The NWSL announced significant improvements to the compensation guidelines for the 2020 season.
Among the changes announced Friday was a 19.33% increase to the salary cap which will be set at $650,000 beginning with the 2020 season, up from $421,500 the previous year.
This excludes allocation money.
This increase boosts the league maximum from $46,200 to $50,000 and the league minimum from $16,538 to $20,000. The league minimum is still a far stretch from a livable wage for most athletes, but it’s a huge jump from the $6,000 minimum when the league started in 2013.
The most significant change might be the introduction of allocation money in 2020 which would allow NWSL teams to offer competitive pay to star players like Sam Kerr.
Teams are able to purchase up to $300,000 in allocation money from the league that can be used to invest in current or future players in excess of the team’s salary cap. This would allow certain players’ salaries to exceed the league’s maximum as long as those players fit certain guidelines.
Guidelines to receive allocation money (must meet one or more):
- NWSL Best XI or Second XI for either of the two most recent seasons
- International players who have more than three caps for their national team in the prior 24 months
- NWSL MVP, Golden Boot, Rookie of the Year or Defender of the Year winner for one of the two most recent seasons
- Domestic players who have completed at least five seasons in the NWSL
- Players who were formerly designated as allocated players by the U.S. or Canada (unless if the player refused the option to be allocated)
- Players previously on a contract that included allocation money.
Another significant change was in the area of players housing. In 2020 there will no longer be a cap on assistance for housing and auto expenses. Year-round housing will be provided to players on a team’s senior and supplemental rosters while the player remains under contract.
The allocation money raises the biggest question for the Red Stars and Kerr: Will she stay in the NWSL?
This question was on everyone’s mind as the 2019 season ended because of the substantial offers the NWSL MVP received to play in Europe. The changes to the league’s compensation guidelines doesn’t guarantee anything but it at least allows the Red Stars to present a competitive offer to the star striker.
The entire breakdown of the NWSL 2020 compensation guidelines can be found here.
