The MLS allocation order is a system that determines which team has priority in signing certain players entering the league. This includes US and Canadian national team players returning from abroad, and other high-profile international players the league deems subject to allocation. The order is generally based on reverse overall standings from the previous season.
When a player subject to allocation becomes available, teams higher in the allocation order have the first right to negotiate with and sign the player. Teams can also trade allocation order positions. This system ensures that high-profile incoming players don't simply go to the wealthiest or most desirable-market clubs, maintaining competitive balance. However, the allocation process has been controversial at times, with some players and teams finding it restrictive compared to the open market approach used in most global soccer leagues.