Fact-checked by Grok 2 weeks ago

Allocation money

Allocation money in (MLS) refers to supplemental funds provided to clubs beyond their standard salary budget, enabling them to sign s, reduce hits, and maintain roster compliance under the league's financial regulations. A similar allocation money system is also employed in the (NWSL) to support roster flexibility under its financial rules. It is categorized into two main types: General Allocation Money (GAM), which offers flexible spending options, and Targeted Allocation Money (TAM), which is restricted to specific uses for mid-tier acquisitions. Introduced as part of MLS's evolving system to enhance competitive balance, allocation money allows teams to strategically manage high-value signings without violating the league's single-entity structure and collective bargaining agreement (CBA) constraints. General Allocation Money (GAM) provides clubs with the broadest utility within the allocation framework, permitting its use to buy down a player's budget charge by up to 50% or $150,000 (whichever is less, with exceptions for international loans or ), cover portions of fees, or facilitate trades between teams. In 2025, each MLS club receives a base allocation of $2,930,000 in GAM, with an additional up to $2,000,000 available under the U22 Initiative for young ; this amount can be traded, carried over to future seasons, with no general expiration except for U22 Initiative GAM which must be used by the roster freeze date (September 12, 2025), or converted into under certain conditions. GAM has been a core element of MLS roster management since the league's early financial mechanisms, originally awarded in smaller annual sums (e.g., $150,000 in ) and expanded through mechanisms like playoff non-qualification bonuses ($200,000 per team) and expansion allocations ($1.1 million for new clubs). Targeted Allocation Money (TAM), in contrast, is non-tradable and designed to target the "" of the roster by funding signings or re-signings of whose guaranteed compensation exceeds the maximum salary budget charge of $743,750 but falls below Designated Player thresholds, with a cap of $1,743,750 per after application. For 2025, allocates $2,225,000 in TAM per club, a decrease from $2,400,000 in 2024 as part of the phase-out of the allocation money system toward higher salary caps. TAM was formally introduced in as part of a new with the MLS Players Association, providing an initial $1.0 million per team to address roster depth issues and has since grown to support immediate-impact signings, such as converting a Designated Player to a non-Designated status. Clubs acquire allocation money through a combination of distributions, performance incentives, and transactions; for instance, GAM can be generated from up to $3,000,000 of annual or , while remains a fixed annual grant. This system, which evolved from MLS's inception amid single-entity ownership challenges, has been pivotal in allowing resource-disparate teams to compete for talent, with total allocation pools reaching over $5 million per club by 2025 when combining GAM and . Notable uses include high-profile trades, such as those involving guaranteed GAM payments exceeding $1 million, underscoring its role in league-wide roster fluidity.

Overview

Definition and Purpose

Allocation money is a financial tool employed in select professional soccer leagues, including (MLS) and the (NWSL), providing teams with a designated pool of funds that can be applied toward signing players, covering portions of player salaries, or paying transfer and loan fees without impacting the league's . These funds function as non-cap expenditures, allowing clubs to strategically allocate resources for roster construction while adhering to overall financial constraints imposed by the league. In essence, allocation money serves as a flexible buffer to enhance team competitiveness without disrupting the parity intended by systems. The core purpose of allocation money is to empower teams to pursue and retain high-caliber or optimize roster expenses in a manner that promotes league-wide balance and compliance, particularly in single-entity structures like MLS where centralized limits individual club spending power. By enabling "buy-downs" of a 's charge—reducing the cap hit of a player's compensation—or funding acquisition costs, it mitigates the rigidities of traditional caps, fostering greater financial creativity in player transactions. This mechanism was first implemented in MLS in 2007, coinciding with the introduction of the , to support the signing of stars while preventing disproportionate that could undermine competitive ; in the NWSL, introduced in 2019, allocation money is being phased out, with existing funds usable until the end of 2026. In practice, allocation money operates independently of a team's standard salary budget, permitting its use across various roster maneuvers such as domestic or international signings, intra-league trades, or temporary loans, all while preserving the integrity of calculations. This approach not only aids in cost management but also incentivizes in development and market growth, as teams can leverage these funds to bridge gaps between budgeted salaries and actual compensation needs.

