MLS on Tuesday announced updates to its roster rules for the 2025 season, including the implementation of a new internal cash transfer market.
Previously, clubs could only transfer players to another MLS team if they received some form of non-cash asset. Among those assets are allocation money — a dollar amount tied to a team’s salary budget — other players, draft picks, and international roster spots. Now, as in the international transfer market, teams can use an unlimited amount of money to acquire a player.
Teams are limited to two cash incoming deals and two cash outgoing deals per season. Much like international transfers involving Major League Soccer teams, the money a team pays to acquire a player will collide with the team’s salary budget.
For incoming transfers, under previous MLS rules, teams could convert up to $3 million in transfer fees per year into General Allocation Money (GAM). MLS has not yet revealed whether that number will remain the same for 2025.
One general manager, who requested anonymity because they were not authorized to speak publicly about the new system, suggested that GAM might be preferred for smaller deals, especially those involving local players. On the other hand, cash can be more common for players with higher salaries.
If a player acquired via cash trade occupies the Designated Player or U22 Initiative Player space with his new club, that designation must be maintained for the duration of his contract.
Other roster rule changes include allowing teams to purchase a second contract per season as well as eliminating the expiration date associated with the annual amount of GAM issued to teams.
The league has also opted to give teams more flexibility regarding the number of matches in which a homegrown player who is not currently on the first team roster can be called up. Players with this designation who are 21 years of age or younger can now play up to six regular season games and an unlimited number of cup games. Previously, these players were eligible for up to four short-term contract agreements.
MLS also announced the dates for this season’s transfer windows. The primary window will run from January 31 to April 23, while the secondary window will run from July 24 to August 21.
The Major League Soccer Players Association said in a statement on Tuesday that there will be a two-year trial period for purchasing the second salary budget.
“Our hope is that these new provisions will create positive movement opportunities for players, create a transfer market within Major League Soccer that is comparable to the international transfer market, and provide improved protection for players,” the MLSPA said. “This is a step toward bringing MLS player movement standards in line with international standards.”
