MLS to allow cash transfers for player signings in 2025

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

Previously, a player could only be moved to another MLS team if the club received non-cash assets. Among these assets are allocations (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 have unlimited cash available to sign players.

Teams are limited to two cash deals and two cash deals per season. As with any international transfer involving an MLS team, the cash a team pays to sign a player goes against the team's salary budget.

For incoming transfers, previous MLS rules allowed teams to convert up to $3 million per year in transfer fees into general allocation funds (GAM). MLS has not yet revealed whether these numbers will remain the same in 2025.

One general manager, who spoke on condition of anonymity because he was not authorized to speak publicly about the new system, suggested GAM could be preferred for smaller deals, especially those involving domestic players. Cash, on the other hand, may be more common for high-income players.

If a player acquired through a cash deal occupies a Designated Player or U22 Initiative Player slot at their new club, that designation must remain for the duration of the contract.

Other changes to roster rules include allowing teams to buy out a second contract per season and removing the expiration date attached to the annual GAM amount issued to the team.

The league has also decided to give teams more flexibility as to how many games homegrown players who are not currently part of the first team roster can be called up. Players under the age of 21 who receive this designation can now play up to six regular season games and an unlimited number of cup games. Previously, these players could sign up to four short-term contract deals.

MLS also announced the dates for the season's transfer window. The primary period runs from January 31 to April 23, and the secondary period runs from July 24 to August 21.

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

“We hope these new provisions will create positive movement opportunities for players, create a transfer market within MLS comparable to the international transfer market, and provide enhanced protection for players,” the MLSPA said. said. “This is a step toward aligning MLS’ player movement standards with international standards.”