MLS has specific roster construction rules and salary budget regulations that all teams must follow. Each MLS team can carry a maximum of 30 players on their roster, with 20-28 players counting against the salary budget depending on their contract status. The salary budget (formerly called salary cap) has increased significantly over the years, rising from $4.9 million in 2022 to over $5.2 million in 2023.
Teams can exceed the salary budget through several mechanisms including Designated Players (DPs), General Allocation Money (GAM), and Targeted Allocation Money (TAM). Each team can have up to three Designated Players whose salaries above $651,250 don't count against the budget. GAM and TAM provide additional flexibility to buy down player salaries or acquire new talent while staying compliant with league financial regulations.
The roster must include specific positions and player types, including homegrown players who don't count against the salary budget if they meet certain criteria. Teams must also maintain minimum salary thresholds for senior roster players and follow strict rules about international player slots, trades, and contract structures to ensure competitive balance across the league.