Club World Cup Deal Collapses as MLS and Players Fail to Reach Compensation Agreement

The tentative deal between Major League Soccer (MLS) and the MLS Players Association (MLSPA) over FIFA Club World Cup compensation has fallen through, according to ESPN. The two sides failed to revise a section of the collective bargaining agreement (CBA) governing earnings from external tournaments, reigniting tensions just days before the tournament begins.

Frustration escalated when Seattle Sounders players took the field in protest shirts reading “Club World Cash Grab” and “Fair Share Now,” a move that received public support from the MLSPA. The union later accused MLS of retaliation and called the league’s actions disrespectful.

Under the current CBA, players are entitled to 50% of revenue from outside tournaments, capped at $1 million. MLS proposed a new structure giving only the participating teams 20% of performance-based bonuses, with a guaranteed $1 million plus potential additional earnings.

The MLSPA rejected the offer, citing that it falls well below international standards. The union argued that MLS failed to allocate any of the $28.65 million it is set to receive from FIFA for the tournament to the broader player pool. According to the MLSPA, players would receive barely 10% of that sum.

With the Club World Cup kicking off Saturday, this unresolved dispute adds another layer of controversy to a tournament already facing logistical and political challenges.