MLS has expanded the Designated Player Rule to allow every MLS club to sign two DPs. Teams will also have the option to purchase a third DP slot. The DP Rule, known as the “Beckham Rule,”was introduced in 2007. It allowed MLS teams to pay a “designated” player above the club’s salary cap. In theory, the expanded DP Rule makes it possible for Thierry Henry,Raul and Ronaldinho to play on an MLS field at the same time.
An MLS team seeking a third DP slot would pay $250,000 that would be evenly shared as allocationmoney with all the other MLS clubs that do not have three DPs. Each DP player signing will now count as $335,000 toward a team’s salary budget and $167,500 if the DP is signed midseason.According to the league, the $335,000 figure represents approximately 13 percent of a team’s salary budget. Previously, teams were charged $415,000 against the salary budget for the first DP. Ateam can also use its allocation money to bring that salary budget hit down to just $150,000.