MLS Lockout Nears

COLLECTIVE BARGAINING AGREEMENT
Between
MAJOR LEAGUE SOCCER
And
MAJOR LEAGUE SOCCER PLAYERS UNION
December 1, 2004 – January 31, 2010

Section 6.3 No Lockout: The League shall not engage in a lockout during the term of this CBA.

MLS is threatening to lock the players out on February 1 if the players don’t agree to a continuation of the status quo.

Despite months of negotiations the two sides have made little progress on a new deal.

“What we are looking for are the same basic rights that players enjoy in other leagues around the world,” Seattle keeper Kasey Keller said.

“We have made great strides in developing the game in the United States. But we can’t truly compete internationally, either for players or fans, with a system that is so radically different than other leagues around the world.”

The primary point of contention is the league’s unique system, which differs substantially from other leagues around the world and violates FIFA regulations. For example:

• Player contracts are routinely terminated by the league during their term, as almost 80% of players in MLS do not have guaranteed contracts;
• MLS operates as a cartel in that every player’s contract must be entered into with the league instead of his club;
• The contract of virtually every player in the league contains multiple unilateral one-year options that may only be exercised by the league;>
• Virtually any player in the league can be transferred to another club within the league without his consent even if such transfer is international, such as a transfer from an MLS club in the United States to or from an MLS club in Canada;
• There is no freedom of movement for any MLS player to any other MLS clubs when his contract expires – in fact, even if a player’s contract is unilaterally terminated by a club during its term, that club continues to hold such player’s rights and he is prohibited from signing with another club in the league.

The Major League Soccer Players Union was formed in April 2003. The founding members of the Players Union’s Executive Board included Landon Donovan, Tim Howard, Chris Klein, Alexi Lalas and Ben Olsen. The Players Union serves as the exclusive collective bargaining representative for all current players in Major League Soccer.

After negotiating with MLS in 2003 and 2004, on December 1, 2004, the Players Union and MLS signed the first-ever collective bargaining agreement (CBA) covering MLS players. Prior to the CBA, the minimum salaries for players had never increased, players received no form of retirement benefits, and many players lacked basic health insurance. Among other things, the CBA increased minimum salaries, established a 401(k) plan with guaranteed contributions from MLS, and guaranteed that all players and their families will be provided with 100% fully-paid health insurance benefits. In addition, the CBA provides for an independent arbitrator to hear disputes between MLS and the players.

MLS and the Players Union also negotiated a substance abuse policy covering all players in the league, as well as a Group License Agreement. Group licensing revenue allows the Players Union to keep the dues it charges to players at a level which is among the lowest in U.S. professional sports.

Bob Foose serves as the Union’s Executive Director, and Jon Newman, a partner in the law firm of Sherman, Dunn, Cohen, Leifer & Yellig, P.C., in Washington DC, is the Union’s General Counsel.