Progressive, Pro-Labor Deal Transforms the National Women’s Soccer League

Introduction

In a historic move for women’s professional sports, in 2024, the National Women’s Soccer League (“NWSL”) agreed to a groundbreaking labor deal designed to ensure higher pay, greater control over careers, and enhanced benefits for its athletes. Since 2023, NWSL games have seen a 42% increase in attendance, while television and streaming viewership have risen by 95%.¹[1]Morgan Smith, National Women’s Soccer League gets rid of draft and raises players’ minimum salary to $82,500 with new agreement, CNBC (Aug. 23, 2024), https://www.cnbc.com/2024/08/23/nwsl-gets-rid-of-draft-raises-players-minimum-salary-with-new-agreement.html. The 2023 Women’s World Cup undoubtedly drove growth in the sport’s popularity. However, the World Cup also exposed weaknesses in the U.S. game’s structure that precipitated the new labor deal.

Soccer in the United States is perceived to be behind its European counterparts, home to some of the world’s top players and competitive leagues. In the build-up to the 2023 Women’s World Cup, the United States, Canadian, and Brazilian national teams were thought to be favorites to win the entire tournament since a majority of the national teams’ players play in the NWSL.²[2]New NWSL deal a ‘relief and joy’, Players Association boss says, ESPN (Aug. 28, 2024), https://www.espn.com/soccer/story/_/id/41024777/new-nwsl-deal-relief-joy-players-association-boss-says. However, all three teams’ early exits from the World Cup raised concerns about the competitive direction of the NWSL.³[3]Id. The NWSL knew it needed a change in order to keep up with the leagues and players in Europe.⁴[4]Id. This article will describe the new NWSL collective bargaining agreement (“CBA”) and the major changes that mark it as a progressive, pro-labor deal.⁵[5]Id. These include elimination of the draft, unrestricted free agency, increased salaries and salary cap, and enhanced childcare benefits.

Key Parties and Collaborative Efforts

The NWSL’s first CBA was ratified in 2022 and set to expire in 2026.⁶[6]National Women’s Soccer League Collective Bargaining Agreement, NWSL Players Association (2022), https://www.nwslplayers.com/_files/ugd/84dade_c1592001e8774f81b8346c2b13e6a5f4.pdf. After the 2023 World Cup fiasco, the league and the NWSL Players Association (“NWSPLA”) negotiated a new deal in 2024 that extended the previous agreement to 2030 and implemented significant changes.⁷[7]National Women’s Soccer League Collective Bargaining Agreement, NWSL Players Association (2024), https://www.nwslplayers.com/_files/ugd/84dade_cdf25e593796416ca96f34e0e5fa0b88.pdf. The NWSLPA bargaining committee included star players such as Alex Morgan and Alyssa Naehr.⁸[8]Kevin Baxter, NWSL agrees to sweeping new contract that is among the most pro-labor in women’s sports, Los Angeles Times (Aug. 22, 2024), https://www.latimes.com/sports/soccer/angel-city-fc/story/2024-08-22/nwsl-agrees-to-sweeping-new-cba-that-ends-drafts-boosts-salaries-and-more; NWSL Players Association, NWSLPA, https://www.nwslplayers.com/#:~:text=The%20NWSLPA%20is%20the%20voice,as%20a%20professional%20soccer%20player. They proved effective advocates for the benefits players felt they deserved, while aligning with the league’s interest in attracting the best international talent, ultimately leading to a more balanced agreement for both sides.

Elimination of the Draft and Unrestricted Free Agency

The new CBA’s most revolutionary innovations are the elimination of the draft and unrestricted free agency. The NWSL became the first major U.S. professional sports league to abolish a system that regulates rookie entry into the league. Instead, players are free from the outset to choose their teams and career direction. The elimination of the draft is significant as the draft is a big deal for other major sports in the U.S., such as football, basketball, hockey, and men’s soccer. Teams make trades affecting their drafting abilities for future draft classes just to get a top college athlete from the current draft for a position that they need filled.⁹[9]Ben Blatt, How The N.F.L. Draft Became a Trading Floor, The New York Times (April 25, 2024), https://www.nytimes.com/2024/04/25/upshot/nfl-draft-trades.html. However, the elimination of the draft gives more power to players.¹⁰[10]Maria Howell, What college soccer fans need to know about the NWSL eliminating the draft, NCAA (Sept. 15, 2024), https://www.ncaa.com/news/soccer-women/article/2024-09-15/what-college-soccer-fans-need-know-about-nwsl-eliminating-draft. When the draft was in place, NWSL teams would pick the best college players who entered the draft.¹¹[11]Id. Once an athlete was drafted, they were forced to go play for that team, regardless of location.¹²[12]Sean Gregory, Why Women’s Soccer Ditched Its Draft, TIME (Aug. 22, 2024), https://time.com/7014141/nwsl-women-soccer-collective-bargaining-agreement-draft/. Now, teams can give offers to college players, and players will be able to choose which team they go to based on salary, location, environment, and other various factors.¹³[13]NWSL CBA at § 8.16 at 24, supra note 7.

