Ahead of the opening of the Major League Soccer transfer window on January 31, the league has announced significant rule changes that could impact how teams spend money on players moving from clubs within the league. This change will allow a club to use unlimited amounts of their own money to trade for players already in the league. This previously required the use of general allocation money, players, or a combination of other limited mechanisms.
While there is a limit of only two players a team can acquire and trade through this mechanism per season, it does allow for blockbuster moves that won’t stop a team from doing more with their roster. An example of this could be Atlanta United. Their search for a designated player at the striker position could lead to a record signing, as the Five Stripes have reportedly already made made a bid to sign Emmanuel Latte Lath from Middlesbrough, but this wouldn’t stop them from linking him with someone like Evander from the Portland Timbers in an interleague swap.
Previously it was difficult to move a designated player via trade as there isn’t enough available through league mechanisms to compensate the team losing a player, but now that an owner can dip directly into his pocket to acquire someone increases this the profit. the levels of deals between the leagues that can be made significantly. For the team selling a player, the revenue from these deals can be converted into GAM so they can immediately use the deals to strengthen their roster.
It feels like it’s only a matter of time before this mechanic is used to recruit a player, but let’s take a quick look at some of the other rule changes.
MLS spending shifts
Outside of GAM received through the U22 initiative, it no longer has an expiration date allowing teams to stack it as they see fit. Previously, GAM only lasted three transfer windows and it adds to the flexibility offered to teams. There is now also a second contract buyout for clubs, as there was previously only one. If a designated player is loaned out to an international club, that spot will now also be open for use. Teams can also now switch between the two or three designated player model during the season, rather than having deadlines for these shifts to occur.
The key word here is flexibility. While teams are still restricted from keeping their salaries below the spending cap, changes like these will make the league more competitive on a global scale, at least when it comes to owned teams that aren’t afraid to open their wallets to fund roster building. . There are disadvantages that can be created for equality, but if MLS wants to compete in things like the Club World Cup, the top teams need to focus on how they can compete with others around the world. Essentially, this is a limited open transfer market that can help keep stars in the MLS.
The decline in parity
For teams that have made it on the strength of their academies by expanding business from abroad, such as the Philadelphia Union and FC Dallas, this is a move that could make it harder for them to compete without investing. Because this is such a new mechanism, there’s no guarantee that smart ownership will continue to do so with domestic players, but if there are concerns about the shifts, that’s one of them.
Without the threat of relegation, there is nothing to lose for teams that spend nothing, but it is also a risk the league must take. More opportunities to acquire talent is a good thing for the league and it could be the first step in removing some roster restrictions around the league. MLS has lagged behind Liga MX in terms of spending, and last season players like Cade Cowell and Brandon Vazquez started getting poached by Mexico.
While Vazquez is back, mechanisms like these give domestic teams the same opportunity to recruit those players back. If it eventually also ties in with MLS transfer windows running at the same time as Europe, it would be a whole new market. That’s a lot of projecting, but it’s also the direction the competition is going.
Heading into 2026, MLS is uniquely positioned to capitalize on the interest in soccer domestically in the lead-up to the World Cup. Being able to ensure that there is as much talent as possible in the league before then is crucial and this will help with that. How teams use it will be something to keep an eye on, but while more needs to be done to truly move MLS forward, the ability to spend more can only be a good thing.