Augsburg Signs USMNT's Ricardo Pepi From FC Dallas on Record-Setting Transfer Fee

An up-and-coming star for the U.S. men’s national team is making a move overseas.

FC Dallas forward Ricardo Pepi is headed to FC Augsburg of the German Bundesliga in a permanent transfer, the club announced on Monday, just three days into the January transfer window. Chris Smith of 90min.com was the first to break the news, adding that the move will cost Augsburg a club-record $20 million. The fee—before incentives and add-ons—is believed to be the highest for a homegrown player in MLS history, surpassing that of Alphonso Davies's transfer from the Vancouver Whitecaps to Bayern Munich. Pepi is signed through June 2026—the start of the World Cup that the U.S., Canada and Mexico will be jointly hosting—with an option to extend for another year.

Pepi, 18, has already made a name for himself in international competitions. He’s scored three goals with three assists in six games for the national team during World Cup qualifying. In 31 MLS contests, the striker scored 13 goals and added three assists. He was U.S. Soccer’s Young Male Player of the Year in 2021, as well as the Young Player of the Year for MLS.

He'll join a club that could use an immediate injection of attacking help. Midway through the league campaign, Augsburg sits in 15th place out of 18 Bundesliga teams, just one point clear of relegation. The club has 17 goals in 17 matches. It also has an American tie-in, through minority owner and billionaire David Blitzer.

“We are delighted that Ricardo has decided to join FCA despite interest from a number of top clubs around the world. We were able to provide him with a clear sporting plan for his future development that convinced him to come here,” Augsburg sporting director Stefan Reuter said in a statement. “We are certain that he will continue to improve here in Augsburg and that we’ll have a lot of fun together over the coming years.”

Pepi becomes the latest FC Dallas product to rise through the club's youth ranks and secure a move abroad in recent years. Others include Weston McKennie, Chris Richards, Bryan Reynolds, Reggie Cannon and Tanner Tessmann.