There are some fairly big changes coming to Major League Soccer clubs this year. MLS today announced the 2025 transfer window dates, as well as updates to the MLS Roster Rules and Regulations.
According to the league, all updates are effective immediately.
Highlighting the changes, MLS clubs may now invest an unlimited amount of out-of-pocket funds (cash) to acquire players via trade from within the league. The new initiative creates additional opportunities for top players to remain within MLS, while further incentivizing player development and creating more pathways for MLS clubs to generate revenue on player movement.
The remaining updates to the MLS Roster Rules and Regulations allow clubs greater roster construction flexibility and provide more playing opportunities to young players.
The following includes further details on each of the updates and how they could impact FC Dallas in 2025:
2025 Transfer Windows:
MLS is looking to align their transfer windows a bit more with the global markets. While the primary window will open as the European one closes, the secondary window in the summer will be more in line with other parts of the world.
- Primary Transfer Window: Friday, January 31 to Wednesday, April 23
- Secondary Transfer Window: Thursday, July 24 to Thursday, August 21
FCD Note: Given the moves the club has made in recent weeks, don't be surprised if they are a bit more active in the summer window. Seeing it more aligned with other markets does a club like FCD a bit more favors, especially if they are in that 'red line' zone of being in playoff contention at that point in the season.
Second Contract Buyout
A club may now buy out two Guaranteed Contracts (including a Designated Player) each year. Such buyouts are at the club's expense and may apply to any mutually terminated contracted player or to a contract that remains in effect.
The buyouts may be conducted in-season or during the offseason. If the buyout is conducted in-season, it must be concluded by the close of the Secondary Transfer Window.
FCD Note: This was supposed to happen last year with roster changes, but it never came to pass. This is another sleeper item for a club like FCD. Say, Paxton Pomykal as an example gets back to fitness by March but then has another set back that could keep him out for more of 2025, the club could use this buyout to free up a TAM slot. And yes, that is purely an example, not something I am forecasting to happen.
Unlimited Out-Of-Pocket Funds for Player Trades
The new fund was first reported by Tom Bogert of Give Me Sport.
MLS clubs may now use an unlimited amount of out-of-pocket funds (cash) to trade for players, allowing MLS clubs to acquire talent from within the league without having to use General Allocation Money (GAM) or other assets (such as SuperDraft selections or International Roster Spots).
As the league’s press release states: the update creates additional opportunities for top talent to remain within MLS, while creating another pathway for MLS clubs to generate significant revenue on player movements and further incentivizes player development.
Another way to look at it is, players who are reportedly not wanting to show up to preseason camp across MLS like Portland’s Evander or Cincinnati’s Lucho Acosta could now be put on the market to be traded for cash instead of GAM.
Clubs will be allowed to acquire up to two players, and trade away up to two players, per year for cash. Similar to transfer fees, clubs may convert revenue generated by these trades to GAM, and cash spent to acquire a player via trade will be applied to the player’s Salary Budget charge.
There are two big points to be made with this new rule: when utilizing cash to acquire a player via trade, no other forms of compensation may be included in the trade terms.
Also, if a player acquired via a cash trade will occupy a Designated Player or U22 Initiative Player slot with his new club, that player must remain as a Designated Player or U22 Initiative Player on his new club’s roster during the guaranteed term of his contract.
FCD Note: I don't expect FC Dallas to be major players in this market just yet. Clubs know they are flush with GAM, but I don't see the Hunts as owners tossing around their own cash on deals when their stadium is under renovation.
GAM Expiration Dates
MLS has eliminated expiration dates for General Allocation Money, apart from GAM received as part of a club’s decision to opt into the U22 Initiative Player Model at the beginning of a season.
GAM received under the U22 Initiative Player Model must be used within the same league season and by the Roster Freeze Date.
Previously, GAM expired after three full Transfer Windows.
FCD Note: This is pretty big for FC Dallas, given their large vault of GAM at the moment.
Off-Roster Homegrown Changes
The league also altered certain parameters for Off-Roster Homegrown players to provide more opportunities for young players in league matches and cup competitions:
- Off-Roster Homegrown players are now eligible to appear in up to six MLS league matches along with unlimited first-team appearances in Cup competitions (Concacaf Champions Cup, Leagues Cup, Lamar Hunt U.S. Open Cup, Canadian Championship, friendlies, etc.). Previously, Off-Roster Homegrown players were only eligible for the standard four Short-Term Agreements.
- A player must be 21 years old or younger during a calendar year to be eligible as an Off-Roster Homegrown player.
- Once a club moves an Off-Roster Homegrown player to the Senior or Supplemental roster, the player may not revert back to an Off-Roster Homegrown position.
- Subject to the age limitations above, players may continue to be Off-Roster Homegrowns, so long as they remain on their initial MLS contract.
FCD Note: This is pretty big for FC Dallas given the long list of HGPs that were recently signed by the club.
Outgoing Designated Player Loans
If an international club absorbs a Designated Player’s entire salary during a loan period, the MLS side will open that Designated Player slot during the loan period, regardless of the player’s initial acquisition costs. Previously only Young Designated Players and U22 Initiative Player slots were eligible to open due to a player being loaned out.
This will apply after a player's first season on an MLS roster (i.e. in year two or later) and the player must occupy a Designated Player slot at the time of the loan or, if the loan occurs in the offseason, the player must have concluded the prior league season as a Designated Player.
FCD Note: Yeah, this one won't really apply to FCD right now.
Roster Construction Model Declaration
While required to declare a roster construction model by the Roster Compliance Date at the beginning of the season (Friday, February 21), clubs will conditionally have the opportunity to update their roster construction model at midseason – between July 1, 2025, and the close of the Secondary Transfer Window on Aug. 21. This will allow clubs more flexibility to acquire Designated Players and U22 Initiative Players in the Secondary Transfer Window, while also providing another opportunity to invest additional General Allocation Money.
Conditions for updating roster construction models at midseason:
- Updates must be made between July 1, 2025 and the close of the Secondary Transfer Window (Aug. 21).
- U22 Initiative Player Model to Designated Player Model – The club must have used $1 million or less of the additional GAM and have no more than three U22 Initiative Players on their roster as of their updated declaration.
- Designated Player Model to U22 Initiative Player Model – The club may only invest up to $1 million of additional GAM during the remainder of the season and must have no more than two Designated Players on their roster as of their updated declaration.
FCD Note: While I don't expect this season to be a year where they'll swap roster models midseason, it is good to see that there will be that kind of flexibility in years to come for FC Dallas.
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