The Designated Player rule, commonly known as the Beckham Rule, was introduced in 2007 to allow MLS teams to sign high-profile players whose salaries would normally be impossible under the salary cap. Each team can have up to three Designated Players, with only a set charge (approximately $683,750 in 2024) counting against the salary budget regardless of the player's actual compensation.
The rule was named after David Beckham, whose signing with LA Galaxy in 2007 prompted its creation. Since then, it has brought stars like Thierry Henry, David Villa, Carlos Vela, Zlatan Ibrahimovic, Lorenzo Insigne, and Lionel Messi to MLS. The DP rule transformed the league's ability to attract world-class talent while maintaining the salary cap structure that promotes competitive balance.