Last week I was asked a simple question, "What will it take for MLS clubs to regularly win CONCACAF Champions League?". My instantaneous response was "Money, depth". I stand by this statement, but upon reflection, I pondered the road to Don Garber's "top league" prediction, and how becoming the dominant league in North America went hand in hand with most MLS fans CCL dreams.
I asked myself a few questions:
1) How do we get technically gifted serviceable pros to choose MLS or Liga MX?
2) If the money is equal, would players rather live in the US, Mexico, Belgium, etc?
3) Can a league become a "top" league in North America and the World while having a salary cap?
4) Does the current MLS DP structure help or harm the growth of MLS?
5) How much money would legitimately need to be spent to reach the goals of MLS and its fans?
6) Can a league become a "top" league in North America and the World when based on parity?
7) What would an increased salary cap mean for American players?
Earlier this week ESPN commentator and pundit Taylor "Big Head" Twellman posted the team salary breakdown of two Liga MX and two MLS clubs. One comparison was on the low end of spending, $6,500,000. The MLS side spent $3,000,000 of their budget on one player, with the next highest earner making $450,000. There was a precipitous drop as you then went down through the squad. The Liga MX side had three earners tied for their top spot, making $515,000, with a slow drop down through the entire squad.
The second example was of higher spending sides. The Liga MX side had a salary budget of $13,000,000. One player earned over 2 million, and only 4 players earned over a million, with a slow and steady drop down through the squad. The MLS side had a budget of $12,500,000. The top three highest paid players made nearly 10 million, leaving the rest of the squad to split 2.5 million.
Twellman's point, was that looking at the pay of the squads, without seeing a single player's name or position, you know which squad more often than not would beat the other. One side relied on a few quality players (he made no comments about being overpaid) and nearly a complete squad of lower talents, while the other had a balanced squad of decent quality.
Before I address the questions I asked myself earlier in the article, I will show you the end point, what I came up with, and then back track to the answers I came up with. While no plan is perfect, and mine may contain some flaws, I feel it would be a great step for MLS to find themselves as not only the best league in North America by 2022, but also one of the best in the world.
YEAR ONE: $6,000,000 salary cap, 3 designated player spots available. (Using current DP salary cap rules and a hard salary cap.)
YEAR TWO: $7,000,000 salary cap, 3 designated player spots available.
YEAR THREE: $8,000,000 salary cap, 2 designated player spots available.
YEAR FOUR: $9,000,000 salary cap, 2 designated player spots available.
YEAR FIVE: $10,000,000 salary cap, 1 designated player spot available.
YEAR SIX: $11,000,000 salary cap, 1 designated player spot available.
YEAR SEVEN: $12,000,000 salary cap, 0 designated player spots available.
Despite the "hard" salary cap, for those who wish to spend more, there will be a luxury tax, which will then get split evenly between the non-cap offenders. Offending teams will pay a fixed percentage based on the amount of which they over spend.
YEAR 1 and 2: 10% of over salary cap expenditure.
YEAR 3 and 4: 15% of over salary cap expenditure.
YEAR 5 and 6: 20% of over salary cap expenditure.
YEAR 7 and Beyond: 25% of over salary cap expenditure.
While the league will have a salary maximum, it will also have a salary minimum spend, which will include the MLS player salaries, as well as academy and/or USL salary expenditures, with USL salary expenditures currently hovering around $1,000,000 to $1,500,000 for most MLS sides with a USL club. A minimum spend seems necessary if the league would like to remain competitive and offer parity.
YEAR 1: $4,000,000 minimum
YEAR 2: $4,500,000 minimum
YEAR 3: $5,000,000 minimum
YEAR 4: $5,500,000 minimum
YEAR 5: $6,000,000 minimum
YEAR 6: $6,500,000 minimum
YEAR 7 and Beyond: $7,000,000 minimum
A feature of my plan which has been discussed by fans for many years, is performance bonuses.
SUPPORTERS SHIELD WINNER: An extra $500,000 of salary cap space for the season following a Supporters Shield victory.
CONCACAF CHAMPIONS LEAGUE WINNER: An extra $500,000 of salary cap space for the next two seasons following a CCL victory.
While not perfect, I believe this basic outline would be the best starting point MLS has ever had when it comes to achieving their goals. Revenue would increase through the gates, and television ratings and money would follow. Even a slightly higher standard is what many soccer fans, who are not MLS fans, are dying for in the US.
