Toronto FC Jason Hernandez looks to clean up salary cap and open up the future

“We feel a lot more confident going into this upcoming off-season that we did the one prior,” said Hernandez. “There’s a level of what I would say booby-traps that were uncovered when I first got the (GM) role at the end of last summer.”

The club is paying off departed forwards Adam Diomande and Ayo Akinola as well as a $500,000 payment due in 2024 to Belgium’s Anderlecht for Jamaican international defender Kemar Lawrence. That payment was part of the transfer fee for Lawrence, who joined TFC from Anderlecht in May 2021 and was traded to Minnesota United in March 2022.

Diomande was waived while Akinola’s contract was terminated by mutual agreement.

“That comes to an end in ’25, which is nice,” said Hernandez. “We had to suffer from a salary cap perspective this season. But those things coming off, the Jahkeele Marshall-Rutty money coming in, we’re going to be in a position to make some good additions, which is positive.”

While MLS clubs are allowed one contract buyout per year, Toronto had already used its on former captain Michel Bradley, who retired after last season. Bradley had previously restructured his contract, deferring money.

TFC’s only other move during the summer transfer window was the signing of free-agent defender Henry Wingo. Hernandez said the club knew going into the window that it was likely limited to the one acquisition “unless other business happened”

“We knew we had this bucket of money and we knew we were going to go get Henry,” said Hernandez.

While the sale of the highly touted Marshall-Rutty opened up other possibilities, it came on the eve of the transfer window closing. And the team did not like what it saw in the free-agent market.

“A lot of the opportunities we were presented in the free agency space felt more like a short-term, Band-Aid decision versus what actually the club probably needs.”

Hernandez was not willing to take in players who came with a “club-friendly” salary cap charge in 2024 and a much bigger number in 2025.

Instead, Toronto promoted forward Charlie Sharp and wingback Nate Edwards to the first team from TFC 2 ahead of last Friday’s roster freeze.

MLS teams are operating on a salary budget of $5.47 million this season, which covers up to 20 players on the senior roster (clubs can elect to spread that number across 18 players). But the league has several mechanisms that allow those funds to go further, including using allocation money (both general and targeted) to buy down salaries.

Designated players only count $683,750 — the maximum salary charge — against the cap no matter their actual pay. Toronto’s Lorenzo Insigne is actually earning $15.4 million with fellow Italian Federico Bernardeschi collecting $6.295 million and Canadian Richie Laryea $1.208 million.

Hernandez says Laryea’s contract can — and “very likely” will — be restructured so as to remove the designated player status.

There are benefits in going with just two designated players rather than three.

Teams that elect to go with two DPs can sign up to four players as part of the league’s “U22 Initiative.” The pluses of that structure include a reduced salary cap charge for the young players and up to an extra $2 million in general allocation money.

Hernandez says the club is currently pondering whether that is the way to go.

Captain Jonathan Osorio who is earning $836,370 this season, restructured his deal to allow the team to sign Laryea as a DP. In doing so, Osorio had his option year guaranteed so his contact runs through 2026.

Hernandez and coach John Herdman will have decisions to make come the end of the year.

The contracts of goalkeeper Greg Ranjitsingh ($94,200), defenders Kevin Long ($277,500), Shane O’Neill ($413,000) and Kobe Franklin ($100,520), midfielder Alonso Coello ($94,050) and Brandon Servania ($602,710), and forward Prince Owusu ($807,500) — all on the club’s senior roster — expire at the end of 2024 with club options to follow.

While there is more work to do, Hernandez believes TFC is on the right road.

Toronto, which finished last in the league at 4-20-10 in 2023, went into Wednesday’s game against visiting Columbus in a playoff position at eighth in the East at 11-15-3.

“By every metric, we are miles ahead of where we were at this point last year,” said Hernandez.

“That’s a low bar, so that’s not saying much,” he added.

But he believes TFC is “quite competitive” when it has all its players at its disposal.

“To get results in this final stretch, we’re going to need our prominent players to really show up and have big performances, and be supported by the rest of the cast.”

After Columbus, TFC plays at Colorado and Chicago and hosts the New York Red Bulls and Inter Miami. The club also travels to Vancouver for the Canadian Championship final.

Toronto FC Jason Hernandez looks to clean up salary cap and open up the future

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