The MLS salary cap has increased substantially since the league's inception. In 1996, the cap was just $1.135 million per team. By 2007, it had risen to $2.1 million. The introduction of Designated Player slots in 2007, TAM in 2015, and subsequent CBA negotiations have all contributed to rising spending power.
Key milestones in cap history include: 2007 ($2.1M with DP rule), 2015 ($3.49M with TAM), 2020 ($4.9M), and 2024 ($5.47M). When TAM and GAM allocations are factored in, teams' actual spending power in 2024 exceeds $10 million. The trend is expected to continue as MLS revenue grows, particularly from the Apple TV broadcasting deal that began in 2023.