The National Women’s Soccer League (NWSL) and the NWSL Players Association (NWSLPA) have reached a settlement to remove the restrictive criteria surrounding the controversial High Impact Player (HIP) rule, permitting any player to earn the league’s top salaries.
Settlement Terms and Rule Changes
The NWSL introduced the rule late last year to let teams spend an additional $1m above the salary cap for star players. Initially, players needed to meet one of eight criteria, such as US national team minutes, Ballon d’Or recognition, NWSL Best XI honors, or media lists including the Guardian’s Top 100 and a marketability ranking. The union opposed the mechanism and filed a grievance, arguing the classification violated federal labor law and the collective bargaining agreement.
Under the settlement announced Friday, the eligibility criteria were entirely eliminated. Starting January 1, 2027, clubs can designate any player as a High Impact Player as long as their salary equals at least 12% of the base salary cap, while the league retains the power to limit the number of HIP players per club.
The two sides resolved six grievances in total, which included a dispute over the rejection of a contract proposal between the Washington Spirit and Trinity Rodman, as well as an issue regarding the league’s footwear policy.
NWSLPA director Meghann Burke told ESPN that the settlement proves the union’s strength and dedication to enforcing the collective bargaining agreement. NWSL executive vice-president Bill Ordower stated in a release that disagreements are natural in a growing labor relationship and that the agreement provides clarity, certainty, protection of integrity, and competitive balance.
Background on the Rodman Rule
The initial version of the HIP rule debuted last December to help teams spend $1m above the $3.7m salary cap for the 2026 season, preventing talent from leaving for uncapped European leagues. Ratified by the board of governors and enacted on July 1, it became known as the “Rodman Rule” because its launch coincided with the Washington Spirit star’s offseason contract saga.
Rodman received large offers from European clubs that the Spirit could not match under standard salary cap rules. In November, before the HIP rule existed, the Spirit tried re-signing Rodman to an average of over $1m annually, but NWSL commissioner Jessica Berman blocked it for having a backloaded structure. The NWSLPA filed a grievance calling the rejection a flagrant violation of free agency rights, and the league introduced the HIP rule weeks later. Rodman subsequently re-signed with the Spirit in January on a record deal exceeding $2m annually.
Although the union grievance remained active after Rodman signed her new contract, several players eligible under the old criteria have since signed or re-signed with league teams, including Lindsey Heaps in Denver, Barbra Banda in Orlando, and Rose Lavelle in Gotham.
Moving forward, the league can still reject contracts for salary cap circumvention, but it must notify the union and explain the decision within 72 hours. The league must also supply salary cap and revenue updates to clubs throughout the year. The settlement additionally resolved the footwear policy, meaning the league will honor pre-existing endorsement deals for most players and withdraw earlier fines issued for wearing non-sponsor cleats.
Source: Football | The Guardian
