Breaking Competitive Balance II: Young Players, ‘Young Money,’ and Building a Roster of Experienced MLS Talent

Even with a Salary Cap zeroed in on parity, only 5 clubs of a potential 12 have made it to the MLS Cup in the 6 seasons since MLS introduced Targeted Allocation Money (the “TAM era”).  Two clubs, the Seattle Sounders and Toronto FC, have faced each other three times in the six TAM era MLS Cups.  Seattle themselves have made four of the six TAM Era MLS Cups. 

From that, it seems clear that a pathway to sustained, regular MLS Cup success exists. As we will discuss, one of those factors are teams with high-quality, experienced, players. 

However, MLS provides numerous initiatives via its salary cap to incentivize signing young, inexperienced, players who may provide future transfer value for their clubs.  This creates a disconnect and a friction between the model that the MLS salary cap incentivizes – signing young players – and the model proven to establish sustained MLS Cup success – fielding an experienced squad. 

The question becomes, is there a way to marry both MLS’s incentives to invest in young talent, and the data that shows a strong correlation between having an older, more experienced clubs and winning MLS Cup?

This a second piece in the Breaking Competitive Balance Series.  You can view the inaugural piece, MLS Salary Cap 101, HERE

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MLS Free Agency: Geoff Cameron Case Study

Last week, FC Cincinnati announced that former USMNT defender Geoff Cameron had signed with the club.[1] With the changes in MLS’s Free Agency[2] eligibility rules, it’s possible Cincinnati availed itself of the signing mechanism to bring on Cameron, which creates a great opportunity for us to break down the new MLS Free Agency rules, and how they affect eligible players’ return to MLS.   

Transfer Analysis: Daryl Dike, Purchase Options, and Player Valuations

Daryl Dike has had an incredible professional career.  One that has lasted less than a year and a half.  After being drafted 5^th overall in the 2020 MLS SuperDraft, Dike had a standout MLS performance for Orlando City SC in his first professional season.  This rookie performance caught the eyes of Championship club Barnsley who offered him a loan in February of 2021.   Scoring nine goals since February, and averaging a goal every 129 minutes in the Championship so far, Dike is now one of the top strikers in the USMNT player pool, has had his loan extended until the end of the championship season, and is reportedly turning heads at Premier League clubs like Everton and Leeds.

Reports have hinted that Barnsley and Orlando agreed on a $20M purchase option, with a 20% sell-on fee. [1]  At the time, many considered such an impossible value for Dike to reach.[2]  Now, with the way he is playing in the championship, that number is starting to sound more realistic.    

With Dike shining in the Championship, it seems time to talk about his purchase option, assessing his value, and how it might affect his move up the football ladder.