In this article, ModiFoot will accompany you to explore whether MLS will increase salary cap, what the Collective Bargaining Agreement (CBA) promises, and what fans and players can expect. The short answer: yes — the salary cap is set to rise under current rules, though limits remain on how fast and by how much.
What is the current salary cap and how has it changed recently
MLS has a well-defined structure for player spending, salary budgets, and media-revenue sharing that influences how the cap shifts. Key facts as of 2025:
- The team salary budget (soft cap) is about US$5.95 million.
- The maximum salary budget charge for a single player under the Designated Player rule over the age of 24 in 2025 is US$743,750.
- Minimum salaries, allocation money (General Allocation Money, Targeted Allocation Money), and other financial tools are part of the system to provide flexibility.
These numbers have grown steadily; MLS increases caps, minimum salaries, and spending authority per the CBA (2020-2028) between MLS and the players’ union.
What does the CBA say about future cap increases
To understand whether MLS will increase salary cap, the current CBA gives us strong signals. The agreement, which lasts through 2027-2028, includes specific growth metrics tied to revenue, especially media revenue. Here’s what is stipulated:
- MLS agreed to increase player spending by 12.5% of incremental media revenue in 2023 and 2024, rising to 25% of that revenue in 2025, 2026, and 2027.
- The league also committed to annual salary budget growth. For example,.
- Minimum salary thresholds are rising through the life of the contract, giving lower-paid and younger players more benefit.
So structurally, the mechanisms are in place for MLS to increase its salary cap—as long as media revenue growth and other financial metrics support that.
What factors could push MLS to increase the cap faster
Even though the CBA lays out a baseline, several conditions could accelerate or force larger jumps in the cap. Here are the main drivers:
Revenue growth. Since the CBA ties spending increases to “incremental media revenue,” any windfall in this area could push cap rises.
Also, as the league adds new teams (expansion franchises), it collects expansion fees and gains new local markets, which can increase revenue overall.
Pressure, and competitive ambition
High-profile signings (Messi, etc.) show that MLS wants to compete for global talent. Some club captains and players have publicly pushed for a higher salary cap so MLS clubs are less constrained relative to European leagues or leagues like Saudi Pro League.
There’s also competitive pressure: to attract and retain bigger stars, MLS might need to raise salary caps, or else rely entirely on the Designated Player rule and allocation money, which have limits.
Event‐driven growth: 2026 FIFA World Cup and beyond
With the United States co-hosting the2026 World Cup*, interest in soccer, infrastructure, broadcast rights, sponsorships, and youth development is expected to boom. MLS will likely benefit from that surge—advertising, viewership, and perhaps new public/private investment. That creates room for higher salaries and increased cap parameters.
What constraints might limit how much or how quickly the cap increases
Of course, it’s not just upside. Several constraints might slow or moderate increases in the salary cap:
- CBA obligations & fiscal sustainability: Even though revenue sharing is built in, MLS must balance between growing salaries and keeping clubs financially stable. Overcommitment could risk some franchises.
- Inflation, costs, and player benefit demands: As player bonuses, travel, health, and roster obligations rise, more of the revenue pie gets eaten by non-salary costs. Those reduce how much can go into base salary and cap increases.
- Designated Player exceptions: Many of the biggest contracts bypass the soft cap, but they don’t change the fundamental salary budget cap for senior rosters. So unless those rules change, the cap might increase slowly.
- Competitive balance considerations: MLS has a philosophy of parity; one reason for the salary cap is to ensure smaller-market teams can compete. Rapid increases could erode that unless the rules around allocations, homegrown players, and spending floors are managed well.
Projections: How much the salary cap might increase by 2027-2028
Based on available data and commitments in the CBA, ModiFoot estimates the following scenarios for cap increases:
| Scenario | Approximate cap in 2027-28 | Key assumptions |
| Conservative growth | US$7.0 million soft cap (senior roster) | Revenue grows modestly, media deals bring incremental gains as per current projections; no major rule changes. |
| Moderate | US$7.5-8.0 million | Strong media revenue + increased sponsorship; perhaps some reform in DP or allocation rules. |
| Aggressive scenario | US$8.5+ million | Big expansion successes, major international stars moving to MLS, loosening of some cap constraints or increase in exceptions, + growth. |
These are estimates focusing on the senior roster soft cap; guaranteed compensation overall (including bonuses, DP contracts, marketing, etc.) will be much higher for top clubs with big stars.
Will MLS likely change the salary cap structure or rules?
Besides straight upward movement, MLS might also tweak how the cap works. Possible reforms include:
- Easing DP / Young DP rules so more (or better) players can be signed without consuming so much of the budget charge.
- Increasing allocation money or expanding its uses, giving clubs more ways to invest in players outside the traditional cap.
- Adjusting free agency rules to allow more bargaining power for players, which tends to push salary pressures up. The current CBA already includes some free agency changes.
- Revising spending floors or minimums, ensuring clubs spend more of their budget, which could indirectly force cap rises to maintain competitive balance.
Bottom line: will MLS increase salary cap?
Yes — MLS will increase salary cap over the next few years, in line with the current CBA, tied media revenue, and rising costs. But the increase will be steady, not explosive, unless there’s a big change in how exceptions work or sudden revenue jumps.
Fans should expect gradual inflation in cap figures, higher minimum salaries, and possibly more flexibility around how money outside the core cap is used (DPs, bonuses, allocation money). Clubs in larger markets will benefit sooner; smaller ones may feel the limits more keenly.
Conclusion
Will MLS increase salary cap? The answer is clear: under the existing Collective Bargaining Agreement and growth in media and sponsorship revenues, MLS is committed to raising its salary cap through at least 2027-2028. The league’s structure ensures incremental growth, while also including room for reforms if revenues surge or competitive pressures grow.
For fans wondering what that means: more star signings, bigger contracts, rising minimum wages, and possibly more dramatic transfer headlines. Stay tuned with ModiFoot – we’ll track the actual numbers as they roll out each season, analyze cap changes, and help you understand what these shifts mean for your club. Want to dive deeper? ModiFoot can compare MLS cap growth with European leagues, examine which clubs are likely to benefit most, or forecast how player salaries will evolve under changing rules.
