The 2023 MLS salary budget cap was set at $5.21 million per team, representing an increase from the previous season. This cap includes all player salaries except for Designated Players above the maximum budget charge.
The salary budget is part of MLS's roster rules and regulations that govern how teams can spend on player compensation. Teams can exceed this budget through mechanisms like Targeted Allocation Money (TAM) and General Allocation Money (GAM), which provide additional resources for player acquisitions and contract buydowns.
This budget cap system helps maintain competitive balance across the league while allowing teams flexibility in roster construction through the various allocation money pools and Designated Player slots.