Targeted Allocation Money (new Mls Player Rule)

[doctorhoosier]

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

It's outside the salary cap if you're buying down a contract that's over the DP threshold. It's pretty much exactly for the Mix situation.

If we can't bring in a guy on DP wages (by having 400k in salary space), I don't think we can use that money. It's not just "extra allocation money" - it's targeted for a specific purpose.

 

[doctorhoosier]

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

Here's the key bit from the description --

"Going forward clubs may use a portion or all of their allotted Targeted Allocation Money to convert a Designated Player to a non-Designated Player by buying down, on a prorated basis, his salary budget charge to at or below the maximum salary budget charge. If Targeted Allocation Money is used to free up a Designated Player slot, the club must simultaneously sign a new Designated Player at an investment equal to or greater than the player he is replacing."

So even if we could use that money to buy down Mix, we'd have to sign a DP to replace him. And considering we've used all three spots already, we can't fulfill the second "must" of that clause.

So, from my reading, this money is useless to us outside of buying down Mix's contract when we're replacing him with a DP. I'm sure they'll make an exception for us, but I can't think of another use for it for us in the next couple years with Pirlo, Lamps, and Villa locking down spots.

Once those three are gone, though, this will really come in handy.

 

[sbrylski]

Don't forget that we probably also have regular allocation money, and I don't think anything in the rules prohibits using allocation money and targeted allocation money on the same player.

For example, if we sign Mashamaite and Mena and are about $50k under the cap, we could potentially sign another $300k guy with $100k TAM and $150k allocation money. I think.

I also might be thinking wishfully because I really want to sign another striker.

EDIT: Nevermind, drhoosiers post is right, can only use TAM to replace a DP with another DP.

 

[adam]

Here's the key bit from the description --

"Going forward clubs may use a portion or all of their allotted Targeted Allocation Money to convert a Designated Player to a non-Designated Player by buying down, on a prorated basis, his salary budget charge to at or below the maximum salary budget charge. If Targeted Allocation Money is used to free up a Designated Player slot, the club must simultaneously sign a new Designated Player at an investment equal to or greater than the player he is replacing."

So even if we could use that money to buy down Mix, we'd have to sign a DP to replace him. And considering we've used all three spots already, we can't fulfill the second "must" of that clause.

So, from my reading, this money is useless to us outside of buying down Mix's contract when we're replacing him with a DP. I'm sure they'll make an exception for us, but I can't think of another use for it for us in the next couple years with Pirlo, Lamps, and Villa locking down spots.

Once those three are gone, though, this will really come in handy.

Maybe Pirlo signing took so long for EXACTLY that reason. Moved $ around so mix fell into DP land. Waited till rule was finalized. Bought down mix with allocation $, signed pirlo as DP. MLS let them do it, since it was new rule and they wanted to help them use it. And they wanted Pirlo in NYC.

 

[MagnusPax]

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.

The rule states you can't add TAM & regular allocation for one player. So no, LA can't use this to remove Gonzalez's DP label.

 

[NYCFCFan10]

Teams assembling 30 million dollar squads with a 4 million dollar salary cap. LOL

The salary cap just makes the league look worse than it is. You would think for that reason alone, they would get rid of it.

 

[MagnusPax]

Thread moved to MLS forum. Discuss the rule and its affect on other teams here.

If you want theorize on what NYCFC will do with it, go here: http://nycfcforums.com/index.php?threads/will-nycfc-use-the-targeted-allocation-money.3338/

 

[MagnusPax]

Teams assembling 30 million dollar squads with a 4 million dollar salary cap. LOL

The salary cap just makes the league look worse than it is. You would think for that reason alone, they would get rid of it.

Currently NYCFC is spending in the 'hood of $25 million a year on salaries.

 

[doctorhoosier]

Teams assembling 30 million dollar squads with a 4 million dollar salary cap. LOL

The salary cap just makes the league look worse than it is. You would think for that reason alone, they would get rid of it.

Blame Bob Kraft and the Philly owners. They want to have a team that plays against Villa, Lampard, and Gerrard, but they don't want to pay for one.

If they get rid of the salary cap, those MLS 1.0 owners would have to pay to compete with NYCFC, LA Galaxy, and Seattle. Teams don't want to do that when they can win on $10 million in wages.

 

[BxLio91]

At least raise the fucking thing.

 

[MagnusPax]

At least raise the fucking thing.

The cap? It has been and will be. It's been going up 5% every year for the last 5 years. It jumped to $4.1 million from 2014, which was a 10% jump. I'm not sure but I think it will incrementally increase every year while under the current CBA too.

 

[NYCFCFan10]

The cap? It has been and will be. It's been going up 5% every year for the last 5 years. It jumped to $4.1 million from 2014, which was a 10% jump. I'm not sure but I think it will incrementally increase every year while under the current CBA too.

It will.

I think the same 5% increase every year.

 

[Gotham Gator]

Here is a nice article that sums up some options that teams have.

https://www.sbnation.com/soccer/201...allocation-money-giovani-dos-santos-la-galaxy

 

[Midas Mulligan]

Here is a nice article that sums up some options that teams have.

https://www.sbnation.com/soccer/201...allocation-money-giovani-dos-santos-la-galaxy

Great article. Gives a more thorough explanation to the point I was trying to make in the Pirlo thread. The way they set this up basically forces an additional $10MM in the league's player wages in the next 5 years, if not sooner. I think it's absolutely beautiful.

 

[MagnusPax]

Here is a nice article that sums up some options that teams have.

https://www.sbnation.com/soccer/201...allocation-money-giovani-dos-santos-la-galaxy

I'm confused why they mention allocation funds was how NYCFC signed Villa and Lampard, but outside of that, I like the idea that the have to use the TAM or lose it. It will be interesting what happens in the next few weeks.

 

[Gotham Gator]

One thing that the article does not mention is how we will presumably use the funds.

Right now (it is presumed) Mix is paid above the league max, and we cover that through regular allocation money. Next year, we can use TAM to cover that difference and free up some allocation money for other uses. Of course, we might also simply have less allocation money next year since we will no longer be an expansion team, and then just use the TAM as an alternative.

 

[Konrad]

The article said that since we had so much allocation money as an expansion team, we were able to buy down Mix's contract, basically making him a DP lite. With this new rule coming during the transfer window The article said that we could sign another DP lite.

So my question is this: is Iraola our Second DP lite, or do we still have the TAM to sign another DP lite?

(P.s. - my head is starting to spin)

 

[MagnusPax]

My understanding is we used our expansion allocation money to buy down Mix, something that should/could be done with TAM next year. But we have unused TAM this year so we could use it on Iraola and then figure it out next year. Do we know how much Iraola is making?