NWSL Ushers in New Era with Historic CBA: Eliminating Draft and Granting Free Agency to All Players
The National Women’s Soccer League (NWSL) and the NWSL Players Association have made history, agreeing to a new collective bargaining agreement (CBA) that completely reshapes the league’s landscape. The most significant change? The elimination of the draft and the implementation of free agency for all players. This unprecedented move in major professional U.S. sports marks a monumental shift in player empowerment, aligning the NWSL with the global soccer market and paving the way for a more competitive and dynamic league.
Key Takeaways:
- Goodbye Draft, Hello Free Agency: All NWSL players will now have the freedom to choose their teams, a move that significantly empowers players and aligns the league with the global soccer market.
- Increased Minimum Salary and Base Salary Cap: The CBA includes substantial increases in player compensation, with the minimum salary rising to $82,500 by 2030 and the base salary cap reaching $5.1 million.
- Revenue-Sharing for Players: The new CBA incorporates revenue-sharing, allowing players to directly benefit from the league’s growth through increased sponsorship and media deals.
- NWSL Poised for Growth: This transformative CBA comes at a time of significant growth for the NWSL, underscored by rising attendance, viewership, and team valuations.
A Global Labor Market for Talent
"Unlike a lot of other sports, we compete in a global labor market for talent," said NWSL Commissioner Jessica Berman in an interview with CNBC. "So, if we want to attract, retain and develop the best players in the world, we believe that we will be most strongly positioned if we remove that artificial barrier and put ourselves on an even playing field with the rest of the world."
The elimination of the draft significantly enhances player control, allowing them to negotiate contracts with any team, regardless of their draft position. This not only empowers players but also allows teams to build rosters based on specific needs and strategic considerations, fostering greater competition and parity within the league.
Financial Gains for Players and Teams
The CBA also offers a significant financial boost for both players and teams. The minimum salary will increase from $48,500 in 2025 to $82,500 by 2030, a substantial improvement that demonstrates the league’s commitment to player well-being. The base salary cap will also experience significant growth, going from $3.3 million in 2025 to $5.1 million in 2030.
A Shared Path to Prosperity
Beyond the increased minimum salary and base salary cap, the CBA introduces revenue-sharing, aligning the interests of the players and the league. This means that players will directly profit from the success of the league through increased sponsorship and media deals.
"We want them to have skin in the game," Berman explained. "We want them to know that they, too, will benefit from that growth." This shared approach to growth promotes a more collaborative and sustainable environment for both players and the league.
A League on the Rise
The NWSL’s new CBA is a testament to the league’s momentum and evolving landscape. The league has witnessed a surge in attendance, viewership, and team valuations in recent years.
A Symbol of Growth
Last month, Disney CEO Bob Iger and journalist Willow Bay took a controlling stake in Angel City FC in a deal that valued the team at $250 million, solidifying its position as the world’s most valuable women’s sports team. In November, the league secured a media deal worth $240 million over four years, a significant increase from the previous agreement.
These financial achievements underscore the NWSL’s growing appeal and its potential for continued success.
Securing the Future
Berman emphasized that the decision to renegotiate the CBA two years early was strategic, aimed at providing future investors, sponsors, and media partners with greater visibility into the league’s long-term stability.
"We actually thought it was really important to proactively engage the union and really extend the life of our labor agreement so that when we’re building the business from an ownership-investment perspective, from a sponsor-investment perspective, from media-investment perspective, there isn’t fear of labor disruption or distraction in the foreseeable future," said Berman. "We believe this next phase of growth is going to unlock an incredible amount of investment and resources."
The NWSL’s new CBA represents a bold step towards establishing a more competitive, equitable, and financially secure environment for players. The elimination of the draft and the introduction of free agency are transformative changes that position the league to compete on a global stage, attracting top talent and further solidifying its place as a leading force in women’s sports. By sharing the league’s success with its players, the NWSL is poised to embark on an exciting new chapter of growth and innovation.