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MLS increases TAM investment for 2018, 2019

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A significant increase in money hits team’s payroll.

MLS: Los Angeles Galaxy at FC Dallas Kevin Jairaj-USA TODAY Sports

For several weeks we’ve heard rumblings of new money being made available to MLS teams for 2018. Today those rumblings became official as the MLS Board of Governors has approved an increase in the amount of Targeted Allocation Money (TAM) available to each club.

Following the 2017 MLS season where each club received an allotment of $1.2 million dollars of TAM, all 23 MLS teams will continue to receive $1.2 million of TAM per year in 2018 and 2019. MLS clubs may pull forward and use immediately the $1.2 million of TAM designated for 2019.

MLS clubs also will have the flexibility to spend up to an additional $2.8 million of TAM, on a discretionary basis funded by the team, per year in both 2018 and 2019.

The discretionary TAM is not tradable as other TAM has been in the past. Seeing how this is team funded TAM, FC Dallas can choose to not use this money.

FC Dallas used TAM in 2018 to pay down the salary cap hit of Mauro Diaz, as well as sign Roland Lamah. We hope to see the club go further into the funds in 2018 to help improve a roster that failed to reach the post season in 2017.