"The league and the teams did not specify how much of the $700,000 in incentive-based money is TAM and how much is GAM, nor in what years the money will be paid – the new transparency extends only so far – but depending on Sporting Kansas City’s preference, the club would be able to specify how much of each is payable on certain dates.
A second Eastern Conference front-office source agreed that Vermes’ structuring of the deal “very, very smart,” pointing to both the longevity of the allocation money and the amount of usable allocation received by keeping the deal inside MLS instead of selling to an outside team. MLS teams can use a maximum of $650,000 from any sale of a player as allocation money. The rest goes to MLS, the owner and other areas of team investment, i.e. the academy, scouting, analytics, training fields, etc.
Essentially, the $1.6 million acquired is more than double what he would have received by selling Dwyer outside MLS for, say, $3 million, which would have been given Sporting a net of $650,000."
https://www.fourfourtwo.com/us/feat...s-record-tranfer-analysis#H310O4we1JIK0jbH.99