Major League Soccer sent a memorandum to its teams and league staff instructing them to prepare for eventual unemployment.
The document, sent by the president and deputy commissioner of MLS, Mark Abbott, Arrives before the Jan. 29 deadline (midnight Jan. 28) to negotiate a revised collective agreement (CBA) between MLS and the Players Association. If the league goes ahead with its threat to block players, it would be the first work stoppage in the circuit’s history.
The memory, the copy was obtained by ESPN, Notes: “The deadline of January 29 provides all constituents – the League, clubs and players – enough time to prepare for next season. However, at this point, we are obliged to plan the possibility that the collective agreement is canceled and that there is a work stoppage, so we will offer the clubs guidance on the rules to be followed during this work stoppage.
“We want to be clear, our hope is to reach an agreement and avoid a work stoppage. But we must be prepared in case we cannot reach an agreement. We understand the challenges that the COVID-19 pandemic has created for the families in the U.S. and Canada, worldwide, and in our MLS community.While we are not required to do so in the event of a work stoppage, we plan to continue to provide health insurance and pay premiums. medical care for players and their families. “
An attempt to communicate with MLSPA for feedback was unsuccessful.
The two sides have been in collective bargaining negotiations since MLS referred to the force majeure clause on Dec. 29. The clause, once referred to, allows both parties a 30-day window to agree on an amended collective agreement. The clause can be invoked in the event of an economic catastrophe, such as that caused by a pandemic. The league said it opted for the clause because of concern that the relatively slow release of the COVID-19 vaccine will result in few fans being able to attend the games this season. Given MLS’s reliance on gaming day revenue, the lack of audience would profoundly affect finances. The league has said it suffered losses of nearly $ 1 billion in 2020, $ 725 million of which was due to the pandemic.
MLSPA has responded that MLS invoked force majeure for “financial opportunism” rather than “financial need” and highlighted how concessions made last June have had a domino effect in future years, including 2021.
The reopening of negotiations marks the third time in the last year that the two sides have been involved in CBA talks. The two sides reached an agreement in early February, but neither party formally ratified the agreement. When the COVID-19 pandemic hit, MLS reopened negotiations and the two sides agreed on a revised agreement last June.
If the window concludes without a new agreement being reached, either party could choose to cancel the collective agreement, although MLS is the party most likely to carry out this maneuver. Talks may continue after the deadline if both parties consider that there is progress.
MLS followed the invocation of force majeure with an offer to MLSPA on January 5th. In exchange for not cutting wages, MLS was asking players to freeze the growth of the wage cap between 2020 and 2021, extending the duration of the deal by two more years until the end of the 2027 season. MLS said that the restructuring would save the league between $ 100 million and $ 110 million during the term of the CBA. That would have added to what the MLSPA says about being $ 150 million in concessions players made last June when the most recent collective agreement was agreed. This agreement also included a freeze on the 2020-2021 wage cap.
The two-year extension would last beyond the 2026 World Cup, which is hosted by the United States, Canada and Mexico, a tournament that is expected to accelerate investment in the game in North America. For this reason, MLS hopes to reduce its expenses, while MLSPA wants to be able to maximize its earnings.
Sources told him ESPN that the Players Union rejected the league’s offer last Friday. In its counter-offer, the MLSPA offers to change the size of the salary cap in future years without any mention of extending the collective agreement.
The parties met Monday night, and the league announced it had submitted a counter-offer to the MLSPA. Sources said a ESPN that the league clings to its desire to extend the collective agreement for two years, but would allow for a faster increase in the wage cap during the final years of the agreement. When the two sides reached a collective agreement last February, the agreement allowed the salary cap to be increased from $ 8,490,000 to $ 11,640,000 during the term of the five-year agreement. This equates to an average increase of $ 630,600 per year.
Since the league invoked the force majeure clause, there have been contrasting approaches to the pace of talks. The league has insisted there should be more urgency as the window closes on January 29, while MLSPA insists the date does not represent a strict deadline.
A source aware of the situation said the league is expected the MLSPA to submit another counter-offer before the deadline.
MLS training camps are scheduled to open on February 22, and the regular season will begin on April 3.