Word has come out on Friday night that Major League Soccer and the MLS Players Association have reached a tentative agreement on the collective bargaining agreement that will extend until 2027. The agreement goes now to the MLS Board of Governors and the full Players Association to be ratified.
According to Steven Goff of the Washington Post, in exchange for extending the CBA through 2027, the players were expected to receive a greater percentage of national TV revenue in the future, improved free agent parameters and no salary cuts.
Claiming losses of almost $1 billion in 2020 and facing stiff headwinds again this year due to the coronavirus pandemic which will keep fans from most venues at least at the start of the year, MLS in December exercised the force majeure clause in the CBA, which required the sides to return to the bargaining table within 30 days.
The league’s primary concern was the inability to welcome large numbers of spectators — if any in most markets — for the foreseeable future. Last season, MLS held a six-week tournament without fans at Disney World, then a condensed schedule with limited or no crowds in home markets.
Without major income from national TV contracts, MLS relies heavily on game-day revenue. MLS collects about $90 million annually in its deal with ESPN, Fox Sports, and Univision; the NBA, by comparison, earns $2.6 billion through its deals with ESPN and Turner Sports.
With the agreement, the third such one in the past year, the league averts their first work stoppage just prior to their 26th season with preseason starting on February 22nd and the regular season due to start on April 3rd.
