Major League Soccer and MLSPA agree on new CBA - Flurry of transfers to follow?

Major League Soccer and the MLS Players Association (MLSPA) have avoided a work stoppage ahead of the 2021 season. Both sides agreed to terms on a new Collective Bargaining Agreement (CBA) that will run until 2027 on Friday, but the MLSPA had put the new agreement to a vote. On Monday, the vote was concluded with the results that the players have agreed to the terms of the new CBA. 

The new CBA will largely be based on the agreement that was reached ahead of the 2020 season. But while the original agreement was supposed to expire in 2025, the new agreement will run past the 2026 FIFA World Cup, hosted by the United States, Mexico, and Canada, until 2027. The agreement guarantees that the players will receive 100% compensation in 2021. 

Major League Soccer The league at a glance Click Here “We have enormous respect and appreciation for everything the players have done helping build the League and the sport throughout the years, and they've gone above and beyond during the pandemic,” said MLS Commissioner Don Garber in a league statement. “We thank the MLSPA leadership and the players for their thoughtful and collaborative approach on the new CBA. We worked together to address the ongoing impact of COVID-19 on the League, and we appreciate the players’ efforts to develop a CBA that deals with the uncertainty of the pandemic while also providing stability during the next seven years to enable further growth. We look forward to seeing the players on the training field in a few weeks as they begin preparations for the upcoming season.”

New MLS CBA: Changes to free agency, salary cap, and salary budget charge

Key components to the new CBA involve changes to free agency, an eventual increase in the salary cap, and the salary budget charge. Starting in 2026, players 24 and older with at least four MLS service years will be eligible to become free agents within MLS. The salary cap will remain flat at $4.9 million in 2021 and 2022 but then grow gradually to $7.06 million in 2027. There are also changes to General Allocation Money and Targeted Allocation Money (TAM), which can be used to buy down contracts towards the cap (see details on MLSSoccer.com). 

The salary cap and allocation money changes will allow clubs to spend up to $13 million on player salaries by 2027. That money does not include Designated Players (DP). Clubs remain free to sign three DPs to their squad. The maximum salary budget charge will grow from $612,500 in 2021 to $883,438 in 2027. The minimum salary budget charge will also go up from $81,375 in 2021 to $125,875. 

With the CBA agreed, a flurry of new signings ahead of the 2021 season will be expected to announce soon. On Friday, São Paulo already announced the record sale of striker Brenner to FC Cincinnati. Other transfers are also in the works as MLS might be one of the few leagues to spend significantly this winter.