Major League Soccer has sent a memorandum to its teams and league staff instructing them to prepare for a possible shutdown.
Document, sent by the President and Deputy Commissioner of MLS, Mark Abbott, arrives before the January 29 deadline (midnight January 28) to negotiate a revised collective bargaining agreement (CBA) between MLS and the Players Association. If the league continues with its threat to block players, it would be the first stop in the history of the circuit.
Note, a copy of which was obtained by ESPN, notes: “The January 29 deadline provides all the constituents – the League, the clubs and the players – with enough time to prepare for the next season. However, at this time, we are required to plan for the possibility of the Collective Bargaining Agreement being canceled and a work stoppage taking place, so we will provide guidance to clubs on the rules to be followed during the work stoppage.
“We want to be clear, our hope is to reach an agreement and avoid interruption of work. But we must be prepared in case we cannot reach an agreement. We understand the challenges that the COVID-19 pandemic has created for families. from the US and Canada, worldwide and in our MLS community, although we are not required to do so in the event of a work stoppage, we plan to continue to provide health insurance and pay health care premiums to players and their families “.
An attempt to contact MLSPA for comments failed.
The two sides have been in talks on the collective agreement since MLS referred to the December 29 force majeure clause. The clause, once sent, 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 a pandemic. The league said it opted for the clause out of concern that the relatively slow release of the COVID-19 vaccine will result in few fans being able to participate in matches this season. Given MLS ‘dependence on gaming day revenue, the lack of a crowd would profoundly affect finances. The league said it suffered losses of nearly $ 1 billion in 2020, of which $ 725 million was due to the pandemic.
MLSPA responded that MLS invoked force majeure for “financial opportunism” rather than “financial necessity” and highlighted how the concessions made in June last year had a domino effect in the coming years, including in 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 to a revised agreement in June last year.
If the window expires without a new agreement being reached, either party could choose to cancel the collective agreement, although MLS is the party most likely to perform this maneuver. Discussions may continue after the deadline, if both sides see progress.
MLS followed the invocation of force majeure with an offer to MLSPA on January 5th. In exchange for a pay cut, MLS urged players to allow a freeze on the salary cap increase between 2020 and 2021, extending the agreement for another two years until the end of the 2027 season. MLS said the restructuring will save the league between 100 and 110 million. dollars over the life of the CBA. This would have been in addition to what MLSPA says is $ 150 million in concessions that players made in June last year, when the latest collective bargaining agreement was agreed. The agreement also included a freeze on the salary cap from 2020 to 2021.
The two-year extension will 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 spending, while MLSPA wants to be able to maximize its profit.
Sources said ESPN that the Players Guild turned down the league’s offer last Friday. In its counter-offer, MLSPA offers to change the size of the salary cap in the coming years, without any mention of the extension of the collective agreement.
The parties met on Monday night, and the league announced that it had submitted a counter-offer to MLSPA. Sources said ESPN that the league maintains its desire to extend the collective agreement for two years, but would allow a faster increase in the salary cap in the last years of the agreement. When the two sides agreed to a collective bargaining agreement in February last year, the agreement raised the salary cap from $ 8.49 million to $ 11.64 million over 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 must be a greater urgency, given that the window will close on January 29, while the MLSPA insists the date is not a strict limit.
A source with knowledge of the situation said the league expects MLSPA to present another counter-offer ahead of schedule.
The MLS training camps are scheduled to open on February 22, the regular season starting on April 3.