Because Major League Soccer operates with a salary cap, it features several roster mechanisms that differ significantly from those commonly found in global football. These range from utilizing General Allocation Money to acquire players and manage salaries to holding a draft for college athletes. While such rules are standard for fans of American sports, MLS`s growing global presence is increasingly exposing a wider audience to these unique aspects.
One mechanism that has garnered considerable attention recently, especially with players like Lionel Messi and Marco Reus joining the league, is Discovery Rights and the associated Discovery List.
So, what do these terms mean?
Understanding Discovery Rights
This rule, in place since the league`s inception in 1996, permits each MLS team to list up to five players who are not currently under contract with MLS or allocated through another league process. Specific restrictions apply: listed players cannot be current or former MLS players, draft-eligible or homegrown-eligible players, or free agents, among other criteria. Teams have the flexibility to add or remove individuals from their list at any time, and there is no limit on the number of players a club can ultimately sign through this method.
If multiple clubs aim to list the same player, the club with the earliest claim date receives priority. If claims are made on the same day, the team with the lowest points-per-game average holds precedence.Transferring Discovery Rights
Should a club remove a player from its Discovery List, another club is then eligible to add them. This situation recently occurred with Kevin De Bruyne. He was initially on San Diego FC`s list but became available when the expansion team reduced its list size from seven to five players (expansion sides are temporarily allowed a larger list). Inter Miami subsequently added De Bruyne. Reports suggest the Chicago Fire are now favored to sign him, as Inter Miami has already filled its three Designated Player slots. Another way to transfer a player`s rights is through a trade: a team can offer $50,000 in General Allocation Money (GAM) for the right to sign a player. The team holding the rights must then either accept the GAM and yield the rights or extend a genuine offer to the player themselves.
This latter process can lead to negotiations between clubs, as demonstrated by the case of Marco Reus, whose Discovery Rights cost the LA Galaxy $400,000 – a record sum for Discovery Rights. Reus reportedly preferred joining the Galaxy over Charlotte FC after leaving Dortmund. However, since Charlotte had made a genuine offer, they were not obligated to accept the initial GAM offer, giving them leverage in subsequent negotiations that resulted in the higher fee for the rights.
The Future of Discovery Rights
Naturally, the scenario involving Reus raises the question of potential issues if teams fail to reach an agreement, possibly preventing a player from joining their desired club. While such situations could potentially cast a negative light on the league, MLS is aware of these possibilities and is exploring future refinements.
MLS EVP of Player Strategy and Relations, Todd Durbin, commented, “We are examining measures not only to streamline this process but also to significantly reduce the conflicts that arise between teams who both believe they hold the Discovery Rights for a player. This is a priority for the sporting competition committee this year.” Durbin added that the league is considering options such as implementing a fixed compensation structure for rights transfers between teams to minimize friction, and potentially reducing the overall number of players eligible for discovery.
