space. Such a buyout is at the MLS club's expense.

A club may not free up room in the salary budget with a buyout of a player's contract during the season. In the case a team buys out a player's contract during the season, the buyout amount will be charged against the club's salary budget.

Right of First Refusal

Former MLS Player

Subject to rules regarding the Re-Entry Draft and Free Agency, in the event a former MLS player, who the league previously attempted but was unable to re-sign, returns to MLS, his former club will have a Right of First Refusal (ROFR)

That club will not have a Right of First Refusal if:

The club received General Allocation Money in connection with the transfer of such player to a non-MLS club; or
The club received a transfer fee in connection with the transfer of such player to a non-MLS club;
OR The player was excluded from possible selection in the Expansion Draft (e.g. retired player)
New Player

If the League on behalf of an MLS club makes a genuine offer to a new player but is unable to sign him, the MLS club will have a Right of First Refusal (ROFR) in the event the player later signs with MLS. This process applies to players the league attempts to sign. If the player is subsequently signed, and the club does not exercise its ROFR, the player will be assigned via the Waiver Process unless otherwise determine by the league depending on the type of player.

For a new player the league attempted to sign through the Discovery Process, the Right of First Refusal will last for four full transfer windows. Upon the conclusion of the four full transfer windows, that player will be Discoverable again.

For those players on a club's Right of First Refusal list and who were previously on a team's Discovery List, the Discovery Conflict Resolution Process shall apply (e.g. posting of $50,000 in General Allocation Money).

Holding a Right of First Refusal applies only within MLS and does not indicate holding of the player's International Transfer Certificate.

College Protected Player

A player who was selected in the SuperDraft, provided his club offered him a contract and the contract offer was refused by the player. In the event his team does not offer him a contract after being on trial, the player will have the option to be placed on Waivers on the date following the drafting club's first Regular Season game. If no club is prepared to sign him off Waivers, the player will be placed on the drafting team's "College Protected List" until the December 31 in the year following the draft in question, after which date the team loses the rights to sign the player.

Allocation Money

Allocation Money is money that is available to a club in addition to its salary budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money

Each MLS club receives an annual allotment of General Allocation Money. In 2017, that allotment is $200,000 per club.

A club will also receive Allocation Money in the following cases:

A club may also receive General Allocation Money in the following cases:

Failure to qualify for the MLS Cup Playoffs ($200,000 per club).
The transfer of a club’s player to another club outside of MLS.
Qualification for the CONCACAF Champions League ($100,000 per club)
Advancement to Knockout Stage of CONCACAF Champions League ($200,000 to be split between all advanced teams)
2017 Expansion Clubs (see below)
2017 Expansion Dilution (see below)
Designated Player charge distribution.
In any year that the League adds an expansion club or clubs, (i) all clubs will receive an equal amount of General Allocation Money and (ii) any club that loses a player in the Expansion Draft will receive additional General Allocation Money. New expansion clubs receive a separate amount of General Allocation Money for their inaugural season.

General Allocation Money can be traded by clubs.

Buy-Down

General Allocation Money can be traded by clubs. Allocation Money can be used to "buy-down" a player's salary budget charge as part of managing a team's roster, including buying a salary budget charge below the League maximum of $480,625. For example, a team may "buy down" a player earning $500,000 to a budget charge of $300,000 by using $200,000 of General Allocation Money.

General Allocation Money can also be applied in the following circumstances:

To sign players new to MLS (that is, a player who did not play in MLS during the previous season).
To re-sign an existing MLS player.
To off-set acquisition costs (loan and transfer fees)
In connection with the extension of a player's contract for the second year provided the player was new to MLS in the immediately prior year.
To reduce the Salary Budget Charge of a Designated Player to a limit of $150,000.
Use against a Salary Budget Charge

A club cannot use General Allocation Money to reduce more than fifty percent (50%) of a player's Salary Budget Charge. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee. A club may reduce one hundred percent (100%) of a loan or transfer fee.

Targeted Allocation Money

Targeted Allocation Money has been distributed to MLS clubs in accordance with the below.

Targeted Allocation Money Invested by Year

2015: $500,000 per club
2016: $800,000 per club
2017: $1.2 million per club
Expansion clubs joining the league through 2019 will receive a prorated amount of the initial 2015 investment ($100,000 per year through 2019). In 2017, Atlanta United and Minnesota United FC will receive $300,000 of the initital allotment each.

Targeted Allocation Money may be used in five ways:

Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the maximum salary budget.
Clubs may re-sign an existing player provided he is earning more than the maximum salary budget.
Clubs may use a portion of or all of the available Targeted Allocation Money to convert a Designated Player to a non-Designated Player by buying down his Salary Budget Charge at or below the maximum salary budget charge. If Targeted Allocation Money is used to free up a Designated Player slot, the club must simultaneously sign a new Designated Player at an investment equal to or greater than the player he is replacing.
A club retains the flexibility to convert a player bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.
Clubs may use up to $200,000 of currently approved Targeted Allocation Money (amounts through 2017) to sign new Homegrown Players to their first MLS contract. It cannot be used on Homegrown Players previously signed to MLS.
Clubs may trade their Targeted Allocation Money to another club.

Salary Parameters

A Player must earn more than $480,625 per year (2017 maximum budget charge) to qualify for Targeted Allocation Money. The compensation ceiling for such players is set at $1,000,000 per year, except as follows: if a Designated Player is converted to a non-Designated Player through the use of Targeted Allocation Money during the Secondary Transfer Window, that player may earn a maximum of $1,500,000 on a prorated basis.

A player cannot have his budget charge bought down below $150,000 using Targeted Allocation Money.

Targeted Allocation Money and General Allocation Money may not be used in combination when signing or re-signing a player. Either Targeted Allocation Money or General Allocation Money may be used on a player in a single season, not both.

Targeted Allocation Money invested since 2016 expires after four full transfer windows.

NOTE: To protect the interests of MLS and its clubs during discussions with prospective players or clubs in other leagues, amounts of Allocation Money held by each club will not be shared publicly. Only in the case of a trade will the amount of Targeted Allocation Money involved be made public.

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2016 MLS Player Rules and Regulations Summary

I. MLS ROSTER COMPOSITION

A Major League Soccer club’s active roster is comprised of up to 28 players. All 28 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

In addition to the salary budget, each MLS Club spends additional funds on player compensation including money from a league-wide allocation pool (General & Targeted Allocation Money), the cost of Designated Players outside the salary budget, and money spent on the Supplemental and Reserve Rosters (players 21-28).

