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Designated Player Rule
The Designated Player Rule will allow MLS to sign players whose salary will fall outside of the team salary budget and whose cost above the salary budget charge will be the financial responsibility of the club. A Designated Player's salary charge will be capped at $400,000, but his salary could be higher. The League office will continue to sign Designated Players under Major League Soccer's single entity system, but individual clubs will determine to whom they wish to assign Designated Player status.
The salaries of players above the maximum salary budget have been the financial responsibility of the collective group of MLS investors. Players such as Landon Donovan (Los Angeles), Carlos Ruiz (FC Dallas) and Eddie Johnson (Kansas City) will be "grandfathered" for one year after which they, too, will assume Designated Player status.
Each team will initially receive one Designated Player slot, and clubs are allowed to trade Designated Player slots. However, no team can have more than two Designated Players.
The Designated Player Rule is a three-year initiative that will conclude after the 2009 MLS season when its future will be reviewed.
Credit: Jason Halpin / MLSnet.com Staff
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