In the summer of 2019
Los Angeles Galaxy violated the salary budget and squad rules of Major League Soccer when transferring Cristian Pavón (26) in the summer of 2019, the North American league officially announced in a statement on Friday evening (local time). As a result, the MLS club will be fined and banned from transfers.
LA Galaxy will therefore be fined because payments to the Argentine were not disclosed. Pavón, now active for Atlético Mineiro in Brazil, was loaned out by Boca Juniors for a year and a half in 2019. The eleven-time national player was paid more than allowed, which would actually have counted as a “designated player”. The salaries of these players are not tied to the MLS salary cap. Officially, his salary was pushed below the applicable upper limit with the help of the so-called “Targeted Allocation Money”, so that Pavón was not one of the only three “Designated Players” allowed.
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As a result of the misclassification, LA Galaxy will be fined $1 million (about €950,000) and the club will lose the same amount in general allocation money that MLS teams can use to pay transfer fees for players or the bringing wages below the ceiling. Additionally, LA Galaxy will not be allowed to sign any player from outside the US or Canada during the summer 2023 transfer window. In addition, personal penalties were imposed on those responsible for the club.
“LA Galaxy and AEG (owners; ed.) have cooperated fully with the MLS from the outset to ensure a thorough and transparent process and we accept the outcome and sanctions set forth in this ruling,” shares the club in a statement. Pavón was directly involved in 23 goals in 35 games for LA Galaxy.
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