Role in Salary Cap Compliance

Allocation money serves as a critical tool for integrating with structures in professional soccer leagues, enabling teams to offset portions of player compensation that would otherwise exceed cap limits. By allowing "buy-downs" of salary budget charges—reducing the cap hit of a player's compensation—it permits the signing or retention of high-earning players without fully burdening the team's capped , thus preventing wealthier clubs from gaining undue advantages and promoting overall competitive . This off-cap spending mechanism ensures that team budgets remain balanced, supporting league-wide in . Compliance with allocation money usage is enforced through rigorous oversight, requiring funds to be applied exclusively to approved purposes such as reducing cap hits or covering specific transaction costs, while prohibiting any circumvention of rules. Leagues maintain central tracking of these funds, mandating timely reporting and adherence to seasonal deadlines to verify proper application. Non-compliance, such as misuse of allocation money, can lead to severe penalties including substantial fines, forfeiture of allocation funds, personnel suspensions, or forced roster adjustments to restore cap equilibrium. The systemic benefits of allocation money extend to enhancing acquisition across without amplifying disparities, allowing all teams to compete for while preserving . In single-entity models, where centralized is fundamental, this tool aligns individual team strategies with collective goals, mitigating risks of overspending and bolstering long-term viability through equitable distribution of resources. Prerequisites for utilizing allocation money include annual tracking of balances by teams, with mandatory submitted to for . Unused funds may be carried over to future seasons under defined rules, such as automatic rollover up to specified limits or expiration dates, ensuring strategic planning while preventing indefinite hoarding. These requirements underscore the mechanism's role in maintaining disciplined financial management within cap-compliant frameworks.

Major League Soccer

Types of Allocation Money

In (MLS), allocation money is divided into two primary types: General Allocation Money (GAM) and Targeted Allocation Money (TAM), each designed to provide teams with mechanisms for roster management under the league's constraints. General Allocation Money (GAM) consists of unrestricted funds that teams can apply flexibly to various roster maneuvers, such as buying down a player's Budget Charge (SBC) to fit within the or signing new Homegrown Players. For the 2025 , each MLS club receives a base allocation of $2,930,000 in GAM, with the potential for additional amounts based on factors like playoff performance, international competition qualifications, or trades with other clubs; expansion teams, such as , received $2,765,000 in supplemental GAM as part of their entry package for the 2025 . Unlike more limited funds, GAM can be traded between teams and, except for portions tied to the U22 Initiative Player Model, does not expire at the end of the . Targeted Allocation Money (TAM), in contrast, is a more restricted form of allocation money intended to facilitate the signing or retention of mid-tier talent without utilizing Designated Player slots. In 2025, each team is allocated $2,225,000 in , which can only be used for players whose total compensation falls between the league's maximum of $743,750 and a ceiling of $1,743,750, including new signings, re-signings, or conversions of Designated Players to non-Designated status; it also supports signing new not previously under MLS contract. cannot be traded and is subject to buy-down limits, such as not reducing a player's below $150,000, emphasizing its role in building depth with players of moderate salaries rather than high-profile stars. This type is currently in a phase-out process, decreasing to $2,125,000 per team in 2026 and $2,025,000 in 2027, as shifts toward greater reliance on GAM for roster flexibility. The key differences between GAM and TAM lie in their scope and application: GAM offers broad versatility across all roster types and player profiles, enabling comprehensive cap management, while TAM is narrowly focused on acquiring or retaining young or mid-level contributors to enhance squad depth without exceeding Designated Player designations.

