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NEWS: MLS & MLSPA ratify new Collective Bargaining Agreement

Major League Soccer announced Monday that the league and the MLS Players Association have finalized a new Collective Bargaining Agreement covering the next seven years through 2027.

The full statement from MLS and breakdown of the agreement follows below:

Major League Soccer and the Major League Soccer Players Association today finalized a new Collective Bargaining Agreement. The agreement, covering the next seven years from 2021 through 2027, has been ratified by the MLS Board of Governors and the membership of the MLSPA.

MLS and the MLSPA and players worked together to address the major impact of the COVID-19 pandemic on the League in 2021 and beyond. The primary terms of the new CBA, which are summarized below, include:

·       TWO-YEAR EXTENSION WITH EXPANDED FREE AGENCY – A two-year extension of the existing agreement; the new CBA runs through 2027. As a result, the first 32 seasons of MLS -- from 1996 through 2027 -- will have occurred without a work stoppage. Starting in the 2026 season, players 24 and older with at least four years of MLS service at the end of their contracts are eligible to become free agents within MLS, providing players at an earlier stage of their careers with opportunities to negotiate with and move to different MLS clubs.

·       100% COMPENSATION IN 2021 – Players will receive 100 percent of their compensation in 2021, including salaries and bonuses.

"We thank the MLSPA leadership and the players for their thoughtful and collaborative approach on the new CBA," said MLS Commissioner Don Garber. "We worked together to address the ongoing impact of COVID-19 on the League, and we appreciate the players’ efforts to develop a CBA that deals with the uncertainty of the pandemic while also providing stability during the next seven years to enable further growth. We look forward to seeing the players on the field in a few weeks as we launch the 2021 season."

Major League Soccer will announce the 2021 regular season schedule in the coming weeks.

SUMMARY OF KEY POINTS

The following are key points agreed upon by MLS and the MLSPA in the new CBA:

Term

·       February 8, 2021 – January 31, 2028

MLS Player Compensation

·       An overview of player compensation for the new CBA follows below.

Year

Salary Budget

General
Allocation
Money

Discretionary
TAM

Available
Spend
on Roster*

2021

$4,900,000

$1,525,000

$2,800,000

$9,225,000

2022

$4,900,000

$1,625,000

$2,800,000

$9,325,000

2023

$5,210,000

$1,900,000

$2,720,000

$9,830,000

2024

$5,470,000

$2,585,000

$2,400,000

$10,455,000

2025

$5,950,000

$2,930,000

$2,225,000

$11,105,000

2026

$6,425,000

$3,280,000

$2,125,000

$11,830,000

2027

$7,068,000

$3,921,000

$2,025,000

$13,013,000

*Clubs have the opportunity to exceed these figures with spending on up to three Designated Players and up to three players through the League’s under-22 player initiative.

·       As was the case in the CBA agreed to in June, players also will share in the increased revenue generated by MLS’ new media agreements beginning in in 2023. MLS will increase player spending by an amount equal to 12.5 percent of the incremental media revenue, as defined in the CBA, in 2023 and 2024, increasing to 25 percent for the 2025, 2026 and 2027 seasons. The League’s current local, national and international media rights partnerships expire at the end of 2022.

·       Team bonuses and 401(k) contributions will remain as agreed to in the previous CBA.

·       The Maximum Salary Budget Charge, the maximum a club can be charged for an individual player on the team’s salary budget, increases from $612,500 in 2021 to $883,438 in 2027.

Year

Maximum Salary
Budget Charge

2021

$612,500

2022

$612,500

2023

$651,250

2024

$683,750

2025

$743,750

2026

$803,125

2027

$883,438

·       Minimum salaries for players on the senior roster increase from $81,375 in 2021 to $125,875 in 2027.

·       Minimum salaries for players on reserve roster increase from $63,547 in 2021 to $97,700 in 2024.

·       Clubs will continue to have the ability to sign up to three Designated Players.

Free Agency

·       Under the most recent CBA, to be eligible for free agency a player needed to be 24 years old and have five years of service in the league. Beginning in 2026, the eligibility has been expanded to include players who are 24 years old with four years of service in the league.

·       For the 2026 and 2027 seasons only, the new CBA also has modifications to the increases in compensation that free agents can earn:

o   For players making the maximum salary budget charge or less, a free agent can sign a contract with another club with an initial salary of the greater of $25,000 above the maximum salary budget charge, or 20% above the player’s prior salary.

o   For players making between the maximum salary budget charge and the maximum targeted allocation money (TAM) amount, the player could earn 20% above the prior salary up to $500,000 above the maximum salary budget charge and 15% of such salary from $500,000 above the maximum salary up to the maximum TAM amount.

 

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