USA Tier 1

Taken from the introductory email when taking over an MLS club

I've taken the time to explain some of the MLS' contract rules so as to ease your introduction into the job.

You may sign a maximum of three Designated Players.

These players are typically of a higher stature and greater quality than the rest of the squad, and as such their contribution towards the salary cap will be equal to the maximum Senior Salary of E9,750 p/w, regardless of his total wage. If the player is signed during the summer transfer window, clubs get a 50% discount on their salary cap impact.

However, a Designated Player 20 years old or younger (referred to as a Young Designated Player) only counts as E2,200 p/w against the club's salary budget, whereas a Young

Designated Player 21-23 years old counts as E3,OOO p/w against the club's salary budget. The budget charge for the midseason signing of a Young DP is E2,200 p/w and this

amount cannot be lowered with General Allocation money, however it can be lowered using Targeted Allocation money instead. Clubs will not have to buy the third DP roster slot to

accommodate a Young Designated Player.

There are two main types of squad registration slots in the MLS: Senior and Off-Budget. Players registered on a Senior slot will always count towards the salary cap, whilst

Off-Budget players are given an exemption.

Players on Designated and Senior contracts may only be registered by using a Senior slot.

Players on Senior contracts can have their salary cap impact bought down using General Allocation Money.

Players earning the league minimum salary of El,300 p/w are on Senior Minimum Salary contracts and may be registered using either a Senior or Off-Budget slot.

Players signed from an MLS club's academy are categorized as Homegrown; they retain this status until they permanently move to a non-MLS club. These players may be registered

using either a Senior or Off-Budget slot. For Senior Homegrown players registered as Off-Budget, the combined difference between their salary cap impact and their minimum

salary cap impact is exempt from the salary cap up to a maximum of El,900 p/w.

Generation Adidas contracts pay above the Senior Minimum Salary value and are given to the highest-rated prospects coming through the draft system. They are always exempt

from the salary cap and can only be registered using an Off-Budget slot.

Reserve contract players are also always exempt from the salary cap and can occupy only Off-Budget slots. Reserve contracts can only be given to players under the age of 25 and

come with a maximum length of two years.