Designated Player Rule
The Designated Player Rule, nicknamed the Beckham Rule,[1] was adopted as part of the salary cap regulations of Major League Soccer for the 2007 season. The rule allows each MLS franchise to sign players that would be considered outside of the team's salary cap, allowing MLS teams to compete for star players in the international soccer market.
History
The team salary cap was estimated to be around US$1.9 million in 2006[2], was $2.1 million in 2007, and was raised to $2.3 million for the 2008 season.[3][4] As part of the 2010 Collective Bargaining Agreement between MLS and the MLS Players' Union, the 2010 salary cap will be $2.55 million with an automatic five percent increase each year until the expiration of the agreement at the end of the 2014 season.
Under the 2007 rule:
- The rule expires at the end of the 2009 season, and must be renewed then or allowed to lapse.
- For each Designated Player, $400,000[4][5] of his salary is charged to the salary cap and paid by the league, with any remaining salary being paid by the team's owner. This value was increased for the 2009 season to $415,000.
- Prior to the 2007 season, there were three players whose salary exceeded $400,000. These players were Landon Donovan, Carlos Ruiz and Eddie Johnson. According to the rule, these players were grandfathered in for the 2007 season, and the exemption was extended after the 2007 season, with the league planning to review the issue at a future date. It was possible that the league would be required to renegotiate these players' contracts or consider them Designated Players. However, prior to the start of the 2008 season, Johnson moved to Fulham of the Premier League[6], while following Dwayne De Rosario's signing by Toronto FC in January 2009, Ruiz was released by the club and left MLS to play for Olimpia Asunción. This left Donovan as the lone player whose 2009 salary remained grandfathered under the exemption provision. However, there were several more players whose guaranteed salary exceeded the Designated Player amount, but whose salary cap expense was actually lower than their true salary due to the allocation rule. These players include Shalrie Joseph ($450,000), Christian Gomez ($430,000), Dwayne De Rosario ($425,750), and Taylor Twellman ($420,000).
- Each team initially had one Designated Player spot, but could trade their Designated Spot to another team; teams were allowed a maximum of two Designated Players.
- Only $325,000 of a team's second Designated Player counted against the salary cap, which was increased to $335,000 in 2009.[4]
The 2010 changes:[7]
- The rule has no expiration date.
- For each Designated Player, $335,000 of his salary is charged to the salary cap and paid by the league, with any remaining salary being paid by the team's owner. This amount is halved for Designated Players signed in the middle of the season. The salary cap value of Designated Players can also be reduced using allocation money. Finally, teams whose Designated Players transfer abroad in the middle of a season can recoup part of the Designated Players' salary cap value.
- Landon Donovan is no longer grandfathered into the rule and must be considered a Designated Player.
- Each team is allowed two Designated Player spots, and they can no longer trade their Designated Player spots. The New York Red Bulls will receive $70,000 in allocation money in return for the nullification of their 2007 trade with Chivas USA for an additional Designated Player spot. This means that both New York and Chivas USA will have two Designated Player spots for the 2010 season.
- Teams can pay a $250,000 "luxury tax" for the right to sign a third Designated Player. This $250,000 would be distributed equally to all MLS teams that have not signed a third Designated Player in the form of allocation money.
Starting with the 2012 season, the rule will be changed with respect to younger players. MLS announced the changes in August 2011 after clubs expressed concern about signing young international players with no guarantees that they would develop into stars. Under the new rules, no new slots will be added, but international players age 23 and under signed under the Designated Player Rule will be subject to a reduced salary cap number:[8]
- Ages 21 to 23: $200,000.
- 20 or younger: $150,000.
