The 2023 MLS salary budget was set at $5.21 million per team, representing an increase from the previous year's $4.9 million budget. This salary budget includes the total compensation for all players on a team's roster, including base salary, bonuses, and annualized average guaranteed compensation.
Teams could exceed the salary budget through various roster mechanisms including Designated Players (DPs), General Allocation Money (GAM), and Targeted Allocation Money (TAM). The 2023 season continued the league's gradual increase in salary budgets as MLS aimed to improve competitive balance and attract higher-quality players to the league.
The salary budget charge for Designated Players was $651,250 in 2023, while teams could use GAM and TAM to buy down player salaries and create additional roster flexibility. These mechanisms allowed teams to build competitive rosters while maintaining the league's salary structure designed to promote parity across all 29 teams.