Designated Player Rule

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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 (either by offering the player higher wages or by paying a transfer fee for the player), allowing MLS teams to compete for star players in the international soccer market. Clubs have the option to use allocation money against a players contract, so to avoid a player with a Designated Player level salary using one of the club's Designated Player slots. As of December 2015, there have been 114 designated players in the MLS.

The rule is informally named after soccer star David Beckham, in anticipation of MLS teams signing lucrative deals with internationally recognized players of Beckham's caliber.[1][2] Beckham was the first player signed under this rule, signing a five-year contract with the Los Angeles Galaxy with guaranteed annual salary of $6.5 million.[3][4]

History

The team salary cap was estimated to be around US$1.9 million in 2006,[5] was $2.1 million in 2007, and was raised to $2.3 million for the 2008 season.[6][7] As part of the 2010 Collective Bargaining Agreement between MLS and the MLS Players' Union, the 2010 salary cap was $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[7][8] 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,[9] 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.[7]

The 2010 changes:[10]

  • 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 ($167,500 for DP players joining during the MLS summer transfer window), 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.

The 2012 changes:[11]

Starting with the 2012 season, the rule was 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.

  • Designated Players over the age of 23 will carry a salary budget charge of $350,000, unless the player joins his club in the middle of the season, in which case his budget charge will be $175,000.
  • Designated Players 21–23 years old count as $200,000 against the club’s salary budget.
  • Designated Players 20 years old or younger count as $150,000 against the club’s salary budget.
  • The budget charge for the midseason signing of a young Designated Player (23 years old and younger) is $150,000 and this amount cannot be lowered with allocation funds.
  • Clubs will not have to buy the third DP roster slot to accommodate Designated Players 23 years old and younger.
  • Age of player is determined by year (not date) of birth.

The maximum budget charge for Designated Players over age 23 was increased to $368,750 for 2013, $387,500 in 2014, and $436,250 in 2015. The budget charge for those who join during the midseason transfer window has remained at one-half of the full-season cap charge since the inception of the rule. The budget charges for younger players have not changed since 2012.[12]

Background

The rule is informally named after soccer star David Beckham, in anticipation of MLS teams signing lucrative deals with internationally recognized players of Beckham's caliber.[1][2] 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.[3] The rest of Beckham's increased earnings would come from Beckham regaining the entirety of his image rights, of which Real Madrid had owned fifty percent, effectively doubling his existing endorsement income, as well as new endorsement deals, a share of jersey sales, bonuses, etc.[4]

Current Designated Players

Year signed Player Nation Current club 2015 Guaranteed compensation [13]
2011 Robbie Keane  IRL LA Galaxy $4,500,000
2012 Federico Higuaín  ARG Columbus Crew $1,175,000
2013 Diego Valeri  ARG Portland Timbers $550,000
2013 Chris Wondolowski  USA San Jose Earthquakes $675,000
2013 Obafemi Martins  NGA Seattle Sounders FC $3,000,000
2014 Matías Laba  ARG Vancouver Whitecaps FC $325,000
2013 Clint Dempsey  USA Seattle Sounders FC $4,605,492
2013 Mauro Diaz  ARG FC Dallas $442,400
2014 Gilberto  BRA Chicago Fire $1,144,922
2014 Michael Bradley  USA Toronto FC $6,500,000
2014 Maurice Edu  USA Philadelphia Union $768,750
2014 Pedro Morales  CHI Vancouver Whitecaps FC $1,410,900
2014 David Villa  ESP New York City FC $5,610,000
2014 Liam Ridgewell  ENG Portland Timbers $1,000,000
2014 Sebastián Jaime  ARG Real Salt Lake $266,667
2014 Kaká  BRA Orlando City $7,167,500
2014 Ignacio Piatti  ARG Montreal Impact $400,000
2014 Matt Besler  USA Sporting Kansas City $683,250
2014 Graham Zusi  USA Sporting Kansas City $682,102
2014 DaMarcus Beasley  USA Houston Dynamo $813,333
2014 Matías Pérez García  ARG San Jose Earthquakes $240,000
2015 Bradley Wright-Phillips  ENG New York Red Bulls $660,000
2015 Fabian Castillo  COL FC Dallas $160,000
2015 Bryan Róchez  HON Orlando City $279,500
2015 David Accam  GHA Chicago Fire $720,938
2015 Erick Torres  MEX Houston Dynamo $425,000
2015 Octavio Rivero  URU Vancouver Whitecaps FC $890,850
2015 Steven Gerrard  ENG LA Galaxy $6,332,504
2015 Frank Lampard  ENG New York City FC $6,000,000
2015 Jozy Altidore  USA Toronto FC $4,750,000
2015 Sebastian Giovinco  ITA Toronto FC $7,115,556
2015 Fabián Espíndola  ARG D.C. United $175,000
2015 Innocent Emeghara   SUI San Jose Earthquakes $1,040,000
2015 Juan Ramírez  ARG Colorado Rapids $75,000
2015 Carlos Rivas  COL Orlando City $60,000
2015 Joao Plata  ECU Real Salt Lake $150,000
2015 Kevin Doyle  IRL Colorado Rapids $1,170,000
2015 Andrea Pirlo  ITA New York City FC $2,315,694
2015 Giovani dos Santos  MEX LA Galaxy $4,100,008
2015 Lucas Melano  ARG Portland Timbers $799,992
2015 Gonzalo Verón  ARG New York Red Bulls $200,004
2015 Nelson Valdez  PRY Seattle Sounders FC $1,215,000
2015 Juan Manuel Martínez  ARG Real Salt Lake $1,108,667
2016 Simon Dawkins  JAM San Jose Earthquakes $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.