Background
The rule is informally named after football star David Beckham, in anticipation of MLS teams signing lucrative deals with internationally recognized players of Beckham's caliber.[9][1] As it turned out, Beckham was indeed the first player to be signed under this rule, signing a lucrative contract with the Los Angeles Galaxy worth up to $250 million over five years, with direct guaranteed compensation from MLS and Galaxy at $6.5 million a year.[10] The rest of Beckham's increased earnings would come from Beckham regaining the entirety of his image rights, which Real Madrid had owned fifty percent of, effectively doubling his existing endorsement income, as well as new endorsement deals, a share of jersey sales, bonuses, etc.[11]
Current Designated Players
| Year Signed |
Player |
Current club |
2011 Guaranteed Compensation [12] |
| 2007 |
Beckham, DavidDavid Beckham |
Los Angeles Galaxy |
$6,500,000 |
| 2007 |
Ángel, Juan PabloJuan Pablo Ángel |
Chivas USA |
$1,250,000 |
| 2009 |
de Guzman, JulianJulian de Guzman |
Toronto FC |
$1,910,746 |
| 2010 |
Donovan, LandonLandon Donovan |
Los Angeles Galaxy |
$2,300,000 |
| 2010 |
Bošković, BrankoBranko Bošković |
D.C. United |
$525,367 |
| 2010 |
Henry, ThierryThierry Henry |
New York Red Bulls |
$5,600,000 |
| 2010 |
Fernández, ÁlvaroÁlvaro Fernández |
Seattle Sounders FC |
$366,667 |
| 2010 |
Marquez, RafaelRafael Márquez |
New York Red Bulls |
$4,600,000 |
| 2010 |
Saborío, ÁlvaroÁlvaro Saborío |
Real Salt Lake |
$305,625 |
| 2010 |
Montero, FredyFredy Montero |
Seattle Sounders FC |
$636,000 |
| 2011 |
Hassli, EricEric Hassli |
Vancouver Whitecaps FC |
$900,000 |
| 2011 |
Ferreira, DavidDavid Ferreira |
FC Dallas |
$705,000 |
| 2011 |
Castillo, FabiánFabián Castillo |
FC Dallas |
$42,000 |
| 2011 |
Chará, DiegoDiego Chará |
Portland Timbers |
$143,758 |
| 2011 |
Frings, TorstenTorsten Frings |
Toronto FC |
$1,113,662 |
| 2011 |
Koevermans, DannyDanny Koevermans |
Toronto FC |
$1,413,319 |
| 2011 |
Jarju, MustaphaMustapha Jarju |
Vancouver Whitecaps FC |
$426,883 |
| 2011 |
Rost, FrankFrank Rost |
New York Red Bulls |
$545,460 |
| 2011 |
Keane, RobbieRobbie Keane |
Los Angeles Galaxy |
$3,417,243 |
| 2012 |
Joseph, ShalrieShalrie Joseph |
New England Revolution |
$n/a |
| 2012 |
Valencia, José AdolfoJosé Adolfo Valencia |
Portland Timbers |
$n/a |
- Notes
- Chart indicates when players signed their Designated Player contract, not necessarily their first year in MLS.
- Player salaries include compensation from their MLS contract, not including any bonuses or compensation from contracts with individual teams or their affiliates.
Past Designated Players
| Year/s Played |
Player |
Club/s |
Average Salary |
| 2007–2010‡† |
Emilio, LucianoLuciano Emilio |
D.C. United |
$516,043 |
| 2007–2008 |
Reyna, ClaudioClaudio Reyna |
New York Red Bulls |
$1,250,008 |
| 2007–2009 |
Blanco, CuauhtémocCuauhtémoc Blanco |
Chicago Fire |
$2,759,086 |
| 2007 |
Denílson |
FC Dallas |
$879,936 |
| 2008 |
Gallardo, MarceloMarcelo Gallardo |
D.C. United |
$1,874,006 |
| 2008–2009, 2010† |
López, ClaudioClaudio López |
Kansas City Wizards, Colorado Rapids |
$373,333 |
| 2008–2010‡† |
Barros Schelotto, GuillermoGuillermo Barros Schelotto |
Columbus Crew |
$463,750 |
| 2009–2010, 2010 |
Ljungberg, FreddieFreddie Ljungberg |
Seattle Sounders FC, Chicago Fire |
$1,314,000 |
| 2009–2010 |
Landín, Luis ÁngelLuis Ángel Landín |
Houston Dynamo |
$120,000 |
| 2010 |
Nkufo, BlaiseBlaise Nkufo |
Seattle Sounders FC |
$480,000 |
| 2010 |
Mista |
Toronto FC |
$987,338 |
| 2010 |
Castillo, NeryNery Castillo |
Chicago Fire |
$1,788,061 |
| 2010 |
Geovanni |
San Jose Earthquakes |
$n/a |
| 2011 |
Jéferson |
Sporting Kansas City |
$484,996 |
| 2011‡ |
Mendoza, AndrésAndrés Mendoza |
Columbus Crew |
$595,000 |
| 2011 |
Bravo, OmarOmar Bravo |
Sporting Kansas City |
$170,000 |
| 2011 |
Caraglio, MiltonMilton Caraglio |
New England Revolution |
$54,000 |
- Notes
- ‡ – indicates players who originally signed with MLS at a salary lower than a Designated Player level but later had their salary increased to a Designated Player level.
