Main disadvantages?
1) Not everyone will sign a developmental contract.
2) Not everyone who signs a developmental contract will be good enough for the first team.
3) A player can't stay on a developmental contract forever.
It's all very well to have a team full of them, but if they're not good enough then what's the point? Developmental players tend to be players just out of the draft, or younger players who are struggling to find a club. It's like managing in the lower leagues in the UK and signing someone on amateur forms.
Generally when managing in the MLS I try to have a fair amount to make up the squad numbers. If I'm lacking in a particular area but have no spots left for a senior player I find a developmental player. It's generally not a good idea to fill the team up solely or primarily with them because there's a chance they won't be good enough, and at one point they'll need to sign senior contracts and that will leave you way over your limit of senior players.
As for MLS Rising Stars, this is the FM version of Generation Adidas. It's nice work if you can get it, but you only get it if you're good enough. Every year, a certain amount of players are selected to be Generation Adidas players. The aim of this initiative is to encourage early entry (without college graduation) of American players into MLS. These players are few and far between. There were eight players who were awarded Generation Adidas status for 2007:
Chris Seitz, Bryan Arguez, Anthony Wallace, Amaechi Igwe, Maurice Edu, Nico Colaluca, Bakary Soumare and Abdus Ibrahim.
Taken from Wikipedia:
Generation adidas players do not count against the MLS senior roster and usually earn a salary not much higher than the league minimum (although in several cases, most notably Freddy Adu, that is not the case). Entering into the program automatically classifies a player as "professional" and thus, disqualifies them from playing college soccer. As a result, Generation Adidas players are also guaranteed scholarships to continue their college education should their professional career not pan out.
Hope that helps.
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