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Revolution move up allocation ranking in trade with Earthquakes

The ‘Quakes shopped the number two allocation ranking in exchange for GAM and TAM.

MLS: San Jose Earthquakes-Press Conference
On Monday, Earthquakes General Manager Jesse Fioranelli (right) sent the number two allocation ranking to New England for GAM and TAM.
Stan Szeto-USA TODAY Sports

The Revolution struck a deal with the San Jose Earthquakes on Monday, using cash assets to acquire the second spot in the MLS allocation rankings. New England now retains that position until the end of the season, when the order resets.

In exchange for the second spot in the rankings, the Revolution traded the fifth spot, along with $175,000 of General Allocation Money (GAM) and $100,000 in Targeted Allocation Money (TAM).

In January 2018, the Revolution will also receive either $175,000 in TAM or $100,000 in GAM and $75,000 in TAM from San Jose.

For the Revolution, this transaction serves as a sign of moves to come. Only Crew SC sits above the Revs in the current allocation rankings, providing General Manager Mike Burns with a golden opportunity to select a U.S. National Team player or former MLS standout who wants to return to the league.

In time, the full scope of Burns’ plans will come into fruition. But for now, Revolution fans must speculate about the talent that could soon arrive in Foxboro.

Explanation of trade terms:

In Major League Soccer, General Allocation Money (GAM) is distributed to each team in addition to its salary budget. Each club receives an annual allotment (last season, that allotment was $150,00). Teams receive additional GAM if they fail to qualify for the playoffs, transfer a player outside of MLS or qualify for the CONCACAF Champions League.

Targeted Allocation Money (TAM) is also provided by the league and helps teams add or retain players that will make an immediate contribution. Each club received $1.2 million of TAM ahead of the 2017 season. In the past, these funds helped MLS teams acquire players such as Ola Kamara, Mauro Diaz and Brad Guzan, among others.

The MLS allocation process ranks which MLS teams have the highest authority to acquire a player listed on the Allocation Ranking List. Players on the list fit one of three categories: U.S. Men’s National Team players, top-level U.S. Youth National Team players or former MLS players returning to the league after joining a non-MLS club for a transfer fee greater than $500,000. Once a team acquires a player, it moves to the bottom of the list. The rankings then reset at the end of each season, with the MLS Cup Champion falling to the bottom and the last-place club moving to the top.