NEW YORK — Major League Soccer on Thursday announced three substantial roster rule modifications that will provide clubs with increased flexibility in overall roster construction and more benefits when players are transferred or loaned to clubs outside of MLS.
The modifications, which go into effect as of the 2024 Secondary Transfer Window, are the result of a comprehensive, data-driven process conducted by the league and its Sporting and Competition Committee, which is comprised of MLS owners and select club sporting directors. The process, which began in early 2023, incorporated insights from more than 25,000 soccer fans surveyed across the United States and Canada. Today’s announcement of the new roster rules is another step in MLS’ continued review of the league’s roster rules and competition format.
As Major League Soccer continues to review additional roster rule modifications, these substantial updates underscore the league’s commitment to advancing the sport in North America, promising an even more exciting and competitive future for players, clubs, and fans alike.
“The new roster rules open the door for clubs to sign additional world-class players and more emerging stars, while also providing a great deal of flexibility to invest across the roster,” said Todd Durbin, MLS Executive Vice President Player Strategy and Relations. “We have a unique opportunity with the World Cup coming in two years. These modifications, along with others being discussed for potential implementation in 2025 and beyond, will elevate our league and increase fan engagement around the world.”
The new rules will impact how clubs can spend significant funds outside of the salary budget. In addition, the new rules provide teams the opportunity to move discretionary spending into the general spending pool.
Below are the three roster rule changes:
Six Prime Roster Spots for Designated Players and U22 Initiative Players
All MLS rosters will now feature six prime roster spots that can be used to acquire or retain more world-class players and emerging talents. This adjustment offers clubs an unprecedented ability to invest in high-caliber talent and use all three Designated Player and all three U22 Initiative Player slots, eliminating previous limitations.
The Designated Player rule allows clubs to sign up to three players whose total compensation and acquisition costs exceed the Maximum Salary Budget Charge.
The U22 Initiative enables clubs to sign players 22 years old or younger whose unrestricted acquisition fees do not count against a team’s salary budget.
Roster Construction Flexibility
With two different roster construction models, clubs will have new flexibility and increased creative control over the allocation of discretionary funds, allowing clubs to spend according to their individual roster-building philosophy.
Clubs will have the option to exchange one Designated Player roster slot for both a fourth U22 Initiative roster slot and the ability to introduce up to an additional $2 million* as General Allocation Money annually. Clubs must declare their roster construction path at the start of every season. In 2024, clubs will have to declare their path by August 14 at the close of the Secondary Transfer Window.
(*In 2024, clubs who elect for the U22 Initiative Player Model will have the opportunity to introduce up to an additional $1 million in General Allocation Money due to midseason implementation.)
Opportunity for More Allocation Money from Transfers
The updated rules allow clubs to convert up to $3 million of total transfer revenues received into General Allocation Money without restriction on the amount from any individual player transfer. Under previous rules, clubs could only convert up to $1,215,506 following an individual player transfer.
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