On Monday, Major League Soccer announced that they planned to start their 26th season on April 3rd. On Friday, they authorized what would be their first ever lockout if there is no labor deal reached by Thursday, February 4th.
“Although we remain far apart, we will extend the 30-day negotiating period for one week to provide every opportunity to finalize an agreement,” the league said in a statement.
“To be clear, we are committed to getting a deal done and will make ourselves available at any time in any format to meet with the MLSPA and players.”
The main sticking point continues to be how long the current collective bargaining agreement (CBA) should be extended if 100% compensation is granted the players this season. The league wants to extend the deal two years to 2027–after the 2026 FIFA World Cup which will be held in the United States, Canada, and Mexico. The MLS Players Association (MLSPA) prefer the deal be extended only to the end of the 2026 season when there will be still a bump from said World Cup.
MLS had previously asked for a two-year extension to the CBA and a freeze in the salary budget from 2021 to 2022 in exchange for no cuts to salary or bonuses in 2021. MLS said its initial offer would amount to between $100 million and $110 million in concessions.
The union has counteroffered to slow the growth of the salary cap through 2025 and to reduce their share of revenue from a new broadcast deal, saving the league more than $50 million.
The two sides have been engaged in CBA negotiations since MLS invoked a force majeure clause on December 29th citing losses of nearly $1 billion, with $725 million directly tied to the COVID-19 pandemic. Given the league’s dependence on gate revenue is greater than most leagues in North American, this has the potential to be exacerbated by the probability that few or no fans will be in the stands for at least most of 2021.
“A work stoppage at this time and in this environment would be catastrophic for the standing of MLS, both domestically and internationally,” the MLSPA said in a statement. “It is our sincere hope that it can be avoided. Players are ready to play.”
