The 2023 MLS roster rules and regulations featured a salary budget of $5,210,000 per team, representing an increase from the previous season. Each MLS team was allowed to roster between 20-30 players, with specific allocation rules for different player categories including Designated Players, U22 Initiative players, and Homegrown Players.
The salary budget applied to the top 20 highest-paid players on each roster, with additional mechanisms like General Allocation Money (GAM) and Targeted Allocation Money (TAM) available to teams for roster flexibility. TAM could be used to buy down player salaries that exceeded the Designated Player threshold, while GAM provided general roster construction flexibility.
Teams were permitted up to three Designated Players whose salaries above $651,250 did not count against the salary budget. The U22 Initiative allowed teams to sign up to three players under age 22 to non-Designated Player contracts, with only $200,000 of their salary counting against the budget regardless of their actual compensation.