1. real estate

FREQUENTLY ASKED QUESTIONS AND ANSWERS ABOUT THE
COLLECTIVE BARGAINING AGREEMENT AND STANDARD PLAYER AGREEMENT
What is the collective bargaining agreement?
The collective bargaining agreement (“CBA”) is the contract negotiated between the league and the Union that
sets basic terms and conditions of employment for all MLS players.
What is the standard player agreement?
Players sign individual contracts known as standard player agreements (“SPA”). A player’s SPA may provide for
terms over and above the minimums in the CBA.
What are the different types of SPAs?
There are four types of SPAs: (i) guaranteed, (ii) semi-guaranteed, (iii) non-guaranteed, and (iv) call-up.
(a)
Guaranteed: A guaranteed SPA is most advantageous for the player. It cannot be terminated by the
league if the player is hurt or based on the player’s performance. It can only be terminated by the league under
extraordinary circumstances like gambling on games or testing positive for performance-enhancing drugs.
Approximately 10% of players in the league have guaranteed contracts.
(b)
Semi-guaranteed: The vast majority of senior roster players sign semi-guaranteed contracts. A semiguaranteed contract cannot be terminated while the player is unfit due to injury, and cannot be terminated
between July 1 and Dec. 31 unless the player was unfit on July 1 due to injury and becomes fit before the end of
the year. Between January 1 and July 1, a player with a semi-guaranteed contract can be terminated based on
his performance.
(c)
Non-guaranteed: All Developmental players sign non-guaranteed contracts. These contracts can be
terminated by the league at any time based on the player’s performance, or because of an injury.
(d)
Non-guaranteed-call-up: Players can be signed to short-term call-up agreements. These contracts can
be terminated by the league at any time based on the player’s performance, or because of an injury. No player
may be signed to a Non-Guaranteed Call-Up Agreement(s) for greater than a total of thirty (30) days in a
calendar year (in any number of separate agreements).
What is the minimum salary under the CBA?
The minimum salary over the course of the CBA is as follows:
Senior Roster Players:
Developmental Players:
Senior Developmental Players:
2007: $30,000
2008: $33,000
2009: $34,000
2007: $1,075 per month
2008: $1,075 per month
2009: $1,175 per month
2007: $1,475 per month
2008: $1,475 per month
2009: $1,575 per month
What is the CBA mid-level bonus?
Each year, the CBA provides that players who earn a “mid-level” salary will receive a lump sum bonus. Players
earning the senior minimum salary are not eligible for this bonus – it was intended for those players earning
above the senior minimum. The bonuses are paid as follows to players on the roster on the first pay period after
July 15:
2007: $1,000 to all players with a base salary greater than $30,000, but less than $55,000.
2008: $1,200 to all players with a base salary greater than $33,000, but less than $55,000.
2009: $1,200 to all players with a base salary greater than $34,000, but less than $55,000.
How much are Union dues?
Union dues vary depending on the level of a player’s base salary. For each player who has signed a check-off
agreement, dues are deducted directly from the player’s paycheck. For tax purposes, dues are deductible as a
miscellaneous business expense on Schedule A of Form 1040. The amount per pay period for each salary level is
as follows:
Junior Developmental
Senior Developmental
Senior Salary – minimum to $50,000
Senior Salary – $50,001 to $100,000
Senior Salary – above $100,000
$10.00
$15.00
$25.00
$30.00
$35.00
Is there any requirement that a player’s base salary increase each year?
If a player’s contract covers more than one season (through options or otherwise), and the player’s base salary is
less than $60,000, the contract must provide for annual increases to the base salary of at least 5%.
Does the CBA create any type of retirement plan?
Yes, under the CBA MLS players finally have a 401(k) plan. Under the plan, there are two types of contributions
to each player’s retirement account. (1) Each year MLS must contribute a percentage of a player’s base salary
(on top of the base salary paid to the player). In 2007, the contribution is 2.50% of base; in 2008, it is 2.75% of
base; and in 2009, it is 3.0% of base. (2) Each player can also put up to 75% of his own pay per year into his
401(k) account, up to a maximum of $15,500 in 2007. The $15,500 cap increases gradually each year after 2007.
