MLS clubs to receive $1.2M in Targeted Allocation Money next season

Major League Soccer is loosening the purse strings.

Commissioner Don Garber told reporters ahead of Saturday's MLS Cup final that clubs will receive $1.2 million in Targeted Allocation Money (TAM) in 2017, an increase of $400,000 from the current stipend.

TAM is a form of investment that allows teams to convert Designated Player-caliber signings to non-DP status. Notable signings made possible by TAM include the LA Galaxy's acquisition of centre-back Jelle Van Damme, and the New York Red Bulls' move for midfielder Sacha Kljestan.

Essentially, if a team has already filled all three DP slots, it can buy down a player's contract to remain within the league's budgetary constraints.

However, a player must earn more than $457,500 per year to qualify.

Garber revealed the upgrade at his annual State of the League address in Toronto Friday, where he spent a little longer than an hour discussing the overall growth and direction of MLS.

The 59-year-old - who is now a year cancer-free - confirmed the playoff format will stay the same next year, meaning the top-six teams from each conference will continue to qualify for the postseason, reports Ives Galarcep of Goal USA.

He also rejected the idea of adding a third team to New York, dealing a blow to folding NASL franchise New York Cosmos.

Among the more positive news items was the announcement that MLS ranks sixth globally with a league-average 21,700 attendance per game, according to TotalMLS.net.