Table of Contents
- What is the MLS designated player rule?
- When was the rule first introduced?
- Other notable players signed under the designated player rule
- Why is the MLS designated player rule necessary?
- Is the MLS designated player rule fair?
- Recap: The MLS designated player rule
Unlike many of the major European leagues, there is a salary cap in MLS which means there are several other rules attached to the signing of players.
One of these rules is known as the MLS designated player rule – but what exactly is it, and how does it work?
Here, we explain in as simple terms as possible what the MLS designated player rule is, why it was introduced, and whether or not it’s a fair way for MLS franchises to sign players.
What is the MLS designated player rule?
The MLS designated player rule – sometimes known informally as “the Beckham rule” – permits teams competing in the MLS to sign no more than three players that are outside their salary cap each season.
The rule was introduced to help the MLS franchises try and compete for big-name players from different parts of the world, as the salary cap that is in place in MLS would otherwise restrict them from paying the salaries necessary to attract some of the world’s biggest stars.
Read on to find out everything you need to know about the MLS designated player rule and how it affects the players that your team is permitted to sign each year.
When was the rule first introduced?
The MLS designated player rule was first introduced in 2007, and in the beginning, each team was only able to sign one “designated player.”
At the time, $400,000 of the designated player’s salary was charged to the team’s salary cap, while the remainder of that player’s yearly earnings was covered by the owner.
Players that benefitted from this rule in its early days included Landon Donovan, Eddie Johnson, and of course, David Beckham.
When Beckham signed for the Galaxy in 2007, he was rumored to be on approximately 6.5 million USD per season, making him comfortably the highest-paid MLS player.
As such, the rule became known as the “Beckham Rule,” and various other high-profile players have benefitted from its existence in recent years.
Other notable players signed under the designated player rule
Of course, David Beckham isn’t the only foreign superstar to arrive in MLS in recent years as part of the designated player rule. In fact, some of the most noteworthy signings in MLS history include the following players:
| Player | Team | Salary (per year) |
| Zlatan Ibrahimovic | LA Galaxy | $7,200,000 |
| Josef Martinez | Inter Miami | $4,100,000 |
| Douglas Costa | LA Galaxy | $5,800,000 |
| Javier Hernandez | LA Galaxy | $6,000,000 |
| Xherdan Shaqiri | Chicago Fire | $8,100,000 |
It’s fair to say that LA Galaxy have taken advantage of the MLS designated player rule over the years, attracting the likes of Zlatan, Douglas Costa, and Javier Hernandez with juicy salaries!
Why is the MLS designated player rule necessary?
The reason why the MLS designated player rule is necessary is due to the MLS salary cap that is currently in place.
For the 2023 season, the base salary cap is set to be $5.2 million in MLS, with additional funds available in what is known as General Allocation Money (GAM).
Given the huge amount of money that the best soccer players in the world demand – Leo Messi is on an annual salary of $41,000,000 at PSG, for instance – the MLS would struggle to attract any quality players without the designated player rule.
Allowing every team three “designated players” is a way of adding some superstar talent to the ranks at the start of the season, which helps the team on and off the field, as far as results and revenue are concerned.
Is the MLS designated player rule fair?
It really depends on how you look at it. The fact that MLS has a salary cap means that it’s immediately fairer than many leagues in Europe, as everyone has the same budget to work with as far as recruiting players is concerned.
However, if a franchise has wealthy and ambitious owners, there’s no reason why they can’t splash out on some of the best players in the world who personally cost them a fortune.
This has been LA Galaxy’s model over the years – they have made the most of the designated player rule with the likes of Beckham and Zlatan, which has helped to make them one of the most prominent MLS clubs with European supporters.
There are certainly some fans that would like to see the MLS remove the salary cap and designated player rule, but in reality, it’s part and parcel of the American soccer system, and it’s unlikely to change any time soon.
The fact that every team has the opportunity to sign three players outside of their salary cap is fair, at least in principle, and ensures that fans can watch some of the best players in the world strut their stuff in MLS.
Recap: The MLS designated player rule
So, the MLS designated player rule is key to a club’s signing transfer strategy, permitting each franchise to sign three players that command a higher salary than the other players in the team.
In the past, this rule has welcomed the likes of Beckham, Zlatan, and Chicharito to MLS, so there’s no doubt that it’s popular with lots of fans.
Given the growing profile of the MLS and the American game in general, it’s exciting to think about the future stars that will be signed under the MLS designated player rule, and we can’t wait to watch them take to the field during the MLS season.
Keen to learn more about how the MLS draft works at the start of each season? Check out our recent post and find out what you need to know!