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NWSL and Players Union Reach Settlement to Remove HIP Eligibility Restrictions
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Settlement Eliminates HIP Rule Criteria
The National Women’s Soccer League (NWSL) and the NWSL Players Association (NWSLPA) have agreed to a multi-grievance settlement that eliminates the performance- and marketability-based eligibility criteria for the High Impact Player (HIP) designation. Effective January 1, 2027, any player whose salary equals at least 12 percent of the league’s base salary cap may be designated as a HIP, and the league may later set a limit on the number of HIP players per club, to be communicated by the opening of the free-agency window.
The settlement also resolves disputes over the league’s footwear sponsorship policy, requiring the league to honor pre-existing endorsement deals and to withdraw previously issued fines.
Background & Context
The HIP rule, introduced in December 2025, allowed teams to spend an additional $1 million above the salary cap for the 2026 season. It listed eight criteria—including U.S. national-team minutes, Ballon d’Or nominations and media-generated “marketability” rankings—to determine eligibility. About 100 players met those standards, among them Trinity Rodman and Sophia Wilson, while stars such as Sam Kerr and Catarina Macario were excluded.
The NWSLPA filed grievances arguing that the classification violated federal labor law and the collective bargaining agreement (CBA). A separate grievance concerned the league’s rejection of a proposed multi-million-dollar contract for Rodman with the Washington Spirit, known as the “Rodman Rule.”
Data & Statistics
- Base salary cap (2027): $4.4 million.
- HIP eligibility threshold: 12 percent of the cap ($528,000).
- HIP fund (2027): $1.257 million, projected $1.342 million in 2028.
- Original HIP allowance (2026): $1 million above the cap; the 2026 cap was reported as $3 million in one source and $4 million in another.
Official Statements & Responses
Jessica Berman, the league’s commissioner, said the settlement reflects a “collectively bargained process” and reaffirms collective bargaining’s role in achieving fair outcomes.
The league must provide the union with financial records verifying revenue calculations by June 15 each year and determine projected revenue share by October. It retains the right to reject contracts it deems to circumvent the salary cap, but must notify the union and explain the decision within 72 hours.
Why It Matters
Removing restrictive eligibility criteria allows any player meeting the salary threshold to earn seven-figure contracts, helping the league retain talent amid competition from European clubs. Enhanced financial transparency and revenue-sharing oversight aim to align player compensation with league economics while preserving competitive balance.
Conflicting Reports & Gaps
- Salary-cap figure for 2026: One source lists $3 million; another cites $4 million.
- HIP fund amount for 2026: Reported as $1 million in some accounts, with the 2027 fund projected at $1.257 million.
No further public details have been released regarding how many clubs will set limits on HIP designations.
What’s Next
- January 1, 2027: All players become eligible for HIP designation if they meet the 12 percent salary threshold.
- June 15 (annually): The league must deliver verified revenue-calculation records to the NWSLPA.
- October (annually): The league must determine and disclose projected revenue-share figures.