MLS has a single entity ownership structure in which the league holds all the player contracts rather than the franchises. When coupled with the salary cap of ca. $US 2.1 million this provides the league with an ability to ensure a degree of competitive balance that is largely absent elsewhere in pro soccer.

Allocation money is used as a mechanism to prioritize signings of the higher profile players entering the league so that struggling teams or teams that lose a key player to teams overseas get the help they need to close the gap with the top teams and restore competitive balance. The rationale behind this is that it is important to avoid the emergence of a dominant New York Cosmos style franchise so that all teams have a reasonably equal chance of being the champion so spectator interest can be maintained in the smaller markets. Allocation money can be used for transfer fees, signing bonuses, to provide additional player salary payments over and above the salary cap or to re-sign current MLS players, subject to league approval. Franchises typically receive allocations for (1) failure to qualify for the MLS Cup Playoffs; (2) as a replacement in the case of the departure or transfer of key players; or (3) due to expansion status.

Every season the MLS Competition Committee determines how many allocation spots are to be made available to each team and whether they are classified as �major� or �minor�. Major allocations are typically in the $US 250,000 to 300,000 range , while minor allocations are worth between $US 125,000 and $150,000. Teams may split major allocations into up to three portions and can trade full or partial allocations to other teams in exchange for players and/or draft picks. TFC initially received three major allocations for being an expansion franchise and later received additional partial allocations after the expansion draft for Jason Kreis (Real Salt Lake), Will Hesmer and Danny O'Rorke (Columbus), Tim Regan (New York Red Bulls) and Nate Jaqua (LA Galaxy). Two of these partial allocations were subsequently traded to obtain Edson Buddle (New York Red Bulls) and Andrew Boyens (using LA's 1st round SuperDraft Pick).

Allocations are given a ranking by the MLS Competition Committee. One of the three expansion allocation ranks first, followed typically by the major allocations for failure to make the playoffs, major replacement allocations, minor replacement allocations, the two other expansion allocations and, finally, the remaining portions of split allocations. The current allocation list was recently revealed by a leading MLS journalist from New Jersey called Ives Galarcep. When a sought after player like Paulo Wanchope becomes potentially available the franchises at the top of the list are able to request him ahead of the team that originally tries to bring him into the league making the process of signing for an MLS team potentially very different from what happens elsewhere.

Prior to TFC's acquisition of Carl Robinson from Norwich City, there were therefore four allocations available despite the fact that one of TFC's three major allocations was used in the trade for Alecko Eskandarian from DC United.

Since Mo Johnston is still talking in terms of signing an international striker there is a very good chance that TFC still hold the number one ranked allocation and that one of the lower allocations was used on the relatively unheralded Carl Robinson. It will be interesting to watch what happens if Brian McBride decides to return to MLS at the end of his current contract with Fulham this summer summer. If the top allocation is still in place, Toronto will be first in line to claim him unless another team signs him as a designated player under the so called Beckham Rule as the New York Red Bulls recently did with Claudio Reyna. The top allocation may, therefore, have considerable trade value.

The bottom line is that Mo Johnston's decisions on how to handle the allocation money he still has at his disposal will go a long way in determining whether TFC will be truly competitive this summer.