MLS CBA 2020

SoupInNYC

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This is the most sane, simple solution I’ve seen. Thread.

I like the simplification, but that seems like a very significant increase to the cap. I'm all for it as long as most teams would be on board, but I'm a bit skeptical that some of the clubs (Colorado, Columbus, Cincy, etc.) would follow suit.

One thing that that tweet doesn't mention at all, is the impact of transfer fees. Perhaps he's implying that they shouldn't be considered at all? I'm not sure.

All in all, I think this is the direction we need to go, just feel like what he's laid out is maybe 2-3 years away (from a salary cap limit perspective).
 

Ulrich

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I like the simplification, but that seems like a very significant increase to the cap. I'm all for it as long as most teams would be on board, but I'm a bit skeptical that some of the clubs (Colorado, Columbus, Cincy, etc.) would follow suit.

One thing that that tweet doesn't mention at all, is the impact of transfer fees. Perhaps he's implying that they shouldn't be considered at all? I'm not sure.

All in all, I think this is the direction we need to go, just feel like what he's laid out is maybe 2-3 years away (from a salary cap limit perspective).
Seems he’s implying the transfer numbers shouldn’t impact the Cap Numbers. Let it be a separate standalone fee paid.
 
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413Blue

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I'm thinking the transfer fee would be pro-rated into the $15m cap just like it is now.
 

SoupInNYC

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This is the most sane, simple solution I’ve seen. Thread.

I like the simplification, but that seems like a very significant increase to the cap. I'm all for it as long as most teams would be on board, but I'm a bit skeptical that some of the clubs (Colorado, Columbus, Cincy, etc.) would follow suit.

One thing that that tweet doesn't mention at all, is the impact of transfer fees. Perhaps he's implying that they shouldn't be considered at all? I'm not sure.

All in all, I think this is the direction we need to go, just feel like what he's laid out is maybe 2-3 years away (from a salary cap limit perspective).
Also, I'm imagining if they are going to simplify things and increase the cap a good deal, they will need to institute a salary floor to ensure that some clubs don't just drop off.
 
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mgarbowski

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I like the simplification, but that seems like a very significant increase to the cap. I'm all for it as long as most teams would be on board, but I'm a bit skeptical that some of the clubs (Colorado, Columbus, Cincy, etc.) would follow suit.
Also, I'm imagining if they are going to simplify things and increase the cap a good deal, they will need to institute a salary floor to ensure that some clubs don't just drop off.
Don't forget that -- at least for now -- all money spent by a club on salaries except for DP spending above the single player cap maximum does not come directly out of the club's pockets. Unless they change this, there should be no issues with low spending clubs.
Now, it is possible that with a cap increase this big (which I agree seems too big a move to reasonably expect) they would change that system. Maybe they would have a $15mm cap with the first $7mm paid by the league, or something like that whatever the numbers are. But if they keep the current system these issues don't arise.

ETA: Also Discretionary TAM can come out of club funds, $2.8mm max, but this proposal would eliminate TAM so I guess it is irrelevant anyway..
 
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Gotham Gator

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This is the most sane, simple solution I’ve seen. Thread.

Easy to tweet this when you aren't opening up your wallet to pay for it.

$15 million is already more than 21 of the 24 team payrolls this season, and that would be before 4 DPs, which I guess would whomever are the top four earners on each team. Plus, another $2-3 million for charter flights every week. And most teams are cash flow negative as it is.
 

Ulrich

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Easy to tweet this when you aren't opening up your wallet to pay for it.

$15 million is already more than 21 of the 24 team payrolls this season, and that would be before 4 DPs, which I guess would whomever are the top four earners on each team. Plus, another $2-3 million for charter flights every week. And most teams are cash flow negative as it is.
Look at the principles of the tweet on their merits, not the actual $15M. You’re getting bogged down on specifics and failing to appreciate the streamlined nature of the proposal.
 

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Look at the principles of the tweet on their merits, not the actual $15M. You’re getting bogged down on specifics and failing to appreciate the streamlined nature of the proposal.
The only think that I see here that really makes it any different is the 'no tam or gam", everything else seems just as complicated as it was before... and to be honest, the only really confusing part was the whole 'salary cap' + 'tam/gam' thing to begin with....
 

Ulrich

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The only think that I see here that really makes it any different is the 'no tam or gam", everything else seems just as complicated as it was before... and to be honest, the only really confusing part was the whole 'salary cap' + 'tam/gam' thing to begin with....
That’s all you unpacked from it???

1. No TAM/GAM.
2. DPs don’t count against CAP, so youth/senior ignored.
3. Transfer Fees aren’t prorated into salaries.
4. No drafts.
5. No allocation list
6. Real Free Agency
7. (Assumed) fixed number of international slots.

Many of those changes do away with the mental gymnastics of current trades and future considerations. Makes the CAP and transfers straight forward
 
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Christopher Jee

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If we end up simplifying to the extent suggested by player demands and various tweets, what happens to all the "capologists" out there? Including the one who is now our SD?

Not so concerned by the evaporation of arbitrarily constructed work as much as the idea that the utility of the primary qualifications of our new SD may end up evaporating with it.
 
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Ulrich

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If we end up simplifying to the extent suggested by player demands and various tweets, what happens to all the "capologists" out there? Including the one who is now our SD?