Player contributions are tax deferred, meaning they are tax free, and grow tax free, and are only taxed when the
money is taken out of the plan.
What are the team bonuses under the CBA?
The CBA provides that MLS must pay certain bonuses to players as a team. The players on those teams decide
themselves how to divide those bonuses. The bonus amounts paid to each team, which are then divided, are as
follows:
MLS Cup Winner: $165,000
MLS Runner-up: $60,000
Regular Season Conference Champion: $31,000
Qualified for playoffs, but not Conference Champion: $15,000
U.S. Open Cup Champion: $100,000 (set and paid by US Soccer)
U.S. Open Cup Runner-up: $50,000 (set and paid by US Soccer)
Each regular season win: $2,750
Does the CBA provide for bonuses for tournaments?
The CBA provides mandatory bonuses for compulsory tournaments. Compulsory tournaments are those in which
US Soccer, CONCACAF or FIFA requires MLS participation. The bonuses for these tournaments are 50% of the
prize money up to $200,000, and 30% of prize money above $200,000, with a cap of $200,000 on the bonus.
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For the CONCACAF Champions Cup, the bonuses are as follows, unless the above formula results in a larger
bonus, in which case the bonus is the larger amount:
Team advances to quarter finals: $11,000
Team advances to semi-finals: additional $16,500 ($27,500 total)
Team advances to finals: additional $22,000 ($49,500 total)
Team wins final: additional $27,500 ($77,000 total)
MLS is not required to pay bonuses for non-compulsory tournaments, but teams are not prohibited from doing so.
Does the CBA require a per diem allowance to be paid?
The CBA provides that, while on the road, each player is entitled to a per diem expense for meals if the team does
not provide meals to the players (meals on airplanes do not count). The rates are as follows:
2007: $45.00 ($8 for breakfast; $11 for lunch; $26 for dinner)
2008: $47.00 ($8 for breakfast; $11 for lunch; $28 for dinner)
2009: $50.00 ($8 for breakfast; $12 for lunch; $30 for dinner)
What is the per diem when players miss some, but not all, meals on a travel day?
When a team is on the road for less than a full day, a partial per diem must be paid, based upon the time of
departure from or arrival in the team’s home city, as follows:
Departure after 9:00 a.m./arrival before 7:00 a.m., and the team does not hold a practice, required
meeting or any other event requiring a player’s attendance between 7:00 a.m. and 9:00 a.m., lasting more
than thirty (30) minutes - no breakfast expense;
Departure after 1:00 p.m./arrival before 11:30 a.m., and the team does not hold a practice, required
meeting or any other event requiring a player’s attendance between 11:30 a.m. and 1:00 p.m., lasting
more than thirty (30) minutes - no lunch expense;
Departure after 7:00 p.m./arrival before 5:30 p.m., and the team does not hold a practice, required
meeting or any other event requiring a player’s attendance between 5:30 p.m. and 7:00 p.m., lasting more
than thirty (30) minutes - no dinner expense.
Does the CBA provide for relocation expenses for players?
Yes, moving expenses are paid when the player’s team is located at least 60 miles from the player’s hometown.
The amounts paid are as follows:
Assignment to original team:
When a newly signed senior roster player is assigned to his initial team, he is entitled to up to $3,500 in
relocation expenses, and housing expenses and per diem for fourteen days. Developmental players are
entitled to up to $1,750 in relocation expenses.
Trades and Team Relocations:
If a player (senior roster or developmental) is traded, or if his team is relocated, he is entitled to up to
$5,000 in relocation expenses, in addition to housing expenses and per diem for fourteen days.
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Termination:
If a senior roster player is terminated prior to April 15, he is entitled to a one-way coach airline ticket to
his hometown, or if the player chooses to travel by automobile, he is entitled to the I.R.S. rate for such
travel.
If a senior roster player is terminated after April 15, he is entitled to up to $5,000 in relocation expenses
in addition to a one-way coach airline ticket to his home city, or if the player chooses to travel by
automobile, the I.R.S. rate for such travel.
Note: If the league does not exercise a player’s option, the contract expires and is not terminated.
