Landon Donovan’s Future and the Heart of Labor’s Discontent

by Richard Farley on March 1, 2010 · 20 comments

Screen shot 2010 03 01 at 3.03.37 PM Landon Donovans Future and the Heart of Labors Discontent

Eyes are about to be cast on Donovan’s future, with his MLS return to put his Ever­ton future at the mercy of labor nego­ti­a­tions. (Photo: ZumaPress)

Lan­don Dono­van has impressed David Moyes and the Ever­ton FC brass enough to jus­tify a pur­chase, though the Tof­fees’ gaffer is resigned to los­ing the Amer­i­can star when the player’s loan expires this month.

Once the Galaxy star returns state­side, the pre­car­i­ous labor sit­u­a­tion could put Donovan’s Liv­er­pool future on hold indef­i­nitely, regard­less of whether Ever­ton is will­ing to meet Major League Soccer’s demands.

When Dono­van comes back, he is unlikely to be sold back to Ever­ton before the begin­ning of the next Pre­mier League sea­son. There is, after all, a rea­son MLS wanted their sec­ond most mar­ketable player back to train before the start of the sea­son. How­ever, with their appar­ent intent to con­tinue using Dono­van as a mar­ket­ing tool — at least for the start of the 2010 sea­son — the tim­ing of a future move becomes pre­car­i­ous in light of labor uncertainties.

In my opin­ion, the odds of MLS and the MLSPU mak­ing it until August or Sep­tem­ber with­out a col­lec­tive bar­gain­ing agree­ment or work stop­page is pretty low. If the play­ers were will­ing to let the terms of the old bar­gain­ing agree­ment dic­tate their employ­ment for an entire sea­son, we would prob­a­bly have some sort of a deal in place. Also, player lever­age because incred­i­bly high if they can use the poten­tial World Cup-boon as well as the months before the start of foot­ball to their advantage.

If a work stop­page were to hap­pen over the sum­mer, would Dono­van be able to com­plete a move to Ever­ton (a move that is start­ing to look move inevitable)? Bet­ter still, how would the mechan­ics of such a sale work?

While a sec­ond loan deal seems like some­thing the two sides could come together to allow, the options sur­round­ing a per­ma­nent sale are mud­died by labor uncertainty.

Screen shot 2010 03 01 at 3.06.07 PM Landon Donovans Future and the Heart of Labors Discontent

Donovan’s con­tract exten­sion with MLS was ques­tioned in light of his pro­fessed desire to explore Europe again, but MLS’s options for upcom­ing sea­sons made sign­ing an exten­sion a log­i­cal deci­sion. (Photo: ZumaPress)

Lan­don Dono­van is not only under con­tract to Major League Soc­cer, but the league holds his reg­is­tra­tion — a very impor­tant detail when it comes to soc­cer play­ers. While a strike would typ­i­cally mean a worker could be employed else­where while no agree­ment was in place, that does not mean Donovan’s reg­is­tra­tion would be released by Major League Soccer.

With­out this release from MLS, Ever­ton would not be able to com­plete a Dono­van acqui­si­tion, even if the attacker and club wanted to com­plete a deal. Just because the CBA gov­ern­ing Donovan’s con­tract loses rel­e­vance when a work stop­page is enacted, MLS is not oblig­ated to release the player’s registration.

Whether FIFA would step-in and allow the move: that’s an open ques­tion. This idea of “strike” or “lock-out” is pretty new to inter­na­tional soc­cer. There is not a lot of prece­dent for such transactions.

And this reg­is­tra­tion issue is not unique to Lan­don Dono­van. We have no idea whether the gov­ern­ing bod­ies will respect MLS’s reg­is­tra­tions in the face of a player’s attempt to move to another league.

Even if Major League Soc­cer wanted to com­plete a deal — per­haps use some of the rumored-to-be £7 mil­lion offer (about $10.5 mil­lion U.S.) to aug­ment loses from a strike — would the Union acqui­esce and allow a sale? Even if it is in the best inter­est of Dono­van, it would not be in the best inter­est of the remain­ing play­ers to line the own­ers’ pock­ets at a time when the play­ers are walk­ing a picket line.

The easy solu­tion, should there be a work stop­page, would have Dono­van go to Ever­ton for a sec­ond loan stint. Whether that would be amenable to the Tof­fees is uncer­tain. They may have other buy­ing oppor­tu­ni­ties in the sum­mer, and with­out the option to buy their pre­ferred player, they may opt for the secu­rity of acquir­ing a sec­ond choice per­ma­nently rather than wait-out the tur­moil in MLS.

And all this assumes Major League Soc­cer would even con­sider let­ting Dono­van go. If a work stop­page hap­pens and MLS needs to engage in a new mar­ket­ing blitz to regain some of the league’s lost mar­ket share, it’s dif­fi­cult to image a bet­ter ful­crum to that cam­paign than Lan­don Donovan.

