Centre back Lazar Stefanovic, is shown in this handout photo, in action for Toronto FC on July 1, 2023, in MLS play against Real Salt Lake. THE CANADIAN PRESS/HO-Toronto FC-Lucas Kschischang *MANDATORY CREDIT *

Toronto FC completed some roster housekeeping Wednesday, rewarding teenage defender Lazar Stefanovic with a first-team contract as a homegrown player through 2028 with an option for 2029.

But the bigger project remains, with general manager Jason Hernandez looking to add another piece to the roster.

After clearing up some past salary cap tangles, Hernandez has opted to start the season with the MLS club adopting the U22 Initiative player roster model, which allows for up to two designated players and as many as four U22 Initiative players while collecting an additional $2 million (all figures in U.S. dollars) of general allocation money (GAM).

The other roster model allows for up to three DPs and thee U22 Initiative players with no extra GAM.

Designated players and U22 Initiative players come with salary cap breaks.

Essentially, Toronto is now in a position where it can fit Canadian fullback/wingback Richie Laryea within its allotted salary budget without having to make him a designated player.

And it sets the stage for doing "a little bit more," said Hernandez after "the most painless roster and budget compliance call we've had probably in the last three years."

The MLS primary transfer window runs through April 23 with the secondary window July 24 to Aug. 21.

"At the moment we are active in trying to add another piece before our primary window closes," said Hernandez, suggesting that may be either a regular roster or U22 Initiative player.

MLS teams are allowed rosters of up to 30 players. But only the senior roster, which numbers 18 to 20, has to fit under the 2025 salary budget of $5.95 million.

A DP aged 24 or older carries the maximum budget charge of $743,750 no matter what they get paid. That allows Toronto to carry both Lorenzo Insigne, who was the league's second-highest-paid player last season at $15.4 million, and fellow Italian Federico Bernardeschi, fifth-highest at $6.295 million.

Laryea made $1.33 million last season.

Clubs can also use general allocation money to "buy down" the salary budget charge of a DP to as low as $150,000.

U22 Initiative players carry maximum budget charges of $150,000 (aged 20 and younger) and $200,000 (aged 21-25). Hernandez calls it a "very efficient way to bring talent in on the cap" and a space "that we're actively looking (at)."

The only U22 Initiative player currently on Toronto's books is South African forward Cassius Mailula, who is on loan to Morocco's Wydad AC.

Clubs can change roster models midseason, allowing Toronto to go back to the three DP format if it so desires. And if it adds a DP in the summer transfer window, the salary budget charge drops to $371,875.

If it goes that route, it would have to return $1 million of the extra GAM.

Toronto currently has 30 players on its roster, but that number is effectively reduced with Mailula and 19-year-old defender Adam Pearlman on loan (to the CPL's Halifax Wanderers).

And there are only 18 players on the senior roster, meaning there is room to spare.

Pearlman slots into supplemental roster position No. 31, given MLS clubs are allowed roster and budget relief for one player loaned to their MLS Next Pro affiliate or a lower-division club, providing the player meets certain provisions.

Toronto also plans to designate Stefanovic and third-string goalkeeper Adisa De Rosario as off-roster homegrown players — a new designation. Such players, who must be 21 or younger, don't count against the salary cap budget or factor in the roster limit but are only allowed to appear in six league match per season as short-term call-ups, although there is no limit on their participation in other competitions.

The 18-year-old Stefanovic, who was born in Florida but grew up in Oakville, Ont., joined the Toronto academy in 2016 and spent the last two seasons with Toronto FC II. The Canadian youth international has made three appearances for the Toronto first team.

As for Insigne, Hernandez offered the company line when asked about the 33-year-old Italian, who took part in the portion of training open to the media Wednesday.

"Nothing to report. Status quo. The player's training. He's available for selection and we leave it up to the first-team staff to select the players for the match."

Behind the scenes, sources say Insigne has been told he does not fit into coach Robin Fraser's plans and he will sit unless he agrees to a move.

That could change, of course.

Insigne is under contract through June 2026. Options to move him out include a buyout, an agreement to mutually terminate the contract or a transfer. So far he has turned down several transfer options.

Hernandez has already added Canadian winger Theo Corbeanu, Norwegian forward Ola Brynhildsen and English-born centre back Zane Monlouis and signed Canadian Markus Cimermancic to a homegrown player deal.

Toronto's 2025 draft choices — San Diego State defender Reid Fisher, Pitt midfielder Michael Sullivan and Dayton winger Joseph Melto — are headed to TFC II along with 2024 draft pick Patrick McDonald, a midfielder who elected to return to Indiana University for his senior year.

Hernandez says he may look to loan out another one of two young players with the goal of "putting them in challenging positions and then seeing how it all looks when they come back to us."

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This report by The Canadian Press was first published Feb. 26, 2025.

News from © The Canadian Press, 2025