Designated Player Rule

The rule, which was adopted ahead of the 2007 MLS season, enables teams to compete for star players in the international football market.

The rule is one of two mechanisms by which MLS teams may exceed their salary cap, the other being allocation money.

[6][7] As part of the 2010 Collective Bargaining Agreement between MLS and the MLS Players' Union, the 2010 salary cap was $2.55 million, with an automatic five percent increase each year until the expiration of the agreement at the end of the 2014 season.

MLS announced the changes in August 2011 after clubs expressed concern about signing young international players with no guarantees that they would develop into stars.

[1][2] Beckham was the first player to be signed under this rule, signing a lucrative contract with the Los Angeles Galaxy worth up to $250 million over five years, with direct guaranteed compensation from MLS and Galaxy at $6.5 million a year.

David Beckham was the league's first Designated Player, with the rule being nicknamed the "Beckham Rule".