By Ben Nicholson
July 20 – MLS players have overwhelmingly ratified the Collective Bargaining Agreement (CBA) through 2019 with a 91% vote in favor, putting behind them the disagreements over the terms that threatened to delay the start of the 2015 season.
The Players Union has released some details of the new deal.
At particular issue during the discussions was the restriction on player movement. The CBA is providing free agency for players over 28 who have spent at least 8 years playing in the MLS.
What free agency here means, though, is that players may negotiate a contract with another club when out of contract, but only for pay within the parameters of their previous salary.
Players earning under $100,000 may negotiate a raise of up to 25%, players earning between $100,000 and $200,000 may negotiate a raise of up to 20%, and players earning above $200,000 may negotiate a raise of up to 15%.
Further, players who significantly outperform their contracts may be able to negotiate raises above these limits.
The Re-Entry draft, which allocates out-of-contract players to another MLS team, will still apply to players under 23 with at least 3 years of MLS service who have had their option contracts declined and players under 25 with at least 4 years of service who have not received an offer from their previous employer.
The salary budget for each club increased from $3.1 million to $3.49 million from 2014-2015 and is set to rise by 5% annually for the next five years. By 2019, the salary budget will be $4.24 million, and does not apply to ‘Designated Player’ salaries.
The minimum salary for senior-roster players has risen by $11,500 for this year to $60,000 and will increase to $70,250 by 2019. Players under 25 see an additional $23,500 for the 2015 season, receiving at least $50,000, and players in this category will be earning $56,250 by 2019. Additionally, they will receive appearance and start bonuses, which are $500 and $750 per game respectively.
The player’s union says that over the course of the CBA, this amounts to an average $60,000 rise for players in the top roster spots.
The CBA also illuminates the new Targeted Allocation Money (TAM) figures. The league has budgeted $250,000 per team for 2015 and 2016, and will increase this amount by $50,000 each year until 2019.
It is not clear, though, that this means LA Galaxy have their finances in order for the coming years to remain under the salary budget after adding Giovani Dos Santos to their roster using their TAM.
Bob Foose, Union Executive Director, stated, “[w]e are pleased to announce that our members have ratified the agreement. The negotiations were tough as always, but because of the dedication and commitment of our player representatives, we were able to conclude an agreement that provides five more years of substantial improvements in player compensation and benefits as well as the introduction of free agency in MLS for the first time.”
Some other terms included in the CBA are as follows:
Teams are now limited to imposing a unilateral option maximum of two years on most players.
Players over 24 with a year of MLS service are guaranteed contracts.
Termination pay introduced.
401(k) contributions are increased.
Appearance fees are introduced.
Per diems and relocation expenses are introduced.
Bonuses for league and exhibition wins introduced.
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