Since being introduced within MLS in 2015, Targeted Allocation Money (TAM) has been a mechanism that has helped nearly every team in the league enhance their roster. It has helped teams and become such a big hit that it might be increased even more.
TAM resources could potentially be on the up, something that a number of teams around the league are currently supporting. Multiple sources tell Metro that MLS is looking to expand the dollar amount for TAM, which currently is $1.2 million. The indication is that “it would be a rather significant upgrade in TAM” per one source.
One source, speaking on the condition of anonymity, said that the increase could take place in time for the 2018 offseason or by the 2019 offseason at the latest.
The amount could increase from the aforementioned $1.2 million up to $2 million per team, according to two different league sources.
In a league full of twists and turns when it comes to signing players, TAM is surprisingly simple. According to an explanation on MLSSoccer.com, the money allotted “are funds strategically provided to teams to add or retain players that will make an immediate impact on the field.”
The money is applied to players making more than the league maximum but who make less than $1 million per season.
It was a savvy rule implemented by MLS to help add quality and depth to a league with wide salary discrepancies. The Designated Player (DP), often referred to as the ‘Beckham Rule’ for former LA Galaxy midfielder David Beckham, brought in a new era of star power to the league including the likes of Thierry Henry, David Villa, Jozy Altidore, Michael Bradley and others.
An increase in TAM resources is huge for the low and mid-market MLS sides who refrain from signings the big names like a Villa and are building around a squad concept.
Nothing is definite yet and the talked about TAM increases have not been approved yet said one source.