MLS Salary Cap Explained

Kristan Heneage and Joe Devine explain Major League Soccer's salary cap, the reasons for its existence, and the arguments for and against it.
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End Card Song: Bankrupt Blues by The Hummingbirds

[Joel-jsgk]

As a huge MLS fan and someone who knows just about every rule front to back that's available to the public - the league has a habit of not being transparent about some rules but I try - I can completely understand someone getting lost in the middle of this video. It's simply not possible to explain all the complex rules in MLS in a 4 minute video. I'd likely have to sit down with someone and explain for 20-25 minutes to do them justice lol.

In terms of salary cap, however, I will say this: It is 100% necessary. The original NASL (which ran from 1968-1984) did not have a salary cap. What ended up happening was the New York Cosmos would win every single year, because they had the money. They bought amazing, high profile players into their squad such as Franz Beckenbauer, Johan Neeskens, Carlos Alberto, Giorgio Chinaglia, and *Pele* (yes, that Pele.) As a result, they won the league almost every year for the final 8 years of the league's existence. While a couple other teams were able to bring a couple high profile players such as Johan Cruyff (Los Angeles Aztecs) and Gerd Muller (Fort Lauderdale Strikers) the Cosmos were very much the big boys of the league. Because they were so dominant every year, the public lost interest in the league, especially fans of teams who didn't have any world-renowned superstar. Because the large majority of the teams in the league lost basically all public interest, several teams dissolved in quick succession leading to the dissolution of the league in its entirety.

With a salary cap, it keeps a lot of parity within a league. Now, a team can literally go from last to first in one season. The Colorado Rapids had finished bottom 3 in MLS for 2 straight seasons heading into the 2016 season, and finished 2nd overall in the regular season last year, only behind FC Dallas. This is not a rarity in MLS, in fact it happens quite frequently. The salary cap prevents what happened to the original NASL from ever happening to MLS.

This is why it is *VITAL* that the modern day 1st division in the US (MLS) learn from its past mistakes and keep a salary cap implemented. Steadily increase it, for sure, but consistent, steady, incremental growth is what will lead MLS to the promised land. Trying to jump too far too soon would be a grave mistake. Don Garber (MLS commissioner) knows this, and I think he's done an incredible job growing the sport in the US and Canada despite constantly getting stick from the fans.

hope you enjoyed reading my novel lol. I could talk for days about MLS, this barely scratched the surface. If you have any questions I'd be happy to answer them :)

[JHA]

I watch the MLS quite often, though it's not my main league I follow. The cap is good and bad. It's good because there's much less divide between teams and there's more youth players coming through the system. This means that every season is quite different and there's never an easy match really. If the cap was removed, you'd have teams like LA Galaxy running rings around smaller teams who lack the big investment needed to buy the top players. It would end up like La Liga.

[Herb]

This salary cap also makes competition fairer. This is why MLS doesn't have that super club that wins almost every year like many European Leagues have.

[EMINEMISAWESOMEful]

I'm American and he finally explained to me what I've never had an answer to. THANK YOU lol

[keraatkins]

true words right here. amazed by how many Europeans look down on American soccer still eventhough we are doing well despite our hang ups. we should be applauded for it actually

[TT-yboo]

Would love to see a video on how good Pele ACTUALLY was

[LucaEnzo]

such irony - socialism in football. BY THE AMERICANS!!?

[liamsmith]

i feel like you guys have a long list of things to cover, by all means, keep it up, it's so interesting

[SuperNitroBurst]

Excellent video! I would love to see more MLS stuff in the future

[dynasty]

Should add that a salary cap also creates parity. With soccer a fairly young and growing sport in the US the league needs to stay competitive to remain interesting to a fan base that doesn't have deep roots invested in a club. A small market club would draw little interest if the league was dominated by LA or NY every year.

[eliaschevette]

I like the cap and given how amateur the sport is in the USA is needed. The MLS didn't have 100 years to grow teams that can be taken to 3rd division and still be loved or had governments support teams to dominate the continent. This system is good for America even if the best players aren't coming. Once Soccer starts dominating the media ratings you will see the caps go up as more investors are going to want to be part of a team and with a limited number of teams the values will have to be excuse as a way to raise money to lift the cap. The thing with American sports is that they can literally create a world leading league any time they want. The sports infrastructure is so good in this country they can do it in no time as long as the eye balls are there. The NFL was a failing league before it merge with the AFL in the 50's look at it now. In a not to distant future the best national teams are going to be China, India, USA and Brasil. South America and Europe benefited from a early structure in soccer. In South America it became a way to escape poverty and Europe the place where every player wanted to go. The moment soccer becomes the national sport of a nation one can see them grow exponentially. Mexico is an example of this for years the Mexican league was just the Mexican valley and maybe a couple of teams from the Northern Mexico. In the past 30 years the sport took root in the north of the country and the Mexican national team was able to accomplish it's biggest wins. The team spending the most money in Mexico is from a northern city with the other team from that city spending an almost equal fortune. Just imagine what sort of team can be form in the USA with a cap as high as an NFL team. I actually enjoy this time a league I can call my own. When I die people are going to see me in the pictures of the first Sounders games and some historian will remember my name as a founder of my local supporter group. I wouldn't exchange winning the first championship of my team with the 15th. I literally saw the Sounders born that's something no Barcelona or Chelsea fan can say.

[xiaomengban]

The salary cap makes sense for a young league that's just 20+ years. Still, I feel the cap is too low compared to both its counterparts in US, as well as what elite soccer players make in Europe.

[MeDeChamp]

I was a billionaire I would buy New England Revolution. I'll turn them into a Southampton. Where they would produce American talents like a factory! The United States is huge with so many different ethnicity, how we are not a footballing power house is insane!!! Ps: why New England Revolution? Because they have the American colors and an American flag like badge.

[mlovecraftr]

I've come to be quite surprised by how regulated American sports leagues are, with salary caps and rookie drafts by team rank. In contrast, European sports seem to be dominated by spending power.

[joshbattista]

'the evolution of the modern leader' would be an interesting one. As there are less and less ''classic' captains out there now since Puyol and John Terry etc have retired/on the way.

An analysis of how leading by example like a Messi or Lahm, rather than the Roy Keane/Patrick Vieira model.

Keep it up, your videos make my brain happy!

[TheBlueTheMan]

Top channel, there's always been a market for explaining videos like you do and you do it brilliantly with every nook and cranny

[refugiog]

Love your videos! At 2:30 I think you meant to write "DP'S <20" instead of DP'S >20."

[TuncOzturk]

MLS is SUPER FUN! Especially on Football Manager :) It's totally different than others as you can see. That makes this league special. Yet some people trying to turn MLS to English Premier League...

[ricorpg]

This channel teaches me and fellow teachers much more about the world of football in great detail 👍🏿

[elyfel]

I knew there was a cap... but I didn't realize it was this stupid.

Great way to keep costs down, while not having to be labeled a cheap owner because it helps parity or whatever... (that's worked wonders in College Football where none of the athletes officially get paid).