Major League Soccer (MLS) is a single entity structure; the league is the sole body that oversees each club. Investors are able to ‘purchase a club’, meaning they can purchase the rights to operate a team within the MLS. One of the most recent expansion clubs - who are not scheduled to begin play until the 2020 season - are already being referred to as ‘David Beckham’s Inter Miami FC’. By virtue of the single entity structure, when signing players for their team, investors must abide by the spending regulations that the MLS has put in place.
Essentially, the single entity structure means that players first sign a contract with the MLS, and the MLS then assigns the available players to each club based on specific distribution guidelines, at which time the team can obtain the player. Teams can trade these rights to any other team at any time,...
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