Due to Major League Soccer`s structure as a salary cap league, it utilizes numerous roster mechanisms that differ significantly from those commonly found in global football. These include practices like using General Allocation Money (GAM) to acquire players or manage salaries, and conducting a draft for collegiate athletes. While these quirks are standard for fans of American sports, MLS`s increasing global presence means more people worldwide are learning about these unique rules.
One such mechanism that has gained significant attention, particularly following the arrival of players like Lionel Messi and discussions around figures like Marco Reus, is the concept of Discovery Rights and the related Discovery List.
So, what exactly do these terms signify?
What are Discovery Rights?
Established when the league began in 1996, Discovery Rights allow each MLS club to maintain a list of up to five players who are not currently under contract with MLS or assigned through another league mechanism. Players on this list cannot be current or former MLS players, draft or homegrown eligible players, or free agents, among other conditions. Teams have the flexibility to add or remove players from their list at any time. There is no limit to the number of players a team can ultimately sign using this method.
If multiple clubs wish to add the same player to their Discovery List, the club that initially placed the player on their list at an earlier date holds the right to that player. However, if multiple clubs add the same player on the same day, the club with the lowest points per game in the current season receives priority.
Movement of Rights
Discovery Rights can be transferred between clubs. If a team removes a player from their Discovery List, another team is then free to add that player. This scenario played out with Kevin De Bruyne; he was initially on San Diego FC`s list but was added by Inter Miami after San Diego had to reduce their list size (expansion teams are temporarily allowed more spots). Chicago Fire are also reportedly interested and considered potential frontrunners to sign De Bruyne, partly because Inter Miami currently occupies its three Designated Player slots. Another way for rights to move is if one team offers $50,000 in GAM for the rights to a player held by another team. At that point, the team holding the rights must either accept the GAM and transfer the rights or make a genuine contract offer to the player themselves.
This process can lead to negotiations between teams. The case of Marco Reus is a notable example, where the LA Galaxy ultimately paid $400,000 for his rights – a record fee for Discovery Rights. Reus reportedly preferred joining the Galaxy over Charlotte upon leaving Dortmund. However, since Charlotte had made a legitimate offer via their Discovery claim, they were not compelled to accept the initial $50k GAM offer, giving them leverage in negotiations that resulted in the higher transfer payment for his rights.
What Could Come Next?
The situation with Reus raises questions about potential complications should clubs fail to reach an agreement, potentially preventing a player from joining their desired destination. MLS is reportedly addressing these kinds of scenarios for the future.
Todd Durbin, MLS EVP of Player Strategy and Relations, stated that the league is reviewing the system to both streamline it and significantly reduce conflicts between teams regarding Discovery Rights. Ideas under consideration include potentially establishing a fixed compensation structure for transferring rights to eliminate friction, and possibly reducing the overall number of players eligible for Discovery claims.
Benedict Kingsley