Charlotte FC has yet to spend big in what looks to be a record-setting transfer window

Ryan Donahue

Photo courtesy of Cisco's Art/TopBin90

With the 2024 MLS season kicking off this past week, teams are looking to add the finishing touches to their squad to ensure the best start possible. With the continued growth and expansion of MLS through the addition of new teams, higher profile players, and increased visibility, the league has generated record revenue and, as a result, is spending more in the transfer market.

In 2022, MLS clubs spent a total of $120 million in the market and this year are projected to break that record. The current spend of MLS on players this season is approximately $70 million. Notable transfer fees so far include Chicago Fire’s forward Hugo Cuypers who was brought in for $14 million and FC Dallas’ Peter Musa for nearly $11 million from Benfica.

Charlotte FC, who recently saw the departure of Świderski and Jóźwiak, have yet to make their splash to fill the two DP player openings, and have been targeting Luciano Rodríguez who is valued at around $15 million by his current club. If a deal were to be agreed, it could be the biggest transfer fee in MLS history potentially beating Atlanta United's Thiago Almada who was bought for $16 million back in 2022.

While increased spending on higher-profile players is exciting for fans, the results do not always translate to what is seen on the pitch. In 2023, the three highest payrolls in MLS all missed the playoffs. Inter Miami retained the highest payroll of $39.4 million followed by Toronto FC and LA Galaxy each at $32.3 million and $25 million. Alternatively, clubs that manage lower wage bills do not indicate they will have underperforming seasons. FC Cincinnati, who won the Supporters Shield and made a deep playoff run, were ranked 21st among wages across the league last year.

Although spending does not guarantee a team’s success or failure, those close to the league have advocated for looser spending regulations and more ambitious transfer business.

Historically, MLS implemented salary cap restrictions out of concern that owners of clubs in the early days of MLS would spend poorly on the wrong players which prompted a recentered focus around teams prioritizing sporting analytics, building scouting networks, and developing sporting programs with strong infrastructure to help improve decision making.

With the refinements that have been made across the league over the past 10 years, most clubs now have experienced professional resources making decisions around player profiles as an evolution, the league has also rolled out new spending initiatives. However, for many coaches and fans it still feels that the league is driving with one foot on the break.

Spending initiatives like Young Designated Players, Targeted Allocation Money, and General Allocation Money were meant to bolster clubs' appetite to bring in young exciting foreign talent and improve the quality on the pitch, but clubs are still primarily required to operate within strict parameters.

The signing of Messi last summer pushed owners to demand a reform to the league’s regulations and even remove them. However, the momentum was blocked during the MLS December board meeting.

While MLS is spending more on player transfers into the league, it is also generating more on player outgoings and is often turning a profit on its investments. With MLS operating on an alternate season calendar from Europe, the big money transfer signings that find their way to top European clubs typically happen during the summer when European leagues are on break.

This can be disruptive to the MLS clubs, but it does provide a good opportunity for a big cash injection mid-way through the season. Most notably, when it comes to big outgoing transfers, Thiago Almada from Atlanta United is already getting on to several clubs shortlists, and Atlanta is expecting to get a record transfer fee surpassing the previous record holder Miguel Almirón, whom Newcastle United bought for $27m.

It is unclear when MLS will overhaul its regulations around spending and roster restrictions, the signing of David Beckham forced the league to evolve and we will likely see the addition of Lionel Messi force the league to implement changes in the future as more clubs have financial backing and infrastructure to spend and sell for higher values.