UPDATE: 8.8.2018 – The LA Galaxy officially announced, via a press release, that the club had officially acquired $175,000 in allocation money from the Portland Timbers.
The club will receive $100,000 in Targeted Allocation Money and $75,000 in General Allocation money. The money will be received for use in 2019.
In exchange, the Timbers will receive the top allocation spot from the Galaxy.
ORIGINAL STORY BELOW
The LA Galaxy have finally seen the top spot in the allocation order get put to use.
The Portland Timbers acquired the overall number one allocation spot from the Galaxy on Wednesday, per Sam Stejskal, in exchange for approximately $175k in Targeted and General Allocation Money (per @jeffrycarlisle). The Timbers then used that spot to acquire defender Jorge Villafaña on a 3.5-year deal.
Can now confirm. He's headed to Portland. Timbers trading up to snag the No. 1 allocation spot from the LA Galaxy. Not yet sure what's headed to LA in return.
The Allocation list, itself “will consist of (i) select U.S. Men’s National Team players, (ii) elite youth U.S. National Team players, or (iii) former MLS players returning to MLS after joining a non-MLS club for a transfer fee greater than $500,000,” per the league’s definition.
Villafaña qualified for that allocation list making sure that the Timbers had to go through the Galaxy in order to get the deal done.
For the Galaxy, who have held the top spot in the allocation order since the beginning of the year — a list that allows for teams to pick from returning US-based players — they’ve finally gained some actual value out of it. And while the $175k won’t drastically alter the Galaxy’s remaining 11 games of the season, they were basically in a use it, or lose it position.
With no real leverage — Sigi Schmid and Chris Klein have both spoken publicly saying the club’s hands were tied with regards to adding pieces, with Schmid going as far as saying they tried moving other players to get a deal done — it was up to the club to get the most value out of the top spot.
If the Galaxy had cap space or the available cash to sign Villafaña, they may have been able to negotiate a much higher deal — forcing the Timbers to “compete” with them for his services.
But without the space available to add him to the roster, the Galaxy were obligated to get something done. Simply saying “no” doesn’t fly in MLS where the league could dictate that the Timbers simply skip over the Galaxy and go to the next team with their cash.
With the transfer window closing at 11:59 p.m. CT (9:59 p.m. PT) on Wednesday night, the deadline to get something out of the position was pressing. And the current allocation order resets after the final day of the regular season (based on reverse order of the complete league table).
Only players who are currently out of contract could be added to a roster once the window has closed and all MLS rosters must freeze on September 14 of this year.
The allocation money is available immediately and could be used to facilitate a deadline deal. But more likely, it will be used in the offseason as the Galaxy attempt to offload some underperforming assets. With a possibility that they don’t renew several contracts – Michael Ciani, João Pedro, Baggio Husidic, and Ashley Cole.
Updates to this story will be published when they’re received.
LA GALAXY II NEWS:
LA Galaxy II have mutually parted ways with midfielder Julian Büscher. Büscher, at one point in the offseason, was trailing with the senior team but was eventually picked up by Los Dos. He started 17 of 21 games while scoring one goal and adding six assists. Büscher also regularly wore the captain’s armband for the USL side.
Additionally, LA Galaxy II also signed defender Justin Fiddes from Vancouver Whitecaps FC. Fiddes is 22-years-old and was originally drafted by the Whitecaps in the first round of the 2018 MLS Super Draft (17 overall pick).
“We are excited to add Justin to our roster for the remainder of the season,” said LA Galaxy II Head Coach Mike Muñoz. “He is a young prospect that we believe will challenge our players on defense and make an impact in the USL for us. He’s hungry, he’s eager and he’s flexible. He can play on the left and right and in multiple formations.”