This is actually a fairly loosely worded measure.It’s good news you can increase your cap space by a million dollars by receiving a transfer fee or loan money.
The regulation isn’t prescriptive enough to prevent the funds from indirectly making their way into a club’s budget for DP’s.
I think MLS just wants to throw up a bit of a smokescreen to prevent any sort of expectation that money in is automatically going to be spent on player acquisition.