MLS sportsbiz

MLS Requests For Extension Of CBA Till 2027

January 6, 2021

MLS has presented its revised labor agreement to the MLS Players Association post the league invoked its force majeure clause that obligates the league and the MLSPA to negotiate modifications to the existing CBA in good faith for 30 days.

The league is proposing that players receive their full salaries after they agreed to a 5% pay reduction as part of a renegotiated CBA in June when the league returned with the MLS is Back tournament. As part of the new proposal, MLS wants the current CBA extended through 2027.

“According to public health officials, the restrictions on attendance at live sporting events will continue far into the 2021 MLS season,” MLS president and deputy commissioner Mark Abbott said in a statement.

“In 2020, despite MLS and its clubs suffering extraordinary and unsustainable losses, players received 95% of their salaries. To address the ongoing impact of the pandemic in 2021, MLS is proposing to extend the term of the existing collective bargaining agreement for two years rather than seeking any salary reduction. This proposal will help ensure the long-term health of the league while paying MLS players 100% of their salaries.”

If an agreement on the modifications cannot be reached, the CBA from June could be terminated. The league invoked the force majeure clause following a season where it says it had nearly $1 billion in losses due to the pandemic as it played in mostly empty stadiums and with increased costs for testing and charter flights.

MLS sportsbiz