From SBnation: Third Designated Player Now Potentially Limited* “The league will have the right to limit the compensation for the third Designated Player to the maximum TAM Salary, unless the player is 23 years old or younger, in which case there will be no limit.” So no more Pirlo's or Zlatan's as a third DP. The idea is for teams to invest in an under 23 player with the idea of selling him on to Europe. The cap for 2020, and 2021 now I assume is $1,615,500. Max Budget Charge and TAM Limits Bumped Too This is pretty standard to increase, but the jumps are fairly big from the $530,000 max in 2019. Here are the next five max budget charges. 2020 - $612,500 2021 - $651,250 2022 - $683,750 2023 - $743,750 2024 - $803,125 The TAM/GAM eligible buy down deals will increase too. The base will be the max budget charge and the yearly caps will be $1,000,000 above that number. 2020 - $1,612,500 2021 - $1,651,250 2022 - $1,683,750 2023 - $1,743,750 2024 - $1,803,125 TAM/GAM Changes Instead of eliminating Targeted Allocation Money (TAM) and General Allocation Money (GAM), the league has gone with some tweaks that should allow more flexibility. Starting in 2020, all mandatory TAM is now converted to GAM. Then all remaining TAM becomes discretionary so teams don’t have to spend it or risk losing it. According to The Athletic, “each club is required to use their entire salary budget and GAM in each year of the agreement.” MLS also gave a level of insight to their GAM figures that simply weren’t clear before along with the salary budgets over the next five seasons. Free Agency The restrictions are moved down to being just 24-years-old and having five years of MLS service. That’s a lot more inline with other major sports league in the United States. Reportedly this will more than double the available free agents. That seems significant but there were only 38 free agents in 2019. From here it gets messy. See above link for the full run- down. Minimum Salary Increases For 2020 the Senior Minimum salary will increase to $81,375. That’s up from $70,250 in 2019. A bit over a 15% increase. By 2024 that number will increase to $109,200. For 2020 the Reserve Minimum salary will increase to $63,547. That’s up from $56,250 in 2019. Nearly a 13% increase. By 2024 that number will increase to $85,502. By comparison, the average household income in New York City is $57,782. Club spending limits are at the above link. Note that homegrown territories have not been changed.