MLS and Players’ Union in CBA Negotiations

Discussion in 'MLS: News & Analysis' started by Yoshou, Sep 28, 2018.

  1. Darkwing McQuack

    Darkwing McQuack BigSoccer Supporter

    Nov 11, 2011
    Morrisville, PA
    Club:
    Philadelphia Union
    Nat'l Team:
    United States
    I know you’re joking, but I honestly wouldn’t put it past Sugarman to do this.
     
    TOAzer repped this.
  2. s1xoburn

    s1xoburn Member

    Aug 25, 2014
    Club:
    Orlando City SC
    It would be especially funny if they chartered a flight to an airport that isn't Newark, and it took longer than driving anyways.

    I do think that this CBA, more so than every one before it, really sets MLS closer to long term equilibrium. MLS is/was in a globally unique position by being a league for the world's most popular game in the country with the largest GDP (and canada!) and devised a series of fairly complex rules to try and navigate growth. It seems like every year or two they came up with some new mechanism, some large tweak to try and guide growth by adding some complexity, and it really seems that era is over and complexity is starting to dwindle.

    With this CBA you can see that the players are on their way towards ending commercial flights. I was slightly disappointed that there are still quite a few restrictions on free agency, but they did make progress. Non-discretionary TAM was eliminated with this CBA, and even discretionary TAM is decreasing from $2.8 million to $2.125 million, while GAM goes from $200k in 2019, to $1.525 million in 2020 (this is mostly from absorbing TAM), to $3.093 million in 2024. (Does anyone know if all teams spent their discretionary TAM?) I would be fairly surprised if MLS cooked up any new restricted ways of spending money, and have to imagine any increased spending will come in the form of an increase in the salary budget, GAM, or TAM, and expect that players will push for the abolition of TAM in the next CBA.

    The fixed costs of running a sports league aren't zero, and so it makes sense that MLS would give a smaller share of revenue to players than established US leagues, but with the revenue sharing on the new media rights deal, you can definitely see MLS going in that direction.

    My understanding is that the re-entry draft is going away, and the superdraft itself will matter less and less as the salary budgets get larger. I really have a hard time imagining that MLS will create new rules to restrict player acquisition or movement, and can easily see them getting rid of discovery rights, and the like. I do believe that MLS is entwined with domestic player development in ways that other leagues simply aren't, and that the success of MLS is influenced by the success of the US/Canadian national teams in ways that are unique, and so they will probably continue to tinker with domestic players, especially as the quality increases and the number of National Team eligible players drops. Furthermore, both the US and Canada are desirable places to live, and the option of signing young players, developing them, and selling them to other leagues for profit is almost certainly a good idea, and they will likely find ways to incentivize this.

    Really the big question now is the media rights deal. With this CBA some of the money from the new media rights deal will be earmarked for player salaries over a $100 million increase, but it is worth remembering that Arthur Blank said most owners are making money. I truly have no idea how much they could get for the next deal, but $400 million has been suggested some places, and that would be an extra $10 million/team/year. Of this $50ish million would have to go towards player salaries, but given the recent history of the league they will almost certainly spend more on players. Getting up above $15+ million a year in GAM/TAM/salary budgets would have a few teams spending $20+ million in a relatively normal way (unlike Toronto with Bradley/Altidore/Giovinco), and the middle tier of MLS teams should be competitive with the mid tier teams of any other league in the americas. A media rights deal much above $400 million/year could see middle MLS teams approaching Championship levels.

    MLS often kinda had a "flying by the seat of their pants" quality to it for much of the leagues history, but you can pretty much guess what the next CBA is going to be. Something like: instead of free agency at 24/5 years, just 4 years of service. No more commercial flights. The end of TAM, and more well-defined revenue sharing.
     
    eddygee, jaykoz3 and stanger repped this.

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