Salaries in MLS vs. Liga MX: Which league pays more to its players?

The salary comparison between Major League Soccer (MLS) and Liga MX has been a topic of debate in recent years, particularly with the increasing number of Mexican players moving to American soccer. Understanding the salary differences between these leagues is essential to analyze the trends and decisions players make when choosing their professional destinations.

Salary structure in MLS

MLS operates under a salary cap system aimed at maintaining competitiveness and financial stability within the league. This system includes the "Designated Player" rule, allowing each team to sign up to three players whose salaries can exceed the cap to attract high-profile talent without compromising the overall salary structure. As of 2017, the salary cap per team was $3.845 million annually, with a minimum salary for most players set at $65,000.

Top-paid Mexican players in MLS

In 2023, several Mexican players were among the highest earners in MLS:

• Javier 'Chicharito' Hernández: The LA Galaxy forward earned a base salary of $6 million annually, with guaranteed compensation reaching $7.5 million, placing him among the league's top earners.
• Héctor Herrera: Playing for the Houston Dynamo, Herrera had an annual salary of $4.75 million, reflecting MLS's willingness to invest in high-level Mexican talent.
• Carlos Vela: As a key figure for Los Angeles FC, Vela received a base salary of $3 million annually, cementing his status as one of the league's most influential and best-paid players.

Salary structure in Liga MX

Unlike MLS, Liga MX does not impose a salary cap, allowing clubs to freely negotiate salaries based on their financial capabilities. This flexibility has resulted in salary polarization, where wealthier teams like Tigres UANL, Monterrey, and América offer significantly higher wages compared to lower-budget clubs.

Top-paid players in Liga MX

According to 2022 data, the highest-paid players in Liga MX included:

• Ángel Rodrigo Romero Villamayor: The Cruz Azul FC player had an annual salary of €10,885,760, making him the league's highest-paid player.
• Florian Thauvin: The Tigres UANL player earned €5,187,520 per season, showcasing the club's ability to attract international talent with competitive salaries.
• Efraín Velarde Calvillo: With an annual salary of €5,000,656, Velarde ranked among the league's highest earners.

Salary comparison by team

An analysis of annual team salaries in both leagues reveals notable differences:

• MLS: Teams like Atlanta United and LA Galaxy had annual salaries of $17.3 million, while others like New York Red Bulls reported $7.6 million. The average team salary in MLS was approximately $11.5 million.
• Liga MX: Tigres UANL led with $26.2 million in annual salaries, followed by América with $18.7 million. The average team salary in Liga MX was around $10 million.

Although MLS has a slightly higher average salary per team, Liga MX includes clubs that individually outspend even the most prominent MLS teams on salaries.

Impact of the salary cap and designated players

The MLS salary cap has been a defining factor in the league’s financial structure. While it promotes stability and equity, it also limits teams' ability to compete salary-wise with Liga MX clubs when signing talent. The "Designated Player" rule offers some exceptions, but the overall restriction can influence players’ decisions when considering offers from both leagues.

Recent trends and player mobility

In recent years, there has been a growing migration of Mexican players to MLS, driven by factors such as quality of life, contractual stability, and development opportunities. Players like Alan Pulido and Oswaldo Alanís have stood out in this movement, seeking new challenges and benefits that MLS provides.

Meanwhile, Liga MX remains an attractive option for both international and local players, thanks to its salary flexibility and competitiveness. The absence of a salary cap allows Mexican clubs to make significant investments in talent, strengthening the league's quality.

Conclusion

The salary comparison between MLS and Liga MX highlights distinct financial structures and philosophies. While MLS focuses on balance and sustainability through a salary cap and the "Designated Player" rule, Liga MX operates with greater financial freedom, enabling its clubs to make more aggressive investments in talent. These differences not only impact individual players’ decisions but also influence the competitiveness and dynamics of both leagues in the North American football landscape.