Acquisition Methods

Major League Soccer teams acquire General Allocation Money (GAM) through a combination of league-mandated distributions, performance-based incentives, intra-league trades, and conversions from player transfer revenues. These mechanisms ensure equitable access to funds while incentivizing competitive balance and player development. The primary sources are governed by the league's Collective Bargaining Agreement (CBA) and annual roster rules, with updates reflecting evolving league priorities such as expansion and international participation. League distributions form the foundational source of GAM, with each club receiving an annual base allotment publicized by MLS in March, incorporating prior-year carryover balances that vary by team. For the 2025 season, this base amount is $2,930,000 per club, providing essential flexibility for roster construction. Additionally, clubs receive up to $200,000 in GAM specifically designated for signing Homegrown Players to their first professional contracts, subject to league approval to promote youth development. Performance incentives provide targeted GAM awards to encourage participation and mitigate competitive disadvantages. Non-playoff teams receive $200,000 in end-of-season GAM to support offseason rebuilding efforts. During expansion years, new teams such as are allocated an additional $2,765,000. Other incentives include bonuses for qualifying for the and participation in the , such as $750,000 extra GAM plus up to $1.25 million in pull-forward funds repayable over subsequent seasons for 2025 participants. Trade and transfer revenue represent dynamic acquisition avenues, allowing clubs to generate GAM through player movement. From international transfers or loans, teams may convert 95% of net revenue (after out-of-pocket costs) into GAM, capped at $3,000,000 per season—a limit increased from prior years to facilitate global dealings. Intra-league trades enable exchanges of GAM for players, draft picks, or international roster slots, with the introduction of unlimited cash-for-player transactions further allowing up to $3,000,000 from such deals to be converted into GAM annually. These mechanisms, including the ability to "buy down" transfer fees entirely with GAM, enhance trading fluidity. Carryover provisions ensure long-term usability of unused GAM, which rolls over to future seasons without expiration, except for specific types. Clubs may up to a maximum of $3,000,000 in carried-over GAM, providing options. However, under 2025 clarifications, GAM acquired through the U22 Initiative Player Model must be expended in the same season by the Roster Freeze Date (September 12, 2025), though it remains tradable. This distinction prevents indefinite hoarding of youth-focused funds while maintaining flexibility for standard GAM.

Uses and Applications

Allocation money, specifically General Allocation Money (GAM) in (MLS), serves as a flexible tool for clubs to optimize their rosters within the league's constraints. It enables teams to strategically allocate funds toward high-value acquisitions and adjustments without directly impacting the salary budget, thereby facilitating competitive roster building throughout the season. One primary application of GAM is the buy-down of Designated Players (DPs), where clubs can reduce a DP's charge to as low as $150,000, freeing up space for additional signings. For instance, if a DP has a $450,000 charge, a club can apply $300,000 in GAM to lower it to the minimum threshold, allowing the team to allocate the saved toward other roster needs. This mechanism is particularly useful for integrating multiple high-profile talents while maintaining . GAM also supports player signings and loans by covering up to 100% of transfer or loan fees, as well as portions of player contracts such as Homegrown deals. In 2025, clubs may apply up to $200,000 of GAM toward the first MLS contract of a new Homegrown Player, subject to league approval, which helps integrate academy talents into the senior roster cost-effectively. For example, a club signing a promising Homegrown prospect could use $125,000 in GAM to offset the initial salary budget charge, preserving real dollars for other expenditures. Additionally, GAM can fully fund loan fees, enabling temporary acquisitions that bolster depth without long-term cap commitments. In trade facilitation, GAM is frequently exchanged between clubs to acquire players, international roster slots, or draft priorities without immediate salary implications, making it a key asset in mid-season roster maneuvers. A 2025 example includes acquiring $75,000 in 2025 GAM from in exchange for an international roster spot, which the could then deploy toward a subsequent player acquisition or buy-down. Such trades allow teams to adjust dynamically to injuries or performance needs. Finally, GAM underpins the Under-22 (U22) Initiative, providing an additional $2 million per in 2025 specifically for signing U22 players, with a rule mandating its use within the same season to promote rapid integration. This targeted allocation encourages clubs to prioritize young talents, aligning with MLS's emphasis on long-term while enhancing immediate competitiveness.