It is rea­son­able to think that Dono­van and Ever­ton want to make the deal hap­pen. In quotes, each have been respect­ful of MLS’s rights, but nei­ther have refrained from exult­ing their mutual admi­ra­tion. And Dono­van, of course, spent much of last season’s second-half openly dis­cussing a poten­tial move back to Europe, allud­ing to a con­flu­ence of fac­tors (per­for­mance, con­tract, per­sonal life, point in career) that made this the right time.

How­ever, Major League Soc­cer has its own set of motivations.

Dono­van signed a new con­tract with the league this off­sea­son, but few fail to remem­ber that the league held the option on him for 2010 (and 2011). Given the option of fight­ing (the per­ceived) good fight or tak­ing a pay raise and some secu­rity, Dono­van made the log­i­cal choice, signed the deal, but again handed his future over to MLS, who had all the lever­age in the nego­ti­a­tions: “You can sign this new offer, or we can keep you here until you’re almost 30 but just not pay you as much.”

But now Dono­van is about to come face-to-face with the down­side to that money. Whether he wants the deal to hap­pen has become irrel­e­vant. Major League Soc­cer now needs induce­ment to let him go, and while $10.5 mil­lion is more than a fair price objec­tively, objec­tiv­ity is point­less here. Major League Soc­cer has to look out for itself. As such, they will exert their con­trol over Dono­van how­ever suits them best — which is their right.

Though there are few other play­ers who are in Donovan’s sit­u­a­tion, the core issues that could inhibit a move to Ever­ton — a move that could cement his career’s legacy — are the same. Major League Soc­cer has set-up an entity that seeks to keep sta­bil­ity through con­trol­ling labor. The play­ers union sees rights granted to domes­tic ath­letes and for­eign soc­cer play­ers and wants a step toward equality.

Even when the acclaimed best player of a gen­er­a­tion has a chance to embark on a small piece of U.S. soc­cer his­tory, Major League Soc­cer will be able to exer­cise that control.

The need for con­trol (or, con­versely, the need for more free­dom) is the heart of this strug­gle, and caught up in it is the future of the generation’s iconic player.

It’s March 1st.  There’s no col­lec­tive bar­gain­ing agree­ment, and Lan­don Dono­van is about to return to Los Ange­les with ques­tions sur­round­ing his sea­son and career.

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{ 20 comments… read them below or add one }

1 Tom March 1, 2010 at 6:38 pm

The labor situation is worrying, I hope they work it out. Could the leage sign Donovan, and then use the money to buy back 2 or 3 players of interest from other clubs? Such as Adu, or other Americans or CONCACAF players that are getting playing time in Europe? It is a real problem that Donovan is ready to go, but he means so much to the league.

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2 Jammer March 1, 2010 at 7:47 pm

“would the Union acquiesce and allow a sale?”
Explain why the union has a veto?

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3 Richard Farley March 1, 2010 at 8:26 pm

My understanding: Without a collective bargaining agreement in place, MLS would have no sanction to unilaterally sell anybody. There is no agreement in place by which they can do that. They can no more sell Donovan than they can order him to show up for a match – there is no labor agreement in place by which to do so.

Currently, the sides are abiding by the previous agreement. If there’s a work stoppage, that ends.

Veto wouldn’t be the right word. MLS would just need an agreement with the player/union before they could sell.

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4 Charles March 2, 2010 at 9:31 am

You sure about that ? He IS under contract, right ?

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5 Richard Farley March 2, 2010 at 12:15 pm

So first, a player can’t be solved without his acquiesce. It is not like a trade in MLS, NFL, NHL, NBA, etc. So yes, I’m reasonably sure.

Second, Donovan’s contract is subject to the terms of the collective bargaining agreement. Just as we saw an NHL CBA effect an across-the-board rate cut to the pre-existing contracts, the MLS CBA could bring new deals under the subject of new terms. Regardless, without a CBA to govern the terms of whether a player can be transferred, then the “IS” of him being under contract …

Well, it doesn’t make him property.

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6 Elliott March 1, 2010 at 8:19 pm

If the players are cunning and malevolent, then they will wait until the season starts, Ownership sells season tickets, and strike post-World Cup. I hope not, but it’s the only option aside from operating under the old CBA for a season

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7 Gazza March 1, 2010 at 10:00 pm

If the players strike post World Cup plan on not having soccer until mid 2011. The owners are just going to wait them out. They are not caving on Free Agency ….. to them it would be worse that folding the league. They will raise the cap to $5m per team before giving up their Single Entity.

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8 David March 1, 2010 at 10:48 pm

And fans wonder why young Americans are skipping MLS and heading to the entry level Scandinavian leagues and whatnot. I would advise any young American with talent and aspirations to avoid the MLS plantation and pursue a career within the established, international system of player contracts and transfers.

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9 usa2010 March 2, 2010 at 7:59 am

What is wrong with players skipping MLS? If they are any good, they are going to wind up in Europe eventually, anyway.

Which begs the question: how can you strike over the fact that you are being held to the contract that you willingly signed, knowing what it meant, and when you had options to go elsewhere?