ON-BUDGET: SENIOR ROSTER
Up to 20 players, occupying roster spots 1-20, count against the club’s 2016 salary budget of $3,660,000, and are referred to collectively as the club’s Senior Roster.
Roster spots 19 and 20 are not required to be filled, and teams may spread their salary budget across only 18 Salary Budget Players. A minimum salary budget charge will be imputed against a team’s salary budget for each unfilled senior roster spot below 18.
A Club may have no more than twenty (20) Players on its Senior Roster, subject to the Season-ending Injury Replacement, Disabled List, and loan exceptions.
The maximum budget charge for a single player is $457,500.*

* See section entitled Allocation Money below for details on buying down a player’s budget charge.

OFF-BUDGET: SUPPLEMENTAL AND RESERVE ROSTERS
The salaries of players on the Supplemental Roster (spots 21-24) and Reserve Roster (spots 25-28) do not count toward a club’s Salary Budget.

Supplemental Roster
Players occupying roster spots 21-24 do not count against the club’s salary budget, and are referred to collectively as the club’s Supplemental Roster. A Club may have no more than four Players on its Supplemental Roster, subject to the Season-ending Injury Replacement, Disabled List, and loan exceptions.
Slots 21-24 may be filled with (i) Senior Minimum Salary Budget Charge Players ($62,500 in 2016) which may include Homegrown Players, (ii) Generation adidas Players, or (iii) any specifically designated Players eligible for the MLS SuperDraft.
All Generation adidas players are Supplemental Roster players.
All Players on the Supplemental Roster must be paid a base salary which is at least the Senior Minimum Salary: $62,500.

Reserve Roster
Players occupying roster spots 25-28 may be filled with Players earning either (i) the Reserve Minimum Salary Budget Charge ($51,500 in 2016) or (ii) Homegrown Players earning more than the Reserve Minimum Salary Budget Charge.
Reserve Minimum Salary Players must be 24-years-old or younger during the league year*.
These slots may not be filled with Senior Minimum Salary Players or Generation adidas Players.
All Players in slots 25-28 must be paid a base salary which is at least the Reserve Minimum Salary: $51,500.

* Age of player is determined by year (not date) of birth.

2016 Roster Compliance and Freeze Dates
The 2016 Roster Compliance Date is March 1, 2016, at which time teams must be roster compliant heading into the start of the 2016 MLS season.
The 2016 Roster Freeze Date is September 15, 2016, at which time teams must submit their final 28-man roster that cannot be changed through the day after MLS Cup.

II. PLAYER CATAGORIES ON THE ROSTER

DOMESTIC/INTERNATIONAL
In 2016, a total of 160 international roster spots are divided among the 20 clubs. In 2008, each MLS Club was given the right to have eight international players on their roster and expansion Clubs were given the right to have eight international spots for their inaugural season. These spots are tradable, in full season increments, such that some clubs may have more than eight and some clubs may have fewer than eight. There is no limit on the number of international roster spots on each club’s roster.

Domestic Players
U.S.-based Clubs: For U.S. Clubs, a domestic player is either a U.S. Citizen, a permanent resident (Green Card holder) or the holder of certain other special status (e.g., has been granted refugee or asylum status). There is no limit as to the number of U.S. Domestic Players on a U.S. Club’s Roster.

Canada-based Clubs: For Canadian Clubs, a domestic player is either a Canadian Citizen or the holder of certain other special status (e.g., has been granted refugee or asylum status) (“Canadian Domestic Player”) or a U.S. Domestic Player. There is no limit as to the number of Canadian Domestic Players on a Canadian club’s roster.
There is no limit as to the number of U.S. Domestic Players or Canadian Domestic Players on a Canadian club’s roster; provided, however, that a Canadian Club is required to have a minimum of three (3) Canadian Domestic Players on its roster at all times.

International Players
U.S.-based Clubs: Any Player who does not qualify as a U.S. Domestic Player in a U.S. Club shall be considered an International Player, and must occupy an international slot on a U.S. Club’s Roster.

Canada-based Clubs: Any Player who does not qualify as a U.S. Domestic Player or a Canadian Domestic Player shall be considered an International Player, and must occupy an international slot on a Canadian Club’s Roster.

HOMEGROWN PLAYERS:
Players signed through the Homegrown Player mechanism (see below in Player Acquisition Mechanisms) will receive the designation of “Homegrown Player” on a club’s roster.
There is no limit to the number of Homegrown Players a club may sign in a given year.
Homegrown Players may occupy a spot on the Senior, Supplemental, or Reserve Roster.
If a Homegrown Player is initially added to a Club’s Supplemental or Reserve Roster and subsequently moved to the Senior Roster, he cannot be moved back to the Supplemental or Reserve Roster except if he is earning either (i) the Senior Minimum Salary Budget Charge or (ii) Reserve Minimum Salary Budget Charge.
Homegrown Player(s) on either the Supplemental Roster or the Reserve Roster may earn (including achievable bonuses) in aggregate each year up to $125,000 above the Reserve Minimum Salary ($51,500 in 2016) or the Senior Minimum Salary ($62,500 in 2016).

GENERATION ADIDAS:
Generation adidas is a joint program between MLS and adidas that is dedicated to developing exceptional domestic talent in a professional environment. Each year, a handful of top domestic collegiate underclassmen and youth national team players are signed by the league and placed in the SuperDraft through this program.
Until a player graduates from the program, Generation adidas players are on a club’s Supplemental Roster and are not charged against the team’s salary budget.

DESIGNATED PLAYER:
The Designated Player Rule allows clubs to acquire up to three players whose total compensation and acquisition costs exceed the maximum budget charge, with the club bearing financial responsibility for the amount of compensation above each player’s budget charge. Designated Players may be new players signed to MLS via the Allocation Ranking List, Discovery Process or can be re-signed existing players on a team’s roster.

In 2016, a Designated Player that is 24-years-old or older during the league year will carry the Maximum Budget Charge ($457,500) unless the player joins his club after the opening of the Secondary Transfer Window, in which case his budget charge will be $228,750.

A Designated Player 23 years old or younger during the league year will carry the following Young Designated Player Budget Charge:
Ages 20 and younger: $150,000
Ages 21-23: $200,000
If such Designated Player joins the club after the opening of the Secondary Transfer Window, he will carry the Mid-Season Youth Designated Player Salary Budget Charge of $150,000 regardless of age.

Clubs may “buy down” the budget charge of a Designated Player with General Allocation money. The reduced charge may not be less than $150,000. Please see below for Allocation Money parameters.