Limits and Recent Changes

In (MLS), General Allocation Money (GAM) usage is subject to strict caps to ensure equitable roster construction and compliance. Specifically, GAM cannot reduce a 's Salary Budget Charge below the greater of 50% of their base salary or $150,000, with a minimum of $150,000 applicable when converting a Designated to a non-Designated . Additionally, clubs are limited to converting a maximum of $3,000,000 of or revenue into GAM per season, after deducting out-of-pocket costs, to prevent excessive accumulation from dealings. Targeted Allocation Money (TAM), a more restricted form of allocation funds, has been undergoing a phase-out to streamline roster rules and emphasize GAM's flexibility. For the 2025 season, each club receives $2,225,000 in , a reduction from $2,525,000 in 2024, with further decreases planned to $2,125,000 in 2026 and $2,025,000 in 2027 as part of the league's efforts to simplify allocation mechanisms. remains non-tradable and can only be used for signing or re-signing players whose charges exceed the maximum individual Salary Budget Charge of $743,750 or for buying down Designated Players, but it cannot drop charges below the league minimum. Key updates for 2025 include enhancements to GAM acquisition and spending requirements tied to emerging roster initiatives. The cap on converting transfer revenue to GAM has increased to $3,000,000 from the previous limit of approximately $1,500,000, allowing clubs greater flexibility in monetizing player sales while maintaining fiscal balance. Under the U22 Initiative Player Model, clubs opting into this pathway receive an additional $2,000,000 in GAM, which must be fully expended by the 2025 Roster Freeze Date of September 12 and cannot be carried over to future seasons. MLS enforces through mandatory roster and budget audits, with clubs required to achieve full compliance by the 2025 Roster Compliance Date of February 21. Non-compliance, such as exceeding allocation limits or failing to meet spending deadlines, can result in penalties including fines, forced player sales, or roster adjustments imposed by the league office to uphold the . These measures ensure that allocation money supports competitive balance without undermining the structure.

National Women's Soccer League

Structure and Rules

In the (NWSL), allocation money functions as a financial mechanism allowing teams to spend beyond the standard on designated high-value players or transactions, with a core structure providing each team an annual limit of $500,000 for such off-cap expenditures. This system, adapted from Soccer's model to fit NWSL's single-entity ownership structure, enables teams to allocate funds toward player salaries that exceed the league's maximum allocation salary without impacting the primary cap. The framework emphasizes controlled spending to maintain competitive balance, particularly in a league where and centralized operations influence financial decisions. The allocation money system is integrated into the 2024-2030 Collective Bargaining Agreement (CBA) between the NWSL and the NWSL Players Association, where it supports salary cap compliance by permitting expenditures on players whose compensation surpasses the $3,300,000 team salary cap set for the 2025 season. Under the CBA, allocation money can offset the cap charge for these "off-cap" signings, with the intra-league transfer fee threshold elevated to $550,000 in 2025 to accommodate growing transfer values while preventing excessive spending disparities. This integration ensures that allocation usage aligns with broader CBA goals, such as revenue distribution and minimum spending requirements, fostering financial sustainability across the league's 14 teams (expanding to 16 in 2026). Key rules govern the application of allocation money, designating it primarily for "unicorns"—exceptional, high-profile players who command salaries above the cap—or to fund international roster spots without league-wide financial strain. Funds must be applied to compliant player-related expenditures, such as standard player agreements (SPAs) exceeding the maximum allocation salary or approved transfer elements, and all uses require prior league approval to verify adherence to cap regulations. Allocation money cannot be used for general operational costs and is tracked centrally by the league to enforce transparency and prevent circumvention of salary rules. Additionally, teams may trade allocation money as an asset until December 31, 2026, after which unused portions forfeit, marking the system's phase-out in favor of evolving cap mechanisms. Since its introduction in late 2019 for the 2020 season as a management tool, the NWSL's allocation money framework has evolved significantly, expanding in 2025 to incorporate intra-league loans and annual 10% increases in the net transfer fee threshold to reflect rising player valuations and league growth. Initially introduced to mirror MLS practices while accounting for NWSL's unique single-entity model, it provided limited flexibility for attracting top talent amid modest budgets. By 2025, enhancements under the new have broadened its utility for short-term player loans between teams and refined net spend calculations, ensuring the system supports the league's transition toward higher overall compensation without new purchases of allocation funds since late 2023. This evolution underscores the mechanism's role in balancing fiscal discipline with the need to compete internationally for elite players.

