MLS and the players have come to an agreement on two of the biggest issues in the CBA negotiations, according to two independent sources, both close to the players.
Due to the sensitive nature of the negotiations, both cannot go on record. However, they say that an agreement has been reached on the issue of guaranteed contracts and an increase in the cap.
The biggest issue still at play is free agency, according to the sources. The league is holding firm against allowing any type of free movement for fear that it will artificially inflate the market.
The sources say that the sides have agreed to a small cap increase, from $2.3 million USD to about $2.6 million USD. Veteran players who have met a certain threshold will be protected. It’s likely that the threshold will be set fairly high.
The term will likely be three years.
It represents a minor victory for the players to get any type of guaranteed contract and the salary cap increase, while not as big (or small) as some would like, is still a significant jump as compared to past years. It should allow for teams to pick up another star player each.
Thursday, February 11, 2010
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I often wonder if the league realizes that free agency can only inflate markets so high within a cap system. It hasn't wrecked football or baseball yet, and Hockey's problems lay in other areas. Allow free agency, it will just force ownership to be smart with their money and roster decisions.
I can't help but be disappointed in the salary cap info. A 13% increase in the cap is pretty big increase but its not enough to address, IMO, the major roster problem of depth. In order to hold depth players, teams can only spend a pittance on those players. One or two injuries and a team is in crisis.
Very, very good reporting... Not easy to get any specifics on something as sensitive as the CBA. Also I would hope that they pay existing players more than hire another "star" player.
Sounds like none of the big changes being discussed are going to happen (an extra DP, DP's not counting towards the cap, additional roster spots, free beer)
Excellent news Duane!
I don't like the amount the cap went up but it is at least an increase. More importantly it means that both sides really are aware of the situation and don't want a work stoppage.
I don't know what is wrong with restricted player movement. If a player is cut he should be allowed to move to another team within MLS for no more than he was making at the time he was let go. It would allow players the freedome they desire and the financial restraint the league would like to keep.
Awesome news, thank you. Do you know if rosters will expand at all?
i'm not impressed with the increase because it doesn't solve the main problem with the current roster quality - CONCACAF CL losses. to solve that, more starter-worthy depth is needed: $100k-$150k players.
solving that problem would be a cap of around $3.5 million for me - adds a lot of $100k players to the bench, plus a higher cap means DPs take up a smaller % of it, increasing the incentive to get them - though i acknowledge that the revenue increase from more CL home games wouldn't come close to recouping it and therefore it would be a project with medium-term gains, not short-term.
who are your sources? I heard Rycroft say that on the show today but who are they? how reliable?
Not doubting you - just wondering generally where this is coming from? Players, agents, hobos on the corner...?
One plays, the other is very close to a player.
2.7 :( I guess TFC and SSFC will just have to keep those profits to themselves, and off the field.
Anon -- $3.5 million cap is a massive increase in one season. By my calculations, they're player costs would total an extra $22 million for the 16 teams if that were instituted. I'm not entirely sure there's an extra $22 million around to do that. If they suddenly got a great new TV contract, I could see it. Even Seattle adding 10000 more fans @ $30/ticket and giving 25% of that revenue to MLS, they wouldn't have more than 6% of that required amount.
It's only a bigger than normal cap inrease if roster sizes remain the same (or shrink, I guess, but you would hope they wouldn't shrink any more).
"Veteran players who have met a certain threshold will be protected. It’s likely that the threshold will be set fairly high."
What is meant by "protected"? From what?
Protected in the sense that their contracts are guaranteed. It wasn’t my best turn of phrase.
Good Job Duane. I was hoping the cap increase would be more as I think the league does have the extra $22m to raise it to $3.5m per team.
Could the owners add a second or third DP in the future without re-opening the CBA?
Or lessening the cap hit for a DP?
On inflation within a cap situation, I think owners understand better than the layperson does. While free agency hasn't killed any leagues, it has killed profit margins--ever since it came along, you could make more money on government bonds than on pro sports, except when you sold the team. (And that one's not gonna work for MLS. MLS teams aren't famous enough to be a coveted good in and of themselves. They need to show profit to appreciate.)
Also, the depth comment seems exactly backwards. A 300k cap increase allows you two to three more players in the 100-150k region that poster was talking about, if that's what the team chose to do. It's if you're looking to replace starters that you'd need a bigger increase.
DR big scoop! ahah nice work.
Free agency does not kill your league. Nobody has ever willingly worked for much less money when they had alternatives elsewhere.
It just means that if team A is too cheap, team B can pick up the slack. The cap is still the cap regardless of what rights players have.
This will allow many guys to avoid moving to 3rd rate euro leagues when the club with their bird rights plays hardball.
I guess TFC and SSFC will just have to keep those profits to themselves, and off the field.
Don't forget that all MLS clubs share healthy portions of any/all revenue with the entire league- I think it's 50%.
So while fans of other clubs might look jealously upon our situation here in Seattle, or in Toronto, the reality is that 50 cents on every dollar is going to strengthen the entire league- including their own home team.
It's one of the great ironies of MLS... all these other supporter groups who bitch about how things were done in Seattle are forgetting that all that success in one city extends to the entire league.
Anon @ 6:14. MLS only keeps 30% of ticket sales of their teams. MLS also keeps 100% of national TV deals and national sponsorship. The teams keep 100% of stadium revenue and local TV, radio and sponsorship dollars.
Needless to say, TFC and SSFC are making money hand over fist.
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