Soccer-After bruising 2020, MLS invokes clause to renegotiate players' contract
Reuters
Published Dec 29, 2020 22:43
Updated Dec 29, 2020 23:25
By Amy Tennery
(Reuters) -Major League Soccer (MLS) is invoking a clause to renegotiate its collective bargaining agreement (CBA) with the players' union after the COVID-19 pandemic cost it nearly $1 billion in 2020.
MLS avoided a lockout in June when its players ratified the CBA, which contained a 5% pay cut for players and a force majeure clause, which the league invoked to compel players and the league now to renegotiate the deal for 30 days.
"Unfortunately, based on the assessment of public health officials, it is clear that the impact of COVID-19 and the restrictions on attendance at sporting events will continue into the 2021 MLS season," MLS President and Deputy Commissioner Mark Abbott said in a statement.
If a new agreement cannot be reached within a month, the contract will be terminated.
The MLS Players Association (MLSPA) condemned the move.
"After a 2020 season of extreme sacrifice, immeasurable risk to personal health, and a remarkable league-wide effort to successfully return to play, this tone-deaf action by the league discredits the previous sacrifices made by players and the enormous challenges they overcame in 2020," the MLSPA said in a statement.
MLS suspended competition in March as the novel coronavirus brought the sports world to a grinding halt. It reopened with its "MLS is Back" tournament in a quarantined "bubble" setting in Orlando, Florida, in July and resumed the regular season in August.
But fans have largely been locked out of games because of health and safety measures, posing a significant problem for MLS, which relies heavily on in-person attendance and had already incurred the added expenses of competing inside the "bubble" at Walt Disney (NYSE:DIS) World.
"We recognize the impact that the pandemic has had on our players and appreciate their efforts to restart and complete the 2020 season," said Abbott.
"Like the other leagues in the United States and Canada, MLS needs to address the ongoing challenges caused by the pandemic and will engage in good faith discussions with our players about ways to manage the significant economic issues we are facing."
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.