NWSL, PA amend HIP Rule, resolve five other grievances

The NWSL Players Association and the National Women’s Soccer League have announced they have settled six grievances previously made by the PA, including one that challenged the controversial High Impact Player Rule.

The Multi-Grievance Settlement Agreement eliminates the HIP Rule’s eligibility restrictions beginning in 2027. Players will no longer have to satisfy performance and marketing criteria to negotiate contracts that use HIP money. The league, however, may decide a limit on how many players per club may take advantage of HIP compensation. The PA must be notified of that limit by the opening of the applicable Free Agency Window. Only players who take up at least 12% of the base salary cap qualify for HIP status — this has been the case throughout the lifetime of the rule — though the league may lower this threshold should they choose to.

The sides also established a plan for regular financial disclosures so that the PA may review the league’s revenue-sharing numbers. Those calculations affect the yearly salary cap per the CBA.

In response to the grievance raised by the PA regarding the league’s rejection of a Trinity Rodman contract with the Washington Spirit, the league maintains the ability to reject contracts for circumvention of the salary cap. However, if the league does reject a player’s contract, it must notify the PA of the decision and an explanation within 72 hours. Further, clubs and players may agree to “annual salary increases or decreases in post-CBA contract years beginning in 2031 are limited to 15% of the preceding year’s salary,” per the PA’s statement.

The agreement preserves the league’s footwear sponsorship policy, but now honors pre-existing endorsement deals for most players and removes previously issued fines.

Players and clubs may now negotiate new categories of performance-related bonuses and salary increases into Standard Player Agreements. They include club appearance and minute milestones, consecutive starts, goalkeeper goals-against-average, individual honors and end-of-year awards, senior U.S. women’s national team matches and FIFA and Concacaf tournament matches.

The agreement also preserves existing housing and automobile benefits for players.

“Behind each of these grievances are rights that matter to Players’ careers and livelihoods, from the compensation they can negotiate to the benefits they depend on,” Tori Huster, Deputy Executive Director of the NWSLPA, said. “Our Union is committed to ensuring that the lived experience of Players lives up to the terms we collectively bargained for.”

“Throughout this process, we were focused on finding solutions that work for the league and our players and ultimately benefit our fans,” NWSL Executive Vice President Bill Ordower said. “We’re pleased to have reached a resolution that does exactly that and allows everyone to stay focused on the tremendous opportunity ahead. We appreciate the NWSLPA for their partnership and work in resolving these important issues.”