In 2022, Major League Soccer operated under a salary budget of $4.9 million per team, representing a significant increase from previous years. This budget was part of the league's ongoing efforts to improve player compensation while maintaining competitive balance across all clubs.
The 2022 MLS roster rules included provisions for Designated Players, who could be paid above the salary budget using allocation money mechanisms like General Allocation Money (GAM) and Targeted Allocation Money (TAM). Teams were allowed up to three Designated Player slots, with the ability to buy down player salaries using allocation money to fit within the budget constraints.
Additionally, the 2022 regulations maintained the U22 Initiative, allowing teams to sign up to three players aged 22 or younger to contracts that would otherwise require a Designated Player slot, but at a reduced budget charge. These rules were designed to encourage investment in young talent while providing flexibility for teams to build competitive rosters within the salary structure.