The LA Galaxy have been sanctioned by MLS for illegal payments to Cristian Pavon in the 2019 season that would have made him a Designated Player, instead of the Targeted Allocation Money player he was officially classified as. As a result, the club has been fined $1 million, they must forfeit a future $1 million in general allocation money, and they can’t register any players from abroad during the secondary (summer) window in the 2023 season, meaning they can’t sign any new players unless they are in MLS already.
Furthermore, former Galaxy GM Dennis te Kloese cannot again work in MLS unless he applies to the MLS Commissioner for reinstatement in the future, and current and longtime Galaxy president Chris Klein must serve a suspension through the primary (spring) transfer window of 2023, with head coach Greg Vanney serving as sporting director during that time.
This is only the second time in league history a punishment this severe has been levied on a club, following the sanctions meted out to Inter Miami in May 2021 for signing five Designated Players when teams are only allowed three. In that case, the club was fined $2 million and their allocation money was reduced $2.27 million, with a club owner being fined $250,000 and former GM Paul McDonough being suspended through the end of this year. In that case, the financial sanctions were stronger, but the Galaxy being under a semi-transfer ban means that’s new territory, and a pretty big consequence for breaking the rules.
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