Quote:
Originally Posted by LFC_USA
Is it actual cash sent over also? And does it reduce the cap space of the team sending? Seems weird
Two types of allocation money, General and Targeted. General is basically a secret way to drive up the salary cap and has been around for a while.
GAM rules could also change, but right now every team is guaranteed $200k, teams who miss the playoffs get another $200k, qualifying for CCL gets you $100k, any teams who make CCL knockout stage split $200k, and any teams with fewer than 3 DPs split the $150k that each team with 3 DPs pays to the league (unless that 3rd DP is a Young DP).
GAM can:
- Sign a new player who wasn't in MLS
- Re-sign an existing player
- Offset loan/transfer costs
- Extend 2nd year players who were new to MLS the prior season
- Buy a DP charge down to $150k
Targeted Allocation Money is fairly new and was basically created so that LAG could sign a 4th DP, but is laid out as a way for teams to bring in more high-dollar players. To iron's point, you gotta spend it or it goes away.
TAM can:
- Sign a new player whose salary + acq costs are above DP level
- Re-sign an existing player making more than DP level
- Convert a DP to a non-DP by buying down his salary budget charge, but we have to replace that DP with another one at an equal or greater investment
- Spend up to $200k to sign homegrown players above their slotted salary level ($53k each + a total of $125k spread across everyone)