The Key Changes in MLS Roster Rules for 2024

Major League Soccer announced changes to its Roster Rules and Regulations on Tuesday, just one day before Inter Miami is set to host Real Salt Lake in the league’s season opener. Although, as expected, the rules largely follow the contours from previous seasons – no fourth Designated Player (DP), no wholesale changes to General Allocation Money (GAM), Targeted Allocation Money (TAM) or the various other accounting mechanisms that comprise the MLS roster rules  – behind the scenes, there are a number of smaller changes that, taken together, provide some additional flexibility for teams, and possibly provide the first hints that the league is willing to simplify some of its numerous rules and eliminate some of its more antiquated roster devices in future years.

Salary Cap Increases

As expected under the Collective Bargaining Agreement between the League and Players Association, the salary cap is going up, are the floors on player compensation:

• The overall Salary Budget – the headline number that teams must be at or under after using GAM, TAM or other mechanisms – is now $5,470,000, an increase of $260,000 over last year
• All senior players on the must make at least $89,716, roughly a 5% increase over last season and reserve players must make at least $71,401, a 6% bump
• The maximum salary budget charge is $683,750, a $32,500 increase from last year – players earning more than that amount must have their salary “bought down” with GAM or TAM or be labeled a DP – and Targeted Allocation Money (TAM) players may make up to $1,683,750, also a $32,500 increase over last year
• Also as scheduled, the total amount of TAM is going down, to a total of $2,400,000 this year.
• The amount of a loan or transfer fee that can be turned into GAM has also gone up slightly, to $1,215,506

TAM No Longer Expires

Teams are granted a set amount of TAM each season, but any “unused” TAM would “roll over” to the next year, before expiring after 4 windows (2 years).  That is no longer the case, and TAM apparently no longer expires. This may allow teams to “bank” TAM for use in the future, or may be an indication that the TAM designation may be going away in the future, in favor of a more simplified system (possibly returning to there being only one form of allocation money).

More Leeway for Green Cards and International Players

Until a few years ago, international players who became permanent residents of the US or Canada (“Green Card” holders in the United States) would immediately cease to occupy an international slot. The Fire were able to take advantage of that rule and effectively open up more international slots by speeding up the process.

The rule was then changed so that a player had to become a permanent resident by the Roster Compliance Date – generally the day before the season starts – but in 2024, is somewhat looser: Now a player must only have completed their interview for permanent residency by that date, regardless of when it was granted.

Canadian teams now have three new “International Player” slots – separate than the similarly named “International Roster Slot,” available to any players who have been with a Canadian-based MLS team for one year or longer. This move helps level the playing field between American and Canadian teams, as the US permanent residency process is swifter and easier to complete than the Canadian equivalent.

Unlimited Intraleague Loans

In previous years, teams could loan a maximum of two players to another MLS team. If a team wanted to move more players than that within the league, they would have to trade them. That limit has been removed, and MLS teams may now loan an unlimited number of players to other teams in the league.

Reserve Slots Combined

In 2023, the reserve roster – slots 21-30 – was divided into three groups. Slots 25-28 were reserve players who had to be 24 or younger, while slots 29 and 30 could be any age. That distinction has been erased, and now any players in slots 25-30 must be 24 years of age or younger during the league year.

Flexibility for Waivers & Injured List

If an MLS team waives a player, any team could offer to take him off waivers in exchange for taking a portion of his salary. If two teams submitted the same amount, the team who was willing to take on more of the player’s cap hit would get the player. Now the League offices have more apparent flexibility in deciding the new home for a waived player, as the league says that it can take into account “a number of factors” in deciding where the player lands, including the Waiver Order and cap hit.

In addition, teams may now trade to get more cap space (via GAM) in order to sign a replacement player if they place one on the Injured List, a practice that was previously prohibited.

Changes to the SuperDraft

In prior years, the MLS SuperDraft, conducted at the end of the year after MLS Cup, was largely limited to “NCAA college seniors who have exhausted their college eligibility.”  From 2024 onwards, sophomores or above can be drafted, greatly expanding the number of players available.

In prior years, any eligible player could be drafted, while now, teams must specifically place players on a league-wide Draft-Eligible List, and only players on that list may be selected.

A Shrinking Discovery List

In 2023, MLS did away with one of its more arcane roster devices, the Allocation Order, but kept its infamous “Discovery List,” which essentially allows teams to claim “dibs” on a player for having “discovered” him.  That is true for both raw young talent as well as international stars, leading to sometimes humorous situations where a team is forced to make a trade for a well-known player’s rights because another MLS side has “discovered” him.  This happened this past offseason, when the Colorado Rapids had to send GAM to FC Cincinnati in order for the “discovery rights” for Djordje Mihailovic, despite the fact that he had previously played for two other MLS teams – the Chicago Fire and CF Montréal – and was well-known in American soccer circles, having played for the USMNT.

In one sign that the Discovery List may be on its way out, teams are now restricted to having just five players on their list at one time, down from seven (expansion side San Diego still has seven spots available between now and their start of league play next year).