MLS to implement cash transfers between clubs

MLS announced on Tuesday updates to its roster rules for the 2025 season, including the implementation of a new internal cash transfer market.

Previously, clubs could only move players to another MLS side if they received some form of non-cash asset. Among those assets are allocation money — a dollar amount attached to a team’s salary budget — other players, draft picks and international roster spots. Now, much like the international transfer market, teams may use an unlimited amount of cash to acquire a player.

Teams are limited to having two incoming and two outgoing cash deals per season. Much like international transfers involving MLS teams, the cash a team pays to acquire a player will hit against a team’s salary budget.

For incoming transfers, under previous MLS rules, teams can convert up to $3 million of transfer fees per year into General Allocation Money (GAM). MLS hasn’t yet disclosed if that number will remain the same for 2025.

One general manager, who asked to remain anonymous because they are not authorized to speak publicly about the new system, suggested that GAM might be favored for smaller deals, particularly those involving homegrown players. Cash, on the other hand, could be more common for higher-salaried players.

If a player acquired via a cash trade occupies a Designated Player or U22 Initiative Player slot with their new club, that designation must be maintained throughout the duration of their contract.

Other changes to the roster rules include allowing teams a second contract buyout per season as well as eliminating the expiration date attached to the yearly amount of GAM issued to teams.

The league also opted to give teams more flexibility in terms of how many games a homegrown player who is not currently on the first team roster, can be called up for. Players with that designation who are 21 and younger can now play up to six regular season games and an unlimited number of cup matches. Previously such players were eligible for up to four short-term contract agreements.

MLS also announced the dates for the season’s transfer windows. The primary window will run from Jan. 31 to April 23, while the secondary window will run from July 24 to Aug. 21.

The MLS Players Association said in a statement on Tuesday that there will be a two-year trial period of the second salary budget buyout.

“Our hope is that these new provisions will create positive movement opportunities for players, create a transfer market within MLS that is comparable to the international transfer market, and provide improved protections for players,” the MLSPA said. “This is a step towards bringing MLS’s player movement standards in line with international norms.”

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