Sporting Kansas City and Major League Soccer teams will receive an additional $100,000 per year over the next five years to invest in their rosters without it counting toward the salary cap, the league announced Wednesday.
The funds, referred to as targeted allocation money, kicked into effect Wednesday, which marked the first day of the summer transfer window.
Targeted allocation money — not to be confused with general allocation money — may be used to sign new players or to extend the contracts of current players, but it can only be used on players who earn more than the maximum salary cap charge of $436,250.
Sporting KC has three players who eclipse that number — Matt Besler, Graham Zusi and Roger Espinoza.
Players who earn more than that figure are considered designated players, but the targeted allocation money will allow teams to pay players similar salaries without them qualifying as a designated player. Teams are allowed three designated players on their rosters.
If a team uses the funds to convert a designated player to a non-designated player, the club must simultaneously sign a new designated player of equal or greater monetary value.