Not so concerned by the evaporation of arbitrarily constructed work as much as the idea that the utility of the primary qualifications of our new SD may end up evaporating with it.
There will always be a need for some sort of Cap expert, because it’s assumed future contracts will increase with tenure justifying somebody to weigh pros/cons of keeping/releasing.

But as to our SD having no professional soccer background outside of performance evaluation, maybe focus on having somebody that can create/enact the doctrine that the club is playing to if a style really is what’s sought after. Lee can probably evaluate pretty well but can he develop a vision and understanding that’s proactive instead of reactive? Tiki/Pep won’t always be driving the CFG ship, and one would assume there would be a local expert on this club’s identity since what’s played at MCFC is done with players of one caliber while what’s played here is done with a few calibers removed.
 
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sundance

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If we end up simplifying to the extent suggested by player demands and various tweets, what happens to all the "capologists" out there? Including the one who is now our SD?

Not so concerned by the evaporation of arbitrarily constructed work as much as the idea that the utility of the primary qualifications of our new SD may end up evaporating with it.
It just can’t be true that cap management is Lee’s *primary* skill. That’s one set of rules that looks complicated to us from the outside because we never quite know the actual dollar amount for anything, so we’re kind of constantly estimating things, but if we’re being realistic, at the end of the day it’s just three or four buckets of money available under slightly different circumstances. I’m sure there is plenty more to Lee’s TD background and apparent good reputation than the slightly procedural arithmetic you might find in a fifth-grade word problem.
 

Shwafta

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That’s all you unpacked from it???

1. No TAM/GAM.
2. DPs don’t count against CAP, so youth/senior ignored.
3. Transfer Fees aren’t prorated into salaries.
4. No drafts.
5. No allocation list
6. Real Free Agency
7. (Assumed) fixed number of international slots.

Many of those changes do away with the mental gymnastics of current trades and future considerations. Makes the CAP and transfers straight forward
I have to apologize, I didn't notice it was a thread, so I only saw t he first tweet. You are right, a lot is different. My bad!
 
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mgarbowski

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Joint statement of one-week extension
 
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The Toe

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Major League Soccer and the Major League Soccer Players Association (MLSPA) have announced they’ve reached an agreement in principle on the terms of a new collective bargaining agreement (CBA) which covers five full seasons from 2020 to 2024 (term runs from Feb. 1, 2020 through Jan. 31, 2025).

The deal is subject to formal approval by the MLS Board of Governors and the MLSPA membership.

“As we prepare to celebrate our 25th season, we are very pleased to finalize a new five-year Collective Bargaining Agreement with our players,” MLS Commissioner Don Garber said in a league statement. “This agreement addresses key strategic priorities for the league and our players while also retaining the basic player compensation structure that has been the foundation for the growth and stability of Major League Soccer. We had constructive, positive discussions with the leadership of the MLSPA and the players’ bargaining committee during the negotiations over the last few months and I would like to thank them for their collaboration in concluding an agreement that will serve as the foundation for a new era of partnership with our players.”

The agreement, which comes 24 days before the start of the new 2020 season includes:

Increased investment in player spending
MLS will increase investment in the (a) salary budget, (b) General Allocation Money and (c) performance bonuses for players, raising the spending power per club every year, from $8,490,000 in 2019 to $11,643,000 in 2024. In addition, the minimum annual salary for senior roster players will increase each season to $109,200 in 2024 and 401(k) contribution and other benefits will also increase with the new CBA.

Greater salary budget flexibility across rosters
During the last three MLS seasons (2017-2019), clubs were provided an additional $1.2 million per season in Targeted Allocation Money (TAM) to be used for the acquisition or retention of players within a specific salary budget range. Under the new CBA, that $1.2 million per season has been converted to General Allocation Money and may be used across the entire roster. Additionally, as the amount of guaranteed spending across the entire roster increases over each of the next five seasons, the amount of Discretionary Targeted Allocation Money per season will decrease accordingly.

Players to share in media revenue
For the first time, player spend per club will include a share of the increased revenue generated by MLS’s new media agreements in 2023 and 2024. Beginning in 2023 and 2024, MLS will increase player spending by an amount equal to 25 percent of the increased media revenue above the amount generated by the league in 2022 plus $100 million. The league’s current local, national and international media rights partnerships expire at the end of 2022.

Increase in charter flights
Clubs will be required to use charter flights for at least eight legs of travel during the 2020 regular season, growing to 16 legs for the 2024 season. In the previous CBA, clubs had the discretion but not the requirement to charter up to four legs per season. In addition, clubs will be required to use charter air travel for all Audi MLS Cup Playoff matches and Concacaf Champions League games involving international travel.

Expanded free agency
The eligibility criteria for free agency has been expanded to include players who are 24 years or older and have five years of service in MLS. This lowers the age and term from the previous CBA (28 years old with eight years of service). The CBA also includes caps on the increases in compensation in free agent contracts. In addition, players making above the maximum salary budget, including Designated Players, will now also be eligible for free agency based on specific guidelines.

New “Under-22” Player initiative
Beginning in 2021, MLS will have the discretion to allow clubs to sign up to three players who are 22 years old or younger on a reduced charge to a club's salary budget. More details regarding the new initiative will be provided at a later date.

Designated Player spots
Clubs will continue to have the right to sign up to three Designated Players in the new CBA. The league will have the right to limit the compensation for the third Designated Player to the maximum TAM Salary, unless the player is 23 years old or younger, in which case there will be no limit.