Therefore, moving expenses are not paid if an option is not picked up, but the player is entitled to a flight
to his home city. If a roundtrip ticket was provided when the player was first assigned to his team, the
return leg of that ticket must be used for the flight to the player’s home city.
What does a player need to do to make sure he receives moving expenses?
Submit advance notice of the expenses to his team for approval. Once approved, submit receipts within 60 days
of incurring the expense. Approval may be withheld only if the team provides a reputable moving company to
accomplish the move, and expenses must be reimbursed within 30 days of the player submitting receipts.
Are players entitled to any payments during camp if they are not under contract?
Yes, under most circumstances. In 2005 the Union negotiated, in a separate agreement, that each player who is
not under contract and who was on the most recent SuperDraft or Supplemental Draft list, or who ended the
previous year on an MLS roster, is entitled to per diem and housing while he is in pre-season or post-season
training camp until he has signed a new contract. However, if a player’s hometown is within 45 miles of the
training facility, he is not entitled to the per diem/housing.
What type of insurance benefits does the CBA provide?
Under the CBA all players must be provided with health and dental insurance, and the current coverage cannot
be decreased during the term of the CBA. Each player is also provided with life insurance of $75,000 per player,
$50,000 for spouses and $10,000 for each of the player’s dependents. In addition, there is a long-term disability
insurance plan, but it does not cover disabilities caused by soccer-related injuries. If a player suffers a non-soccer
related disability (accident, etc.), the policy provides 60% of the player’s pre-injury earnings up to a monthly
maximum of $10,000. A policy that would include soccer-related disabilities is prohibitively expensive at this
point.
How often are players paid, and how are they paid?
Paychecks are issued twice per month, and players may elect to be paid by direct deposit.
Are players entitled to free game tickets under the CBA?
Yes, each player is entitled to 4 tickets for each home MLS game, and 2 tickets for each away MLS game.
Does the CBA cover player appearances?
Yes, the CBA divides appearances into 2 major categories: (i) commercial and (ii) promotional. A player is not
obligated to make any commercial appearances. If a player makes a commercial appearance, unless he agrees to
a different fee, he is entitled to $250 for each appearance for a local sponsor and $750 for each appearance for a
national sponsor. A promotional appearance is one that does not promote an enterprise other than MLS or the
team. Teams may require players to make a reasonable number of unpaid promotional appearances, but must
give at least 5 days’ advance notice of the appearance. In addition, no player can be required to make more than
4 promotional appearances unless at least 7 other players on his team have already made at least 3 promotional
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appearances. No promotional appearance can be scheduled on a player’s day off.
May a player conduct his own soccer camp, or be required to appear at an MLS soccer camp?
Under the CBA, a player cannot sponsor, promote, conduct or participate in a non-MLS camp located within 45
miles of an MLS camp. Players may be required to appear one day each year at an MLS soccer camp. Any
additional appearances are treated as commercial appearances, and therefore, are not mandatory.
Are players entitled to expenses for appearances?
Yes. The CBA provides that, so long as a player submits an expense report within 60 days of incurring the
expense, he must be reimbursed for all reasonable and necessary out-of-pocket expenses incurred in connection
with any appearance or duties as spokesman for the team. Mileage reimbursement will be at the current I.R.S.
rate, which for 2007 is $0.485 per mile. Therefore, players should always put in for meal, mileage and any other
expenses incurred when making appearances.
Does the CBA require MLS to name an all-star team and all-league team?
Because many players have bonuses in their SPAs for being named all-stars and/or to the all-league team, the
CBA requires MLS to name a 32 player all-star team even if an all-star game is not played, or is played with
fewer than 32 players. In addition, the CBA guarantees that an all-league team will be named each year.
Does the CBA allow MLS to drug test players?
Yes, players may be randomly tested under an agreed upon substance abuse policy. If a player tests positive for
a performance enhancing drug, he may be terminated. If he tests positive for non-performance enhancing
“recreational” drugs, he is subject to gradually increasing discipline.
How much vacation and other time off are required under the CBA?
Players are entitled to 6 weeks of vacation per year, to be taken between the last game of the season and the first
day of pre-season camp. Five of those weeks must be consecutive, unless a player’s team is in an international
competition. Days devoted to national team duty during the off-season count as vacation time. During the
season, players must receive at least 5 days off every two months. Travel days are not considered days off.