Earlier I asked myself some questions, and I would now like to do my best to convey to you what I truly believe are the answers, and how my salary structure plan would affect such answers.
1)HOW DO WE GET TECHNICALLY GIFTED SERVICEABLE PROS TO CHOOSE MLS OVER LIGA MX?
Money. Plain and simple. A member of the starting eleven, substitutes bench, or just added squad depth, your salary could be double or more in Mexico what it would be in MLS, based in large part to the current salary cap structure.
2) IF THE MONEY WAS EQUAL, WOULD PLAYERS RATHER LIVE IN THE US, MEXICO, BELGIUM, ETC?
While some player would surely have an affinity for one country over another, based on place of birth, language spoken, or any other number of factors, I firmly believe that all things being equal, the lifestyle of the US would be preferred by the majority of players.
3) CAN A LEAGUE BECOME A "TOP" LEAGUE IN NORTH AMERICA OR THE WORLD WHILE HAVING A SALARY CAP?
Yes. While fans crave success for their clubs, they also crave financial stability. Knowing your team will be around for years to come without financial concerns is of the utmost importance. Also, the salary cap I proposed allows for MLS clubs to compete on equal or superior standing to most Liga MX clubs. A healthy cap does not have to mean poor quality or low expenditures.
4) DOES THE CURRENT MLS DP STRUCTURE HELP OR HARM THE GROWTH OF MLS?
Both. While David Beckham, Robbie Keane, Clint Dempsey, Ricardo Kaka, or Frank Lampard help expose the league to a wider audience, while also bringing in outside interest and allegiances, even if only briefly, top heavy squads where one player sitting in a dressing room is making several million a year, while the person next to him is making $60,000 is not the best scenario for team chemistry or success. The top heavy structure created by current DP rules in the end is doing more harm than good when it comes to broader success on a continental level.
5) HOW MUCH MONEY WOULD LEGITIMATELY NEED TO BE SPENT TO REACH THE GOALS OF MLS AND ITS FANS?
With a current cap hovering around $3,500,000 and most MLS clubs spending on DP's doubling that amount, I believe doubling current spending will more than do the trick. MLS, despite its critics is a decent standard and has much more entertainment and quality than many would give it credit for. Allowing salary space to improve depth and starting eleven quality, would surely take MLS from a point of struggling to achieve its goals, to achieving them with hard work, but more ease.
6) CAN A LEAGUE BECOME A "TOP" LEAGUE IN NORTH AMERICAN AND THE WORLD WHEN BASED ON PARITY?
Possibly, but most likely, no. Soccer, like everything, needs heroes and villains. It needs the have and have-nots. It needs teams pushing the boundaries and setting the standard. It needs teams whose answer for success is spending money, while others build through youth and system to achieve its goals. While MLS can have a salary cap and parity, it has always had spenders and non-spenders. Adding a cap that is open but includes a luxury tax allows for clubs to spend anything they desire, while helping those who do not have the money to spend. It is conceivable that by 2022, a team like Columbus could have 1/7 of its minimum spend paid for by their share of the luxury tax. Its not hard to imagine six teams spending twenty million on salary, paying a $2,000,000 penalty apiece.
7) WHAT WOULD AN INCREASED SALARY CAP MEAN FOR AMERICAN PLAYERS?
I believe it would help and harm Americans attempting to ply their trade in their home league. On the positive side, stiffer competition would lead to more American players being forced to raise their game and compete for a position in the starting eleven or squad. Those who make it would be of a higher calibre than those who could make a squad today. The harm would come in fewer Americans playing their trade in MLS, a league which is already half foreign. Part of any new collective bargaining agreement and fresh salary cap structure could include home grown player minimums in an attempt to make academy and USL expenditures worthwhile.
Overall, I believe its time MLS stepped up its game and stopped hiding behind manufactured losses while hiding profits in a group account which doesn't show up on their books when it comes to the bottom line. The time to make the move and show its here to stay is now.
The plan however is not complete, nor is it flawless. If you have any comments, suggestions, or a plan of your own, please let me know.
Thank you for taking the time to read my piece, and as always, remember, MLS Matters.
If you would like to reach into the archives and see what I was saying about league parity two years ago, feel free to check out my piece "Parity or Parody" here... mlsmatters.blogspot.com/2013/09/parity-or-parody.html
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