MLS Salary and DP Rules Can be Circumvented (UPDATED)
Yesterday Ives Galarcep reported that New England, a notoriously tight fisted club when it comes to finances may be ready to use their Designated Player spot. But it appears Kansas City may be first to use their DP slot. Keep in mind Kansas City also has a large sum of allocation money sitting thanks to the sale of Eddie Johnson to Fulham, so it is possible that Kansas City can enhance their squad with quality internationals and not use their DP, if I understand the rule regarding allocation money correctly. New England is potentially in the same position after receiving a hefty fee for the sale of Clint Dempsey also to Fulham last winter.
Based on Steve Goff’s excellent reporting in the Washington Post it appears DC United was able to sign multiple Latin American players under the salary cap by using the club’s DP on Marcello Gallardo and then signing several other Latin players that will enhance the club. Essentially thanks to the sale of Troy Perkins and Bryan Arguez, DC United had the ability to add their allocation money to the salary cap. Los Angeles has tried to circumvent the cap (if it actually applies to their club at all) by adding allocation money from New England and San Jose in exchange for Chris Albright and Joe Cannon respectively.
A source has indicated to me that Kansas City, unlike New England to this point plans on using its allocation money in the form of one or more foreign players of note. The most prominent name I hear connected with Kasnas City is Claudio Lopez, the 33 year old Argentine forward whose career included stops in Italy with Lazio, Spain with Valencia and Mexico with America. Lopez has been capped 58 times for Argentina and was on both the 1998 and 2002 World Cup squads.
The same source has confirmed to be that Lopez will be a Designated Player, potentially giving Kansas City even more flexibility in signing non-DP players at a maximum salary and not busting the salary cap thanks to allocation money. Also, by having traded Jose Burciaga Jr. and Nick Garcia away this offseason, the Wizards are in a position to really enhance their squad.