While both TAM and GAM are forms of allocation money in MLS, they serve different purposes and have different rules. Targeted Allocation Money (TAM) is specifically designed to sign or retain players whose compensation falls between the maximum salary budget charge and the Designated Player threshold. It can only be used to buy down player cap charges within this range.
General Allocation Money (GAM) is more versatile. It can be applied to any player's salary cap charge regardless of amount, traded freely between clubs, and used in a wider range of roster transactions. In practice, GAM functions almost like a secondary currency in MLS, facilitating trades and roster moves across the league. Both forms of allocation money have been instrumental in improving roster quality throughout MLS.