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Monday, September 1, 2025

MLS’s Club World Cup Campaign Exposes the Price of Salary Caps

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Inter Miami’s 4-0 defeat by Paris Saint-Germain in the Club World Cup’s round of 16 was expected. PSG had recently crushed Atlético Madrid 4-0 and defeated Inter Milan 5-0 in the Champions League final. This result highlighted a critical issue: Major League Soccer’s strict roster rules and salary cap hinder its teams from building the depth required to compete with top global clubs.

The Reality on the Pitch

  • Inter Miami faced PSG, with Messi and Suárez scoring four goals in the first half, while Miami failed to get any shots on target. Other MLS teams struggled: LAFC lost 2-0 to Chelsea; Seattle Sounders were defeated 3-1 by Atlético and 2-0 by PSG, only managing a late comeback against Botafogo. None of these teams secured a win. However, Inter Miami’s memorable victory over Porto during the Rooney era and their close match against Palmeiras highlight that while individual talent can shine, it cannot compensate for a lack of depth in the team.

Why MLS Clubs Struggle

  • Roster Rules and Salary Cap: MLS teams are restricted by a few Designated Player slots and a league salary cap of about $10 million per team. This allows for high-profile signings like Messi, Suárez, Busquets, and Cancelo, but the rest of the team is made up of younger, cheaper players with limited top-level experience.
  • Contrast with PSG and Al-Hilal:PSG’s squad depth ensures smooth rotation. Al-Hilal, without a salary cap, features stars like Joao Cancelo, Kalidou Koulibaly, Yassine Bounou, and Ruben Neves. Their all-around strength challenged Real Madrid in the quarter-finals.

MLS’s Strategic Trade-Off

  • Parity Over Dominance:MLS strives for competitive balance, ensuring no team dominates annually. This approach has revived domestic interest, differing sharply from Europe’s predictable league dynasties.
  • Growth Ambitions Clash with Financial Restraints: MLS aims to be a “top league” but enforces financial limits to ensure clubs stay prudent. With 24 clubs, a strict salary cap, and limited transfer options, roster investment is restricted.

Steps MLS Has Taken—and Their Limits

  • Aimed at promoting cost-effective young signings, it failed to boost overall spending. Expanded Contract Buyouts and Allocation Money: Provided flexibility without raising total wage limits. Cash-for-Players Trade Mechanism (2025): Enables teams to exchange general allocation money for player rights, encouraging intra-league competition, but remains restricted by the overall cap.

Voices Calling for Change

  • Inter Miami’s co-owner Jorge Mas pushes for a higher salary cap. Players like Sergio Busquets and Federico Redondo believe relaxed financial rules are crucial for MLS growth. Fans enjoy competitive balance, but Messi’s dominance over weaker teams highlights a disparity between promotional promises and actual performance.

The Way Forward
MLS faces a choice:

  1. Preserve Financial Parity at the cost of remaining a middling league internationally.
  2. Relax Salary Rules incrementally—raising the cap, increasing DP slots, or allowing one “EU-style” non-cap category—to deepen rosters and foster sustainable competitiveness.

Linking cap increases to revenue growth, with rigorous audits, ensures clubs stay financially disciplined while attracting top talent.

Conclusion
Inter Miami’s Club World Cup experience highlighted financial lessons alongside football outcomes. Messi’s brilliance provides brief triumphs, but a league with roster limitations can’t consistently challenge Europe’s giants or Saudi Arabia’s wealthy newcomers. For MLS to join the global elite, it must reevaluate its financial approach and choose between maintaining parity or achieving international competitiveness.

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