Each MLS Club shall be allotted two Designated Player slots. Clubs with two Designated Players may add a third Designated Player by paying $150,000 to the league which shall be split among clubs with two or fewer occupied Designated Player slots for use as General Allocation Money the following MLS Season. If a club uses the third Designated Player slot to sign a Young Designated Player, then the Club will not be obligated to pay the $150,000 charge.

Designated Player spots are not tradable.

** Age of player is determined by year (not date) of birth.

Special Discovery Players: In general, the total amount of the acquisition cost of a player is charged against the salary budget in the year in which it is paid. For one player on a club’s roster (a “Special Discovery Player”), a club is able to amortize the total amount of acquisition costs (up to $500,000) over the term of the player’s contract.

Special Discovery Players must be 27-years-old or younger during the league year under consideration.

There may be no more than one Special Discovery Player per number of clubs in the league (i.e. 20 total Special Discovery Players in 2016).

A club may have more than one Special Discovery Player on its Senior Roster at any given time if the club received the additional player(s) via trade. However, the Club trading the Special Discovery Player may not sign a new Special Discovery Player until the traded Special Discovery Player’s original SPA expires, the player’s contract is terminated, or all the amortized acquisition costs are accounted for in the Budge Charge.

III. PLAYER ACQUISITION MECHANISMS

MLS teams may acquire players and add them to their rosters via the following mechanisms:

(A) ALLOCATION PROCESS

The Allocation Process is the mechanism used to determine which MLS Club has first priority to acquire a player listed on the Allocation Ranking List. The list will consist of (i) select U.S. Men’s National Team players, (ii) elite youth U.S. National Team players, or (iii) former MLS players returning to MLS after joining a non-MLS club for a transfer fee greater than $500,000. Generally, the Allocation Ranking List will be updated once a year on the day after the conclusion of the MLS regular season. The Allocation Ranking List will only be edited during the year if a player is transferred out of the league or if a top youth national team player is added to the list.

The Allocation Ranking Order is set by taking the reverse order of the club’s standings at the end of each MLS Season, taking playoff performance into account, with the new expansion clubs at the top of the order.

Once the club uses its allocation ranking to acquire a player, it drops to the bottom of the list. A ranking can be traded, provided that part of the compensation received in return is the other club’s ranking. At all times, each club is assigned one ranking. The rankings reset at the end of each MLS League season.

Any updates to the Allocation Ranking List or Allocation Ranking Order will be reflected at http://www.mlssoccer.com/allocation.

(B) SUPERDRAFT

The 2016 MLS SuperDraft consisted of four rounds for a total of 81 player selections. The first two rounds took place on Jan. 14 in Baltimore and the final two rounds took place on Jan. 19 via conference call.

The majority of draft prospects are NCAA college seniors who have exhausted their college eligibility. Generation adidas players and non-collegiate international players are also eligible for selection in the SuperDraft. Clubs may nominate players for the League’s Draft-Eligible List, and only players from that list may be selected.

The SuperDraft order is set by taking the reverse order of the club standings at the end of each MLS season, taking postseason performance into account, with new expansion clubs at the top of the order

Unless claimed on waivers, a player who was drafted by a particular team through the SuperDraft and did not sign with the League, is placed on that team’s “College Protected List” until December 31st of the year after the draft, after which the team loses the priority to sign the player.

(C) TRADES

Players, SuperDraft picks, General and Targeted Allocation Money, Allocation Rankings and International Player Slots may all be exchanged in trades approved by the MLS League Office, provided all of the necessary rules regarding roster and salary budget compliance are met and the trade is completed during a valid trading period.

During the season trades that involve players must occur during either the Primary Transfer Window (2016: February 18 – May 11) or Secondary Transfer Window (2016: July 4 – August 3).

(D) DISCOVERY PROCESS

Pursuant to the Discovery Process, clubs scout and sign players who are not yet under contract to MLS and who are not subject to another assignment mechanism (e.g. Allocation Process, SuperDraft). To sign a player through the Discovery Process, the club must first place the player on its Discovery List. A club may have up to seven unsigned players on its Discovery List at any time and may remove or add players at any time. There is no limit to how many players a club can sign from its Discovery List.

Clubs may not add the following players to their Discovery Lists:
Players on the Allocation Ranking List
Players that have played in MLS and were subsequently waived or terminated (such players are available on a first-come, first-served basis)
Players for whom another club has Right of First Refusal
Players that played at college or forwent college during the college season immediately prior to the date of discovery. (If a player has completed or forgone his College eligibility in the season immediately prior to the date of his Discovery and was not on the MLS SuperDraft List, he shall be placed on Waivers.)
Minors: players under the age of 18
Amateur members of the U.S. U-17 and U-20 National Team. MLS shall have an exclusive 45-day window after such players reach their 18th birthday or graduate high school (whichever is later) to determine if these players will be signed for the SuperDraft or be placed on the Allocation Ranking List.
Players who the league (1) unsuccessfully attempted to pre-sign for the SuperDraft (2) did not attempt to sign for the SuperDraft, (3) are not on the Allocation Ranking List, or (4) do not enter college will be non-discoverable for up to one year after forgoing college and will be placed on Waivers.

Discovery Conflict Resolution: If one or more clubs try to add the same player to their Discovery Lists, the club that filed the claim first will have the priority right to sign the player. If one or more clubs submit a discovery request on the same day, then the club with the lowest points-per-game in the current MLS regular season (all clubs must have played a minimum of three regular season games) will have the priority right to sign the player.

If a club attempts to sign a player on its Discovery List and is unable to do so, the club retains the Right of First Refusal to acquire the player in the event he is later signed by the League for four full Transfer Windows.

If a club wants to sign a player on the Discovery List of another team, it may offer that team $50,000 in General Allocation Money in exchange for the right to sign the player. The team with the player on its Discovery List will then either (i) have to accept the General Allocation Money and give up the right to sign the player or (ii) make the player a genuine, objectively reasonable offer.

(E) HOMEGROWN PLAYER SIGNINGS

A club may sign a player to a contract without subjecting him to the MLS SuperDraft if the player has been a member of a club’s youth academy for at least one year and has met the necessary training and retention requirements. Players joining MLS through this mechanism are known as Homegrown Players.

There is no limit to the number of Homegrown Players a club may sign in a given year.

(F) USL PRIORITY PLAYERS

In addition to Homegrown Players and College Protected Players – clubs may have priority for up to three players from their USL affiliate. In order to retain priority on any additional USL affiliate players, such players must be added to an MLS club’s Discovery List.

(G) RE-ENTRY PROCESS

The Re-Entry Process will commence after MLS Cup. The priority order for the Re-Entry Draft is reverse order of finish in 2016, taking into account playoff performance.