Acquisition and Distribution

Teams acquire allocation money in the NWSL primarily through trades with other clubs, where it serves as a tradable asset exchanged for players, draft rights, or other roster assets. For instance, in December 2024, the traded a league-record $400,000 in allocation money along with a 2025 international roster spot to in exchange for . Such transactions allow teams to strategically redistribute funds to bolster their rosters while adhering to constraints. The league provides allocation money distributions to facilitate expansion and competitive balance, particularly for new franchises. Incoming expansion teams, such as and joining in 2026, receive $1,065,000 in allocation money starting July 1, 2025, with 50% funded directly by the NWSL to support roster building. These funds stem from central league resources and are intended to aid integration into the league without immediate financial burden on the clubs. Intra-league transfers often involve cash payments, termed intra-league transfer funds, which are distinct from allocation money but can complement trades. For , teams face a $550,000 net transfer fee threshold for such cash expenditures across incoming and outgoing deals; net spends exceeding this amount incur a 25% charge against the team's to promote equity. Allocation money does not count toward this threshold, allowing it to be used independently for transfers or cap relief without penalty. The collective agreement mandates a 10% annual increase in this threshold through 2030 to accommodate league growth. Unused allocation money automatically carries over from one season to the next, enabling teams to accumulate and deploy it over multiple years. However, as part of the phase-out under the , all remaining funds must be spent or withdrawn by December 31, 2026, after which they are forfeited, with no new allocations available for purchase. This mechanism ensures gradual transition away from allocation money while preserving short-term flexibility in player transactions.

Uses in Player Transactions

In the (NWSL), allocation money primarily enables teams to sign high-salary players whose compensation is funded outside the league's $3.3 million team for the 2025 season, particularly targeting high-value "" players such as star talents who command premiums beyond standard roster budgets. By applying allocation funds to offset a player's charge, teams can cover the full salary of a single high earner—such as an elite forward earning over $500,000 annually—without compromising overall compliance, thereby facilitating the acquisition of game-changing talent that might otherwise be unattainable. Allocation money also plays a key role in covering and fees during player acquisitions, including both deals and the newly introduced intra-league provisions effective in 2025, which allow temporary moves between NWSL clubs to address short-term roster needs. For instance, teams can designate allocation funds to pay fees for incoming players from outside the league, streamlining cross-border transactions without immediate implications. In intra-league contexts, it supports fee payments for permanent s, as seen in the 2025 trade where the acquired forward/midfielder from for $400,000 in allocation money. Beyond direct payments, allocation money is frequently bundled in trades to secure additional roster assets, such as international spots, which are limited to four per team and critical for global . In 2025 examples involving teams like and Boston Legacy FC, allocation funds were paired with international roster spots to fund new roster builds, enabling quicker integration of overseas players amid league growth. This combination enhances trade flexibility, allowing emerging franchises to compete by allocating resources toward premium international acquisitions. For free agency, allocation money provides essential support for signings beginning post-July 1, 2025, targeted at 2026 rosters, by exempting these contracts from the current year's cap hit and promoting competitive balance across teams. With up to $1,065,000 available league-wide starting that date—half automatically funded by the —clubs can strategically commit to unrestricted free agents without disrupting 2025 payrolls, fostering deeper talent pools and roster stability for the following season.

