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MLS reveals increased TAM for 2018, 2019 seasons

Soccerex - Manchester: Day Five

MANCHESTER, ENGLAND - SEPTEMBER 09: Major League Soccer Commissioner Don Garber talks during day four of the Soccerex - Manchester Convention at Manchester Central on September 9, 2015 in Manchester, England. (Photo by Daniel Smith/Getty Images)

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For those still confused about Targeted Allocation Money, we’ll get to that in a second.

The good news though is that more of it will be coming to Major League Soccer ahead of the 2018 and 2019 seasons.

[ MORE: A look look at Saturday’s MLS Cup final by the numbers ]

During the 2017 campaign, MLS allowed each of its clubs to use $1.2 million of TAM, while the next two seasons will give teams the option of spending an additional $2.8 million on a “discretionary basis.”

TAM was started in 2015 in order to allow MLS sides the opportunity to strategically manage how they handle roster decisions. The current setup allows teams to use TAM to sign Homegrown players and buy down Designated Player contracts to non-Designated Player contracts, as two examples.

One important aspect of the added allocation of TAM for the next two years is that it cannot be traded amongst MLS sides, as is the case with regular TAM.