Major League Soccer fined the Los Angeles Galaxy $1 million and suspended club president Chris Klein on Friday for improper payments involving Argentine forward Cristian Pavon in 2019.
“The LA Galaxy entered into agreements that were not disclosed that included payments that were not accounted for in the calculation of Cristian Pavon’s salary budget and roster category,” MLS said in a statement.
The league said the undisclosed payments resulted in an incorrect classification of Pavon, who should have been deemed a designated player under league salary rules.
When they acquired Pavon on loan from Argentine club Boca Juniors, the Galaxy already had the maximum three designated players — whose compensation is only partially counted against the salary cap.
MLS said sanctions against the club would include the $1 million fine “and a $1 million loss of available future general allocation money.”
In addition, the Galaxy will be barred from acquiring players who require receipt of an international transfer certificate during next year’s secondary transfer window.
Klein, the team’s president since 2013, has been suspended from sporting-related responsibilities through the conclusion of the primary transfer window in 2023.
Coach Greg Vanney will be promoted to sporting director and will report directly to Dan Beckerman, the president and chief executive of Galaxy parent company AEG, during that time.
MLS also said former general manager Dennis te Kloese, who signed Pavon, must submit an application to the league office if he wants to be hired by any MLS team.
Te Kloese is currently managing director at Feyenoord in his native Netherlands.
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