Philadelphia Union Embrace MLS’s New Cash Trade Era

[1]

In 2025, Major League Soccer (“MLS”) embarked on a new chapter with the implementation of a cash-for-player trade system.[2] This new rule permits teams to trade players within the league using unlimited direct cash, without the need for General Allocation Money (“GAM”), draft picks, or international roster spots. Inspired by global soccer markets, this new approach aligns MLS more closely with top international leagues, allowing clubs to monetize their rosters and reinvest in talent, facilities, or operations. This shift marks a significant evolution in how MLS teams operate, with clubs like the Philadelphia Union wasting no time to capitalize on the new opportunities.

A New Chapter in MLS Roster Building 

Under the new rule, each MLS team can complete two incoming cash-only trades, and two outgoing cash-only trades per season.[3] Akin to the financial structure of international transfers, cash received from these trades may be converted into GAM, giving clubs the flexibility to either immediately spend or strategically manage the salary cap.[4] Previously, clubs could only move players to another MLS team if they received some form of non-cash asset as compensation.[5] However, cash-only trades must now stand on their own and cannot be combined with other assets like GAM, draft picks, or international spots.[6]

This change reinforces the simplicity and transparency of the new system. The cash received and spent by the acquiring team is also applied to the player’s salary budget charge, ensuring these deals fit within the league’s overall cap structure.[7] This rule creates new opportunities for roster building and, for the first time, establishes a clear cash value for players in domestic trades, bringing MLS operations more in line with that of the global transfer markets.

The new era officially kicked off on February 1, 2025, when Sporting Kansas City acquired Dejan Joveljić from LA Galaxy for $4 million, culminating in the MLS’s first-ever straight cash trade.[8] Just days later, FC Dallas made headlines exploiting the new cash trade rule. On February 12, Dallas landed 2023 MLS MVP Luciano Acosta from FC Cincinnati for $5 million guaranteed, plus up to $1 million in performance-based incentives.[9] This trade highlighted how quickly top-tier talent can move under the new system, demonstrating how this rule began reshaping the way teams operate across the league almost immediately.

Homegrown Cash Trades

One of the most influential applications of this new rule is the ability to trade “homegrown players” for cash. A homegrown cash trade refers to selling a homegrown player, meaning someone who has developed and rose throughout a club’s own academy program. This system adds a new layer of value to youth development by offering clubs a direct financial return on the players they’ve trained, elevated, and invested in through their pipeline. These trades are especially significant because they reward long-term investment in homegrown talent and give clubs more flexibility to reinvest in their future.

The Philadelphia Union made history when they traded Jack McGlynn to Houston Dynamo FC on February 3, 2025, in the first-ever homegrown cash trade in MLS history.[10] The deal included $2.1 million guaranteed, with up to $1.3 million in performance-based incentives, plus a significant sell-on and future trade percentage, giving the Union a stake in McGlynn’s future success and mobility.[11] “This move is best for both the club and for Jack,” said Union Sporting Director Ernst Tanner.[12] “The significant proceeds allow us to reinvest and refine our roster.”[13]  McGlynn, who rose to the MLS through the Union Academy, was a key midfield contributor to their success. The move to Houston, a club favoring a possession-based system, presents a better fit for McGlynn’s style of play and opens new financial pathways for Philadelphia in return.

The Gazdag Trade and Performance Add-Ons 

Shortly after the McGlynn deal, the Philadelphia Union completed another cash trade, sending Designated Player and Union all-time leading scorer, Daniel Gazdag to Columbus Crew on April 11, 2025, for $4 million guaranteed, with the potential for $500,000 in performance-based add-ons.[14] These “add-ons” mirror the transfer clauses standard across international deals. Typically, they possess conditional bonuses triggered by achievements such as number of appearances, starts, goals, assists, or team performance benchmarks (like playoff qualification), and individual awards or accolades. This system creates a win-win structure for both organizations, giving Philly the chance to benefit if Gazdag thrives in Columbus.[15] While the move itself stirred mixed reactions from Union fans, it showed Philadelphia’s commitment to leaning into the new cash trade era, utilizing it to reimagine and capitalize on new roster strategies throughout the year.

Turning Cash into a Potential Competitive Edge

The Union’s two cash trades have generated over $6 million in guaranteed funds, with the potential for additional earnings through incentives. This influx of money for an MLS club is game-changing, particularly for one prioritizing innovative roster management and youth development. These trades not only create a return on the Union’s investment in homegrown talent, but also provides the club with the resources to stay competitive in a rapidly evolving league.

On a broader scale, the cash-trade rule introduces increased liquidity amongst the MLS ecosystem, adding a level of realism that mirrors global soccer economies. As other teams continue to adopt Philadelphia’s approach, cash deals are likely to become a foundational strategy for building rosters and managing club finances across MLS.

GABBY PAINTER (staff writer) is a 3L from Spring City, PA. She is an avid Philadelphia sports fan. Currently, Gabby is on the Basketball Negotiation Team at Villanova and interning in the athletic compliance department at her alma mater, Franklin & Marshall College. After graduation, she hopes to pursue a career in negotiating contracts for a professional basketball team.

References:

[1] Photo by Gabby Painter

[2] Jacob Schneider. MLS 2025 roster rules explained: How new Cash for Player Trade system could affect rosters, what changes mean for 2025 season. (Jan. 15, 2025) https://www.goal.com/en-us/lists/mls-2025-roster-rules-explained-how-new-cash-for-player-trade-system-could-affect-rosters-what-new-changes-mean-for-2025-season/blt96def511279161e5

[3] Id.

[4] Jeff Carlisle. MLS to allow cash transfers in player acquisitions for 2025. (Jan. 14, 2025) https://www.espn.com/soccer/story/_/id/43406347/mls-allow-cash-transfers-player-acquisitions-2025

[5] Id.

[6] Id.

[7] Id.

[8]Sam Kovzan. Sporting KC acquires 25-year-old striker Dejan Joveljic in cash trade from LA Galaxy. (Feb. 1, 2025) https://www.sportingkc.com/news/sporting-kc-acquires-25-year-old-striker-dejan-joveljic-in-cash-trade-from-la-galaxy

[9] FC Dallas Acquires Argentine Forward Luciano Acosta for up to $6 Million Cash Trade from FC Cincinnati. (Feb. 12, 2025) https://www.fcdallas.com/news/fc-dallas-acquires-argentine-forward-luciano-acosta-for-up-to-6-million-cash-trade-from-fc-cincinnati

[10] Philadelphia Union Acquire Up To $3,400,000 From Houston Dynamo. (Feb. 3, 2025) https://www.philadelphiaunion.com/news/philadelphia-union-acquire-up-to-3-400-000-houston-dynamo-jack-mcglynn

[11] Id.

[12] Id.

[13] Id.

[14] Philadelphia Union Acquire Up To $4,500,000 From Columbus Crew. (April 11, 2025) https://www.philadelphiaunion.com/news/philadelphia-union-acquire-up-to-4500000-from-columbus-crew-for-daniel-gazdag

[15] Id.