Toronto FC has completed a trade with Real Salt Lake to sign midfielder Nelson Palacio. The 25-year-old Colombian joins the team in an attempt to climb out of the lower part of the Eastern Conference, where they currently sit 12th with 32 points from 34 games, having scored 37 goals and conceded 44.

What happened?

The official statement by the MLS implied that Toronto FC acquired Nelson Palacio from Real Salt Lake on Monday. In exchange for the midfielder, RSL received $1.1 million, with up to an additional $550,000 in conditional cash if certain performance-based metrics are met.

Why it matters for Toronto FC

This signing is a bet on strengthening the squad and recovering the solidity it once had, especially after the club's altercation with Italian star Insigne. The team has not shown security across the pitch, and this move aims to address that issue.

What comes next?

Nelson Palacio joined RSL in 2023 after his time with Atletico Nacional, a Colombian team. During his three years at the MLS club, the Colombian midfielder played 55 games, scoring two goals and delivering two assists. As Toronto FC prepares to face Charlotte at home on 2026-08-19, they will be looking to capitalize on Palacio's skills to improve their standing in the league, currently 31 points behind leaders San Diego.