Players who are available in Stage One of the Re-Entry Draft are:
Players who are at least 23-years-old and have a minimum of three MLS service years whose options were not exercised by their clubs (available at option salary for 2017).
Players who are at least 25-years-old with a minimum of four years of MLS experience who are out of contract and whose club does not wish to re-sign them at their previous salary (available for at least their 2016 salary).
Free Agents that choose to participate

Clubs must exercise the option for, or extend a Bona Fide Offer to, all players selected in Stage One and may not select their own draft-eligible players. Should a player reject the offer, the drafting club will hold the Right of First Refusal for that player in MLS. Players with option years left on their contract will automatically be added to the drafting club’s roster.

Players who are not selected in Stage One of the Re-Entry Draft will be made available in Stage Two. If a player is selected, the drafting club will be required to make a genuine offer to the player within seven days. In the event that an agreement cannot be reached between the drafting club and the player, the drafting club will hold the Right of First Refusal for that player in MLS. Clubs may not select their own draft-eligible players in Stage Two until all other Clubs have declined on selecting such players.

Players who remain unselected after Stage Two will be available to any MLS club on a first-come, first-served basis.

A player may choose to opt out of the Re-Entry Process prior to Stage One and/or Stage Two of the Re-Entry Draft. In such instances, the Right of First Refusal for the Player will remain with his previous club.

(H) FREE AGENCY

Players 28-years-old and older with eight years of MLS service who are out of contract, or have not had their option exercised, are eligible for Free Agency in 2016, allowing them the freedom to negotiate a new contract with any MLS club, including their previous club, subject to certain restrictions. A player has fulfilled a year of service if he was on a club’s roster prior to August 15 or played in at least one regular season or postseason game in the relevant year.

(I) WAIVERS

A club may place a player on Waivers at any time during the regular season at which point he is made available to all other clubs. The Waiver Claiming Period shall commence on the first business day after the League delivers notice to teams and expires at 5 p.m. ET on the second business day. If a player is not selected off of Waivers (“clears Waivers”) then that player is available to all clubs on a first-come, first-served basis.

The Waiver Order is based on points per game once all clubs have played at least three MLS League games. If the Waiver takes place prior to all clubs playing in at least three League games, priority is granted based upon the prior year’s performance, taking playoff performance first, with clubs eliminated from playoff contention at the same stage separated according to their point totals through the end of the regular season. New expansion clubs shall be at the bottom of the Waiver Order until all clubs have played at least three games.

Claiming an Out of Contract Player
If a club claims a player who is not currently signed to an MLS contract, the club must issue the player a Genuine Offer within three days.

Claiming a Guaranteed Player
If a player with a guaranteed contract is waived, any interested MLS club will have 48 hours from the notice of waivers to claim the player by notifying the League Office of the intention to claim the player and the amount of the player’s salary budget charge. The player will be awarded to the club willing to absorb the highest salary budget charge. In the event that the highest salary budget charge is submitted by more than one club, the player will be awarded to the club with the lowest points per game average.

Players who are eligible to be placed on Waivers are as follows:
Any player waived by an MLS club during the current MLS season
Completed College Eligibility: Any player who has completed his college eligibility in the MLS season immediately prior to the MLS SuperDraft and was not on the SuperDraft list.
Remaining College Eligibility: A player who left or forgoes college with remaining eligibility (and was not on the MLS SuperDraft list). Such players will be discoverable one year after leaving or forgoing college with remaining eligibility.
Returning Players: A player returning to MLS who the league was unable to re-sign and his last MLS club does not wish to exercise their Right of First Refusal.
Unsigned Drafted Players: The day after the drafting club’s first MLS regular season game, college players selected in that year’s SuperDraft that have not signed an MLS contract have the right to be placed on waivers upon request. If an unsigned college player is placed on waivers, and is not claimed by another MLS Club, he will return to his drafting Club’s College Protected List until the end of the College Protected Period.
Any player whose contract has expired or option has been declined, is not eligible for the Re-Entry Process or Free Agency, and their former club does not wish to make them a genuine offer. Such players will be typically made available in a yearend Waiver Draft or prior to the start of the next MLS league season.

In the event a player is claimed by more than one club during the Waiver Claiming Period, the League shall award the player to the club with the lowest points-per-regular-season game average at the time the player is placed on waivers

Once a club selects a player off Waivers, that club is automatically moved to the bottom of the priority list for subsequent waiver selections in a given season, regardless of its points-per-game total.

(J) USL SHORT TERM AGREEMENTS

MLS clubs may sign players from their USL affiliate to Short Term Agreements (up to four-day contracts) for CONCACAF Champions League, AMWAY Canadian Championship, U.S. Open Cup, and exhibition matches. An MLS club may sign a player to a maximum of four short term agreements each season (maximum of 16 days).

Players may also be signed to Short Term Agreements for MLS league season games but only in cases of Extreme Hardship.

(K) EXTREME HARDSHIP CALL-UPS

Clubs may add players to their roster in cases of “Extreme Hardship.” Extreme Hardship exists when an MLS club has fewer than 15 total players available or when an MLS club with three goalkeepers on its roster, has fewer than two goalkeepers available.

Goalkeepers
If a club has three goalkeepers on its roster, and in the event that two of its goalkeepers are unavailable, and further provided that the club does not have an available roster spot, that club may sign an additional goalkeeper to a short term contract.

USL Player Short Term Agreements in cases of Extreme Hardship
Clubs may sign players, 25-years-old or younger, from their USL affiliate (on loan) to a Short Term Agreement (up to four-day contracts) for MLS league season games only in cases of Extreme Hardship.

An MLS club may sign a player to a maximum of four Short Term Agreements each season (maximum of 16 days). During such time, the player may play in any U.S. Open Cup games, CONCACAF Champions League games, and exhibition games.

(L) SEASON-ENDING INJURY REPLACEMENTS (Season-ending Injury List)
In the event a player suffers a season-ending injury, a club may place that injured player on the Season-ending Injury List and receive roster relief (i.e. an open roster spot). Once placed on the Season-ending Injury List, the injured player will not be eligible to play for the club in any remaining competition during that MLS season (including any exhibition games or tournaments, CONCACAF Champions League, AMWAY Canadian Championship and U.S. Open Cup game).

Clubs that have, or can create, extra budget space may fill the open roster slot with a replacement player, a “Season-ending Injury Replacement Player”.

In the event the injured player occupies an International slot, the Season-ending Injury Replacement Player may also be an International Player and occupy such slot.

In the event that a player placed on the Season-ending Injury List recovers prior to the end of the MLS season, that player may only play in games for the club’s USL affiliate.

