The Designated Player Rule or the Beckham Rule is a rule in football that allows Major League Football franchises to sign in players that can be paid beyond their salary range. The number of players usually is limited to three.
The rule was included in the football rulebook before that start of the MLS season in 2007. This allowed teams to compete with sough-after players. It is also one of the two rules that provided for such salary rule, the other being the allocation money rule. As of late 2019, there are more than 200 Designated Players in the Major Leagues.
Furthermore, the rule was nicknamed the, “Beckham Rule”. This was after the famous player David Beckham. He was the first ever player to have signed under the rule after signing a five-year contract that guaranteed him a $6.5 million annual salary under the Los Angeles Galaxy.
2012 Version of the Designated Player Rule
When it comes to the reasons behind the creation of the rule, it is good to look into its history. In 2006, the average salary cap was $1.9 million and by 2010, after a Collective Bargaining Agreement it shot up to $2.55 million.There have been 2 major changes in the Designated Rule. The first one was drafted and accepted in 2010 while the latest one was created and enforced in 2012. The 2012 version was made in consideration to the younger players.
The 2012 version includes provisions like designated players who are 23 years old and above need to carry a budget for salary charge worth $350,000 unless he or she joins his or her club right in the middle of the season. If this is the case, the player pays half of the charge. For players 21 to 23 years old, $200,000.00 is charged while those who are 20 years old or younger are charged $150,000.
Another provision of the rule is that midseason signing comes with a budget charge of $150,000.00 for designated players 23 years old and younger. This cannot be lowered.
In addition, the age of the player, which is used to measure how much budget charge is needed, is determined by year and not the actual date of birth.
As of 2017, the maximum budget for the players have reached up to $480,625 but the ones that are for younger players have not changed since 2012.