A lot of confusion has arisen over the league's designation of Maximiliano Urruti as a "League Designated Player." Let's clear it up.
A League Designated Player (LDP) is a player that is used to beef up the TFC roster until either 1) they start playing well or 2) Leiweke wants to go get two more DPs and needs to suddenly unload a DP that TFC only recently signed. TFC retains 20% of Urruti's rights so they can troll Portland at some point in the future, because why give the Timbers his rights full out? Exactly.
Not covered is how some players may start to fall under the LDP designation when retention funds are "exhausted." The league wants you to know that retention funds can only be used in certain circumstances when a player may bolt the league for more money. And it's hardly a huge pot. However, when retention funds are exhausted, some players may be shifted to LDP status or into a new category of "revenue-generating players (RGPs)" deemed too valuable to the league to have go to Europe.
As an example, the Sounders are struggling with how to give Eddie Johnson an pay increase. Given that EJ helps put fans in seats, is a USMNT member and appears in the the Don't Cross the Line promos, he may be eligible for RGP status as soon as this offseason. Teams must submit handwritten requests (notarized) for RGP status by Nov. 1. If approved in this stage, each team must send a fan representative to a Hunger Games-style event (flag football style, no worries) where the last three fans standing win RGP status for their teams' players.
As you can see, it's all very simple.