Major League Soccer (MLS) operates under one of the most unique financial structures in world football. Unlike Europe’s free-spending model, MLS enforces strict roster and salary cap rules. To give clubs flexibility, the league introduced General Allocation Money (GAM)—a key budget tool that influences transfers, trades, and roster construction.
If you’ve ever wondered “What is GAM in MLS and how does it work?”, this guide breaks it down.
Definition: What Is General Allocation Money in MLS?
General Allocation Money (GAM) is a financial resource MLS clubs can use to reduce salary cap hits, sign players, or trade within the league. Think of it as extra spending credit beyond the standard salary cap.
Every MLS team receives a set amount of GAM each season, and additional GAM can be acquired through trades, performance incentives, or special league initiatives.
How MLS Clubs Use General Allocation Money
MLS teams use GAM in several ways to gain a competitive advantage:
- Buy Down Salaries
- Clubs can use GAM to lower a player’s budget charge, making room under the cap for other signings.
- Pay Transfer or Loan Fees
- GAM can be applied to offset the costs of acquiring a player from another league.
- Sign New Players
- GAM allows teams to add depth or quality without breaking roster rules.
- Trade With Other MLS Clubs
- GAM is often exchanged in trades, giving clubs financial flexibility in negotiations.
How Much GAM Do MLS Teams Get?
For 2025, MLS released a detailed list of how much General Allocation Money each club has available. Some highlights include:
- Minnesota United FC leads the league with nearly $5 million in GAM, giving them significant flexibility.
- San Diego FC, as a new expansion club, starts with $3.4 million.
- On the other end, FC Cincinnati and Portland Timbers have $0 GAM left, limiting their roster options.
👉 See the full 2025 GAM breakdown by club here.
GAM vs. Targeted Allocation Money (TAM)
Fans often confuse GAM with Targeted Allocation Money (TAM). The difference is simple:
- GAM = General flexibility. Can be used on almost any player or roster move.
- TAM = More restricted. Designed for specific types of players (often higher-profile signings just below Designated Player status).
Over the years, MLS has gradually shifted emphasis toward GAM, giving clubs broader spending freedom.
Why GAM Matters in MLS
GAM plays a huge role in competitive balance. A team with millions in GAM can:
- Buy down contracts to add stars.
- Outbid rivals for trades.
- Build roster depth for long seasons.
On the flip side, clubs with little or no GAM often struggle to make impactful midseason moves.
Final Take: GAM Is MLS’s Secret Weapon
While the term might sound confusing at first, General Allocation Money is the backbone of MLS roster building. It allows teams to navigate the strict salary cap, bring in international talent, and stay competitive.
So the next time you hear about an MLS trade “for $500,000 in GAM,” you’ll know—it’s not just cash, it’s one of the most valuable tools in Major League Soccer.