MLS rules explained: What's the difference between GAM and TAM?

In a continuing series at TFC Republic, we'll look at some of Major League Soccer's more arcane roster rules and break them down by using real-life examples so that they are easily understandable.

In this week's edition: we explain the difference between General Allocation Money (GAM) and Targeted Allocation Money (TAM).

Last month, Toronto FC acquired forward CJ Sapong from Nashville SC in exchange for defender Lukas MacNaughton. Nashville also received up to $2000,000 in General Allocation Money (GAM) as part of the trade.

In February, TFC reached an agreement with Danish club Brøndby IF for the transfer of Norwegian centre back Sigurd Rosted. Rosted was signed by TFC using Targeted Allocation Money (TAM) to a three-year deal with an option for 2026.

The concepts of GAM and TAM make most MLS fans roll their eyes with confusion, so we'll break down what each one is used for and the difference between the two pots of money.