United have acquired an International Roster Slot for the 2019 MLS Season from the Portland Timbers in exchange for $100,000 Targeted Allocation Money (TAM) in 2019 and $50,000 General Allocation Money (GAM) in 2020.
Targeted Allocation Money (TAM) are funds provided by Major League Soccer to teams to add or retain high value players and can be used to buy down the budget charge of a player making more than the maximum budget charge in annual compensation. Starting in 2015, each team initially received $100,000 in TAM per year for the next five years. MLS has since increased the amount of TAM issued to each team: $800,000 for 2016, $1.2 million for 2017, and $1.2 million per year plus an additional $2.8 in optional, discretionary TAM for 2018 and 2019.
General Allocation Money (GAM) is an annual allotment of money that is available to a club in addition to its salary budget. GAM can be used to sign players who are new to Major League Soccer, to re-sign an existing MLS player, to offset loan and transfer fees, to extend a new MLS player’s contract for a second year and to reduce the Salary Budget Charge of a Designated Player to a limit of $150,000.
For a comprehensive explanation of MLS roster and salary rules, please click here.
Transaction: United acquired an International Roster Slot from the Portland Timbers in exchange for $100,000 in Targeted Allocation Money (TAM) in 2019 and $50,000 in General Allocation Money (GAM) in 2020.