Designated Player Rule

The Designated Player Rule in the MLS allows each club participating to sign up to three players who will not be considered under the team’s salary cap (either through wages or the transfer fee), which enables MLS sides to sign and compete for high-profile players from the wider overseas international market. The rule was implemented alongside the salary cap regulations ahead of the 2007 season.

MLS player salaries are limited by a salary cap which has been in place since the league’s inception in 1996, which was introduced to prohibit team owners from excessive spending on player series and to ensure a fairer balance among teams who weren’t as financially well-off.

The MLS has since also introduced a wide range of initiatives to improve the quality of players purchased while still considering the salary cap – such as rules relating to Designated Players and allocation money that allow for additional wage spending that is exempt from the salary cap – but these have led to an increase in on-field competition.

The Designated Player (DP) rule in the MLS allows for teams to sign a limited number of players whose salary exceeds the maximum cap.

The Designated Player rule was introduced in anticipation of LA Galaxy’s signing of former Real Madrid and England star David Beckham in 2007.

Beckham was the first high-profile and internationally recognised player to sign for an MLS side and the Designated Player Rule has since been unofficially dubbed the ‘Beckham Rule’.

The ex-England midfielder signed a lucrative deal worth $250 million (£200m) over the course of five years at the Galaxy, and his signing started a trend for big-name stars in Europe to follow in his steps and finish or further their careers in the MLS.