Major League Soccer (MLS) is making significant changes to its roster rules, designed to give clubs more flexibility in constructing their rosters while also enhancing benefits for players involved in transfers or loans to clubs outside the league. These adjustments, announced on Thursday, will come into effect during the secondary transfer window, following an extensive evaluation process that began in 2023.
One key change is the expansion of prime roster spots available for acquiring or retaining world-class or emerging players. Teams will now have six such spots, allowing them to fully utilize all three designated player and three U-22 initiative player slots. This eliminates previous limitations, allowing clubs to strategically utilize these roster positions. The designated player rule permits teams to sign up to three players whose total compensation and acquisition cost exceed the maximum salary budget charge, while the U-22 initiative rule allows the signing of players aged 22 or younger, with their unrestricted acquisition fees not impacting the team’s budget.
Furthermore, clubs have the option to exchange a designated player slot for a fourth U-22 slot. However, clubs are required to declare their roster construction plan by August 14 to finalize the secondary transfer window. The updated rules also introduce greater flexibility in managing transfer revenue, allowing teams to convert up to $3 million of total transfer revenue received into general allocation money without restrictions from any individual player transfer, a significant increase from the previous limit of more than $1.2 million. These changes represent a substantial shift in MLS roster management, empowering clubs to build more competitive squads while also creating a more favorable environment for player development and transfer opportunities.
