Major League Soccer has become heavily reliant on the use of General and Targeted Allocation Money (GAM and TAM) over the past few years and this season we have seen that increase even more. Prior to the 2017 season Minnesota and Orlando City made some noise when they set a record for funds exchanged in Minnesota’s acquisition of Kevin Molino. Orlando City received $450k in GAM and $200K in TAM. Prior, Chicago acquired Dax McCarty from New York for $400k in GAM. More recently, Orlando City moved some of their acquired Garber Buck from Minnesota, to Sporting KC. This included $400k in GAM, $500k in TAM, and $700k in future Allocation Money, based on performance. As teams find creative ways to use Allocation Money in deals, it will continue to become more important.

The Vancouver Whitecaps have passed around their own fair share of Garber Bucks this season. Luckily for us, Major League Soccer, starting this season, are finally disclosing how much Allocation Money is being exchanged in trades. As a result, we felt it was time to do a bit of a recap of the possible Garber Buck situation for the Vancouver Whitecaps. The reason I say possible is that there are still holes, which I will get into shortly.

Let’s begin with base acquisition of GAM and TAM. Currently, each MLS team is allocated 1.2 million in TAM at the start of the season. TAM can be used to:

Sign a new player provided his salary and acquisition costs are more than the maximum salary budget ($480,625). Re-sign an existing player provided he is earning more than the maximum salary budget. To convert a DP to a non-DP. Sign new Homegrown Players to their first MLS contract (up to $200,000).

This means that TAM cannot be used on Transfer Fees specifically (although it can indirectly through acquisition cost outlined in #1).

As for GAM, each team received a base amount of $200,000 in 2017. The Vancouver Whitecaps also received $200,000 for not making the playoffs last season. Finally, they received $66,666 for advancing to the Knockout Stage of CONCACAF Champions League. According to MLS Roster Rules, this is from where loan and transfer fees are paid.

Combined, this means the Whitecaps began the season with $466,666 of GAM and $1,200,000 of TAM

Acquisition of Additional Allocation Money

On March 1st, the Vancouver Whitecaps acquired $75,000 in GAM from Monteral Impact, for a 2017 international roster spot.

On March 30th, the Vancouver Whitecaps traded Kekuta Manneh to Columbus Crew and received $225,000 in TAM and $75,000 in GAM

On August 9th, the Vancouver Whitecaps acquired $50,000 in GAM from Chicago in exchange for Christian Dean.

Trading Allocation Money

On December 13th, 2016, the Vancouver Whitecaps acquired Sheanon Williams from Houston Dynamo. Unfortunately, the trade was prior to the announcement that the Allocation Money exchanged would be disclosed, so we do not know the exact amount of GAM used. Based on other trades, it can be hypothesized that it is likely around $75,000, but maybe as much as $100,000.

On July 21st, the Vancouver Whitecaps acquired a 2017 international roster spot from Montreal Impact for $50,000 GAM.

On August 10th, 2017, the Vancouver Whitecaps acquired a 2017 international roster spot from New York City FC for $75,000 GAM

Use of TAM for Salaries

The Whitecaps began the year with Christian Bolanos and Cristian Techera listed as TAM players. As they were signed last season, we will exclude any acquisition fees and just incorporate their salary for TAM allocation. This season Bolanos makes $253,500 while Techera makes $377,000. Reducing their cap hit to the TAM minimum of $150,00, that means, this season, the Whitecaps will spend $330,500 of TAM for the two.

The Whitecaps also used some TAM on incoming players. First, there was Yordy Reyna. While the exact amount is unknown, his 2017 salary is $533,700. Again, if the Whitecaps buy him down to the $150,000 minimum, that means the club used $383,700. Second, some claimed that TAM was used on Bernie Ibini. However, I have not been able to find anything official. For example, in the Whitecaps official announcement they did not mention TAM. However, in the Reyna and Ghazal announcements they did mention TAM. As a result, I don’t think it was necessary (remember transfer fees are paid with GAM). Third was the recently acquired Aly Ghazal. Since he was a free transfer, there was no acquisition cost. As a result, the announcement of TAM means that his salary is over the $480,625 threshold. However, considering that they bought Ghazal down and not Brek Shea, it means that Ghazal’s salary is less than Shea’s $670,000. As a result, we will estimate him at the same as Reyna (~$385,000). While I will use the $385,000 number, it is worth noting that the amount will be much less because it is not for the full season, so it is pro-rated.

Use of GAM for Acquisition Fees

First, Reyna was acquired from Salzburg, which means there was some type of transfer fee. According to Transfermarkt his value is $750,000. As a result, let’s put his transfer fee at half that value ($375,000). Why half? Because I want these numbers to work out!

Second Ibini was acquired from Brugge, which means there was some type of transfer fee. According to Transfermarkt, his value is $500,000. As a result, we will put his transfer fee at half that value ($250,000).

If Reyna and Ibini transfers were what I have above, that would put the Whitecaps over their GAM, so they were probably lower, but we will leave this until someone corrects me with more accurate numbers.

Summary

Acquisition of TAM

Base Allocation: $1,200,000

Acquired from Columbus Crew for Kekuta Manneh: $225,000 (March 30th, 2017)

TOTAL 2017 TAM ACQUIRED: $1,425,000

Use of TAM

Christian Bolanos buy-down: $103,500

Cristian Techera buy-down: $227,000

Signed Yordy Reyna from Salzburg: ~$383,700 (January 23rd, 2017)

Signed Aly Ghazal on Free: ~$385,000 (August 10th, 2017)

TOTAL 2017 TAM USED: $1,099,200

Total TAM Remaining: ~$325,800

Acquisition of GAM

Base Allocation: $200,000

Missing Playoffs: $200,000

Knockout CONCACAF: $66,666

Acquired from Montreal for International Roster Spot: $75,000 (March 1st, 2017)

Acquired from Columbus for Kekuta Manneh: $75,000 (March 30th, 2017)

Acquired from Chicago for Christian Dean: $50,000 (August 9th, 2017)

TOTAL 2017 GAM ACQUIRED: $666,666

Use of GAM

Acquired Sheanon Williams from Houston: ~$75,000 (December 13th, 2016)

Acquired International Roster Spot from Montreal: $50,000 (July 21st, 2017)

Acquired International Roster Spot from NYCFC: $75,000 (August 10th, 2017)

Transferred Yordy Reyna from Salzburg: ~375,000 (January 23rd, 2017)

Transferred Bernie Ibini from Brugge: ~$250,000 (May 9th, 2017)

TOTAL 2017 GAM USED: $825,000

2018 Money

In acquiring the #1 Allocation Ranking from Minnesota (to acquire Fredy Montero), the Whitecaps traded $125,000 in TAM and $100,000 in GAM for 2018.

In trading Christian Dean to Chicago, Vancouver acquired $50,000 in TAM, conditional on Christian Dean starting 12 or more games in 2018 (which probably actually means the TAM is for 2019, but whatever).

Improve My Calculations!

These are the rough numbers I have come up with. I encourage anyone with additional information to post it in the comments, so I can update this article with more accurate information. However, this sort of lets you know where the money is being spent.