Targeted Allocation Money (new Mls Player Rule)

[dannd23]

http://www.espnfc.com/major-league-...may-open-door-for-teams-4th-designated-player

This doesn't change much for us this season as we have already done this with Mix and Iraola, but that extra allocation money may come in handy down the line.

 

[franchise646]

https://twitter.com/x/status/618817130750976000

 

[Z4CH3B99]

Great, another new and confusing MLS rule has been added!

 

[franchise646]

https://twitter.com/x/status/618817693999890432

Pretty much what Blues have done with Mix and looks like Irola as well.

 

[SayWhat44]

It's another LA Galaxy rule to help them sign players. Hopefully they make up rules to help us sign players.

 

[dannd23]

I am failing to see how this helps the Galaxy with Dos Santos by getting Gonzalez below the DP threshold. As it currently stands, he earns 1.2 million, and the max salary is 436,000 for non-DPs. Can someone more privy to MLS rules explain this further.

 

[Tom in Fairfield CT]

Pretty sure Garber looked up at the sheik, wiped his chin, and was like, sure you can have 12 international player spots, anything you want your highness.

 

[BlueWarrior]

Jesus, I am hearing some top universities are making a six credit intro course called "Understanding MLS Rules".

 

[Tom in Fairfield CT]

Here is the rule in summary. You owners can spend 100k extra a year over the cap, but you can't spend it on shitty american players.

 

[NYCFCfan]

So who can we sign for $536,249 per year then use the 100k to buy his salary down to a dollar below DP level?

 

[BlueWarrior]

So we can use up to 500 allocation right now to

So who can we sign for $536,249 per year then use the 100k to buy his salary down to a dollar below DP level?

We can actually use 500 k, I believe it says we can get all the money up front instead of waiting 5 years. So technically, we can sign a player making 936, 249 per year right?

Honestly, id prob just give the extra money to mix to keep him happy. I want him here for a long time.

 

[BlueWarrior]

I am failing to see how this helps the Galaxy with Dos Santos by getting Gonzalez below the DP threshold. As it currently stands, he earns 1.2 million, and the max salary is 436,000 for non-DPs. Can someone more privy to MLS rules explain this further.

If i am correct, it would mean they would need to trade for extra allocation. They can use 500 k now. This would still not be enough as it would be 936. This would mean they would need to trade with another team for roughly 300 k in target allocation which allows omars contract to be paid down.

 

[sbrylski]

This seems like it allows a 4th DP in the $483k-583k range only, or higher if it's a short term deal and you accelerate your Target Allocation Money allowance.

The only thing I can think of that might pump some sense into this is from this bit at the end:

While MLS clubs are not required to use their full $100,000 each season, they are required to use the remaining amount during the following year. For example, if a club does not use its $100,000 allotment in 2015, that club must use or trade at least that $100,000 of Targeted Allocation Money in 2016.

There are going to be a handful of teams that don't use their TAM. If the Galaxy want to pay down Omar's $1.25MM contract, they have to go to three other teams and pay them off for their TAM. Teams might be motivated to trade this away, given that unlike allocation money, it's a use-it-or-lose-it situation.

So in a way, it might be a luxury tax mechanism, but using a "free market" setup to determine how valuable the luxury of going over the cap is.

 

[sbrylski]

Also want to point out this:

Importantly, unlike Designated Players for which a club is responsible for any payments above the maximum salary budget charge, all clubs will be provided the same amount of Targeted Allocation Money through the League budget. As a result, all clubs will have the same opportunity to benefit from these new funds.

It sounds like MLS is going to foot the bill for players that have TAM applied to their contract. In other words, the league office is going to start buying low level DP's for teams that traditionally haven't been willing to shell out the cash on their own. We pay the full $8M or whatever for Pirlo, but say Mix earns $583,000 and we pay it down with $100,000 TAM, the league will pay him.

This aspect doesn't affect us all that much, but could definitely give smaller market teams a boost. In order for us to utilize this new rule effectively, we're more likely to go around to a few teams and try to buy some more TAM.

 

[doctorhoosier]

Also want to point out this:



It sounds like MLS is going to foot the bill for players that have TAM applied to their contract. In other words, the league office is going to start buying low level DP's for teams that traditionally haven't been willing to shell out the cash on their own. We pay the full $8M or whatever for Pirlo, but say Mix earns $583,000 and we pay it down with $100,000 TAM, the league will pay him.

This aspect doesn't affect us all that much, but could definitely give smaller market teams a boost. In order for us to utilize this new rule effectively, we're more likely to go around to a few teams and try to buy some more TAM.

What would we have to trade, though? I don't anticipate that we can pay real cash, which, to be honest, is our primary asset.

 

[SayWhat44]

Well what I get from this is we now have 300-400k to bring in a player. They said previously they had 200-300k left for someone and now we have a little more. Or we trade someone and get around 500k for a player. Sounds good to me.

 

[Gavin23]

Jesus christ just end the fucking salary cap already or expand it greatly and end all the loopholes, provisions,rules and nonsense designed to get around it. Such a joke.

 

[doctorhoosier]

I think that this *is* the core player deal. It never was a slot like designated player was - it was the allocation money to buy down a cheap DP.

 

[doctorhoosier]

Well what I get from this is we now have 300-400k to bring in a player. They said previously they had 200-300k left for someone and now we have a little more. Or we trade someone and get around 500k for a player. Sounds good to me.

I'm not sure that's *totally* true.

This guy still counts against the salary cap as having the same salary cap impact as a DP. I don't know that we have enough cap room to bring in a guy on big wages right now beyond who we're bringing in.

What this does, though, is that it provides a mechanism for us to pay down Mix's contract on a yearly basis to one that's below the DP threshold. And it doesn't cost our club any more cash.

 

[SayWhat44]

I'm not sure that's *totally* true.

This guy still counts against the salary cap as having the same salary cap impact as a DP. I don't know that we have enough cap room to bring in a guy on big wages right now beyond who we're bringing in.

What this does, though, is that it provides a mechanism for us to pay down Mix's contract on a yearly basis to one that's below the DP threshold. And it doesn't cost our club any more cash.

It was said we still had 200-300 left in cap space... so this money is outside of the salary cap so yes it if those numbers reported are correct would leave us 300-400 of cap space