MLSE boss says cutting Italian stars loose from Toronto FC offers opportunity for MLS franchise

Toronto FC looks to put internal bickering behind it and end a tumultuous week on a winning note as D.C. United comes to town Saturday. Toronto FC's Lorenzo Insigne (right) and Federico Bernardeschi confer over a free kick during action MLS action against New York Red Bulls in Toronto on Wednesday May 17, 2023. THE CANADIAN PRESS/Chris Young

TORONTO — In opening the MLSE vault to bring in Italian stars Lorenzo Insigne and Federico Bernardeschi midway through the 2022 MLS season, Toronto FC looked to change the struggling franchise’s fortunes.

It didn’t happen.

This week, the 4-10-5 team cut bait with the two designated players, agreeing to a mutual termination of contracts that ran through July 2026 for Insigne and December 2028 for Bernardeschi (who had previously triggered a contract extension). In other words, they agreed to a contract settlement less than the total money owed.

Keith Pelley, president and CEO of Maple Leaf Sports and Entertainment, sees the move as a necessary stepping-stone in the team’s rebuild.

“The importance of the DP strategy in MLS is critical,” he said in an interview. “And unfortunately, in the greatest of intentions, this strategy of bringing two high-profile Europeans doesn’t fit the ethos of the club and our on-field identity going forward. So this provides us with the flexibility and the opportunity to make the changes that we believe are needed to make us a contender on an annual basis for the MLS Cup.”

It comes with a massive bill, even for MLSE. The two players earned more than $64 million combined (all figures in U.S. dollars), not counting the unspecified contract settlement, since their debut.

That outlay produced 22 regular-season wins and a long-distance view of the playoffs. Insigne and Bernardeschi, who played under four different coaches often with less-than-stellar service, combined for 45 goals and 40 assists in 175 games across all competitions in TFC colours.

The departures leave Toronto with two open designated player spots, with the option of a third depending on what balance the club wants between DPs and U-22 initiative signings.

GM Jason Hernandez says the club now has options.

“We just haven’t had that conversation in quite some time because we were locked into a certain path. And now we no longer are. So it’s a very different landscape today.”

With the summer transfer window opening July 24, TFC is already eyeing new talent. Pelley said coach Robin Fraser was reviewing film of a possible target Tuesday night.

And Hernandez said his phone has been busy since news of the Italians’ departure broke.

In cutting the Italians loose, TFC frees up their salary cap hits — pegged at $743,750 apiece, the maximum salary cap charge for a designated player — as well as half of the general allocation money involved.

Pelley, who took charge of MLSE in April 2024, says despite the size of the payout, there will be funds to find new talent.

“I’m not going to get into the financials but it’s a strong statement from ownership to allow us to negotiate a settlement with both players,” he said. “We now will turn our attention to making the right move for the right player and to change the DP strategy moving forward.”

Added Hernandez: “I think the commitment will continue in the investment space. It will just be dedicated and allocated much more efficiently.”

With a salary of $15.4 million, Insigne ranked second on the MLS pay scale behind only Lionel Messi’s $20.5 million. Bernardeschi ranked sixth at $6.295 million. The next highest-paid Toronto player is Norwegian striker Ola Brynhildsen at $1,629,610. Seven players are earning less than $100,000.

Fraser suggested the salary discrepancy between the Italians and the rest of the squad did not help foster team spirit.

“If the salaries are closer to being in line with the rest of the group — or even the rest of the league — I think it builds more of a team feeling,” Fraser said. “And that’s the thing that’s really important — being able to make sure that the team functions like a team.”

“The key is that whatever we do in terms of spending, we need to bring in people that are going to continue to enhance the team feeling,” he added. “Just by the disparity of salaries alone, there can be a sense of a great division within the team.”

Norwegian defender Sigurd Rosted, however, had a different view.

“To be honest, players don’t think about paycheque at all. That’s more media, you guys, and probably the fans as well,” said Rosted, whose salary of $805,000 works out to about five per cent of Insigne’s pay

“As teammates they always did everything they could for the club. They always worked hard,” he added. “So as players they were amazing. As individuals they were amazing as well, so of course we’re going to miss them.”

Talks had been ongoing with Insigne’s camp for “probably a few transfer windows,” said Hernandez. But transfers to clubs in Italy, Spain, Turkey and Brazil were not accepted.

Talks with Bernardeschi, meanwhile, started “the last several weeks.”

“Both happened to come to fruition at the same time,” said Hernandez, who was promoted to GM from assistant GM in June 2023.

Bill Manning, who oversaw the acquisition of the Italians as team president, was fired in July 2024.

For Fraser, there is clarity now.

“The club has wanted to move in a direction of prioritizing looking at players for next year, evaluating the guys we have on loan, certainly evaluating the younger players,” he said. “With injuries and that we’re starting to see more and more of what we have.”

Hernandez called Saturday’s 3-0 win over the visiting Portland Timbers “hopefully a small glimpse of actually what we want to look like on the pitch.”

TFC starts life without the Italians on Thursday against New York City FC at Yankee Stadium.

NYCFC (8-7-4) currently sits ninth in the Eastern Conference, occupying the last playoff position, four places and 11 points above Toronto. Seven of those New York wins have come at home (7-1-1).

New York forward Alonso Martínez returns from international duty with Costa Rica but goalkeeper Matt Freese, the hero of the American penalty shootout quarterfinal win over Honduras, is still at the Gold Cup.

Fraser said defenders Nicksoen Gomis, Zane Monlouis and Henry Wingo remain long-term casualties.

Defenders Richie Laryea, back from Gold Cup duty with Canada, and Kobe Franklin are available for selection while midfielders Jonathan Osorio and Markus Cimermancic are nearing a return to action.

This report by The Canadian Press was first published July 2,2 2025

Neil Davidson, The Canadian Press