So basically the general allocation money to spend on entire roster goes from 4.2 mil last season to 8.4 mil next season...that’s a big increase .....
If only a few of the stingy owners would get it, ie. Sugarman in Philly. He has spent a bit more, but we are not a small market, just a small owner. Hope he ups his game!
They posted a chart on their website for how the new budget works but I think they labeled things wrong. I believe that the breakdown for the next few years goes like this: (in millions) 2020: 4.9 base, 1.525 GAM, 2.8 TAM, 9.225 total 2021: 5.21 base, 1.9 GAM, 2.72 TAM, 9.83 total 2022: 5.47 base, 2.585 GAM, 2.4 TAM, 10.455 total 2023: 5.95 base, 2.83 GAM, 2.225 TAM, 11.005 total 2024: 6.425 base, 3.093 GAM, 2.125 TAM, 11.643 total
When they say "legs" does that mean just one direction? So this year teams are required to do the equivalent of 4 round trips and in 2024 they are required to do the equivalent of 8 round trips? Additionally, if a team is on a cross-country flight and has a layover, does that layover count as a leg?
I need to sit down with the numbers, but at first look I'm not very impressed. Discretionary TAM turns into base budget so what looks like an increase in spending is not (and Discretionary TAM is around 3m/year) . Regular TAM turns into GAM, but but was TAM included in the 8.5m number? Edit: didn't see Philly's post, those are the numbers I think I need.
Okay, so not that big of an increase, they are just including GAM and TAM as part of the spending limit now. I would have much preferred an elimination of TAM, with a matching increase in the base.
As an example of this, the Embraer E175 has a maximum range of 2,500 miles, but the flight distance between Seattle and Miami is 2,700 miles. If the Sounders or Inter were to charter a flight for an away game, they would either need to charter a larger airplane, or include a layover so the plane can refuel.
Does anyone know how much GAM teams had to spend in the previous CBA? Unless we know that, we can't determine how much of an increase this is. As it stands MLS's salary base is $4.24 million and TAM is $1.2 million, in 2020 the equivalent groups increase to $4.9m for the base and $2.8m for TAM. That's "only" a $2.3m increase with most of that increase being in TAM (which the players and some GMs don't like).
From the roster rules: General Allocation Money Each club receives an annual allotment of General Allocation Money. In 2019, that allotment is $200,000 per club. A club may also receive General Allocation Money in the following cases: Failure to qualify for the MLS Cup Playoffs ($200,000 per club) The transfer of a club’s player to non-MLS club outside MLS Qualification for the CONCACAF Champions League ($140,000 per club) Expansion Clubs (see below) Expansion Dilution (see below) Designated Player charge distribution In any year that the League adds one or more expansion clubs, (i) all clubs will receive an equal amount of General Allocation Money and (ii) any club that loses a player in the Expansion Draft will receive additional General Allocation Money. New expansion clubs receive a separate amount of General Allocation Money for their inaugural season. The 1.2 million in TAM got changed to GAM so most of this year's increase is TAM going to GAM. Last year's budget was something along the lines of 4.24 base, 200k GAM, 1.2 TAM, 2.8 discretionary TAM, for a total of 8.44 million. Looking at roughly a 785k increase this year in budget, so slightly less than 10% increase over last year. Additional years are roughly in the 6.5% increase range.
This is a huge increase in GAM. Which has broader use across the roster than TAM (limited to specific salary range). Read as better for domestic players or those with more moderate salaries. This year GAM: 1) 200k base per team, plus A) 200k for missing POs (you suck $$$) B) 140k for CCL qual (kick ass $$$) And various amounts for transfers of a player to non-MLS clubs outside MLS, expansion $$, losing players in expansion drafts, and DP charge (3rd DP) distribution. https://www.mlssoccer.com/league/official-rules/mls-roster-rules-and-regulations Basically, $4.2 in TAM/GAM before, this year it is $4.325. But instead of a 4 mil/200k split, it is 2.8 mil/1.525 mil. By 2024 it will be over $5 mil total, but over $3 mil will be GAM.
Long story short, between this and the free agency changes, teams are more able to use more of their budget towards acquiring players they want on other MLS teams. While still being just as able to go acquire talent from other leagues if they judge it to be a better use of the money. Great for the MLSPA, great for the league.
If I am reading this right "For the first time, player spend per club will include a share of the increased revenue generated by MLS’s new media agreements in 2023 and 2024. Beginning in 2023 and 2024, MLS will increase player spending by an amount equal to 25 percent of the increased media revenue above the amount generated by the league in 2022 plus $100 million. The league’s current local, national and international media rights partnerships expire at the end of 2022." I am kind of surprised the players let them say from 2022. I realize this would really piss off the players, but MLS could sign some frontloaded contracts in 2021 and lessen the hit of more TV money. Or they could just redo all non major TV contracts in 2022 so that the increase in media rights is really only the TV deal. Basically the first hundred million from the TV contract goes directly to the owners, and then after that players get 25%. If the TV contract is about $400 million this will increase salaries by around $1.75 million per team. MLS apparently needs the MLSPA to approve new salary increases, but assuming this happens to some extent, like it did after the previous CBA, and there is bump in media rights above $190 million, which gives the players money, having a base salary of $13-$15 million in 2024 seems plausible, and I think this would put many teams pretty close to their Liga MX peers today (no idea what Liga MX does in 4 years). It's worth noting in this scenario most bench players are making $500k/year, and most starters are making $1 million/year. It would be interesting to see how many americans/canadians currently would fall into the +$500k and +$1 million salary ranges. Given the reality that some of the bench players will be younger academy players (or young players from abroad) making nowhere near $500k in salary, the league is going to be very international!
-The 3rd DP initative does not appear as of now to be mandatory. The keyword here is MLS had the "right" meaning I'm thinking when all the details get fleshed out MLS will step in on cases and exert there right to deny certain DP deals, sort of how they've done with TAM denying which players TAM could be used on. Don't think you'll see Super Star players like Zlatan/Ronaldo/Messi denied entry or the type of 27 yr old Giovinco types also Toronto signing.
Tannenwald is reporting the opposite: https://www.inquirer.com/soccer/mls...on-garber-20200206.html?__vfz=medium=sharebar
I half agree. What this mostly means is that when a player re-signs with their team they can be paid more, which means less money for new/better players from the outside. Big win for the union and domestic players Small win for the unambitious teams (who don't want to scout and don't want to pay discretionary TAM) Small loss for the aggressive teams and the average quality of the league.
This wording is odd. So this is as opposed to what? A non-MLS club in MLS? An MLS club outside MLS? Aren't all non-MLS clubs outside MLS? What am I missing?