Question

As discussed in this week's lecture, professional athletes in past generations fought through labor strikes and lawsuits against ownership for many of the labor relations rights that most athletes enjoy today including collective bargaining agreements (CBA), free agency, base salaries, pensions, benefits, and more.

Major League Soccer provides a modern example of a league going through some of those same labor relations growing pains that MLB, the NFL and NBA went through 20+ years ago. MLS and the MLS Players Union recently (2015) signed a new collective bargaining agreement. One of the provisions in the new CBA is restricted free agency. Below are the restrictions for the new MLS free agency:

The new CBA allows for players who meet two clauses — aged twenty-eight or older with eight years of MLS service — to freely sign with any MLS club upon the expiration of their existing contract. Around fifteen percent of MLS players currently meet the "28 and 8" requirements.

However, there is a cap on the amount a player can earn once he meets the eligibility requirements and is free to choose his own team. Players who were earning over $200,000 per year can only receive a 15% wage increase. Players who were earning between $100,000 and $200,000 per year can only receive a 20% increase, and players earning less than $100,000 can only receive a 25% increase.

There will be a system in place that will "allow players clearly outperforming their contract to receive increases beyond the 15-, 20- or 25 percent raises created for eligible free agents in the new CBA. [However], the specifics as to how those players will be identified is not yet finalized."

Consider this change in MLS, and explain whether you agree/disagree with this new freedom for MLS players to sign with a team of their choosing and to negotiate a higher contract and why you agree/disagree. You are encouraged to do some of your own research to learn more about the new MLS CBA and bring additional thoughts on it to the discussion board. What's good about it, what's bad about it, and what issues do you predict MLS and the players union will face when the next CBA has to be negotiated?

Answer 1

The MLS's new CBA including restricted free agency marks progress in athlete labor rights but also presents restrictive measures on salary increases. Future negotiations will have to balance player autonomy with financial stability while considering broader labor market trends.

Step-by-step explanation:

Major League Soccer's (MLS) introduction of restricted free agency in their collective bargaining agreement exemplifies the ongoing evolution of labor relations in sports leagues. Historical labor movements have emphasized the importance of collective bargaining and striking as measures for workers to secure better compensation and working conditions. The restricted free agency clause in the MLS CBA allowing players who meet certain age and service conditions to sign freely, while also capping salary increases, demonstrates a balance between player autonomy and league financial stability. However, it is subject to debate whether these measures are sufficient or equitable. Research on labor union history in the U.S. shows how pivotal collective action has been for securing labor rights, and contemporary issues in sports labor relations reflect these struggles.

Looking at the provision critically, the freedom for players to choose their team is a positive step, promoting career autonomy and reflecting labor rights progress. Nonetheless, the salary increase caps might be seen as restrictive, potentially disadvantaging players who perform exceptionally. Anticipating future CBA negotiations, it's crucial to consider how sustainable these policies are in terms of player satisfaction and league growth, alongside tendencies in the labor market, such as globalization and shifts to service economies impacting union strength.