Limits and Ongoing Developments

In the (NWSL), allocation money is subject to an annual cap of $500,000 per team, ensuring controlled distribution within compliance. Additionally, the intra-league cash threshold for transfers is set at $550,000 in 2025, with this limit increasing by 10% annually through 2030 as stipulated in the agreement (). Spending restrictions on allocation money emphasize competitive equity, prohibiting teams from exceeding net thresholds, where excess amounts trigger a 25% charge to deter unbalanced spending. The 2025 updates further tightened these rules by closing loopholes in fund usage, such as through the of regulated intra-league loans and expanded oversight on structures. Looking ahead, the NWSL's base is projected to rise from $3.3 million in 2025 to $5.1 million by 2030, which could broaden the strategic role of allocation money in roster building amid growing financial resources. Ongoing discussions focus on establishing a more robust intra-league transfer market after 2025, including enhanced mechanisms to facilitate without disrupting equity. As of November 2025, debates continue regarding the 's limitations in retaining top , exemplified by negotiations involving stars like , highlighting tensions between financial controls and competitive talent retention. Contrary to earlier rumors of immediate discontinuation, allocation money remains active as of , with prior phase-out proposals adjusted under the new to allow gradual evolution rather than abrupt cessation; usability for existing funded amounts ends December 31, 2026, while expansion teams' funds extend to December 31, 2027.