Budget Charge for Season-ending Injuries
The club will remain responsible for the injured player’s full Salary Budget Charge. Clubs may execute a trade to create budget space in order to sign a Season-ending Injury Replacement Player. This is the only circumstance in which a club may trade for Salary Budget space.

MLS clubs are only able to receive budget relief (paid out of the club’s own pocket) for a season-ending injury under the following parameters:

The injured player must be earning at least $100,000 per annum but not greater than $250,000 per annum.
The injured player must have suffered the season ending injury prior to the close the Primary Transfer Window and the new player must be signed as of such date.
The club is ultimately responsible for the payment of the replacement player’s salary (which will not be charged to the club’s budget).
MLS clubs will only be allowed to sign one such Season-ending Injury Replacement Player a year.

Supplemental and Reserve Season-ending Injury
In the event a Player on a club’s Supplemental or Reserve Roster suffers a Season-ending Injury, a club may replace that injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (i.e., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may be replaced by a Player earning the Reserve Minimum Salary (subject to the Club Salary Budget). The Reserve Minimum Salary will be charged to the Club Salary Budget.

Accordingly, a Club must have salary budget space to replace a Player with a Season-ending Injury on the Supplemental Roster with a Season-ending Injury Replacement Player.

An international player occupying an international slot who is added to the Season may be replaced with an international player.

(M) SHORT-TERM INJURY REPLACEMENTS (Disabled List)

In the event a player suffers an injury that will prohibit him from participating in six or more MLS games, a club can place that injured player on the Disabled List. An injured player placed on the Disabled List will remain unavailable for a minimum of six MLS games and may not participate in any exhibition games or tournaments, including CONCACAF Champions League, AMWAY Canadian Championship and U.S. Open Cup games.

Senior Roster Players on the Disabled List
If a player on a club’s Senior Roster is put on the Disabled List, the club may receive roster relief (i.e. an open roster slot). The club will not receive budget relief for that player and will be responsible for the injured player’s full salary budget charge. Only clubs that have or can create extra salary budget space will be able to temporarily replace players on the Disabled List. A club must have priority over any replacement player it adds (Discovery, Right of First Refusal, etc.)

An international player occupying an international slot who is added to the Disabled List may be replaced with an international player.

Clubs may not trade for salary budget space for a player added to the Disabled List.

Supplemental and Reserve Roster Players on the Disabled List
In the event a player on a club’s Supplemental or Reserve Roster suffers an injury that will place such Player on the Disabled List, the club may replace the injured player with a player earning the Reserve Minimum Salary irrespective of the salary earned by the injured player (e.g., if a Generation adidas Player earning more than the Reserve Minimum Salary is injured, he may only be replaced by a Player earning the Reserve Minimum Salary (subject to the Club Salary Budget)). Such Reserve Minimum Salary will be charged to the Club Salary Budget. Therefore, a Club must have Salary Budget space to replace the injured Player on the Supplemental or Reserve Roster with a Disabled List Replacement Player. The Club must also ensure it has the necessary Roster space and Club Salary Budget available when the Player is removed from the Disabled List.

NOTE: No changes may be made to a club's roster during the period beginning on September 15, 2016 (day after Roster Freeze Date) through the day after MLS Cup. Nevertheless, a team may obtain players in accordance with the Extreme Hardship rules and procedures to replace players who are injured or otherwise legitimately unavailable after the Roster Freeze Date.

(IV.) METHODS OF RELEASING PLAYERS

(A) WAIVERS
Clubs may waive players based on performance at any time during the MLS season. A club may waive a Semi-Guaranteed Player at any time during the regular season until 48-hours prior to the Contract Guarantee Date. A club may waived a Guaranteed or Semi-Guaranteed Player after the Contract Guarantee Date only with League approval. Clubs may not waive a player between the Roster Freeze Date and MLS Cup.

Semi-Guaranteed Players waived on or after the Contract Guarantee Date of any League year and Guaranteed Players waived anytime, and who clear waivers (i.e. not picked up by another club), will continue to have their Salary Budget Charge count against the Club Salary Budget. The club waiving the player will not receive a replacement player except through the Discovery Process.

(B) TRANSFERS AND LOANS
An MLS player may be transferred or loaned at any time to a non-MLS club (subject to that club’s Federation’s transfer window), and subject to the consent of the player. Upon loaning a player, clubs will receive roster relief and budget space, subject to the terms of the loan.

The registration windows – the dates between which MLS may request the transfer certificate of a player under contract in another country – are as follows:

Primary Transfer Window - February 18 – May 11, 2016
Secondary Transfer Window - July 4 – August 3, 2016

Transfer and Loan Fees

The revenue share from transfers or loans for clubs is as follows:

A club shall receive two-thirds (2/3) of the corresponding transfer or loan fee revenue (including agent fees and other expenses), from any transaction involving a player that is NOT a Homegrown Player, Generation adidas Player, or player acquired via the MLS SuperDraft.

If a Designated Player is transferred or loaned, the club will receive all amounts of the transfer or loan fee revenue until it has recouped all of the out-of-pocket cash payments made by the club in connection to that player prior to any sharing arrangement with the league. After such recoup, the transfer or loan of the Designated Player shall be treated as any other transfer with the club receiving two-thirds (2/3) of the corresponding transfer or loan fee revenue

A club shall receive three-fourths (3/4) the corresponding transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Homegrown Player (regardless of service years).

A club shall receive the transfer or loan fee revenue (including agent fees and other expenses) from any transaction involving a Generation adidas Player or player acquired via the MLS SuperDraft based on the number of MLS service years:

MLS Service Years
Transfer/Loan Fee Revenue to Club
1
1/3
2
1/2
3+
2/3

All remaining portions of the transfer or loan revenue fees are retained by the league.

Usage of Revenue

The club’s share of transfer or loan fee revenue may only be used as follows:

The club may assign up to $650,000 of the transfer/loan revenue as General Allocation Money. (In the case of Designated Players, such assignment of Allocation Money can only take place after the club has received 100% of their out-of-pocket investment)
The remaining balance of the club’s share (if any), and which cannot be traded, will be available to be used by clubs in the following ways:
Against the expenses incurred by the club in relation to the costs of an existing or new Designated Player
With league approval, clubs can use the revenue against an expense that would (i) would not otherwise have been incurred by the club; and (ii) reasonably represents an investment in the league or club (e.g. youth development and training facilities).

Intraleague Loans
Teams may loan a player to another MLS club subject to the following:

The player must be 24 years old or younger at the time of the loan.
Each MLS club may only loan one player to another MLS club per season.
The loan must be initiated during the Primary or Secondary Transfer Window.
The player must remain with his new club for the entire MLS Season.
The player may not compete against his former club during the MLS Season while on loan (includes MLS games and all other competitions).
Intraleague loans may include an option to make them permanent.

