Toronto FC Sign Djordje Mihailovic in Blockbuster Trade With Colorado Rapids

Toronto FC have acquired U.S. international midfielder Djordje Mihailovic from the Colorado Rapids in a record-setting deal, the clubs announced Thursday. As reported by MLSsoccer.com, the transfer includes $8 million up front and up to $1 million in performance bonuses, making it the second-largest cash-for-player move in MLS history.

Mihailovic, 26, will be a Designated Player and has signed a long-term contract with Toronto through 2028, with a 2029 option. “This is a landmark signing for our club,” said TFC general manager Jason Hernandez. “Djordje is not only one of the league’s top chance creators, but also someone who embodies the winning mentality we want to rebuild around.”

Toronto are undergoing a significant roster overhaul under head coach Robin Fraser after parting ways with Italian stars Lorenzo Insigne and Federico Bernardeschi. Currently 12th in the Eastern Conference and 14 points below the playoff line, the Reds view Mihailovic as a crucial piece in their long-term strategy.

Mihailovic joined Colorado in 2024 from AZ Alkmaar for a club-record fee and went on to tally 23 goals and 22 assists in 63 appearances. He led the Rapids in goal contributions this season with 16 and previously played for Chicago Fire and CF Montréal, winning the 2021 Canadian Championship.

“This club has the ambition and fanbase to be one of the best in the league again, and I’m excited to be part of that project,” said Mihailovic. “After speaking with Jason and Robin, I knew this was the right place for me.”

Colorado, who hold the final playoff spot in the West, now have two open DP slots following Mihailovic’s exit and Kévin Cabral’s recent departure. Club president Pádraig Smith acknowledged the midfielder’s impact and expressed confidence in reinvesting the funds to strengthen the roster before the August 21 transfer deadline.

“I’ll always be thankful for my time with the Rapids,” said Mihailovic. “I requested this move for personal reasons, and I appreciate how professionally the club handled the situation.”