The Galaxy and its president, Chris Klein, have been sanctioned by MLS for violating salary budget and roster guidelines relating to the signing of Argentine forward Cristian Pavón during the 2019 season.
MLS alleged Friday that the Galaxy entered into agreements that were not disclosed and included payments not accounted for in the calculation of Pavón's salary budget and roster category. The undisclosed agreements and payments resulted in the classification of Pavón as a targeted-allocation money signing in 2019 when he should have occupied a designated player slot.
The Galaxy already had three designated players, the maximum under MLS rules, when they acquired Pavón on loan from Argentine club Boca Juniors.
The annual value of Pavón's contract in 2019 was reported at $1.2 million, according to the MLS players association. That increased to $1.5 million in 2020. Pavón was signed by former Galaxy general manager Dennis te Kloese, whose contract was not renewed after the 2021 season.
The penalties assessed against Galaxy include a $1-million fine for the club and a $1-million loss of available future general allocation money. The team also will be prohibited from registering a player who requires the receipt of an international transfer certificate (ITC) from outside of the United States and Canada during the secondary transfer window in 2023.
Additionally Klein, the team's president since 2013, has been suspended from any sporting-related responsibilities through the conclusion of the primary transfer window in 2023. During that time, coach Greg Vanney will be promoted to sporting director and will report directly to Dan Beckerman, the president and CEO of AEG, the Galaxy's parent company.
Also Te Kloese, who now works in his native Netherlands as general manager for Eredivisie club Feyenoord, will be required to submit an application with the MLS commissioner's office should he wish to secure employment with any MLS club.
"From the outset the LA Galaxy and AEG have fully cooperated with MLS to ensure a thorough and transparent process and we accept the outcome and sanctions set forth in this ruling," the team said in a statement.
This story originally appeared in Los Angeles Times.