[14]

Past Designated Players

Year/s Played Player Nation Club/s Average Salary
2002–2012‡, 2012, 2013–2014† Shalrie Joseph  GRN New England Revolution, Chivas USA, Seattle Sounders FC $599,333
2007–2012 David Beckham  ENG LA Galaxy $4,000,000
2007–2010, 2011, 2011–2012† Juan Pablo Ángel  COL New York Red Bulls, LA Galaxy, Chivas USA $1,630,700
2007–2010‡† Luciano Emilio  BRA D.C. United $516,043
2007–2008 Claudio Reyna  USA New York Red Bulls $1,250,008
2007–2009 Cuauhtémoc Blanco  MEX Chicago Fire $2,759,086
2007 Denílson  BRA FC Dallas $879,936
2007–2010‡† Guillermo Barros Schelotto  ARG Columbus Crew $463,750
2008 Marcelo Gallardo  ARG D.C. United $1,874,006
2008–2009, 2010† Claudio López  ARG Kansas City Wizards, Colorado Rapids $373,333
2009–2012, 2012 Julian de Guzman  CAN Toronto FC, FC Dallas $1,910,746
2009–2010, 2010 Freddie Ljungberg  SWE Seattle Sounders FC, Chicago Fire $1,314,000
2009–2010 Luis Ángel Landín  MEX Houston Dynamo $120,000
2009–2012‡ Fredy Montero  COL Seattle Sounders FC $706,000
2009–2013‡ David Ferreira  COL FC Dallas $548,000
2010–2014‡ Landon Donovan  USA LA Galaxy $2,782,222
2010 Blaise Nkufo   SUI Seattle Sounders FC $480,000
2010–2012† Branko Bošković  MNE D.C. United $528,978
2010–2012 Rafael Márquez  MEX New York Red Bulls $4,600,000
2010 Mista  ESP Toronto FC $987,338
2010 Nery Castillo  MEX Chicago Fire $1,788,061
2010–2011‡ Andrés Mendoza  PER Columbus Crew $417,917
2010 Geovanni  BRA San Jose Earthquakes $n/a
2010–2012, 2012–2013 Álvaro Fernández  URU Seattle Sounders FC, Chicago Fire $350,000
2010–2014 Thierry Henry  FRA New York Red Bulls $5,100,000
2011 Omar Bravo  MEX Sporting Kansas City $170,000
2011 Mustapha Jarju  GAM Vancouver Whitecaps FC $426,883
2011 Frank Rost  GER New York Red Bulls $545,460
2011 Jéferson  BRA Sporting Kansas City $484,996
2011 Milton Caraglio  ARG New England Revolution $54,000
2011–2012‡ Freddy Adu  USA Philadelphia Union $519,000
2011–2012 Torsten Frings  GER Toronto FC $2,413,667
2011–present† Diego Chará  COL Portland Timbers $202,501
2011–2013‡ Dwayne De Rosario  CAN D.C. United $645,333
2011–2012, 2012, 2013† Eric Hassli  FRA Vancouver Whitecaps FC, Toronto FC, FC Dallas $650,759
2011–2013 Danny Koevermans  NED Toronto FC $1,546,655
2012 Federico Puppo  URU Chicago Fire $100,000
2012 Kris Boyd  SCO Portland Timbers $1,515,000
2012 Hamdi Salihi  ALB D.C. United $487,460
2012 Barry Robson  SCO Vancouver Whitecaps FC $596,500
2012–2013 Sherjill MacDonald  NED Chicago Fire $527,125
2012–2014 Tim Cahill  AUS New York Red Bulls $3,625,000
2012 Christian Tiffert  GER Seattle Sounders FC $625,000
2012–present† Boniek Garcia  HND Houston Dynamo $258,742
2012–2014 Kenny Miller  SCO Vancouver Whitecaps FC $1,032,496
2012–2014 Marco Di Vaio  ITA Montreal Impact $2,158,338
2013–2014 Claudio Bieler  ARG Sporting Kansas City $212,500
2013 Rafael  BRA D.C. United $284,625
2013 Arévalo Rios  URU Chicago Fire $768,000
2013 Kléberson  BRA Philadelphia Union $495,000
2013–2014 Hernán Bernardello  ARG Montreal Impact $250,008
2013–2014 Juan Luis Anangonó  ECU Chicago Fire $147,500
2012–2014 Oswaldo Minda  ECU Chivas USA $127,083
2011–2015‡† Mauro Rosales  ARG Seattle Sounders FC, Chivas USA, Vancouver Whitecaps FC $235,500
2014 Andrés Escobar  COL FC Dallas $647,000
2014 Jermain Defoe  ENG Toronto FC $6,180,000
2012–2014† Jerry Bengtson  HON New England Revolution $136,560
2013–2015† Alexander López  HND Houston Dynamo $161,000
2014–2015† David Texeira  URU FC Dallas $338,000
2010–present† Álvaro Saborío  CRC Real Salt Lake $300,308
2012–present‡† Javier Morales  ARG Real Salt Lake $284,100
2013–2015‡† Omar Gonzalez  USA LA Galaxy $n/a
2014–present† Fanendo Adi  NGR Portland Timbers $n/a
2001–2007, 2012–2015‡† Eddie Johnson  USA FC Dallas, Kansas City Wizards, Seattle Sounders FC, D.C. United $n/a
2013–2015 Gabriel Torres  PAN Colorado Rapids $n/a
2014–2015 Jermaine Jones  USA New England Revolution $n/a
2014–† Cristian Maidana  ARG Philadelphia Union, Houston Dynamo $n/a
2015 Fernando Aristeguieta  VEN Philadelphia Union $350,004
2015 Didier Drogba  CIV Montreal Impact $2,166,668
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.