Loan of a Player by MLS
A club may loan any player from its Senior, Supplemental Roster or Reserve Roster to a non-MLS club at any time during the league year under consideration, subject to league discretion. During the loan period, the club will receive roster relief but not salary budget relief unless otherwise determined in the loan agreement.

If the player is recalled from his loan, the club must have an available roster slot in order for the player to be eligible for MLS games.

If the loaned player is an International Player, then his replacement may be an International Player and occupy an international roster slot.

Loan of a Player by MLS to USL Affiliate
All loans from MLS clubs to USL affiliates must be free (i.e. no loan fees paid by USL affiliate clubs).
In the event that an MLS player is loaned to a USL affiliate club, such player may not be paid in excess of the player’s MLS budget charge without that compensation being captured on the MLS club’s Salary Budget (including, but not limited to, performance bonus compensation).
An MLS club can receive roster relief and budget relief for a maximum of one player loaned to its USL affiliate; provided, however, that:
The player is under the age of 25 (i.e., he does not turn 25 prior to the end of the calendar year);
The player’s total compensation is less than or equal to the MLS Senior Minimum Salary (including any loan fees, transfer fees, agent fees, housing, car, etc.); and
The loan of the player to the USL affiliate must last for the duration an entire USL season; provided, however, that in the event that such loaned player is a goalkeeper, he may be recalled to his parent MLS club only in the case of Extreme Hardship.

Right of Recall
If a player is loaned from a MLS Club to a USL affiliate with a Right of Recall incorporated into the agreement, then that player may be recalled by the parent MLS Club at any point during the MLS regular season subject to MLS roster compliance guidelines (e.g. available international slots, roster space). There are no restrictions on the amount of time such player may be recalled.

(C) CONTRACT EXPIRATION

When a player’s contract expires, the player no longer counts against the roster or budget of the club in question. Subject to the Re-Entry and Free Agency rules, a club retains the Right of First Refusal on the player indefinitely following the expiration of a contract provided attempts were made to re-sign the player.

(D) BUYOUT OF GUARANTEED CONTRACT
A club may buy out one player who has a Guaranteed Contract (including a DP’s) during the offseason and free up the corresponding budget space. Such a buyout is at the MLS club’s expense.

A club may not free up room in the salary budget with a buyout of a player’s contract during the season. In the case a team buys out a player’s contract during the season, the buyout amount will be charged against the club’s salary budget.

(V.) RIGHT OF FIRST REFUSAL

Former MLS Player
In the event a former MLS player, who the league previously attempted but was unable to re-sign, returns to MLS, his former club will have a Right of First Refusal (ROFR).

That club will not have a Right of First Refusal if:
The club received General Allocation Money in connection with the transfer of such player to a non-MLS club; or
The transfer fee for the player was greater than $500,000 (Player would return to MLS via Allocation Process); or
The transfer fee for the player was less than $500,000 (Player would return to MLS via Discovery Process)

New Player
If the League on behalf of an MLS club makes a genuine offer to a new player but is unable to sign him, the MLS club will have a Right of First Refusal (ROFR) in the event the player later signs with MLS. This process applies to players the league attempts to sign. If the player is subsequently signed, and the club does not exercise its ROFR, the player will be assigned via the Waiver Process unless otherwise determine by the league depending on the type of player.

For a new player the league attempted to sign through the Discovery Process, the Right of First Refusal will last for four full transfer windows. Upon the conclusion of the four (4) full transfer windows, that player will be Discoverable again.

For those players on a clubs Right of First Refusal list and who were previously on a team’s Discovery List, the Discovery Conflict Resolution Process shall apply (e.g. posting of $50,000 in General Allocation Money).

Holding a Right of First Refusal applies only within MLS and does not indicate holding of the player’s International Transfer Certificate.

College Protected Player
A player who was selected in the SuperDraft, provided his club offered him a contract and the contract offer was refused by the player. In the event his team does not offer him a contract after being on trial, the player will have the option to be placed on Waivers on the date following the drafting club’s first Regular Season game. If no club is prepared to sign him off Waivers, the player will be placed on the drafting team’s “College Protected List” until the December 31 in the year following the draft in question, after which date the team loses the rights to sign the player.

(VI.) ALLOCATION MONEY

General Allocation Money
General Allocation Money is money that is available to a club in addition to its salary budget. Each MLS club receives an annual allotment of General Allocation Money. In 2016, that allotment is $150,000 per club.

A club will also receive Allocation Money in the following cases:

Failure to qualify for the MLS Cup Playoffs.
The transfer of a club’s player to another club outside of MLS.
Qualification for the CONCACAF Champions League.

The League will also provide all clubs that don’t have a third Designated Player an equal amount of General Allocation Money from the funds collected by the League for the purchase of the third Designated Player spots (as described further below). In any year that the League adds an expansion club or clubs, (i) all clubs will receive an equal amount of General Allocation Money and (ii) any club that loses a player in the expansion draft will receive additional General Allocation Money. New expansion clubs receive a separate amount of General Allocation Money for their inaugural season.

General Allocation Money can be traded by clubs. Allocation Money can be used to “buy-down” a player’s salary budget charge as part of managing a team’s roster, including buying a salary budget charge below the League maximum of $457,500. For example, a team may “buy down” a player earning $475,000 to a budget charge of $275,000 by using $200,000 of General Allocation Money.

General Allocation Money can also be applied in the following circumstances:
To sign players new to MLS (that is, a player who did not play in MLS during the previous season).
To re-sign an existing MLS player.
To off-set acquisition costs (loan and transfer fees)
In connection with the extension of a player’s contract for the second year provided the player was new to MLS in the immediately prior year.
To reduce the Salary Budget Charge of a Designated Player to a limit of $150,000.

Use against a Salary Budget Charge: A club cannot use General Allocation Money to reduce more than fifty percent (50%) of a player’s Salary Budget Charge. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee. A club may reduce one hundred percent (100%) of a loan or transfer fee.

Targeted Allocation Money
Announced on July 8, 2015, each MLS club will receive $100,000 per year for the next five years ($500,000 total) in additional funds, referred to as Targeted Allocation Money, to invest in their roster outside of the player salary budget. In addition, each club will receive $800,000 in Targeted Allocation Money in 2016.