Does the CBA limit the length of spring training and control the number of games that can be
played?
Yes, pre-season training camp can be no more than 9 weeks long unless there is a game scheduled before the
start of pre-season training where players can each earn at least $500, or a compulsory tournament game is
required to be played prior to the start of pre-season camp. During the season (after camp), the maximum
number of games (not including reserve team games) each team can play, including exhibition games, is 48.
Players cannot be required to play in more than 48 regular season, exhibition and reserve team games, combined.
There are also rules governing when games can be played.
What is the maximum number of minutes players can play in regular season and reserve games?
Field players cannot play more than a combined total of 120 minutes in a reserve team game and any game that
occurred within 60 hours before the reserve team game. Goalkeepers cannot play more than a combined 135
minutes in a reserve team game and any game that occurred within 36 hours before the reserve team game, and
180 minutes in a reserve team game and any game that occurred within 60 hours before the reserve team game.
How does the CBA regulate discipline?
Off-field conduct: If a player is disciplined for off-field conduct, the Union may grieve the discipline and have an
arbitrator decide if the discipline was fair. The only type of off-field conduct that cannot be arbitrated is that for
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misconduct detrimental to the reputation and public image of MLS, such as gambling on games.
On-field conduct: If a senior roster player receives a fine of $750 or more, or more than $250 for a developmental
player, or if a player is suspended for 2 games or more, the discipline can be appealed by the Union to the
commissioner.
How are contract disputes decided?
Disputes concerning the interpretation of the CBA, as well as a player’s SPA, are resolved through the grievance
and neutral arbitration procedure in the CBA. For example, if a player believes that he met the criteria
necessary for a performance bonus in his SPA, but MLS does not agree, the Union may file a grievance and if not
resolved, the dispute will be heard by a neutral arbitrator.
Does the CBA govern the salary budget and competition rules?
Although the CBA requires MLS to spend a guaranteed amount league-wide on players, it unfortunately does not
regulate the salary budget rules or other rules governing competitive issues. These were major issues of
contention during the negotiation of the CBA, and will certainly be a major issue that needs to be addressed in
the next CBA.
What are workers compensation laws and how do I find out if I have a claim?
Workers compensation laws are state laws that cover employees when they are injured on the job. These laws
provide monetary compensation and medical benefits to employees who are injured at work. Professional
athletes suffer a high rate of injuries performing their jobs, and as a result, often are entitled to workers
compensation benefits. A player may receive a workers compensation award even if he is able to play. For
example, a player may suffer a torn ACL that results in a permanent disability to his knee, but still be able to
play for his team after rehabilitation. Not only may the player be entitled to a monetary award, but he may be
entitled to an award that will provide medical expenses associated with that injury for the rest of his life.
Because workers compensation laws are state laws, the amounts awarded for injuries vary from state to state.
Also, a player may be able to file a claim in more than one state. For example, all MLS players may file a claim
in New York State, but may also be able to file a claim in the state where the injury occurred, as well as the state
where his team is located.
If you believe you may have a workers compensation claim, please contact the attorneys listed on the attachment
at the end of this document. Players will not have to pay any fees out-of-pocket to the attorneys. Instead, all
attorneys’ fees are deducted from any award that is issued, and if no award is issued, there should be no fee.
MLS Players Union Contact Information:
Bob Foose
Executive Director
MLS Players Union
4300 Arlington Road, Suite 250
Bethesda, MD 20814
Phone: (301) 657-3535
Fax: (301) 907-8212
bfoose@mlsplayers.org
Jon Newman
General Counsel – MLS Players Union
Sherman, Dunn, Cohen, Leifer & Yellig, PC
900 Seventh Street, NW, Suite 1000
Washington, DC 20001
Phone: (202) 785-9300
Fax: (202) 775-1950
newman@shermandunn.com
Website: www.mlsplayers.org
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Scott Rezendes
Staff Representative
MLS Players Union
4300 Arlington Road, Suite 250
Bethesda, MD 20814
Phone: (301) 657-3535
Fax: (301) 907-8212
srezendes@mlsplayers.org