NWSL Players Association Files Grievance Over New Compensation Mechanism

The National Women’s Soccer League (NWSL) Players Association (PA) has formally lodged a grievance against the league, asserting that the newly established “High Impact Player” (HIP) mechanism contravenes the collective bargaining agreement and federal labor law.

This grievance, filed this week, marks the second complaint submitted by the PA in the past six weeks. The first grievance remains open, awaiting a resolution.

In a news release issued on Wednesday, the NWSLPA called for the immediate rescission of the HIP rule, an order requiring the league to engage in good faith negotiations regarding any proposed player compensation rules prior to their implementation, and compensation for any players adversely affected by the league’s unilateral decisions.

NWSLPA Executive Director Meghann Burke expressed concerns in a statement, highlighting that the league’s decision to alter the evaluation process for a player’s fair market value was made without collaboration. “We agree that enhancing investment in player compensation is vital for maintaining competitiveness in the global labor market. However, this can be achieved through collective bargaining to increase the salary cap,” she stated.

Burke further emphasized, “The league cannot unilaterally establish an alternative pay structure outside of the salary cap, which has not been negotiated, while limiting access to additional compensation through league-imposed criteria that may exclude certain players.”

ESPN has reached out to the NWSL for comments regarding this new grievance.

Last month, the NWSL introduced the HIP rule, which permits teams to exceed the salary cap by up to $1 million for select players who meet specific criteria determined by the league’s board. Just five days prior to this announcement, Burke indicated to ESPN that the union opposed the establishment of the rule, perceiving it as an attempt by the league to exert control over player compensation.

The union contends that any compensation rule should be a product of collective bargaining. They proposed an alternative to the league that involved a direct increase of the salary cap by $1 million without additional qualifications, allowing teams the liberty to allocate funds as they see fit across all players.

“We firmly believe that assessing a player’s value, in terms of both sporting merit and business implications, is complex and nuanced,” Burke noted in December. “It is essential for teams to make these judgments, especially within a free agency system that we all agreed upon.”

According to the collective bargaining agreement (CBA), the NWSL may, at its discretion and after consulting with the NWSLPA, adjust the salary cap charge for specific roster classifications. However, the specifics of what constitutes “consultation” remain undefined, and Burke maintains that the PA does not recognize the HIP rule as a roster classification.

Conversely, the NWSL argues that the rule falls within their purview, asserting their right to implement it despite the union’s objections.

Sources indicated to ESPN that discussions regarding the HIP rule took place throughout 2025, with its urgent implementation stemming from the uncertain future of star United States Women’s National Team forward Trinity Rodman. Rodman is seeking a contract that reflects her fair market value, which she and the Washington Spirit, her team for the past four years, estimate to be at or exceeding $1 million annually.

Under the existing salary cap of $3.5 million for 2025, the Spirit could not match offers from other teams for Rodman. In late November, Rodman and the Spirit proposed a creative solution involving a backloaded four-year contract, contingent on a significant increase in the salary cap based on anticipated revenue from a new media agreement.

However, NWSL Commissioner Jessica Berman rejected this contract on the grounds that it violated the “spirit” of the rules, with the league accusing Rodman of attempting to circumvent the salary cap.

In response, the NWSLPA filed a grievance on Rodman’s behalf, labeling the league’s rejection of the agreement a “flagrant violation” of her free agency rights and a breach of multiple sections of the CBA.

Rodman’s previous contract expired on December 31, and she is currently a free agent. NWSL teams are expected to report for preseason training on Thursday, with Rodman slated to join the United States Women’s National Team training camp next week for the first time since April.

As per CBA regulations, the NWSL is obliged to provide a written response affirming or denying the union’s grievance. Sources have confirmed that the league recently submitted this response after a mutually agreed-upon extension for the holidays; however, details regarding the response remain unclear.

With the grievance formally filed against the HIP rule, the league is required to respond once more. The subsequent steps will involve a review by a grievance committee consisting of one representative appointed by the league and one by the players’ association. Should the matter remain unresolved, it will proceed to arbitration.