In MLS, there are two key salary figures for each player. Base salary is the player's annual wage — the straightforward payment for playing. Guaranteed compensation is a broader figure that includes the base salary plus all guaranteed bonuses, signing fees, agent fees paid by the club, and any other guaranteed payments.
Guaranteed compensation is the figure used for salary cap purposes and is the number reported in the MLSPA's annual salary releases. The difference between base salary and guaranteed compensation can be substantial for some players, particularly those with complex bonus structures or significant signing bonuses amortized over the contract length. When comparing MLS salaries, guaranteed compensation provides a more accurate picture of total player earnings.