Trying to Decipher MLS Transfer Rules

Here’s something about MLS I don’t quite understand. DeAndre Yedlin could be headed to Anderlecht of the Belgian League. A friend of mine who knows a ton about soccer asked this series of questions:

Is this a big step up for Yedlin? I’m sure he’d get a raise, but I’m sure he could get a raise in MLS too. But in terms of advancing his career, does it make sense to go to a second tier (or third, or fourth?) Europe league? Or should he try to get a decent MLS salary after this year, and wait until England calls And what would the Sounders get out of this? Do they get any of the transfer fee? Do they get to set the transfer fee? Are we just out of luck? And we’re full on designated players too, right? So even if we got a ton of cash, we can’t really use it, right?

Here’s what I think I know. Please correct me if you know better.

1) Whether or not the play in Belgium is better than the MLS, there’s the perception in Europe that the play in the Dutch, Turkish, Norwegian, Belgian and Portuguese leagues is better than the MLS.

2) It’s easier for a Premier League, Spanish League, German League, Italian League or French League scout to catch a game in Belgium than Seattle.

3) The top teams in all the 2nd tier Europe Leagues at least get to compete in some round of the Champions League. Anderlecht won the Belgian First Division in 2013-2014, and are one of 22 teams to have already qualified for the Final 32 of the Champions League. That’s nice exposure he wouldn’t get here.

4) The MLS technically owns all the contracts of all the players. Essentially, the MLS is a giant talent agency that hosts matches in which to show off the talent they’ve recruited. Part of their revenue model is to find cheap players and develop them into players that other teams want to buy. They need the old guys to drive fans, but the real money is buying young guys low and selling high. It’s another reason the league wants parity and would rather have all the best players split amongst the teams to get playing time rather than having some great players sitting on the Sounders bench behind Dempsey and Martins for 34 games

5) There’s some sort of revenue split between the MLS and the team who scouts and signs the player. Not sure what it is.

6) MLS sets the transfer fee. I believe the team has some input based on whether they think the team and league would generate more revenue if they held the player another year.

7) Sounders would get some cash, but all it would do is help the ownership group. We can’t reinvest it into a higher salary cap.

Bottom line, the more Yedlins the league develops, the more revenue the league makes, the more revenue the teams split, the more designated players the teams can afford to have on each roster, the higher salary cap each team can have, and the more talent we can recruit to the league, which makes it easier to get the next Yedlin to play here, etc…

Let me know if you have more insight.

 

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