GAM for TAM: Toronto FC and Sounders complete non-physical MLS trade

Major League Soccer certainly has some interesting rules when it comes to rosters and the salary cap.

One of the more confusing MLS oddities are the various kinds and uses of Allocation Money. In addition to Targeted Allocation Money (TAM) there is General Allocation Money (GAM) as well.

On Tuesday Grant Wahl from Sports Illustrated took to Twitter to announce a trade between Toronto FC and the Seattle Sounders. Sounds simple enough, but what was actually very interesting is that the trade didn’t actually involve a physical entity.

Confused? So are we.

Peak MLS: Seattle trades Toronto general allocation money for targeted allocation money.

— Grant Wahl (@GrantWahl) March 8, 2016

The resulting reaction on Twitter was predictable:

This is SO an MLS trade.https://t.co/wPfmst5HyT

— John Molinaro (@JohnMolinaro) March 8, 2016

One starts with a G the other starts with a T. I'd try and explain it, but it's too complicated. https://t.co/dsYXOFcr4s

— Kurtis Larson (@KurtLarSUN) March 8, 2016

Since the public is kept in the dark about how much the GAM and TAM amounts traded are, why even put out a press release?

— Leander Schaerlaeckens finally fits in this space (@LeanderAlphabet) March 8, 2016

Status update: GAM for TAM? ¯\_(ツ)_/¯ #MLS pic.twitter.com/EWZCZDBiGp

— FTBL Media (@FromTheBackline) March 8, 2016

At least Wahl did his best to clarify the situation. I think this tweet pretty much clears it up:

GAM for TAM trade: Toronto needed GAM to be salary budget compliant. Seattle needs TAM for 1 of these signings https://t.co/IwCHIJ1MYr

— Grant Wahl (@GrantWahl) March 8, 2016

So there you have it. GAM for TAM. That’s the trade.