MLS invokes force majeure clause to renegotiate CBA

[mouser]

MLS will invoke CBA force majeure - source

Could be an interesting one to watch. The current MLS CBA is only six months old.

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[eddygee]

MLS will invoke CBA force majeure - source

Could be an interesting one to watch. The current MLS CBA is only six months old.

Similar issue that the NHL had. Owners lost more than they were anticipating league(MLS) had a 1 billion dollar revenue loss shortfall as their season was more impacted from COVID than the NHL which managed to get in 85% of their regular season in before COVID struck, 100% of the MLS season was affected, NHL owners seeing losses like MLS and MLB that played fulled COVID effected seasons is what prompted the standoff with NHL and NHLPU. MLS is even more dependent on gate revenue than NHL with smaller TV deals and loss of ticket/merchandise revenue from playing in larger stadiums have caused a big hit.

On twitter Sports Business people are saying NHL will watch how this plays out closely as the MLSPU could sue the league for grounds of the force majeure clause being invoked, if it is upheld it would really put Pro league owners in the front seat if they choose possible future moves during this pandemic.

As a fan of both leagues I hope MLS settles on the NHL approach for now of simply pushing back the season a few months and playing in May. A May start vs a March start will hopefully allow for increases in the vaccination drive which in turn should allow for a down tick in the virus. This move by MLS was attributed to the recent news by Dr. Fauci that we are WAY behind were we should be w/vaccinations. Some states are claiming they haven't gotten their shipments etc.

 

[eddygee]

MLS proposes 2-year CBA extension to players, no salary cuts

UPDATE: MLS latest offer to MLSPA
- No further salary cuts beyond 5% cuts already planned
- extend CBA by two years to 2027
- Proposal would save owners between $100-115m over the two year ext.

Pros
- Players get benefit of getting 95% of pay vs deeper cuts.
- Owners get long term profit but short term loss with taking COVID revenue hits.

Cons
- MLSPA lose out on two years 23-24 'of profits from increases to the 25% TV revenue sharing deal by extending CBA
-Owners take short term revenue hit.