Major League Soccer extended its moratorium to June 8th, but is also in talks with the MLS Players Association (MLSPA) about changes to player compensation due to the COVID-19 crisis.
“Like all leagues, we are in discussion with our players about changes to player compensation due to the financial impact on the league and our clubs from the COVID-19 crisis. We are seeking to work collaboratively with the MLSPA to find a solution that provides a safety net for all players, opportunity to earn full salary in the scenario where all matches are played with fans, and in particular provides protection for the players at the lower end of the salary scale,” said MLS in the statement.
Sources said that MLS stopped short of submitting a formal proposal, but said that the league is asking the bulk of its players to take as much as a 50% pay cut, though there are some important caveats. The reduction would take place only if games are canceled. Even if no more games are played this season, the players would still earn at least 50% of their salaries. That number will go up based on how much of the regular season is played. Having games played behind closed doors will also impact the extent of cuts, though to what degree isn’t known.
Players making less than $100,000 would not be affected, and players making above $100,000 wouldn’t have their salaries fall below that threshold. If the plan is implemented, the league would reduce its total player payroll by $150 million.
The league and union agreed to a framework for a new collective bargaining agreement in February, but neither league nor union have ratified it as of you. Neither this CBA, nor the previous one contained a “force majeure” clause that would allow the league to stop paying salaries in the case of a catastrophic event like a pandemic, leaving the players with some leverage against what may be viewed as an owners’ mandate.
In an April 6 interview with ESPN, MLSPA executive director Bob Foose said discussions with the league about CBA ratification had been pushed to the side, but could be resumed if the situation improves.
The fact that there isn’t a “force majeure” clause could cause some complications. How much of a pay cut the players are willing to take remains to be seen. The worst-case scenario is that the owners could then lock out the players and re-negotiate the CBA.
It is quickly becoming the reality that MLS will not be able to play a full 34-match schedule and then MLS Cup in December. One has to hope that absent a vaccine, nationwide testing for the virus (or antibodies resistant to the virus) ramps up dramatically between now and June 8th. It also hinges on people continuing to adhere to health authority guidelines and not have municipalities irresponsibly opening things too soon or “citizens” protesting stay-at-home orders in an effort to “liberate” their state.
As we have said in the past, the more people adhere to health guidelines and stay at home unless it is essential to go out (and protesting “stay-at-home” orders definitely does NOT qualify as essential), the faster that we can enjoy sports again.