It’s like buying a house near an airport and then campaigning to shut down the airport because it is too noisy:

http://www.bigsoccer.com/forum/blog.php?b=7653

Single entity isn’t going away and true free agency isn’t coming in any form that might threaten single entity. The salary cap will rise, some of the current rules about transfers and contracts will be changed in the player’s favor, but the kinds of radical changes that the Union wants will not happen. If the Union destroys MLS insisting on these changes, they deserve a swift kick in the @ss and no true fan should support such lunacy.

MLS players should take the extra money and run. They will be getting much higher, and regular wage increases at a time when most of the rest of us haven’t seen a wage rise in years.

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10 Richard Farley March 2, 2010 at 9:43 am

how can you strike over the fact that you are being held to the contract that you willingly signed

This is a bit of a oversimplification and misleading, isn’t it? Not to pick on this one statement, but part of the reason that dialog amongst the fans is poor-to-nonexistent – they you either are very pro-owner or very pro-player – is because of statements like this. Again, I don’t want to pick on this statement (I doubt usa2010 meant for it to be subject to this scrutiny), but

a.) that’s not what the players are striking over, and
b.) as the Donovan situation illustrates, there’s more that goes into signing a contract that “did you sign it? Live with it.”

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11 Charles March 2, 2010 at 9:53 am

Maybe because I slightly side with the owners, but I don’t think the pro-owners side is VERY pro-owner….but the pro-player side IS VERY pro-player.

It is more of a realistic viewpoint from the pro-owners:

One, the league is here because a handful of rich guys.
Two, they have invested a lot of money in a very risky investment.
This investment has failed before and read the comments on any soccer site, most prefer the competition ( European soccer )
Three, for the amount of support they have recieved…very pathetic really…they are doing pretty well.

I am sure there ARE some pro-union and anti-union types in there skewing things to seem extreme.

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12 Richard Farley March 2, 2010 at 10:55 am

It’s a good viewpoint, Charles, and bet other questions:

* What does an extreme pro-owner position look like?

* What does an extreme pro-player position look like?

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13 David March 2, 2010 at 2:33 pm

The answer is, you can’t. However, the CBA is expiring. Under U.S. labor law, a strike or lockout would be legal as a consequence of failing to agree to terms on a new CBA.

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14 David March 2, 2010 at 2:13 pm

“if they are any good, they will end up Europe anyways”? Maybe you should ask Taylor Tweillman. Or Sacha Kljeistan. Had European offers, with big guaranteed contracts, wanted to go, but were kept on the MLS plantation.

Yes, that’s what the contracts say. Yes, it’s legal for MLS to do it. We get that. You guys are arguing with yourselves on those points.

The point is that young talented American players will continue to forgo MLS if they can due to MLS’s BS structure. This results in lower level of play in MLS and lack of development for American players who do not exhibit enough talent at at young enough age to start their careers overseas.

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15 Charles March 2, 2010 at 9:47 am

I like how all the pro-player arguements seem to center if players had more rights the league would be so much better.

You still have one problem. Money…it isn’t there. People don’t go to games. People still would rather watch Landon play in England, than go to a MLS game.

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16 Richard Farley March 2, 2010 at 10:56 am

Good points, Charles, but I will say that trying to figure out how much money is and is not there is always difficult, the way professional sports are set-up.

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17 Charles March 2, 2010 at 11:12 am

Yeah, like my Mariners. “Losing” $1 million a year for 10 years in the 1980s, then selling for 10 times the value after the 10 years.

Come to think of it, I should be pro-player after watching all that bad baseball. ;-)

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18 Richard Farley March 2, 2010 at 11:38 am

It’s hard not to be pro-player watching Phil Bradley and Alvin Davis. But them again, I’ve always liked those two in particular.

But this bring up another point that should be expanded upon: Lots of sports teams lose money. This is true. But you can not take the annual operating loses into consideration without looking at the increase in franchise values, as many of the short-term costs that are reflected in the balance sheets are incurred with the hopes that the expenditures will be recouped when/if a franchise is sold.

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19 David March 2, 2010 at 2:40 pm

Richard: Lots of sports teams lose money ON PAPER, just like all those Hollywood mega hits which don’t seem to turn a profit ever. The reality is that these guys are making money, which is why the franchise fees and valuations keep increasing.

Contrary to popular belief, Rich Guy is not plunking down $30 million (or whatever the figure is now) in cash for an MLS franchise; they are providing some equity out of pocket and financing the rest of the purchase through debt. The lenders will require ample evidence of the other franchises’ historical cash flow, etc. to ensure that the team will make enough to service the debt.

Besides, we know that the Owners are make tons of money through SUM, right? They just keep it outside the MLS entity so they can pretend they’re not making money and thus can’t pay the players etc.

20 Dominic Barlow March 7, 2010 at 5:10 pm

An Everton fan here, first of all I have to thank the MLS and The Galaxy for letting Landon come to Everton, his quality and class is something Everton needed and if no deal is done he will be missed by everyone at the club.

As for the contract issue in the MLS at the moment, if no deal can be reached, what obligations does Donovan have to keep to the MLS if he wanted to move to Everton perminantly? Would they take his wishes into account? Or would they force him to his obligations? Both parties are interested in a move to keep him at Goodison, but would the MLS allow this is Donovan wanted it?

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