Sounders Insider

Here's MLS' explanation of "allocation money"

As the Sounders would receive "allocation money" for an international transfer of DeAndre Yedlin, here's what the league has to say about it:

Allocation Money

Allocation money is a resource available to clubs in addition to their respective salary budgets.

A club may receive allocation money for:

(1) Failure to qualify for the MLS Cup Playoffs;

(2) The transfer of a player to a club outside of MLS for value;

(3) Expansion status;

(4) Qualification for the CONCACAF Champions League;

(5) Funds from purchased third designated player roster spots.

Each year the MLS Competition Committee determines the allocation amount to be made available to each club. Allocation money can be traded by clubs. Allocation money does not count against a club’s salary budget and can be used:

· To sign players new to MLS (that is, a player who did not play in MLS during the previous season).

· To re-sign an existing MLS player, subject to League approval.

· To “buy-down” a player’s salary budget charge below the League maximum of $387,500.

· In connection with the exercise of an option to purchase a player’s rights or the extension of a player’s contract for the second year provided the player was new to MLS in the immediately prior year.

NOTE:To protect the interests of MLS and its clubs during discussions with prospective players or clubs in other leagues, amounts of allocation money held by each club will not be shared publicly.