Changing the MLS roster rules has been a slow burn. Adding Designated Player spots strategically could speed up change without overextending clubs' spending

By Brian Maurer

MLS Commissioner Don Garber (Photo courtesy of MLS)

Before the 29th MLS Cup Final, where the LA Galaxy won their record sixth MLS Cup, league Commissioner Don Garber gave his annual “state of the league” address. One of the key points he discussed was that the MLS clubs participating in the 2025 FIFA Club World Cup next summer are in the “lower quadrant of transfer market value.”

The primary reason for this is the roster rule limitations imposed on MLS clubs compared to the other top clubs worldwide. Garber stated “MLS is constantly, every year, looking at ways that we could incentivize our teams to use their resources better, to be very, very productive, and efficient…but I don’t anticipate anything significant happening in the next couple of years.”

This is a potential missed opportunity for clubs to capitalize fully on the effect of MLS transfer windows since Lionel Messi signed with Inter Miami. When the Argentine legend arrived, many clubs across the league became more emboldened with their transfer market strategy. That looks to continue in the 2025 winter and summer windows.

No significant changes were made after the Board of Governors meeting on Thursday before last. The next Board of Governors meeting will be in April when they will have another opportunity to vote on roster changes.

Here is a plea for simple straightforward changes that could maximize the opportunity that Messi is providing, while limiting the inefficient overspending traps that many aggressive clubs and leagues fall into when aiming to compete with the top tier of world soccer.

Focus on increasing Designated Player spots over the next two years

One of the major holdups when altering the roster rules in MLS is making huge changes to the salary budget. A primary issue is that the MLS and MLSPA have already agreed to a Collective Bargaining Agreement (CBA) that runs through 2027. Those not interested in making serious changes to the salary budget have no incentive to come to the table for the next three years.

Adding Designated Player (DP) spots is a workaround, especially since the salary budget increases incrementally year-over-year in the current CBA. The allocation money that clubs use to bolster their rosters also increases. Those incremental budget increases could provide the wiggle room to add additional DP spots.

By strategically adding new DP spots to the roster rules the league could maximize the Messi effect, while not pushing clubs too far into the extremes of inefficiencies that plague other leagues attempting to climb the ladder of international soccer relevance. This strategy would include implementing two DP spots over the next two seasons. Here is an example of how the league could make this happen with minimal other changes to the salary budget and roster rules:

Add a CONCACAF/CONMEBOL DP spot in 2025

The first DP spot to add would be one designated for a CONCACAF/CONMEBOL player. 23 (including San Diego FC) of the 30 MLS clubs already have a DP from the CONMEBOL or CONCACAF player pool. This would open up a spot for those clubs to sign an additional DP from anywhere. The other six clubs would have an extra spot for a DP from North, Central, or South America.

This DP spot would increase the number of DP signing opportunities for all clubs and provide an additional incentive to clubs who have invested heavily in their academies. It would give them extra resources to make signings like the one FC Dallas made when they signed Jesus Ferreira. This spot would also incentivize clubs to continue bringing back USMNT players like Djordje Mihailovic, whom the Colorado Rapids signed last winter.

A CONCACAF/CONMEBOL spot would also encourage MLS clubs to sign more big-time players from Central and South America. The States hosting Copa America in 2024 showed that the energy to support national teams like Colombia is extremely strong in the US. There should be extra incentives for MLS clubs to invest and harness more of that energy. This can be accomplished by providing a DP spot where clubs are directly incentivized to invest in these nearby regions.

More high-level North, Central, and South Americans playing in MLS should provide returns in ticket and jersey sales. 14 of the 25 top MLS jerseys sold in 2024 are players from the CONCACAF or CONMEBOL player pools. This included a few less likely names like Jacob Shaffelburg and Brian Gutiérrez. While they are not two of MLS's top players, they are both young up-and-coming CONCACAF players. A DP spot for a CONCACAF/CONMEBOL player would be a long-term league growth play and an opportunity for immediate short-term gains.

Add a 30+ DP spot in 2026

In 2026, MLS should then add a fifth DP spot. This one would be for players 30 or over. 24 (including San Diego FC) of the 30 MLS clubs have a DP who will turn 30 in 2025. While the league has gotten younger with other incentives like the U22 Initiative and investment in Academy players there is still a clear place for bringing in veteran leadership and big-name players.

