LA Galaxy fined, president suspended for hidden pay


LA Galaxy Chairman Chris Klein was suspended and the team was fined $1 million by Major League Soccer for undisclosed payments involving the Argentine winger christian holy In 2019.

MLS stripped the team of $1 million in future general allocation money and stated that the Galaxy would not be allowed to acquire players coming to MLS internationally during next summer’s transfer window. MLS also stated that former general manager Dennis Te Klose must submit an application to the league office if he wishes to be hired by an MLS team.

The league said Friday that Pavone should have been classified as a designated player who only partially counted against the salary cap.

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Klein was suspended through the primary transfer window, which usually runs until early May. Head coach Greg Vanni was promoted to sporting director during Klein’s suspension and will report to Dan Beckerman, president of parent company Anschutz Entertainment Group.

Pavón joined the Galaxy on loan from Argentina’s Boca Juniors and is listed by the Major League Soccer Players Association as having a $1.2 million salary in 2019.

LA attempted to re-sign him ahead of the 2021 season, but Pavon was accused of sexual assault in his native Argentina while the Galaxy were working to secure his permanent acquisition from Boca Juniors.

Pavone scored 14 goals in 35 regular-season games for the Galaxy and started again Boca Juniors In April 2021. The 26-year-old was transferred to Brazil last July atlético mineiro,

“The LA Galaxy entered into agreements that were not disclosed, including payments included in the calculation of Christian Pavan’s salary budget and roster category,” MLS said in a statement. “The undisclosed agreement and payment resulted in the unfair classification of Pavan as a Target Allocation Money player in 2019 who should have occupied a designated player slot.”

An MLS team may use general allocation funds to “buy out” a player’s salary budget fee.

Target allocation money may be used to sign new players whose salaries and acquisition costs are above the maximum salary cap or to convert a designated player to a non-designated player.

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