MLS 2025 roster rules: Every change & what they mean  | MLSSoccer.com

Major League Soccer has announced several updates to the league’s Roster Rules and Regulations ahead of the 2025 season. All updates are effective immediately.

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).

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.

Parameters

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 General Allocation Money.
Cash spent to acquire a player via trade will be applied to the player’s Salary Budget charge.
When utilizing cash to acquire a player via trade, no other forms of compensation may be included in the trade terms.

DP and U22 designations

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.

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.
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.

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.

General Allocation Money received under the U22 Initiative Player Model must be used within the same league season and by the Roster Freeze Date.
Previously, General Allocation Money (GAM) expired after three full transfer windows.

MLS 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, US 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.

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.

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.