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Old 07 Aug 2002, 01:04 PM   #1
Minnman
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Default Post-WC Inflationary Salary Pressures

Nothing like a snappy thread title to help increase traffic, eh? (Sorry if this should have been in the MLS forums; I tried to delete and re-post, but BS woldn't let me).

Anyway, I've been thinking, with the long thread re: McBride's supposed annoyance at MLS for not responding to a call from Everton that, in some sense, there is a nasty flip side for MLS to the US's solid WC performance, especially when you link it with the downturn in the transfer market.

The theory goes something like this:

Despite the lack of transfers of American MLS players to Europe after the Cup, that doesn't necessarily mean that there hasn't been a lot of interest. Looks like there were real offers for DMB (at least one ... for a while). There's the McBride situation. Certainly BL want Donovan back (okay, not a transfer at all, but similar). Remember, Mathis hurt his knee, or perhaps we'd have heard more about him, too. And, to me anyway, it seems like a few Americans abroad might have seen their stock rise because of the WC (Lewis, for example).

But the low transfer market means that European clubs aren't willing to pay as much for MLS-based players as they might have otherwise. From MLS's perspective, therefore, a guy like McBride is worth more to MLS than a club like Everton is willing to pay to transfer him to the Premiership.

Makes sense, right? Why sell players below value? Well, okay, to a point. One big variable we don't hear much about it salaries.

When PNE wanted McBride (and I continue to use him as an example not because I think the rumors about his transfer are any more or less meaningful than any other US national but, well, just because) we heard from MLS (eventually) that the actual trasnfer offer wasn't anywhere near as large as PNE made it seem, it was to be spread out over time, etc. Bottom line, it seemed like MLS obviosly made the right decision to keep McBride.

Fast forward to now. We're not talking PNE anymore but Everton, a Premiership club. Why's McBride irked (if he is)? Maybe because he'd be getting paid FAR more with Everton than he ever could have with PNE; the descrepancy between MLS wages and premiership wages is far greater than it was between MLS and Div. 1 wages.

So, maybe the transfer market is off, but that doesn't mean that player salaries have necessarily plummetted to an equal degree. And this is a problem for MLS because, as we know, MLS pays players very poorly. This didn't matter much when there were almost no transfer offers, or when those offers came from smaller clubs. But it certainly could matter if the US WC run makes bigger, wealthier clubs want to buy league talent.

Questions:

- Will MLS respond to these pressures by raising the salary cap, or at least the maximum salary? We assume that MLS has ways of compensating players beyond their base MLS salaries. But it would be a whole lot simpler - and a more accurate representation of the market - if the league just paid players higher salaries.

- Will MLS players become increasing unwilling to sign long-term contracts with MLS? And, if so, does it really matter because MLS might be able to develop new stars (especially with so few clubs) faster than Europe is willing to buy them? Remember, too, that there are very real, and substantial obstacles to moving abroad: difficult to get work permits in England; roster limits on non-EU players in some countries; competition for roster spots from all manner of non-EU players (South American, African, E. Europe, Asian; I mean, we weren't the only country to have a good World Cup). In addition, there's always the fear that going abroad will kill your national team career if you end up sitting the bench.

- Will MLS agree to sell players for "below market" transfer fees in order to get some amount of compensation?

- Or will this all just blow over; as time passes European clubs will convince themselves that the US performance was a fluke, after all. Why bother with American players (okay, their keepers are solid, especially the ones with EU passports) when there are so many Argentines and Brazilians who want to play in Europe?
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Old 07 Aug 2002, 02:05 PM   #2
Eliezar
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Default Post-WC Inflationary Salary Pressures

If MLS wants to increase the quality of their play they need to have an increasing minimum salary that does NOT count against the cap.

For instance.

If $30k is the minimum salary for a rookie then

$40k minimum for 3 year player with only 30k counting against the cap.
$50k minimum for a 5 year player with only 30k counting against the cap.
$60k minimum for a 6+ year player with only 30k counting against the cap.

Too many good players turn down the paltry MLS salary to go into the business world and make real money. If they raise the maximum salary without raising the minimum they will just gut MLS. As it is now there is a very small incentive for Americans to go for a prosoccer career unless they think they can make it in Europe so that when they retire they can retire.
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Old 07 Aug 2002, 02:51 PM   #3
nobody
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I'm actually very surprised that more of the top guys don't sign 1-2 year contracts and just shop themselves in Europe as freee transfers when their time's up. They'd be a lot more attractive to Euro teams if they cost nothing and without long term contracts to keep players tiwed up, MLS may actually be forced to address the salary issue a bit.

Of course, this doesn't address the very good point about the real problem being with the minimum wage rather than the max. Most guys capable of getting the max also get sponsorships and have a shot at going to a Euro team to make their cash eventually. I don't really feel sorry for them. Sure, they're underpaid in the context of freakish salaries for pro athletes, but they can bank a few million for retirement pretty easily.

