The Designated Player Rule, nicknamed the Beckham Rule, allows Major League Soccer franchises to sign up to three players that would be considered outside their salary cap (either by offering the player higher wages or by paying a transfer fee for the player). The rule, which was adopted ahead of the 2007 MLS season, enables teams to compete for star players in the international football market. The rule is one of two mechanisms by which MLS teams may exceed their salary cap, the other being allocation money. As of December 2019, there have been 209 Designated Players in league history. The rule is informally named after David Beckham, in anticipation of MLS teams signing lucrative deals with internationally recognized players, after Beckham entered into negotiations to join the league. Beckham was the first player signed under this rule, signing a five-year contract with the Los Angeles Galaxy in 2007 with a guaranteed annual salary of $6.5 million.

History

The team salary cap was estimated to be around US$1.9 million in 2006, was $2.1 million in 2007, and was raised to $2.3 million for the 2008 season. As part of the 2010 Collective Bargaining Agreement between MLS and the MLS Players' Union, the 2010 salary cap was $2.55 million, with an automatic five percent increase each year until the expiration of the agreement at the end of the 2014 season. Under the 2007 rule: The 2010 changes: The 2012 changes: Starting with the 2012 season, the rule was changed with respect to younger players. MLS announced the changes in August 2011 after clubs expressed concern about signing young international players with no guarantees that they would develop into stars. The maximum budget charge for Designated Players over age 23 was increased to $368,750 for 2013, $387,500 in 2014, $436,250 in 2015, $457,500 in 2016, and $480,625 in 2017. The budget charge for those who join during the midseason transfer window has remained at one-half of the full-season cap charge since the inception of the rule. The budget charges for younger players have not changed since 2012.

Background

The rule is informally named after David Beckham, in anticipation of MLS teams signing lucrative deals with internationally recognized players of Beckham's caliber. Beckham was the first player to be signed under this rule, signing a lucrative contract with the Los Angeles Galaxy worth up to $250 million over five years, with direct guaranteed compensation from MLS and Galaxy at $6.5 million a year.

Current Designated Players

Notes

Club DP history

Notes

Atlanta United FC

Austin FC

Charlotte FC

Chicago Fire FC

Chivas USA (defunct)

FC Cincinnati

Colorado Rapids

Columbus Crew

FC Dallas

D.C. United

Houston Dynamo FC

Inter Miami CF

Sporting Kansas City

LA Galaxy

Los Angeles FC

Minnesota United FC

CF Montréal

Nashville SC

New England Revolution

New York City FC

New York Red Bulls

Orlando City SC

Philadelphia Union

Portland Timbers

Real Salt Lake

St. Louis City SC

San Diego FC

San Jose Earthquakes

Seattle Sounders FC

Toronto FC

Vancouver Whitecaps FC

Past and present Designated Players by country