References

  1. [1]
    Roster Rules and Regulations | MLSsoccer.com
    Allocation Money. Allocation Money is money that is available to a club in addition to its Salary Budget, as either (i) General Allocation Money; or (ii) ...
  2. [2]
    MLS 101: Allocation Money - Dirty South Soccer
    Dec 8, 2016 · What is allocation money? MLS teams use allocation money to acquire new players or to bring down a salary cap hit of a player on the roster.Missing: definition | Show results with:definition<|control11|><|separator|>
  3. [3]
    New Targeted Allocation Money and Homegrown Player funds ...
    Dec 9, 2015 · It is an expansion of the TAM initiative introduced in 2015 as part of the new Collective Bargaining Agreement struck with the MLS Players' ...
  4. [4]
    Top 11 most expensive trades (guaranteed money) in MLS history
    Jan 17, 2022 · 10. They traded that pick to Nashville for $125k GAM (plus another $50k GAM incentives), hence the tricky nature here. Plus, there's the case of ...<|control11|><|separator|>
  5. [5]
    NWSL Announces 2021 Roster Rules, Regulations and Competition ...
    May 13, 2021 · Introduced in 2019, teams may use allocation money, which is financial credit from the league that a team may purchase within limits defined ...
  6. [6]
    MLS' amalgamation of roster rules gives the league spending flexibility
    Mar 20, 2017 · They wanted better quality across the board, so they introduced general allocation money and targeted allocation money in 2015. TAM was ...
  7. [7]
    MLS expands designated player rule | Real Salt Lake
    Apr 2, 2010 · The Designated Player rule, popularly referred to as the “Beckham Rule," was first introduced in 2007. It allowed MLS teams to pay a “designated ...
  8. [8]
    [PDF] Strategic Audit of MLS - UNL Digital Commons
    Apr 7, 2019 · MLS has been structured to offer investor-operators parity, so they all share the same goal of promoting soccer.
  9. [9]
    Explaining Major League Soccer's Salary Cap and Inter Miami's ...
    May 22, 2024 · MLS does not appear to have an issue in regulation or enforcement and the salary cap rules are important to the structure of the league. Unlike ...
  10. [10]
    [PDF] NWSL COMPETITION MANUAL 2025
    Jan 14, 2025 · Salary Cap cash and charges are not tradable assets and cannot be included in transactions ... Teams are not required to use Allocation Money to ...
  11. [11]
    None
    Summary of each segment:
  12. [12]
    2025 MLS Roster Rules and Regulations | MLSSoccer.com
    Clubs may "buy down" the Salary Budget Charge of a Designated Player with General Allocation Money. The reduced budget charge may not be less than $150,000.Missing: fines penalties
  13. [13]
    MLS Publicizes 2025 General Allocation Money Available to Clubs
    Mar 7, 2025 · Clubs may use up to $200,000 of their currently available General Allocation Money to sign new Homegrown Players to their first MLS contract, ...
  14. [14]
  15. [15]
    MLS Publishes 2025 General Allocation Money (GAM) Available to ...
    Dec 19, 2024 · General Allocation Money can be used to "buy-down" a player's Salary Budget Charge as part of managing a club's roster, including buying down a ...Missing: definition | Show results with:definition
  16. [16]
    Sporting KC acquires General Allocation Money in trade with CF ...
    Aug 20, 2025 · The transaction will see Sporting receive $75,000 in 2025 GAM and $100,000 in 2026 GAM. Sporting now has seven international spots on its 2025 ...
  17. [17]
    MLS plans to allow teams more spending flexibility with summer rule ...
    Apr 10, 2024 · Under new rules, teams will be able to convert up to $3 million per year in transfer or loan revenue into GAM. What it means: This change ...
  18. [18]
    2025 NWSL Roster - Spotrac.com
    2025 NWSL Salary Cap Max, $3,300,000 ; 2025 Unallocated Maximum Salary ; 2025 Unallocated Minimum Salary, $39,370 ; 2025 Allocation Money Limit, $500,000.
  19. [19]
    National Women's Soccer League Announces Competition Updates ...
    Jan 4, 2024 · In addition, the NWSL has established a net transfer fee threshold of $500,000, encompassing both intra-league trades and inter-league ...
  20. [20]
    NWSL Announces Competition Updates Ahead of 2025 Season
    Feb 18, 2025 · For 2025, the threshold has been raised to $550,000 and will increase 10 percent year-over-year for the duration of the current CBA term. Net ...
  21. [21]
    NWSL CBA Released in Full | Spotrac News
    Apr 8, 2025 · Beginning in 2025, teams must not spend less than (Minimum Salary above x number of players on the team) + Team Revenue Share. Any team who does ...
  22. [22]
    NWSL Raises Salary Cap Ahead of 2025 Season Kick-Off
    Feb 19, 2025 · Each 22- to 26-player team's salary cap has increased 20% from $2.75 million in 2024 to $3.3 million for the 2025 season.
  23. [23]
    Allocation money? Intra-league transfer funds? The NWSL's unicorn ...
    Dec 29, 2024 · The NWSL's unicorn and future, explained. The $400,000 in allocation money (plus a 2025 international roster spot) that the Houston Dash paid ...
  24. [24]
    NWSL Announces Roster-Building Assets for Incoming Expansion ...
    Jun 5, 2025 · The expansion team must use allocation money to cover the salary cap charge. Coinciding with the opening of the 2025 secondary transfer window, ...
  25. [25]
    Gotham FC Trades Midfielder Yazmeen Ryan to Houston Dash for ...
    Dec 27, 2024 · ... Houston Dash in exchange for a league-record $400,000 in allocation money and a 2025 international roster spot. As part of the transaction ...
  26. [26]
    NWSL OKs intraleague loans; Boston, Denver get more expansion ...
    Jun 5, 2025 · It's a significant amount for two reasons: Allocation money is effectively player salary funding that exists outside the NWSL's hard salary cap.
  27. [27]
    NWSL Money and Net Transfer Fee Threshold, Plus Their ...
    Jan 22, 2025 · Described elsewhere as “NWSL bucks,” allocation money is transaction money that teams could opt into each year up to a league maximum, with the ...
  28. [28]
    NWSL to allow intra-league loans for the first time - All For XI
    Jun 5, 2025 · Each team will have access to $1,065,000 in allocation money, starting July 1st. Allocation money allows clubs to spend over the salary cap, ...
  29. [29]
  30. [30]
    NWSL Transfer Tracker: 2025 summer break - Equalizer Soccer
    Jun 23, 2025 · On July 1, 2025, free agents could begin signing with new teams for 2026, and the secondary transfer window opened. The secondary transfer ...
  31. [31]
    Tools & Rules for NWSL Roster Building - Boston Legacy FC
    Jul 1, 2025 · Boston Legacy FC will have access to $1,065,000 in allocation money starting July 1, 2025. The funds can be used through the end of 2027, giving ...
  32. [32]
    NWSL approves intra-league loans and increases spending ...
    Jun 5, 2025 · Per the press release, each team has access to $1,065,000 in allocation money, which is used to pay for players' salaries outside the cap, to ...
  33. [33]
    NWSL and NWSLPA Agree to Historic Collective Bargaining ...
    Aug 22, 2024 · The base salary cap for the NWSL will nearly double over the term of the agreement, from $3.3M (2025) to $5.1M (2030), with an expectation of ...