Inter Miami have received $75,000 in General Allocation Money from LAFC in exchange for the Discovery Rights to Gareth Bale as the Hollywood club has finalized the signing of the star winger.
LAFC have signed the Wales star in a deal using Targeted Allocation Money, which means the former Real Madrid forward will not be counted as a Designated Player.
And, due to MLS roster rules, the club was required to make a payment to Miami, which previously held Bale's MLS rights, before completing the signing on Monday.
What has been said?
“I am extremely excited for this move to LAFC,” Bale said. “This is the right place for me and my family and the right time in my career, and I cannot wait to get started working with the team and getting ready to win more trophies in Los Angeles.”
LAFC head coach Steve Cherundolo added: “There are simply not many players in the world who can have an impact on a match like Gareth Bale.
"He can be dangerous in so many different ways, and we expect him to complement what we believe is already a strong team from the moment he arrives. His knowledge of the game and experience in playing in big games will be invaluable for our club.”
How much will Bale be making at LAFC?
Bale has agreed to an initial one-year deal that will see him sign on a TAM deal, with LAFC previously signing Giorgio Chiellini on a similar agreement.
As a result, Bale will make, at most, $1.6 million during his first season in Los Angeles as he will not join Mexican star Carlos Vela and Uruguay international Brian Rodriguez as DPs.
There is an option on Bale's contract after that initial 12 months that would see Bale signed for what would no-doubt be a DP salary, but the economics behind Bale's deal mean that club could sign another DP this summer.
Why is Miami getting paid?
The Discovery List is used by MLS teams as a mechanism to sign players that are not subject to another signing mechanism, such as the Allocation Process or MLS Draft.
Clubs may place up to seven players on their Discovery List, which would give them the right to sign that player.
The list is used to encourage parity and prevent bidding wards, although, with stars of Bale's caliber it often turns into a case where teams are forced to trade assets in order to acquire the rights to a player.
As a result, clubs often put big-name players that could potentially come to MLS, with Miami benefitting from the fact that it was the club that had Bale's rights at the time of his arrival.
Inter have received GAM, a mechanism used to sign players or manipulate the salary cap to fit in with MLS roster rules.