Vancouver Whitecaps and Colorado Rapids swing a bookkeeping deal

VANCOUVER – The Vancouver Whitecaps and Colorado Rapids swung an accounting deal Monday swapping general allocation and targeted allocation funds.

Vancouver sent US$277,500 in targeted allocation money (TAM) to the Rapids in exchange for $185,000 in general allocation money (GAM).

Both sets of funds are used to pay down player costs.

Targeted allocation money is used to add or retain high-value players and can also be used to reduce a team’s salary cap hit.

General allocation money is a more all-encompassing tool, helping clubs to sign new players or extend their contract for a second year, re-sign existing talent, offset loan and transfer fees or reduce the salary cap hit of a designated player to a limit of $150,000.

The trade ratio of $1 GAM equalling $1.5 TAM is the same as that in a February deal that saw Toronto FC send $337,500 in targeted allocation money to D.C. United for $225,000 in general allocation money.