State of the Union Week: MLS Extends Labor Talks

↵So, you might have seen a few reports around the internet that noted White Sox fan (and leader of the free world) Barack Obama had his first State of the Union address this week, playing the room somewhere between “this is a serious time in our nation’s history” and “everybody Wang Chung tonight.” ↵

↵↵Our own Dan Shanoff gave his “State of the Sports Union” in Wednesday’s WUC and looked at the sports landscape as more ‘sunshine and lollipops’ than ‘doom and gloom.’ You might say Shanoff sees the current state of sports as Tebow-riffic. ↵

↵↵That’s just on the surface. LeBron James and Kobe Bryant make basketball fun to watch, but there’s a looming labor dispute coming just around the bend. The Saints are a great story and Peyton Manning is back in the Super Bowl, but there’s an uncapped year on the horizon as part of a labor agreement that, if not resolved soon, could lead to a work stoppage. In fact, by the looks of it, all four major sports will have their current agreements expire by the end of 2011, and with the current economic climate in this country, who’s to say any of the big sports will figure out a way to amicably come to terms?↵

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↵↵But those leagues have months to figure something out. The MLS? Well, MLS commish Don Garber (pictured) and his league have labor issues to deal with right now. The MLS labor agreement was set to expire on Sunday, leaving the future of the league in tumult. On Thursday evening both sides agreed to extend the negotiating period to Feb. 12, a sign that indicates both sides are willing to work together, just not fast enough to get something done by this weekend. ↵

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↵↵⇥“While we still have areas of disagreement, the talks have been constructive and both parties believe it makes sense to continue to work hard to reach agreement,” said MLS Commissioner Don Garber. “This extension provides both MLS and the players the opportunity to continue our discussions while clubs are in training camps preparing for the 2010 MLS season.”↵⇥↵⇥“Both the Players Union and MLS have concluded that a new agreement will not be reached by February 1, but we have agreed to continue to talk and we will be meeting over the next two weeks to determine if a new agreement can be reached,” said Players Union Executive Director Bob Foose. “In the meantime, MLS Players are reporting to training camp, and preparations for the 2010 season will continue.”↵⇥

↵↵↵There had been varying reports online as to what will happen with the MLS labor dispute. Could there be a lockout? Could the players strike? Will neither happen, even if a deal isn’t struck, leaving both sides to continue under the current CBA? ESPN’s Steve Davis had some theories in Wednesday’s update:↵

↵↵⇥Media reports have typically (and accurately) downplayed the strike or lockout factor, although the DEFCON level has risen lately. One report recently heralded that a strike “could wipe out the 2010 MLS season,” a claim that seems wildly disproportionate to the actual threat of such a nuclear option. MLS officials, team owners and labor interests all understand how potentially destabilizing such action would be to the entire pro soccer platform.↵⇥↵⇥“Obviously, we’re not one of the bigger sports, where we can go by the wayside for a time and expect fans to come right back,” said Pat Onstad, the veteran Houston Dynamo goalkeeper and a labor representative for his side. He pointed to the NHL’s fiasco and the trouble hockey has had in rallying past the labor discord that wiped out the 2004-05 season. “In the last couple of weeks, I think both sides will tell you progress has been made, and we’re all cautiously optimistic of getting a CBA in place before the deadline.”↵⇥

↵↵The extension seems to indicate that both sides understand that something needs to be hammered out before a work stoppage occurs. The dispute seems amicable to this point, so thoughts of something drastic happening don’t seem likely. ↵↵That said, there are some major issues for the league and player’s union to discuss. A big part of this dispute is not just how much money the players will be making, but turning player salaries into guaranteed contracts. Also, the league controls the rights to a player, and even after his contract expires, he doesn’t have the same ability to sign with other teams as free agents in other sports. In essence, a team can control a player even after his contract expires, and there’s not much a guy can do about it. ↵

↵↵The league was constructed, and is run, as a single-entity (an actual version of what the NFL is trying to convince the Supreme Court they are), and the individual player loses a lot of leverage when negotiating contracts. Also keep in mind that no more than two or three MLS clubs are making any money, and David Beckham has a lot to do with one of those clubs in the black, so where the money will come from to pay these players is a real concern. The star players may not be interested in sticking around for a league that is unable to pay them what they could get overseas. ↵

↵↵What does this extension mean? According to Soccer by Ives it doesn’t mean much, as the union was never going to strike and the league still has seven weeks before the season is set to start (so why lock players out now?) So the State of the MLS Union isn’t bleak, but it’s far from being solid footing just yet. Like most business deals, this will hopefully get done in one of those deals that go down to the 59th minute of the 11th hour. As long as there’s no filibuster, of course. ↵

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