Sources: NWSL Star…

The NWSL’s board of governors has greenlit a new roster mechanism that enables select star players to receive salaries exceeding the current salary cap, as confirmed by multiple sources to ESPN.

This proposed mechanism will require consultation with the NWSL Players Association due to its implications for the salary cap and the stipulations of the league’s collective bargaining agreement.

ESPN reported on Wednesday that the board was close to resolving the salary cap dilemma, which has been exacerbated by uncertainties surrounding the future of Washington Spirit forward Trinity Rodman.

The mechanism, informally known as “High Impact Player,” would allow clubs to spend up to $1 million above the salary cap on elite players while incurring only part of that salary as a cap hit.

In the short term, this new rule could help the NWSL and the Spirit retain Rodman as a free agent. However, the implementation of this rule does not resolve Rodman’s future with the Spirit or the ongoing negotiations for a new agreement — which have yet to materialize.

The board’s adoption of this rule also holds long-term consequences regarding which players will be designated for the league’s top salaries.

Multiple sources informed ESPN that the specific criteria for player eligibility regarding these funds were refined recently ahead of the board’s vote, which concluded Thursday.

Guidelines will exist to determine who qualifies as a “High Impact Player,” with the intention of allocating funds to retain and attract top talent globally. These criteria differ from the league’s previous allocation money system, which was utilized broadly across various transactions.

To qualify as a High Impact Player (HIP), players must meet a set of both sporting and commercial benchmarks that were discussed during board meetings.

Sporting benchmarks considered included rankings such as the Ballon d’Or, selections for the NWSL Best XI, and minutes played for the USWNT in recent years.

The board also reviewed the commercial profiles of players, indicating the target demographic for these funds. Discussions included third-party rankings of top global players and marketable athletes, although it remains uncertain if those made it to the final criteria.

The cap charge for each High Impact Player was still being finalized as the board’s vote occurred. One source indicated that the salary cap charge for a player needs to represent 12% of a team’s total cap before the HIP funds come into play.

A minimum of 11 out of 16 board votes was needed for the new mechanism to pass, according to another source speaking to ESPN.

With Rodman being a significant and immediate example, she is likely to meet several proposed requirements for designation as a High Impact Player.

If a player meets both the salary cap charge and a combination of the sporting or commercial criteria, a team can distribute the additional funds across multiple players.

However, board approval is not the final step for this rule. According to Section 8.16 of the league’s collective bargaining agreement with the NWSL Players Association, “NWSL may, at its discretion, after consultation with the NWSLPA, reduce or eliminate the Salary Cap charge against the Team Salary Cap for certain roster classifications.”

The guidelines for High Impact Players suggest that the league is creating a diminished salary cap burden for a specific type of roster classification.

The NWSL board is set to convene next week for a year-end meeting previously scheduled months ago.

The proposed High Impact Player initiative aims to enable NWSL teams to stay financially competitive for elite players globally while maintaining a salary cap. The departures of USWNT players Alyssa Thompson and Naomi Girma earlier this year raised alarms about the league’s ability to compete in the fast-changing global market for players.

Both players transferred for over $1 million to join Chelsea, one of the few European clubs ready to offer salaries that meet or exceed seven figures.

Under the NWSL’s existing salary cap, a team cannot afford to pay any player seven figures without compromising the construction of the rest of the roster. The adjusted salary cap in 2025, after revenue sharing, amounted to $3.5 million for a minimum of 22 players.

The new concept introduced by the NWSL merges and evolves several roster strategies from MLS alongside a past NWSL mechanism.

The terminology “High Impact Player” closely resembles the Designated Player label in MLS, emphasizing the goal of attracting premier talent. However, whereas MLS teams can pay Designated Players whatever they wish against a set maximum salary cap charge, the proposed NWSL rule will still impose limits on how these funds can be utilized.

This adjustment makes the NWSL’s new approach more similar to allocation money. MLS has various forms of allocation money, including Targeted Allocation Money, created to enhance compensation for starting-level players and bolster rosters. TAM also has caps, but the NWSL’s new classification explicitly targets the world’s elite players in a more specific manner than TAM.

Paradoxically, the NWSL is nearing the end of phasing out its former allocation money system, which was initially implemented in 2019 to raise the salaries of leading players outside of the salary cap. The NWSL announced in January 2024 that by the end of 2026, all allocation money would be abolished, a decision that many sources applauded as a move toward simplifying financial management for teams.

However, following the elimination of the draft in the new CBA, expansion teams have been granted special allocation money, and the introduction of the High Impact Player concept reintroduces a mechanism that exists outside the standard salary cap.

Regarding Rodman specifically, a grievance has been filed by the NWSLPA on her behalf against the league, citing a “flagrant violation” of her free agency rights and multiple aspects of the CBA. This grievance was submitted on December 3, just days after NWSL commissioner Jessica Berman vetoed a deal between Rodman and the Spirit. The league has 14 days to either uphold or deny the grievance in writing.

If a resolution is not reached within 14 days, a grievance committee made up of one representative appointed by the league and one by the players’ association will oversee the process.

Should that committee fail to find a resolution, the matter will proceed to arbitration (though both sides could mutually agree to expedite this process).

In related developments on Thursday, 39 members of the Democratic Women’s Caucus and House Democratic Caucus penned a letter to Berman, urging the NWSL to engage in good faith discussions with the NWSLPA and Ms. Rodman to resolve this situation promptly and transparently, in accordance with federal labor laws mandating the honoring of collectively bargained agreements.