Did you know that Major League Soccer teams operate under a $1.6 to $2 million salary cap (3 sources gave 3 different figures)? I definitely was unaware of this fact until I heard about a new rule that allows MLS teams to get around the restriction. The MLS has adopted the Beckham Rule, which will allow each team to go over the salary cap to sign an extra player. As per the current agreement, the MLS will still pay for the players (instead of the team’s paying), but the individual teams will have to pay any money for the player that exceeds $400,000 [MLS Adopts the Beckham Rule]. It is also being called the Designated Player Rule, and will be in effect until the end of the 2009 MLS season [New MLS competition initiatives unveiled].
Benefits of the new rule include keeping big name players in the MLS from going overseas and enticing international superstars to sign with MLS clubs. If you were hesitant about becoming a soccer Sports Agent before due to the stringent MLS salary cap, this new rule changes the scenery a little bit. Top dollars may be spent for players like Beckham (coincidentally the name of the rule) to come to the U.S. If you get your hands on one of these stars, there may be much money to be made.
The rule is exciting for soccer in the United States, and Designated Player Slots are already being traded between teams [Arena Discussed Bullish Move To Trade Guevara].
-Darren HeitnerÂ
2 replies on “MLS Is Looking To Bend It Like Beckham”
Interesting. Would like to point out quick that in the latest annual reader survey in Sports Business Journal, MLS was named property/organization with “the most growth potential.” The Beckham rule will help, though ultimately it may take nothing short of Beckham himself in L.A. to help the league hark back to the glory days of Pele competing here.
[…] of the internal youth policy as well as the relaxation of the strict salary-cap rule (via the Designated Player Rule) will go some way to assisting with the improvement of the standard of play in the MLS. In […]