MLS is now a transfer-market destination league, and investment in youth has played a big role in that

When the summer transfer window closed the night of Aug. 4, it concluded a stellar period of business for MLS.

Some of the world’s biggest names moved to the league, including Gareth Bale and Giorgio Chiellini to LAFC. Then there were well-known international names like Hector Herrera joining the Houston Dynamo, and Federico Bernardeschi joining Toronto FC along with compatriot Lorenzo Insigne, who signed last winter.

The window also saw younger players in their primes joining MLS sides, with former Watford forward Cucho Hernandez joining the Columbus Crew — where he’s already scored five goals in seven appearances — and former Barcelona prodigy Riqui Puig arriving on a free transfer to the LA Galaxy. There was movement in the other direction as well, with Chicago Fire goalkeeper Gabriel Slonina going to Chelsea for a $10 million transfer fee.

“There’s no question that we had a historic and significant increase, not only on the expenditure of the acquisition of players, but in many ways, more importantly, the transfer revenue that we have received in the last 12 months,” said MLS executive vice-president for competition and player relations Todd Durbin. “That has been significant, and has been a marked change from the level of not only spend, but also with regards to transfer fees received.

The numbers reveal the extent to which MLS has become more of a player in the international market. According to the league, in 2022 MLS paid $175m in transfer/acquisition fees, and for the fourth consecutive year it set a new high for transfer fees paid, double the amount paid five years ago. Revenue generated for outgoing players in 2022 was around $100m. This doesn’t include sell-on fees for the likes of Leeds United’s Brenden Aaronson or Crystal Palace’s Chris Richards. And there is a sense that the arrivals in this window increased the momentum.

“I think the signings in this window mark a watershed in the history of the league. I really do,” Columbus president Tim…