Targeted Allocation Money, or TAM, is a financial mechanism introduced by MLS in 2015 to help teams sign and retain high-quality players who would otherwise need to occupy a Designated Player slot. TAM can be used to buy down a player's salary cap charge to below the DP threshold.
Each team receives a set allocation of TAM annually, and additional TAM can be earned through various means including selling players to clubs outside MLS. TAM has been credited with significantly improving the depth of MLS rosters, as teams can now sign talented players in the $600,000-$1.6 million range without using a precious DP slot. This has created a middle class of well-paid, quality players across the league.