MLS is unlike most other soccer leagues around the world due to its playoff format, strict roster-building rules and its unique Designated Player slot.
The Designated Player is a roster slot allocated to high-level players that earn significantly more money than the average MLS player. This roster slot was created in July 2007 when former Real Madrid and Manchester United star David Beckham joined the LA Galaxy in a move that changed MLS forever.
The Galaxy were able to sign a player of Beckham's quality during the league's early years because of the Designated Player rule. The Designated Player rule allows MLS teams to sign players that earn a salary above the threshold of $683,750. This means there is no limit to how much an MLS team can pay any of its Designated Players which has allowed teams like Inter Miami to sign Lionel Messi and Toronto FC to sign Lorenzo Insigne.
For example, Messi earned a base salary of $12 million and Insigne earned a base salary of $7.5 million in 2024—both exceed an MLS team's total salary cap of $5,470,000. While Messi and Insigne are the top two highest-paid MLS players, their salaries only count as $683,750 toward the salary cap.
When it comes to how many Designated Players teams are allowed to have on their rosters, teams have two choices: the Designated Player model or the U-22 Initiative Player model. Under the Designated Player model, teams can have up to three Designated Players and three U-22 Initiative Players on their rosters.
Under the U-22 Initiative Player model, teams can have up to two Designated Players and four U-22 Initiative Players on their rosters. An U-22 Initiative Player slot works similarly to a Designated Player slot in that MLS teams can sign talented players under 22 years old to a higher salary with a lower charge to the team's salary cap.
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This article was originally published on www.si.com as How Do MLS Designated Player Slots Work?.
