Major League Soccer sent a memorandum to the teams and staff of the league instructing them to prepare for any work stoppage.
The document, sent by the president and deputy commissioner of the MLS, Mark Abbott, arrives before the January 29 (midnight January 28) deadline to negotiate a revised collective bargaining agreement (CAO) between MLS and the Players Association. If the league continues with the threat of blocking players, this would be the first stoppage in the history of the circuit.
The memo, the copy of which was obtained by ESPN, notes: “The January 29 deadline gives all voters – the league, the clubs and the players – enough time to prepare for the next season. At this point, however, we are obligated to plan for the possibility that the collective employment contract is canceled and a work stoppage takes place, so we will advise the clubs on the rules to follow during the work stoppage.
“We want to be clear, our hope is to reach an agreement and avoid work stoppages. But we need to be prepared in case we can’t reach an agreement. We understand the challenges the COVID-19 pandemic has created for families. in the US and Canada, around the world and in our community in MLS. Although we are not required to do so, in the event of work stoppage, we plan to continue to provide health insurance and pay health insurance premiums for players and their families “.
An attempt to contact the MLSPA for comment failed.
The two parties have been negotiating the collective bargaining agreement since MLS referred to the force majeure clause on Dec. 29. The clause, once referenced, gives both parties a period of 30 days to agree to an amended collective agreement. The clause can be invoked in the event of an economic disaster, for example caused by a pandemic. The league said it chose the clause out of concern that the relatively slow release of the COVID-19 vaccine will mean few fans will be able to attend games this season. Given MLS’s reliance on game revenue, the lack of a crowd would profoundly affect finances. The league has said it lost nearly $ 1 billion in 2020, of which $ 725 million was due to the pandemic.
MLSPA commented that MLS has invoked force majeure for “financial expediency” rather than “financial necessity” and highlighted how concessions made last June have had a knock-on effect over the next few years, including 2021.
The reopening of negotiations marks the third time in the past year that the two parties have been involved in the CBA talks. The two sides reached an agreement in early February, but neither side formally ratified the agreement. When the COVID-19 pandemic hit, MLS reopened negotiations and the two sides reached a revised deal last June.
If the deadline expires without a new agreement being reached, either party can choose to cancel the collective agreement, although MLS is the party most likely to carry out this maneuver. Discussions can continue after the deadline if both parties see progress.
The MLS followed up on the force majeure appeal with a bid to the MLSPA on January 5. In exchange for not lowering salaries, the MLS asked players to allow a salary cap freeze between 2020 and 2021, extending the duration of the deal for another two years until the end of the 2027 season. said the restructuring would save the competition between $ 100 million and $ 110 million over the life of the CBA. This would have been in addition to what the MLSPA says: $ 150 million in concessions made by players last June when the most recent collective bargaining agreement was negotiated. That deal also included a salary cap from 2020 to 2021.
The two-year extension would last after the 2026 World Cup, hosted by the United States, Canada and Mexico, a tournament expected to accelerate investment in the game in North America. For that reason, the MLS hopes to reduce its costs, while the MLSPA wants to be able to maximize its profits.
Sources told ESPN that the Players Guild turned down the competition’s offer last Friday. In its counter offer, the MLSPA offers to change the level of the salary ceiling in the coming years without any mention of extension of the collective labor agreement.
The parties met on Monday night and the league announced it had submitted a counter offer to the MLSPA. Sources told ESPN that the league maintains its desire to extend the collective bargaining agreement for another two years, but would allow for a more rapid increase in the salary ceiling during the final years of the agreement. When the two parties agreed on a collective bargaining agreement in February, the agreement allowed the salary ceiling to rise from $ 8.49 million to $ 11.64 million over the term of the five-year agreement. That equates to an average increase of $ 630,600 per year.
Since the League invoked the force majeure clause, there have been conflicting approaches to the pace of talks. The league has insisted there should be more urgency as the window closes on Jan. 29, while MLSPA insists the date does not represent a strict limit.
A source aware of the situation said the league expects the MLSPA to make another counter offer before the deadline.
The MLS training camps are scheduled to open on February 22, and the regular season starts on April 3.