MLS weighs salary cap reset to unlock next growth phase
MLS owners will consider a proposed overhaul of roster and spending rules that could replace allocation mechanisms with a more open salary cap ahead of the league’s 2027 calendar relaunch.
Major League Soccer owners are expected to discuss a preliminary plan to simplify the league’s roster rules and give clubs greater freedom to distribute spending across their squads.The proposal will be presented during the board of governors meeting in Charlotte, with the sporting and competition committee examining changes centred on a more open salary cap system.MLS commissioner Don Garber said: “It’s a must-do; it’s not a maybe-do. And it’s going to take time to figure out the way to get it right, because everything that MLS is today, in comparison to many leagues around the world, is about the steady growth based on thoughtful strategy and partnership engagement on figuring out what we need to do to move to the next level.”The plan could remove several restrictions governing how clubs allocate existing roster expenditure while retaining designated player places for high-value signings.MLS may also preserve incentives for recruiting younger players, either through young designated player rules or a revised version of the under-22 initiative.General allocation money and targeted allocation money could be removed under the changes, allowing clubs to invest more freely across their squads rather than directing spending through separate mechanisms.Targeted allocation money currently limits the salaries clubs can pay certain players without using a designated player position. A simplified structure could therefore improve squad depth and allow owners to pursue different sporting and transfer strategies.Former MLS executive Garth Lagerwey said: “MLS teams already spend a lot of money, that’s not the problem. What they need to do is spend it more efficiently if possible.“Any type of roster rule simplification, I suspect, is going to be tied to the collective bargaining agreement, and certainly we’d be flippant if we didn’t acknowledge that. But I would go right in, roll up your sleeves if you can, and try to find solutions there.”Any major change is likely to require negotiations with the MLS Players Association. The current collective bargaining agreement expires on January 31, 2028, although some owners want new rules implemented alongside the league’s calendar transition in summer 2027.The timing is commercially significant as MLS prepares to move to a summer-to-spring season and position the change as a broader relaunch of the competition.The league is also seeking stronger television audiences before returning to the media rights market in 2029. Its restructured Apple agreement is scheduled to pay MLS US$200m in 2026, US$107.5m for the shortened 2027 season and US$275m annually for the following two campaigns.MLS remains responsible for production costs under the agreement, reducing the net value received by the league.Greater roster flexibility could help clubs improve playing quality during a period of increased competition from European leagues, Liga MX and FIFA events staged in North America.The discussions also coincide with an expected vote on Garber’s successor, with LAFC co-owner Larry Berg and former Fox executive David Nathanson understood to be the final candidates.Garber will remain commissioner until at least the end of 2026 and is expected to retain a role with MLS until his contract concludes in 2027.