MLS Rules – Transfer Fees on Homegrown Players

Basic Scenario:

An MLS Club, let’s call it Club A, has a player with Homegrown status. During one of the official transfer windows, that player is transferred to a club outside of MLS. Club A receives a transfer fee for that player.

New Rule Allows Clubs to Retain Transfer Fees

MLS adopted a rule change for the 2018 season and after. Prior to the 2018 season, clubs had to share some of the proceeds with the league. Under the revised rule, teams will be allowed to retain 100 % of the transfer fee money received when selling Homegrown signings — players that have come up through individual team academies — when they are moved to new teams abroad.

Related: For a discussion on what is meant by the term “Homegrown Player”, follow the link to my page what-is-a-homegrown-player?