According to numerous reports, Major League Soccer is set to announce a new roster rule for all member teams, which could allow numerous teams, including Portland, to sign additional high-salary player(s).
Under the existing rules, each MLS team is allowed to sign up to three “Designated Players,” each of whom only count somewhere between $200,000-$436,000 (depending on the player’s age) against the salary cap, no matter how high the player’s actual salary is. This was originally known as the “David Beckham rule,” in reference to how the Los Angeles Galaxy were able to afford the multi-million dollar salary the Englishman commanded while still remaining under the MLS salary cap.
Under the new initiative announced by MLS, each team will be allocated $100,000 per year for five years to reduce the salary cap charge of players making more than the current Designated Player threshold salary of $436,000 to below that amount, removing them from Designated Player status. This money can only be used in conjunction with a signing of a new Designated Player at a salary above that of the player he would be replacing. In addition, teams may advance part or all of the $500,000 total to buy down a higher salary, reducing or eliminating their allocations in future years.
That’s some pretty dense contract legalese, so to illustrate: Diego Valeri currently carries a salary of $500,000 for the Timbers, and his status as a Designated Player means that his charge against the salary cap is $436,000. Portland could use this newly-announced money to lower Valeri’s charged salary from $500,000 to $400,000 – which would put him below the Designated Player threshold. Under MLS rules, Valeri’s salary now only counts $400,000 against Portland’s salary cap, which means that he would no longer be considered a Designated Player. The Timbers would then have an open Designated Player slot that they could sign another player into, so long as his salary was above Valeri’s original $500,000.
The other player the Timbers could use this provision on is Fanendo Adi, who carries a salary of approximately $600,000. Portland could use this year’s $100,000 as well as advancing next year’s $100,000, bringing Adi’s salary cap charge down to $400,000 and removing his Designated Player status. It is important to note that this provision can only be utilized on one player per year, so Portland could not pay down both Adi and Valeri in the same season and bring in two new players.
The league is already abuzz at how the new provision will be used to “make the rich richer” so to speak, as Los Angeles is reportedly already in advanced talks with Mexican international Giovani Dos Santos, who would be signed as a Designated Player after using this provision to buy down current DP Omar Gonzalez. In addition, northwest rivals Seattle and Vancouver would both be positioned to utilize the provision to add another impact player, should they so choose.
But this rule will undoubtedly be beneficial to the Timbers, should they utilize it. Portland is one of the few teams in MLS that could use this provision more than once (this year and next year), with the salaries of two Designated Players falling within the range of the provision. While it is extremely unlikely that Portland will bring in any ultra-high priced players along the lines of Clint Dempsey, Steven Gerrard, or Kaka, a very solid, impact player or two with a salary range of $1-2 million could be on their way to a Rose City near year you in the near future. For context, consider a couple of Cascadia rivals – Vancouver’s Pedro Morales and Seattle’s Obafemi Martins are both considered among the top attackers in all of MLS, and both carry a salary of $1,400,000 and $1,600,000 respectively.
If the Timbers are able to utilize the new initiative properly and if Merritt Paulson is willing to spend the money required to bring fresh talent to the Rose City, Portland could find themselves among the biggest beneficiaries of MLS’ new initiative.
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