MLS clubs will be financially compensated for developing players who sign their first professional contract overseas. Compensation could reach into six figures.

"We have been making increasing investments in youth development, and that investment has accelerated over the past few years. We intend on continuing to make that investment and we want to grow that investment. But in the event that a player that we developed decides to sign overseas, we believe that we should be able to recoup the value of that investment," said MLS executive vice-president of player relations and competition Todd Durbin.

5% of a player's transfer fee will be paid to the club that developed the player between the ages of 12 and 23 years old.

The MLS Players Association said that the decision would limit player movement abroad.

"Despite claims to the contrary, this move is not about improving youth development. Rather, it is simply about trying to force players to sign with MLS by limiting opportunities abroad," said the MLSPA in a statement.