MLS reaches labor deal

It came in the 11th hour, but it finally got done: Major League Soccer now has a new labor contract.

Just five hours before the opening of the $200 million, brand-new Red Bull Arena in New York on Saturday, league officials and players agreed to a collective bargaining agreement that eliminates the possibility of a strike or lockout.

The deal is important for players in countless ways:

• It awards guaranteed contracts to a majority of the league's players, a key issue both sides had hotly contested during their weeks of negotiations.
• While the players' union did not achieve its ultimate goal of complete free agency, players with expired contracts now have greater flexibility and freedom in signing with new clubs. Before the new agreement, teams could exercise near-complete control over players even after their contract had run out.
• In lieu of a free agent market, "free agents" will be eligible to enter a re-entry draft in which other teams can select them -- at a certain cost, to be sure.
• Teams will have more money to spend. According to The Washington Post's Steven Goff, MLS has increased the salary cap from $2.3 million to $2.5 million in 2010, a 10 percent increase. That cap will continue to expand by 5 percent every year for as long as the agreement remains in place.
• Teams will have to spend more money on players. The minimum salary for senior roster players will surge from a paltry $34,000 to a more respectable $40,000. Like the salary cap, the "minimum wage" for these players will increase 5 percent annually.
• The agreement will remain in place for 5 years. After that window has passed, the two sides may be back at the bargaining table doing the same thing once again.

No matter how you cut it, this is a good thing for all parties involved.

Players get a forum in which they can showcase their skills, and owners get another revenue stream.

But perhaps most importantly, the sport itself continues to survive and advance. Labor strife in the NHL nearly killed the league, and it's been on life support ever since. When, for instance, was the last time you saw a Capitals game live on ESPN?

A similar blow to MLS could've crippled it beyond repair. Now, it can take its next step forward into a bright future.