Major League Soccer will not add a second contract buyout this summer as expected, according to multiple sources briefed on the decision. The provision would have allowed more cap flexibility for teams looking to make roster additions, or move on from bad deals.
Teams are currently allowed to buy out one player’s contract per season. Discussions in the sporting and competition committee earlier this year moved forward a rule proposal to add a second contract buyout, but the league faced opposition from the MLS Players Association — the players’ union — around such a change, multiple sources said, and have pulled the proposed alteration from the expected rule changes.
According to those sources, the union objected because the current collective bargaining agreement allows for just one contract buyout per team annually, and any expansion of the rule would need to be collectively bargained. In addition, people familiar with the situation said the union saw the additional buyout as helping poor-performing clubs and hurting players, who are often pressured to take less money than they are owed on their contracts.
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It is still possible MLS will propose a different version of the buyout rule to the union, several sources said.
The Athletic previously reported the league is expected to change restrictions around under-22 players, allowing teams to have either three designated players (DP), players that do not count against a team’s salary cap, and three U-22 players, or two DPs and four U-22 players, plus $2million in general allocation money (GAM).
Teams are now also expected to be able to convert up to $3m per year in transfer or loan revenue to allocation money. Under current rules, MLS teams can convert up to $1,215,506 of any transfer/loan revenue into general allocation money.
The secondary transfer window opened on July 12 for teams in Canada and will open on July 18 for U.S.-based MLS clubs. The window for Canadian teams ends on August 8, while it ends for American teams on August 14.
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