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Help with the MLS transfer system

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So I fired up a save and thought I'd go with the MLS for something different and I'm largely enjoying it. I started with LAFC because a new club seemed like a pretty good challenge and it was an interesting prospect. 

We ended up winning everything first season which was pretty good but the one thing stopping me from properly getting into it is my absolute ignorance into how the transfers work. 

I accidentally managed quite a few transfer coups but I'm not sure how, first season I traded in Sergio Santos for a 1st round pick and 100k allocation money (whatever that is :D ) and he was my top scorer first season. Second season I managed to trade in Luciano Acosta for 500k allocation and a few of my draft picks. 


I've kind of got my head around the draft system, that's all fine. But why do I have transfer budget of 10 million, and I arrange a transfer for 4m only for it to fail because I don't have the transfer funds? I really don't understand. 


Hoping some Americans can clear this up for me with a decent rundown of what's going on here. Thanks 

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I'm American and an MLS fan and I don't really understand it, to be honest.

Well, I understand trades, because those are pretty standard fare in American sports. Your player(s)-for-player(s) swap, a la Sanchez for Mkhitaryan, some times with one of the teams adding more assets (like draft picks or younger, unproven players) to a deal.

The draft is standard talent distribution, but MLS has the academy approach as well, so fewer and fewer impact players come via the draft.


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