What is MLS General Allocation Money Used for?

Major League Soccer gives its clubs a number of ways to improve their rosters each offseason. One of those is the allotment of new General Allocation Money, or GAM.

If you wondering what GAM is used for, we've got you covered.

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What is MLS General Allocation Money Used for?

MLS teams use GAM to sign or retain top talent. Major League Soccer explained how each team can use GAM:

Buying Down a Player's Salary Budget Charge
Buying Down a Loan or Transfer Fee
Signing a Homegrown Player
Trades

Buying Down a Player's Salary Budget Change

GAM can be used to buy-down a player's Salary Budget Charge as part of managing a club's roster. For example, if a club has a player with a budget charge of $450,000, they can use $300,000 GAM to bring it down to $150,000.

Buying Down a Loan or Transfer Fee

Similar to the example above, players can use GAM to acquire players via transfer or loan.

Signing Homegrown Players

Clubs can use up to $200,000 of their available GAM to sign Homegrown Players to their first MLS contracts.

Trades

Clubs can also use GAM in trades to acquire players, international roster slots, SuperDraft Priority players, Discover Priority and Homegrown Player priority in addition to selection position in MLS SuperDraft, Re-Entry Process and Waivers.

How to MLS Teams Acquire GAM?

There are six ways MLS teams earn General Allocation Money:

Up to $3 million from eligible transfer revenue converted to GAM
Via trade with another MLS team
Qualifying for the Concacaf Champions Cup
Failing to qualify for the Audi MLS Cup Playoffs
The 2024 third Designated Player charge distribution
Having a player selected in the 2024 MLS Expansion Draft

An additional $2 million can be earned if MLS teams if they select the U22 Initiative Roster Construction Path. That decision must be submitted to MLS prior to the 2025 Roster Compliance Date.