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Major League Soccer today announced sanctions imposed on the LA Galaxy for violating salary budget and roster guidelines during the 2019 season.

The LA Galaxy entered into agreements that were not disclosed that included payments that were not accounted for in the calculation of Cristian Pavón’s salary budget and roster category.

The undisclosed agreements and payments resulted in the improper classification of Pavón as a Target Allocation Money (TAM) player in 2019. Pavón should have occupied a Designated Player slot.

Sanctions

The sanctions for the LA Galaxy include:

  • $1 million fine for the club.
  • $1 million loss of available future General Allocation Money (GAM).
  • Prohibited from registering a player who requires the receipt of an International Transfer Certificate (ITC) from outside of the United States and Canada during the Secondary Transfer Window in 2023.

Executives

For his involvement in the agreements, LA Galaxy president Chris Klein has been suspended from any sporting-related responsibilities through the conclusion of the Primary Transfer Window in 2023. During that time, head coach Greg Vanney will be promoted to sporting director and will report directly to AEG president and CEO Dan Beckerman.

Additionally, former Galaxy general manager Dennis te Kloese will be required to submit an application with the Office of the Commissioner should he wish to secure employment with any MLS club.

"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," the Galaxy said in a statement.