Whether you’re vying for the front seat on a road trip, debating over the last piece of pizza, or attempting to secure World Cup champion Thomas Müller for a franchise like Bayern Munich, it’s crucial to highlight the concept of “Dibs” in MLS’s blockbuster summer deals. This principle is so significant that the league has established specific regulations around it.
Müller recently garnered attention after his transfer to Vancouver’s Whitecaps via an unusual but essential aspect of MLS’s single-entity structure known as Discovery Lists.
The term “discovery” can raise some eyebrows; how does one “discover” a 35-year-old German international? This rule allows teams to “discover” and register up to five non-MLS players (with certain exceptions), granting them the first opportunity to negotiate their transfer to MLS. If multiple teams list the same player, priority is given based on the timing of the submission, and if submitted on the same day, the team with the lower points-per-game will take precedence.
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Teams can negotiate “Dibs” and “Dibs” as well. In Müller’s case, the Whitecaps paid FC Cincinnati $400,000 to secure his discovery rights.
For those seeking clarity, why does MLS implement these convoluted procedures? In contrast, leagues like the Premier League or La Liga operate with a more straightforward approach to transfers, which could lead to conflicts when teams vie for key new players.
MLS has defended its approach, stating to ESPN that it benefits the league. Some agents believe this helps teams, viewing it as a “necessary evil,” while others harbor doubts. A team executive, speaking anonymously to ESPN, described the process as “embarrassing.”
This leads to the question: why does MLS utilize this discovery list system, and is it time for a change or complete elimination?
Understanding the intricacies of the Discovery List
Soccer negotiations often resemble a rugby scrum, filled with various stakeholders jostling for position. The Discovery List acts as an organized queue, ensuring clubs have the chance to negotiate in order.
A primary goal of the Discovery List is to keep expenses manageable for clubs interested in acquiring non-MLS talent, helping smaller market teams attract star players despite financial constraints. This mechanism also serves to mitigate bidding wars among clubs interested in the same player.
While parity is beneficial for smaller teams, some clubs excel in scouting specific international players.
“Certain owners in this league will do whatever it takes to secure a deal. However, our owners are mindful of the business side and want to see positive results,” said one representative.
“The discovery process has the advantage of preventing teams from outbidding each other across the league. If that weren’t the case, teams with virtually unlimited budgets would quickly sweep up their preferred players.”
Agent Patrick McCabe, who has facilitated the transfers of over 150 players to MLS, concurs with this sentiment.
“I see it as a necessary evil for MLS’s current growth. We can’t operate as a completely unregulated free market for international players. A structured process is essential,” McCabe commented.
“Clubs that effectively build and scout their rosters can leverage the discovery process to their advantage.
It’s clear that MLS is trying to achieve its goals through these rules. Given that many players appear only on one list, things can quickly grow complex. If multiple clubs are interested in the same player, lower-priority teams can send $50,000 in general allocation funds to those with priority for a limited time during the secondary transfer window.
In the instance of Müller in Vancouver, discovery rights can also be fully traded through GAM transactions for a typical amount exceeding $50,000, which eliminates the need for offers from the preferred club.
ESPN reported in April that Müller turned down a Cincinnati offer, leading to the Whitecaps securing the $400,000 rights deal by July.
“The ($50,000) payment initiates a process to ensure that clubs are actively engaging with their discovery claims. It enables further trade negotiations,” Lovely explained. “It’s a discovery priority transaction.”
Finding the route Müller took to reach Vancouver may seem intricate, and you’re not alone in feeling bewildered. The Discovery List is one of numerous mechanisms in MLS, resulting in a highly regulated environment that can’t be fully explained in a single piece.
Despite these extra steps, Müller has successfully joined MLS. Is that the most effective route?
“It’s embarrassing to have to discuss this issue.”
There are undoubtedly mixed feelings surrounding this mechanism.
“I understand both perspectives,” Heap remarked. “It’s a league aiming for parity. I’m likely to contend with them (the Discovery List) because it ultimately centers around negotiations and the player’s rights at that moment.
One executive expressed a stronger sentiment in an anonymous conversation with ESPN.
“This is part of the single-entity model. While I believe in competition, the single-entity structure limits that. From a legitimacy standpoint, I find it embarrassing when discussing these matters with agents worldwide,” the executive shared.
“It’s confusing because it seems we can’t communicate, so (MLS Club) hasn’t spoken to me, which adds to the confusion of being placed on the discovery list.”
These regulations and the term “discovery” can be puzzling not only for new MLS fans but also for agents unfamiliar with the league.
“Did we really have to clarify to (previous MLS designated players)? We didn’t officially add him to the discovery list initially with (MLS club).
“(I explained), ‘We now have you on the discovery list,’ and he responded, ‘You guys didn’t discover me.’”
If the executives can’t understand the rules and effectively negotiate with other MLS teams, they must inform high-profile players that discussions can only occur with the club having higher priority unless there are exchanged contracts between involved teams.
“According to our regulations, you cannot engage with us while simultaneously speaking with another club. You can only communicate with a higher-priority team or negotiate if there’s a confirmed deal between clubs.”
When Labrie was asked about whether the Discovery List process might deter players from committing to MLS, league officials noted that such instances are rare.
“We sign hundreds of players each year through this discovery process. It works effectively and transactions are generally swift,” Lovely noted.
“There are just a few cases annually where multiple clubs express interest in the same player, hence the existing procedure for ensuring all steps are followed.”
Should the MLS modify or maintain the Discovery List?
For agent McCabe, who believes that the Discovery List benefits clubs that invest time in scouting, there is still room for reform. Suggestions include reevaluating the number of players on the Discovery List and restricting the number of players a club with limited salary cap space can claim.
“The timeframe for holding discovery rights needs to be defined, as the list resets at each window’s edge; to my knowledge, there is currently no time limit,” McCabe suggested.
“Additionally, if a player is discovered, the MLS must notify the agent or the player, informing them that they have been placed on the MLS Discovery List by a specific team.”
The San Diego sports director is aware of his options being featured on the Discovery List. Still, he wonders what would happen if this process was discontinued.
“How can clubs best leverage it for their benefit? That’s my perspective.
“Adapting to any changes will take time, and there may be negotiations lost, as agents and players opt to seek higher offers elsewhere.”
For now, the Discovery List remains intact. If used effectively, it may benefit teams like Vancouver that are eager to secure talents like Müller, potentially elevating the club by 2025.
However, there’s clearly room for improvement, and as MLS continues to evolve over the next three years, reconsidering the Discovery List for a more streamlined system could be beneficial, or if deemed advantageous, the league might choose to eventually abolish the “dib” system altogether.
Fan Take: The introduction of players like Thomas Müller to the MLS highlights the league’s growing appeal for international talent, which is essential for raising the sport’s profile in the U.S. As the league navigates complex transfer rules, evolving these mechanisms could enhance competition and attract even more global stars, ultimately benefiting fans and the sport’s development.