Major League Soccer (MLS) recently announced significant changes to its roster rules in order to provide teams with more flexibility in how they construct their rosters. These changes, which went into effect with the opening of the summer transfer window, aim to give teams more options when it comes to the number of Designated Players (DPs) and under-22 signings they can have on their roster.
One of the most significant changes is the relaxation of restrictions on the combined number of DPs and U22 signings. Previously, teams were limited based on the number of overage DPs they had on their roster. Now, teams have the option to choose between two paths: signing three DPs and three U22 players, or signing two DPs and four U22 players along with an additional $2 million in General Allocation Money (GAM). This decision must be made by the end of the summer transfer window, with no changes allowed mid-season.
Rationale Behind the Changes
According to Todd Durbin, MLS executive vice president for player strategy and relations, these changes are intended to allow clubs to sign additional world-class players and emerging stars, while also providing flexibility to invest across the roster. With the next World Cup just two years away, MLS sees an opportunity to elevate the league and increase fan engagement globally.
Impact on Roster Budget
Designated Players are crucial in allowing teams to sign players whose compensation exceeds the maximum budget charge. Similarly, U22 signings offer teams the opportunity to sign young talent without incurring a significant budget hit. These changes will likely have a profound impact on how teams approach roster construction and player acquisition in the coming seasons.
Another important change is the increase in the amount of General Allocation Money (GAM) that teams receive when players are transferred out of the league. This change, from $1.2 million to $3 million per transaction, aims to provide teams with more financial flexibility and prevent them from being penalized for large outbound transfers.
Unimplemented Changes
While several changes were approved, there was one proposal that did not go through – the increase in the number of allowed contract buyouts per season. Currently, teams are limited to one contract buyout per year, which removes a player’s salary budget hit but still requires MLS to continue paying the player’s salary. Some concerns were raised about rewarding teams for making mistakes with this proposal.
The Road Ahead
With the 2026 World Cup on the horizon and the impending end of Lionel Messi’s contract in 2025, there has been growing pressure on MLS to increase the level of play in the league. The success of these changes will be closely monitored in the coming months to determine their effectiveness in achieving this goal.
Overall, the recent changes to MLS roster rules mark a significant shift in how teams can construct their rosters and approach player acquisitions. The increased flexibility provided by these changes has the potential to transform the league and elevate the level of play on the field. As teams adapt to these new rules and strategies, the future of MLS looks promising and full of exciting possibilities.
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