The guys who have to live in a crappy studio apartment and shop at Walmart because they make the league minimum in a big market are the guys who really get screwed. They're also the guys that we should all be giving a lot of thanks to. Without players willing to take a job that pays slightly above poverty level in an expensive city, offers little job security, and may require movement across the country if traded on a moments notice, the league would be over.
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Old 07 Aug 2002, 03:47 PM   #4
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In years to come, raising the salary cap will be a very big consideration. I doubt it will happen very soon because the league is still in the very beginning phases of a league and it doesnt have the money to throw around that the premiership owners have. But if i were a player, i dont see why i would stay in the US if i could make ten times more in europe???
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Old 07 Aug 2002, 04:35 PM   #5
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Even if it comes to the MLS losing some of its stars, they need to keep a tight lid on their salary structure. The league needs to gain some history and momentum to survive. I think in 10 years after the league has grown a bit then salaries can be substantially increased, but first a good tv contract needs to be put in place and the league needs to grow from 10 teams.
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Old 07 Aug 2002, 05:12 PM   #6
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It is hard to stay focused on soccer making 24k a year, especially if you have a family.

How many college grads are taking a 24k job in NY or DC? Not many do it here is harrisburg which has at least a 75% lower cost of living.

Losing a player like Wynalda because hsi 75K counts to much against the cap is a farce as well.
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Old 07 Aug 2002, 05:43 PM   #7
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Minnman, nice post.

I think American players and agents are still getting the feel for how this international transfer market works, and as a result, there hasn't been a lot of creativity in deal making going on, from what I can see.

If I were an agent of an American MLS player who is, say, a current or potential national team level player, and who is under the age of 25, I would not have him sign a more than a two-year contract with MLS, unless I can be assured that

a) my player is going to make the maximum salary during the entire length of my contract and/or

b) I can DEMAND the league do a transfer to another team who expresses interest in acquiring my player for at least some minimum sum UP FRONT -- say, $1.5 million to $2 million, or

c) The league can assure me it can pay my player the salary the interested club WOULD pay me, if I transferred.

Provision B would remain confidential, so if Everton comes calling, the league can negotiate a higher price, if it has the skill to do so.

Meanwhile, if I were a player, I would want my agent to get a bonus of, say, 10% for every $1 million I have in the bank by the time I am age 30. For kids like DMB and Landon, THIS, in the end, is what it's about -- finishing your career without having to get a real job.
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Old 08 Aug 2002, 05:28 AM   #8
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Quote:
Originally posted by nobody
I'm actually very surprised that more of the top guys don't sign 1-2 year contracts and just shop themselves in Europe as freee transfers when their time's up.

from my understanding, the league is not very keen, whatsoever, on 1-2 year deals... especially 1 year deals

they strive for long term deals before you become anything
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Old 10 Aug 2002, 01:51 AM   #9
todda74
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Default Re: Post-WC Inflationary Salary Pressures

Quote:
Originally posted by Eliezar
If MLS wants to increase the quality of their play they need to have an increasing minimum salary that does NOT count against the cap.

For instance.

If $30k is the minimum salary for a rookie then

$40k minimum for 3 year player with only 30k counting against the cap.
$50k minimum for a 5 year player with only 30k counting against the cap.
$60k minimum for a 6+ year player with only 30k counting against the cap.

Too many good players turn down the paltry MLS salary to go into the business world and make real money. If they raise the maximum salary without raising the minimum they will just gut MLS. As it is now there is a very small incentive for Americans to go for a prosoccer career unless they think they can make it in Europe so that when they retire they can retire.
Twellman was so fed up with his stay in Germany he signed with MLS for the minimum. Yep, the points leader is making a big 30k this year. I think he has a bonus for every goal but his base is the minimum. I read that in SI two weeks ago.
American players should just be happy they have a domestic league to play in. If MLS wasnt' around they'd be done after their 4 years in college.
Plus I think the vast majority of posters on this board, if given the chance to play in MLS for 30k would take it. I would.

Last edited by todda74; 10 Aug 2002 at 02:04 AM.
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Old 10 Aug 2002, 02:00 PM   #10
Eliezar
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Default Post-WC Inflationary Salary Pressures

The two best players I played with did not choose to go to MLS. But you did get to watch some players in MLS that were less effective.

And in another interesting note KC midfielder Eric Quill was not even in the best 5 or 6 players on his club team growing up. Where did all those players better than Eric go? Probaseball, 2 college football, El Salvador National team, 1 MLS, etc.

So no I wouldn't say that we are really seeing the best US talent coming to MLS and yes as to one of my friends who was much better than Imad Baba said "I can make over 100k a year as a doctor or I can be playing in MLS and make 30k a year playing next to guys who have no touch, no speed, and whose only chance of scoring is by shanking a cross."

Of course I know the same person would have turned pro at 16 given the chance. But MLS is still losing players do to salary issues and quite a few of our best young players would rather try Europe than give MLS a shot. Maybe that will change now with Landon's and Taylor's experience though.
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