Past and present Designated Players by country

No. of players Country Players
21 Argentina Argentina Guillermo Barros Schelotto, Hernán Bernardello, Claudio Bieler, Milton Caraglio, Mauro Diaz, Fabián Espíndola, Marcelo Gallardo, Federico Higuaín, Sebastián Jaime, Matías Laba, Claudio López, Cristian Maidana, Juan Manuel Martinez, Lucas Melano, Javier Morales, Matías Pérez García, Ignacio Piatti, Juan Ramírez, Mauro Rosales, Diego Valeri, Gonzalo Verón
15 United States United States Freddy Adu, Jozy Altidore, DaMarcus Beasley, Kyle Beckerman, Matt Besler, Michael Bradley, Clint Dempsey, Landon Donovan, Maurice Edu, Omar Gonzalez, Eddie Johnson, Jermaine Jones, Claudio Reyna, Chris Wondolowski, Graham Zusi
8 Brazil Brazil Denílson, Luciano Emilio, Geovanni, Gilberto, Jéferson, Kaká, Kléberson, Rafael
7 Mexico Mexico Cuauhtémoc Blanco, Omar Bravo, Nery Castillo, Giovani dos Santos, Luis Ángel Landín, Rafael Márquez, Erick Torres
6 Colombia Colombia Juan Pablo Ángel, Fabián Castillo, Diego Chará, Andrés Escobar, David Ferreira, Fredy Montero
England England David Beckham, Jermain Defoe, Steven Gerrard, Frank Lampard, Liam Ridgewell, Bradley Wright-Phillips
5 Uruguay Uruguay Álvaro Fernández, Federico Puppo, Arévalo Rios, Octavio Rivero, David Texeira
4 Honduras Honduras Jerry Bengtson, Óscar Boniek García, Alexander López, Bryan Róchez
Scotland Scotland Kris Boyd, Shaun Maloney, Kenny Miller, Barry Robson
3 Ecuador Ecuador Juan Luis Anangonó, Oswaldo Minda, Joao Plata
Germany Germany Torsten Frings, Frank Rost, Christian Tiffert
Italy Italy Marco Di Vaio, Sebastian Giovinco, Andrea Pirlo
Nigeria Nigeria Fanendo Adi, Kennedy Igboananike, Obafemi Martins
2 Canada Canada Julian de Guzman, Dwayne De Rosario
France France Eric Hassli, Thierry Henry
Republic of Ireland Ireland Kevin Doyle, Robbie Keane
Netherlands Netherlands Danny Koevermans, Sherjill MacDonald
Spain Spain Mista, David Villa
Switzerland Switzerland Innocent Emeghara, Blaise Nkufo
1 Albania Albania Hamdi Salihi
Australia Australia Tim Cahill
Chile Chile Pedro Morales
Costa Rica Costa Rica Álvaro Saborío
Cuba Cuba Osvaldo Alonso
The Gambia The Gambia Mustapha Jarju
Ghana Ghana David Accam
Grenada Grenada Shalrie Joseph
Ivory Coast Ivory Coast Didier Drogba
Jamaica Jamaica Simon Dawkins
Montenegro Montenegro Branko Bošković
Panama Panama Gabriel Torres
Peru Peru Andrés Mendoza
Sweden Sweden Freddie Ljungberg
Venezuela Venezuela Fernando Aristeguieta

See also

References

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  14. http://www.empireofsoccer.com/nycfcs-payroll-making-29106/

External links