Adding a fifth DP spot for players 30 or over MLS clubs can bring in these big-name players but not build their whole team around them, as they would still have their three standard DP spots open to use how they wish.

The incentive here is two-fold. First, it would encourage clubs to continue bringing in veteran world-renowned stars. Second, it encourages clubs to keep the stars they have already signed for longer while simultaneously signing and creating their next generation of stars.

For example, Hany Mukhtar is turning 30 in 2025. Having an additional DP 30+ spot would give Nashville SC more flexibility to keep their club legend while also figuring out their future core in a world where he is no longer the centerpiece.

Like the CONCACAF/CONMEBOL DP spot, this fifth DP spot should provide immediate returns in ticket and jersey sales.

15 of the 25 top MLS jersey sales in 2024 are of players who will be 30 or older during the 2025 season. This includes seven of the top 10 2024 jersey sales being players 30 or older during 2025. Adding a 30+ DP spot allows clubs more opportunity to capitalize on the gains of players like Lucho Acosta and Denis Bouanga (who progressed through MLS in their prime and became stars before turning 30), and also bring in world-renowned players like Messi and Olivier Giroud who are players signed during the twilight of their careers and will also move jerseys as soon as their signings are announced.

Summary

As mentioned earlier, one of the hang-ups for making roster rule changes is the CBA that runs through 2027. Incrementally adding two DP spots over the next two seasons the league could find a solution that would work around the CBA and still incentivize MLS clubs to bolster their rosters.

In 2025, the salary budget will increase to $5,950,000. Up $480,000 from 2024. The total available spend in 2025 is $11,105,000 after including allocation money. Up $650,000 from 2024. The maximum budget charge for a player increases to $743,750 in 2025, which is 12.5% of the salary budget. This is also what a DP spot costs against the salary budget. 

In 2026, the salary budget increases to $6,425,000. Up $475,000 from 2025 and $955,000 from 2024. The total available roster spend is $11,830,000. Up $725,000 from 2025, and $1,375,000 from 2024. The maximum budget charge for a player increases to $803,125 in 2026.

The increase in available spending is nearly the amount of what a DP would cost against the budget. One issue is that four DPs would cost 50% of the salary budget not including allocation money. One way to help add a bit more flexibility while also making minimal changes to the overall roster rules would be to decrease the charge that DP spots have against the salary budget to 10%. Once the fifth DP spot is added in 2026, decreasing the DP salary charge to 9% would continue to balance out the salary budget across the roster. 

Given the state of the roster rules now. Three DPs cost 37.5% of the total salary budget (with exceptions for a Young DP designation). I am proposing that the total salary budget charge be 40% for four DPs in 2025, and then 45% for five DPs in 2026.

Table showing DP spots cost to MLS salary budget and what the alterations might look like when adding additional CONCACAF/CONMEBOL and 30+ DP spots to roster rules

Year	Salary budget cost per DP	% of salary budget taken by all DP spots	Total salary budget	Total DP cost against the salary budget	Difference between proposed DP cost and current DP cost
2024	$683,750	37.5%	$5,470,000	$2,051,250	$0
2025	$595,000*	40%*	$5,950,000	$2,380,000*	$148,750
2026	$578,250*	45%*	$6,425,000	$2,891,250*	$481,875

*with proposed changes to add CONCACAF/CONMEBOL and 30+ DP spots over the next two years

These incremental changes would allow for more high-level signings across the league over the next two seasons while having a minimum impact on the current salary budget. Helping the league reduce the likelihood that they overextend themselves while simultaneously taking advantage of the Messi effect that is well underway and should exist through at least the 2026 season.

These types of DP spots would allow teams to continue building rosters in different ways. For example, the CONCACAF/CONMEBOL DP spot gives clubs who have invested heavily in their academies the additional incentive and negotiating power to keep their top homegrown players longer. The 30+ DP spot gives clubs the flexibility to establish a young core if they wish or build with star power and veteran leadership. These changes and the multifaceted approaches that this incremental growth strategy provides should give benefits to all MLS clubs regardless if they are in a small, mid-major, or major market.

The specificity of the DP spots should provide extra incentives to teams to target players who bring immediate returns for individual clubs and the league through ticket and jersey sales, which gives an additional security blanket to the risk involved with adding changes to the roster rules.

The goal of this work is that it can help provide a new framework for the league and its decision-makers as they think through alternative solutions that can be implemented quickly with less concern of negative ramifications as MLS continues to grow during this exciting time.