Targeted Allocation Money may be used in four ways:
Clubs may use the funds to sign a new player provided his salary and acquisition costs are more than the maximum salary budget.
Clubs may re-sign an existing player provided he is earning more than the maximum salary budget.
Clubs may use a portion of or all of the available Targeted Allocation Money to convert a Designated Player to a non-Designated Player by buying down his salary budget charge to at or below the maximum salary budget charge. If Targeted Allocation Money is used to free up a Designated Player slot, the club must simultaneously sign a new Designated Player at an investment equal to or greater than the player he is replacing.
A club retains the flexibility to convert a player bought down with Targeted Allocation Money into a Designated Player if that club has a free Designated Player slot.
Clubs may trade their Targeted Allocation Money to another club.

Salary Parameters: A Player must earn more than $457,500 per year (2016 maximum budget charge) to qualify for Targeted Allocation Money. The compensation ceiling for such players is set at $1,000,000 per year, except as follows: if a Designated Player is converted to a non-Designated Player through the use of Targeted Allocation Money during the Secondary Transfer Window, that player may earn a maximum of $1,500,000 on a prorated basis.

The minimum budget charge for a player compensated with Targeted Allocation Money is $150,000.

MLS clubs may bring forward a portion or all of their allotted Targeted Allocation Money, up to $1,300,000, to be used in a single season.

Targeted Allocation Money and General Allocation Money may not be used in combination when signing or re-signing a player, or when buying down the budget charge of a Designated Player. Either Targeted Allocation Money or General Allocation Money may be used on a player in a single season, not both.

While MLS clubs are not required to use their initial pool of Targeted Allocation Money $100,000 each season (through to 2019), they are required to use the remaining amount (of the annual $100,000) during the following year.

NOTE: To protect the interests of MLS and its clubs during discussions with prospective players or clubs in other leagues, amounts of allocation money held by each club will not be shared publicly.

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2015 MLS Roster Rules and Regulations

MLS ROSTER COMPOSITION

A Major League Soccer club’s first team roster is comprised of up to 28 players. All 28 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

In addition to the salary budget, each MLS Club spends additional funds on player compensation including money from a league-wide allocation pool (Allocation Money), the cost of Designated Players outside the salary budget, and money spent on the Supplemental Roster (players 21-28).

Salary & Budget:
Players occupying roster spots 1-20 count against the club’s 2015 salary budget of $3,490,000, and are referred to collectively as the club’s Senior Roster.

Roster spots 19 and 20 are not required to be filled, and teams may spread their salary budget across only 18 Salary Budget Players. A minimum salary budget charge will be imputed against a team’s salary budget for each unfilled senior roster spot below 18.

The maximum budget charge for a single player is $436,250.*

* See section entitled Allocation Money below, under Player Acquisition Mechanisms, for details on buying down a player’s budget charge.

Players occupying roster spots 21-28 do not count against the club’s salary budget, and are referred to collectively as the club’s Supplemental Roster (maximum of eight per team).

All Generation adidas players are Supplemental Roster players.
Players occupying roster spots 21-24 will earn at least $60,000 in 2015.
Players occupying roster spots 25-28 will earn at least $50,000 in 2015.

Age Designations:
Any player making $50,000 must be under the age of 25 (does not turn 25 or older in 2015)*
* Age of player is determined by year (not date) of birth.

Domestic/International:
In 2015, a total of 160 international roster spots are divided among the 20 clubs. In 2008, each MLS Club was given the right to have eight international players on their roster and expansion Clubs were given the right to have eight international spots for their inaugural season. These spots are tradable, such that some clubs may have more than eight and some clubs may have less than eight. There is no limit on the number of international roster spots on each club’s roster.

The remaining roster spots must be filled by Domestic Players. For clubs based in the United States, a Domestic Player is a U.S. citizen, a permanent resident (green card holder) or the holder of other special status (e.g., refugee or asylum status).
The three MLS clubs based in Canada -- the Montreal Impact, Toronto FC and Vancouver Whitecaps FC -- were given eight international roster spots when they joined the League, but their domestic spots may be filled with either Canadian or U.S. domestic players.

MLS clubs based in Canada are required to have a minimum of three Canadian domestic players on their roster.
Players with the legal right to work in Canada are considered Canadian domestic players (i.e., Canadian citizen, permanent resident, part of a protected class).

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2014 MLS Player Rules and Regulations SUMMARY

MLS ROSTER COMPOSITION

A Major League Soccer club’s first team roster is comprised of up to 30 players. All 30 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

Salary & Budget:
Players occupying roster spots 1-20 count against the club’s 2014 salary budget of $3,100,000, and are referred to collectively as the club’s Salary Budget Players.

Roster spots 19 and 20 are not required to be filled, and teams may spread their salary budget across only 18 Salary Budget Players. A minimum salary budget charge will be imputed against a team’s salary budget for each unfilled senior roster slot below 18.

The maximum budget charge for a single player is $387,500.*

* See section entitled Allocation Money below, under Player Acquisition Mechanisms, for details on buying down a player’s budget charge.

** Age of player is determined by year (not date) of birth.

Players occupying roster spots 21-30 do not count against the club’s salary budget, and are referred to collectively as the club’s Off-Budget Players (maximum of 10 per team).

All Generation adidas players are Off-Budget players.

Players occupying roster spots 1-24 will earn at least $48,500 in 2014.

Players occupying roster spots 25-30 will earn at least $36,500 in 2014.

Clubs may sign up to two Homegrown Players contracts above the minimum salary and similar to Generation adidas player contract amounts.

Age Designations:

Any player making $36,500 must be under the age 25 (does not turn 25 or older in 2014).
Domestic/International:

In 2014, a total of 152 international slots are divided among the 19 clubs. Each club began with eight international slots, which are tradable. There is no limit on the number of international slots on each club’s roster.

The remaining roster slots must belong to domestic players. For clubs based in the United States, a domestic player is either a U.S. citizen, a permanent resident (green card holder) or the holder of other special status (e.g., refugee or asylum status).

The three MLS clubs based in Canada – Montreal Impact, Toronto FC and Vancouver Whitecaps FC – began with eight international slots, but their domestic slots may be filled with either Canadian or U.S. domestic players.

MLS clubs based in Canada are required to have a minimum of three Canadian domestic players on their rosters.

Players with the legal right to work in Canada are considered Canadian domestic players (i.e., Canadian citizen, permanent resident, part of a protected class).

NOTE:The terms Homegrown and Generation adidas are used to describe mechanisms by which players are acquired. They are not roster designations. All players’ roster slots are determined by their compensation and/or age as outlined above.

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2013 MLS Player Rules and Regulations

MLS ROSTER COMPOSITION

A Major League Soccer club’s first team roster is comprised of up to 30 players. All 30 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

Salary & Budget:
Players occupying roster spots 1-20 count against the club’s 2013 salary budget of $2,950,000, and are referred to collectively as the club’s Salary Budget Players.

