The 2023 MLS salary budget cap was set at $5,210,000 per team, representing an increase from the previous year's cap of $4,900,000. This salary budget covers the total compensation for players 1-20 on each team's roster, excluding designated players who can earn above the budget using allocation money mechanisms.
The $5,210,000 budget was part of MLS's continued growth in player compensation as the league expanded and increased its salary spending. Teams could exceed this base budget through various allocation money pools, including General Allocation Money (GAM) and Targeted Allocation Money (TAM), which allowed clubs to sign higher-quality players while maintaining roster compliance.
This budget increase reflected MLS's ongoing commitment to improving player salaries and attracting better talent to the league. The salary budget cap system remains a key mechanism for maintaining competitive balance while allowing teams flexibility in roster construction through the allocation money system.