Vancouver Whitecaps and Colorado Rapids swing a bookkeeping deal - InfoNews

Current Conditions

Mostly Cloudy
5.7°C

Vancouver Whitecaps and Colorado Rapids swing a bookkeeping deal

Vancouver Whitecaps' Kendall Waston (4), goalkeeper Stefan Marinovic (1) and Montreal Impact's Ignacio Piatti, back left, walk onto the field for an MLS soccer game in Vancouver, B.C., on Sunday March 4, 2018. THE CANADIAN PRESS/Darryl Dyck
March 05, 2018 - 12:30 PM

VANCOUVER - The Vancouver Whitecaps and Colorado Rapids swung an accounting deal Monday swapping general allocation and targeted allocation funds.

Vancouver sent US$277,500 in targeted allocation money (TAM) to the Rapids in exchange for $185,000 in general allocation money (GAM).

Both sets of funds are used to pay down player costs.

Targeted allocation money is used to add or retain high-value players and can also be used to reduce a team's salary cap hit.

General allocation money is a more all-encompassing tool, helping clubs to sign new players or extend their contract for a second year, re-sign existing talent, offset loan and transfer fees or reduce the salary cap hit of a designated player to a limit of $150,000.

The trade ratio of $1 GAM equalling $1.5 TAM is the same as that in a February deal that saw Toronto FC send $337,500 in targeted allocation money to D.C. United for $225,000 in general allocation money.

News from © The Canadian Press, 2018
The Canadian Press

  • Popular kelowna News
  • Comments
View Site in: Desktop | Mobile