MLS teams are permitted a maximum of three Designated Player slots. These slots allow clubs to sign players whose compensation exceeds the salary cap maximum budget charge, with only a fixed charge counting against the cap.
Teams can use their DP slots strategically. Some clubs fill all three slots with established international stars, while others may keep a slot open to use as trade leverage or wait for the right player to become available during a transfer window. The three-slot limit ensures that while teams can attract marquee talent, they cannot simply buy their way to a championship by stockpiling expensive players.