Only one player could be selected from each team. Two of the league's 12 teams did not have a player selected.
Teams were allowed to protect 11 players from their 28-man rosters. Generation adidas players were automatically protected, though players who had graduated from the program to the senior roster at the end of the 2006 season were not.
Each team could only leave one senior international player unprotected.
Following the draft, RSL traded a partial allocation (est. at US$ 125,000) to Toronto for Jason Kreis. Hesmer and O'Rourke were traded to Columbus for another allocation. Regan was traded to Red Bulls for forward Edson Buddle. Serioux was traded, along with Toronto's 2nd round 2007 MLS Superdraft pick to Dallas for midfielder Ronnie O'Brien. Nate Jaqua was traded to the Los Angeles Galaxy for a partial allocation. Dyachenko was later returned to D.C. for a future draft pick, Kotschau was released, and Cancela was later traded to the Colorado Rapids. Part way through the season Nagamura was later traded to Chivas USA for a 1st round 2008 MLS SuperDraft pick. This left no players from the expansion draft on the TFC roster.