Roster spots 19 and 20 are not required to be filled, and teams may spread their salary budget across only 18 Salary Budget Players.

A minimum salary budget charge will be imputed against a team’s salary budget for each unfilled senior roster slot below 18.

The maximum budget charge for a single player is $368,750.*

* See section entitled Allocation Money below, under Player Acquisition Mechanisms, for details on buying down a player’s budget charge.

** Age of player is determined by year (not date) of birth.

Players occupying roster spots 21-30 do not count against the club’s salary budget, and are referred to collectively as the club’s Off-Budget Players (maximum of 10 per team).

All Generation adidas players are Off-Budget players.

Players occupying roster spots 1-24 will earn at least $46,500 in 2013.

Players occupying roster spots 25-30 will earn at least $35,125 in 2013.

Clubs may sign up to two Homegrown Players contracts above the minimum salary and similar to Generation adidas player contract amounts.

Age Designations:
Any player making $35,125 must be under the age 25 (does not turn 25 or older in 2013).

Domestic/International:
In 2013, a total of 152 international slots are divided among the 19 clubs. Each club began with eight international slots, which are tradable. There is no limit on the number of international slots on each club’s roster.

The remaining roster slots must belong to domestic players. For clubs based in the United States, a domestic player is either a U.S. citizen, a permanent resident (green card holder) or the holder of other special status (e.g., refugee or asylum status).

The three MLS clubs based in Canada – Montreal Impact, Toronto FC and Vancouver Whitecaps FC – began with eight international slots, but their domestic slots may be filled with either Canadian or U.S. domestic players.

MLS clubs based in Canada are required to have a minimum of three Canadian domestic players on their rosters.

Players with the legal right to work in Canada are considered Canadian domestic players (i.e., Canadian citizen, permanent resident, part of a protected class).

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2012 MLS ROSTER COMPOSITION

A Major League Soccer club’s first team roster is comprised of up to 30 players. All 30 players are eligible for selection to each 18-player game-day squad during the regular season and playoffs.

Salary & Budget:

Players occupying roster spots 1-20 count against the club’s 2012 salary budget of $2,810,000, and are referred to collectively as the club’s Salary Budget Players.

Roster spots 19 and 20 are not required to be filled, and teams may spread their salary budget across only 18 Salary Budget Players. A minimum salary budget charge will be imputed against a team’s salary budget for each unfilled senior roster slot below 18.

The maximum budget charge for a single player is $350,000.*

A Designated Player over the age of 23 counts as $350,000 against the club’s salary budget, unless the player joins his club in the middle of the season, in which case his budget charge will be $175,000.

A Designated Player 20 years old or younger** (referred to as Young Designated Players or Young DPs) to counts as $150,000 against the club’s salary budget

A Designated Player 21-23 years old** counts as $200,000 against the club’s salary budget.

The budget charge for the midseason signing of a Young DP is $150,000 and this amount cannot be lowered with allocation funds.

Clubs will not have to buy the third DP roster slot to accommodate a Young Designated Player whereas clubs are normally required to buy that slot for a one-time fee of $250,000.

Clubs are responsible for all amounts above the budget charge for all Designated Players.

* See section entitled Allocation Money below, under Player Acquisition Mechanisms, for details on buying down a player’s budget charge.

** Age of player is determined by year (not date) of birth.

Players occupying roster spots 21-30 do not count against the club’s salary budget, and are referred to collectively as the club’s Off-Budget Players (maximum of 10 per team).

All Generation adidas players are Off-Budget players.

Players occupying roster spots 1-24 will earn at least $44,000 in 2012.

Players occupying roster spots 25-30 will earn at least $33,750 in 2012.

Clubs may elect to leave up to two of these roster spots (25-30) vacant and use $35,000 for each empty spot as allocation money.

Clubs may sign up to two Homegrown Players contracts above the minimum salary and similar to Generation adidas player contract amounts.

Age Designations:

Any player making $33,750 must be under the age 25 (does not turn 25 or older in 2012).

Domestic/International:

In 2012, a total of 152 international slots are divided among the 19 clubs. Each club began with eight international slots, which are tradable. There is no limit on the number of international slots on each club’s roster.

The remaining roster slots must belong to domestic players. For clubs based in the United States, a domestic player is either a U.S. citizen, a permanent resident (green card holder) or the holder of other special status (e.g., refugee or asylum status).

The three MLS clubs based in Canada – Montreal Impact, Toronto FC and Vancouver Whitecaps FC – began with eight international slots, but their domestic slots may be filled with either Canadian or U.S. domestic players.

MLS clubs based in Canada are required to have a minimum of three Canadian domestic players on their rosters.

Players with the legal right to work in Canada are considered Canadian domestic players (i.e., Canadian citizen, permanent resident, part of a protected class).

2012-24 MLS Salary Cap, Roster Info

2024 MLS Roster Composition

Senior Roster

Supplemental Roster

Homegrown Player Subsidy

2024 Roster Compliance, Roster Freeze and Transfer Window Dates

Player Categories on the Roster

Domestic/International

U22 Initiative Roster Slots

Special Discovery Players

Player Acquisition Mechanisms

Clubs may acquire players and add them to their rosters via the following mechanisms:

SuperDraft

SuperDraft Priority List

Trades

Discovery Process

Related Party Transactions

Homegrown Player Signings

Affiliate Priority Players

Re-Entry Process

Free Agency

Free Agency will be conducted in accordance with the 2020-2028 MLS Collective Bargaining Agreement.

Waivers

Claiming an Out of Contract Player

Affiliate Short-Term Agreements

Extreme Hardship Call-ups

Season-Ending Injury

Short-Term Injury Replacements

Methods of Removing a Player from a Roster

Waivers

Transfers and Loans

An MLS player may be transferred or loaned at any time to a non-MLS club (subject to the receiving club's applicable federation's transfer window), and subject to the consent of the player.

Transfer and Loan Fees

Intraleague Loans

Loan of a Player by MLS

Loan of a Player by MLS to Affiliate Club (MLS NEXT Pro)

Buyout of Guaranteed Contract

Allocation Money

Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) Targeted Allocation Money (guidelines for each set below).

General Allocation Money

Buy-Down

Use against a Salary Budget Charge

A club can use General Allocation Money to reduce a player's Salary Budget Charge to the lesser of 50% of the Salary Budget Charge or $150,000. This restriction does not apply where General Allocation Money is being used on a loan or transfer fee; a club may reduce 100% of a loan or transfer fee.

Targeted Allocation Money Available Per Year

Salary Parameters

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