The impact of eliminating the draft is amplified by the adoption of unrestricted free agency, freeing players to move to different teams at the expiration of a contract, without restrictions. The NWSL’s new free agency rules are now consistent with FIFA Regulations on the Status and Transfer of Players. Previously, teams were able to hold onto players’ rights at the end of their Standard Player Agreement, which prevented them from joining another team of their choice.¹⁴[14]NWSL Editor, NWSL Free Agency Explained, NWSL (Sept. 22, 2023), https://www.nwslsoccer.com/news/nwsl-free-agency-explained. Now, new free agency rules will allow players to entertain offers from other teams once their current contract expires and then choose from the available offers, without their rights being restricted by their current team.¹⁵[15]NWSL CBA at 45-46, supra note 7. In addition to having more control, players will now be required to consent to all trades within the NWSL and to other leagues.¹⁶[16]NWSL CBA § 13.11 at 47, supra note 7. Previously, NWSL players had no ability to veto trades and were moved unilaterally based on their club’s will.¹⁷[17]2024 CBA Fact Sheet, NWSLPA, https://www.nwslplayers.com/cba-fact-sheet. This is an important development for NWSL players because this affects where they live and now, players will not be forced to go to a team that plays in an area that doesn’t fit their needs or lifestyle.

Significant Increase in Players’ Salaries and Salary Caps for Teams

Another critical feature of the new deal is the increase in team salary caps and minimum player salaries. The current base salary cap for NWSL teams is $3.3 million.¹⁸[18]NWSL CBA at § 8.16 at 24, supra note 7. The salary cap will grow to $5.1 million in 2030.¹⁹[19]Id. The NWSL also adopted a shareable revenues model, which allows the league’s profits to be shared equally among the teams as business partners.²⁰[20]Id. § 8.14 at 23. Additionally, the shareable revenues model will allow a portion of the money that the league earns from media and sponsorship agreements to be distributed to the NWSL teams.²¹[21]Id. This additional revenue, along with the salary caps being raised every year, increases the available cash for NWSL teams, allowing the teams to supplement players’ salaries with that extra money.²²[22]Id. The deal also increases an individual player’s minimum salary from $48,500 in 2025 to $82,500 in 2030.²³[23]Id. § 8.1 at 15. Unlike the prior CBA, all contracts will be guaranteed, meaning they can’t be terminated early by the team.²⁴[24]Id. § 7.4 at 10.

Compared to its male counterpart in the States, Major League Soccer (“MLS”) teams’ base salary cap is around $5.5 million.²⁵[25]Major League Soccer Collective Bargaining Agreement, MLS Players Ass’n (Feb. 6, 2020), https://mlsplayers.org/resources/cba. Additionally, each team can spend a limitless amount on three “designated” players, and those three “designated” players’ salaries are not part of the team’s overall salary cap.²⁶[26]Smith, supra note 1. This allows for MLS teams to attract a couple of high-profile players through this unlimited salary, which helps generate fan interest and more revenue for all parties involved. As an example, Inter Miami pays Lionel Messi, one of the best players in the world, around $20 million per year, and that doesn’t include his endorsements.²⁷[27]Id. The women’s deal is not comparable to this structure. Although there will be no limit for a player’s maximum salary, everything must fit within each NWSL team’s salary cap designated under the CBA.²⁸[28]NWSL CBA § 8.17 at 24-25, supra note 7. Even though the salaries still have to fit in the team cap, the increase in pay can help attract players from overseas, increasing the competitiveness in the league. The increase in competitiveness can help develop players’ skills, allowing the national team players to be better equipped to compete in international competitions such as the World Cup.

Increased Flexibility for Childcare Support

The agreement expands childcare benefits, which was an important part of the deal to the NWSLPA since it was a major issue faced by players in the past.²⁹[29]Chabeli Carrazana, Child care is at the center of the largest-ever fine in women’s soccer, The 19th (Oct. 18, 2024), https://19thnews.org/2024/10/child-care-largest-fine-womens-soccer-angel-city/. The previous deal gave players up to $5,000 annually to cover dependent childcare and that amount was fixed no matter the number of children someone had.³⁰[30]Id. The new deal allows players to choose between a dependent care stipend for $10,000 a season or have childcare providers and children under five travel at the team’s expense for domestic NWSL-related work.³¹[31]NWSL CBA § 9.9 at 30, supra note 7. Childcare was a major concern for players and these benefits are a big improvement, allowing players to have more resources to take care of their children. Additional benefits of the deal include mental health leave and a supplemental housing stipend.³²[32]NWSL CBA at 26-27, supra note 7.

Conclusion

This pro-labor deal changes many employment aspects for NWSL players and will transform women’s soccer over the next couple of years. With increased salaries, guaranteed contracts, and more control over their careers through free agency and the elimination of the draft, prioritizing players’ rights are at the forefront of this deal. The increased minimum salary alone is particularly beneficial for newer players, who often enter the league earning lower wages, which, before the new CBA, was difficult to live off in expensive cities. Additionally, the introduction of guaranteed contracts provides players with greater financial stability and peace of mind when it comes to getting paid. The deal not only strengthens the NWSL in comparison to its male counterparts like MLS but also sets a new standard for women’s sports overall. These changes are a crucial step toward creating an equitable and sustainable professional environment for women in sports, which could pave the way for future growth and recognition.

Written by: Yesenia Lopez
Yesenia is a 2027 J.D. Candidate at Brooklyn Law School.