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Posted by
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July 21, 2015 |
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Aaron Nielsen
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With the renegotiation of MLS Collective Bargaining Agreement at the beginning of the season, there was a delay to the annual releasing of salaries and we also got more information in the public about the new deal. In my column published during the strike, there ends up being a 10-15% overall increase of salary across the board for most players. This raised the overall salary cap to $3,490,000 and the minimum salary of $36,500 to $50,000.
I have developed a statistical model for tracking salaries in MLS and their value. In the past I wrote articles mostly on two subjects: players who were hyped in the media and by their club, but when the salary information came out, based on the salary the player was given, it showed very low expectation for the player. A good example of this was former Montreal Impact signing Santiago Gonzalez who was talked about with great anticipation when signed, including from MLSSoccer.com. It was later revealed he was making the league minimum and soon after has disappeared from the league. The other subject I have written about on player value is players who are being overpaid in terms of what production they provide on the pitch, or the opposite, players who provide a great return for the salary the club/league is paying.
The same can be said this season, although less in terms of the Gonzalez example, with the league going away from these young South American players. Outside of a couple of clubs, and with the focus on CBA talks, neither teams or the league head office had the opportunity to promote the new season this past offseason as they have in the past. Outside of a few exceptions, most the lowest paid players are homegrown signed players, or players recently drafted with many spending as much time in USL as they are MLS. The one major exception is Cyle Larin, who is scoring goals and getting minutes with Orlando, but also being paid a guarantee $167,000. This is the most for a young player outside of his teammate Rafael Ramos and Real Salt Lake's player Luis Gil, who has played a few years in the league but is also in the category of overpaid player in the league with a salary of $300,000.
In terms of overall pay, Kaka is the highest at $7,167,500, followed by Toronto FC players Sebastian Giovinco and Michael Bradley. Of the total $160,000,000+ paid by the league, $91,000,000 is paid to the 46 designated players, although each DP now counts $436,250 against the cap. Of the heavy spenders, Toronto is out in front with a little less than $23,000,000, including money still owed to Gilberto. The LA Galaxy and new heavy spenders NYCFC are second and third, although are only paying half wages to Dos Santos, Gerrard, Pirlo and Lampard respectfully. Orlando and Seattle are also spending over the 10 million mark with, then there is a big drop off, including Vancouver at ninth most with $6,150,000 and Montreal 19th at $4,336,786.
When it comes to the cap the story is a bit different from my analysis. Toronto is 11th and has about the same amount of cap room as Montreal and Vancouver, especially with the retirement of Stephen Caldwell. Based on the numbers, Sporting Kansas City seems over the cap while NYCFC is at the brink. Meanwhile, clubs with the most room include Columbus, New England, FC Dallas and Real Salt Lake. Probably the biggest surprise for those who have followed MLS for any period would be that the New York Red Bulls not only have the most cap room, but are also have the lowest overall salary in the league and could be a team to watch out for, especially next season as they have a number of prospects and players now providing good value.
The clubs in the most amount of trouble based on what players are being paid and the return the clubs are getting are Chicago and Colorado, while some of Vancouver moves could also be questioned. Chicago was a team I was actually quite high on going into the season based on their perceived willingness to spend and the depth they already had. However, on the pitch they have been a complete disappointment this season with the club currently last in the MLS East, although this can be attributed to long term injuries, and watching many of their games I have seen some poor coaching decisions. The Fire didn't pay for a marquee DP but did spend in new salaries this past winter: $1.6M for Shaun Maloney, $720,000 for David Accam, and most surprising was $800,000 for Kennedy Igboananike. Prior to the season, I had some concern for Maloney although I liked the Accam signing and feel the salary is fair. However, I was expecting Kennedy to paid more in the $200,000 range. Based on his career in the Allsvenskan, I never saw him as a DP in MLS and his two goals and one assist in 17 games is proving this.
Colorado were a club last season who were heavily criticized for not spending money, but they have made some moves this season and are in the middle of the pack in terms of total money spent. They gave Irish striker Kevin Doyle $1.2m which I think is a bit risky especially when a striker with a similar European pedigree like Bradley Wright-Phillips is making less than half that amount. Also signed was Marcelo Sarvas from the LA Galaxy who was given a substantial pay rise making $360,000 where he was making under $200,000 with the LA Galaxy. They also gave some significant pay increase to players who were with the team the season before, while on the pitch, the Rapids are looking to finish near the bottom of the west now two seasons in a row.
In terms of Vancouver, they always surprise me in terms of the salaries they are willing to give. Toronto FC has a history of over spending, while in MLS terms the Montreal Impact would be regarded as cheap. With the Whitecaps, they haven't shown much interest in signing elite DP's but are willing to pay high salaries for key players. Pedro Morales unsurprisingly makes the most at $1.4 million, but I'm surprised despite his early season success that Octavio Rivero is making $890,000 as he only had a few season of relative success before coming to the MLS. Matias Laba’s contract is edging closer to DP salary range, where direct comparisons to Michael Bradley now can be made, while Darren Mattocks, Gershon Koffie, and David Ousted would be in the category of overpaid. To the Whitecaps advantage, they do have a number of homegrown and GA players who don't count against the cap and were able to get Mauro Rosales and Robert Earnshaw to take large pay cuts to be with the club this season.
Montreal was also able to get players such as Nigel Reo Coker and Patrice Bernier to take pay cuts as well, although both might still be overpaid based on their contribution. Surprisingly, Clint Dempsey has taken the largest pay cut, although this is a reflection of the long term contract he signed when first joining the MLS. The largest pay rises have gone to American Internationals and career MLS players, with Matt Besler making $500,000 more this season and Kyle Beckerman making $300,000 more, and both now in the Designated Player range. The most surprising DP to me is Orlando's Aurelien Collin, who is making $500,000 a season, almost twice what he was making at Sporting KC the season before. The league’s most valuable player in terms of performance versus salary the past couple of seasons, Dom Dwyer, is no longer the case signing a new deal and now is making $520,000 a season when he was making less than $100,000 a year prior.
In terms of replacing Dwyer as the player who provides the most bang for a buck, there are a number of players on Homegrown and GA contracts who don't count against the cap. One prime example is Cyle Larin, while lower paid players on Real Salt Lake such as Jordan Allen and LA Galaxy's Bradford Jamieson are making an impact in the league this season. Despite their heavy spending and deserved past criticism the smartest move last offseason seems to be Toronto FC’s signing of Benoit Cheyrou, who is only making a listed $227,496, this for a player with a long history of success in Europe and has continued that so far in the MLS.
For a GM in MLS the job will always be difficult in terms of managing the cap, with the league itself having influence in terms of what players are being paid and when players get significant raises. Although it is no surprise LA Galaxy has been and still are the model club in MLS in terms of success, while clubs such as DC United, FC Dallas, Columbus Crew and New York Red Bulls are clubs with great potential at the moment. They have a combination of getting the most out of high priced players, having players under homegrown and GA contracts who can make an impact, recruiting well and not overpaying. Finally and most importantly, knowing when to let players go when the salary doesn't equal the value that the player can provide on the pitch.
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