- † – indicates players who still continued to play in MLS but had their contracts negotiated below a Designated Player level.
- Player salaries include compensation from their MLS contract, not including any bonuses or compensation from contracts with individual teams or their affiliates.
Most Designated Players per country
- 6 Colombia: Juan Pablo Ángel, Fabián Castillo, Diego Chará, David Ferreira, Fredy Montero and José Adolfo Valencia
- 5 Mexico: Cuauhtémoc Blanco, Omar Bravo, Nery Castillo, Luis Ángel Landín and Rafael Márquez
- 4 Argentina: Guillermo Barros Schelotto, Milton Caraglio, Marcelo Gallardo and Claudio López
- 4 Brazil: Denílson, Luciano Emilio, Geovanni and Jéferson
- 2 France: Eric Hassli and Thierry Henry
- 2 Germany: Torsten Frings and Frank Rost
- 2 United States: Landon Donovan and Claudio Reyna
- 1 Canada: Julian de Guzmán
- 1 Costa Rica: Álvaro Saborío
- 1 England: David Beckham
- 1 Gambia: Mustapha Jarju
- 1 Grenada: Shalrie Joseph
- 1 Ireland: Robbie Keane
- 1 Montenegro: Branko Bošković
- 1 Netherlands: Danny Koevermans
- 1 Peru: Andrés Mendoza
- 1 Spain: Mista
- 1 Sweden: Freddie Ljungberg
- 1 Switzerland: Blaise Nkufo
- 1 Uruguay: Álvaro Fernández
See also
References
- ^ a b Wahl, Grant (November 28, 2011). "Hollywood Ending: If this was indeed David Beckham's final game in MLS, he went out in style, carrying the Galaxy to a championship and affirming the value of star power in America". Sports Illustrated. http://sportsillustrated.cnn.com/vault/article/magazine/MAG1192446/index.htm. Retrieved 2011-11-25. "In the first four seasons of MLS's Beckham Rule, which allowed clubs to sign up to three designated players outside the salary cap, ...."
- ^ Goff, Steven (2006-04-26). "Palencia Has Richest MLS Salary". Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2006/04/26/AR2006042602276.html. Retrieved 2007-12-01.
- ^ Mickle, Tripp (2007-11-26). "Debate highlights MLS salary cap split". Sports Business Journal. http://www.sportsbusinessjournal.com/index.cfm?fuseaction=article.main&articleId=57143&requestTimeout=900. Retrieved 2007-12-01.
- ^ a b c Bell, Jack (2009-03-18). "In M.L.S., Designated Players Do Not Guarantee Great Expectations". New York Times. http://www.nytimes.com/2009/03/18/sports/soccer/18soccer.html?ref=soccer. Retrieved 2009-03-18.
- ^ "Galaxy, Milan, Inter wait on Becks". CNN. 2009-02-24. http://sportsillustrated.cnn.com/2009/writers/soccer_america/02/24/aeg.beckham/. Retrieved 2010-05-01.
- ^ "Fulham complete Johnson signing". BBC Sport. 2008-01-23. Archived from the original on 2008-01-27. http://web.archive.org/web/20080127164821/http://news.bbc.co.uk/sport2/hi/football/teams/f/fulham/7202841.stm.
- ^ Mayers, Joshua (April 1, 2010). "Major League Soccer adds second DP slot, can purchase a third (league release)". The Seattle Times. http://seattletimes.nwsource.com/html/soundersfcblog/2011498898_major_league_soccer_adds_secon.html#continue. Retrieved April 2, 2010.
- ^ Associated Press (August 16, 2011). "MLS alters designated player rule". ESPN.com. http://espn.go.com/sports/soccer/news/_/id/6867113/mls-changes-rule-bring-more-young-international-players. Retrieved August 17, 2011.
- ^ Lansley, Pete (2007-04-13). "Becks could be the next American idol". The Telegraph. http://www.telegraphindia.com/1060413/asp/sports/story_6093255.asp. Retrieved 2007-12-01.
- ^ http://www.mlsplayers.org/salary_info.html
- ^ "Beckham hopes to make US history". BBC. 2007-01-12. http://news.bbc.co.uk/sport2/hi/football/6256125.stm. Retrieved 2007-12-01.
- ^ "2011 MLS Player Salaries". 2011 MLS Player Salaries. Major League Soccer Players Union. http://www.mlsplayers.org/files/May%201,%202011%20Salary%20Information%20-%20By%20Club.pdf.
External links