Major League Soccer on Friday announced penalties and sanctions against the Galaxy for violating salary budget and roster guidelines during the 2019 season.
The salary in question belonged to Cristian Pavon, who joined the Galaxy on loan from Boca Juniors late in the 2019 season. The Galaxy used TAM (Targeted Allocation Money) to finalize the deal and Pavon received a salary of $1.2 million.
MLS in a report said the Galaxy “entered into agreements that were not disclosed that included payments that were not accounted for in the calculation of Cristian Pavon’s salary budget and roster category.
“The undisclosed agreements and payments resulted in the improper classification of Pavon as a Target Allocation Money player in 2019, who should have occupied a Designated Player slot.”
As a result of the finding, the Galaxy have been fined $1 million and will lose $1 million of available future General Allocation Money (GAM). The club will also be banned from signing a player who requires an International Transfer Certificate from outside the U.S. and Canada during the Secondary Transfer Window next year. Last season, the secondary transfer window opened July 7 and closed Aug. 4.
In addition, club president Chris Klein has been suspended from any “sporting-related responsibilities through the conclusion of the Primary Transfer Window in 2023.” Last season, the Primary window opened Feb. 10 and closed May 4. During Klein’s suspension, Galaxy coach Greg Vanney will also take on the Sporting Director role and report directly to AEG President and CEO Dan Beckerman.
In a statement, the Galaxy said it accepts the outcome.
“From the outset the LA Galaxy and AEG have fully cooperated with MLS to ensure a thorough and transparent process and we accept the outcome and sanctions set forth in this ruling.”
Dennis te Kloese, who was the Galaxy general manager at the time and has since moved to Feyenoord in the Dutch Eredivisie, will be required to submit an application with the Office of the Commissioner if he wants to work for another MLS team.
The Galaxy’s three Designated Player slots in 2019 were held by Zlatan Ibrahimovic, Romain Alessandrini and Jonathan Dos Santos.
Pavon also played the 2020 season with the Galaxy on a salary of $1.5 million.
Last year, MLS fined Inter Miami $2 million and reduced their available allocation money by nearly $2.3 million of the 2022 and 2023 season after it was determined that that club had violated the league’s salary budget and roster regulations.