NWSL and Players Association Overhaul HIP Rule, Settle Six Grievances in Landmark Agreement

FolioPitch.com – 24 October 2026 | The National Women’s Soccer League and the NWSL Players Association have reached a sweeping Multi-Grievance Settlement Agreement that resolves six outstanding grievances, including a challenge to the controversial High Impact Player Rule. In a significant development for the league’s labor relations, the NWSL PA amend HIP Rule resolve five other grievances, marking a pivotal moment for player rights and league governance.

The agreement, announced jointly by both parties, eliminates the HIP Rule’s eligibility restrictions beginning in 2027. Under the current system, players must satisfy performance and marketing criteria to negotiate contracts using HIP money. The new terms remove those barriers, allowing players to negotiate freely. However, the league retains the option to limit how many players per club may receive HIP compensation, provided the PA is notified before the applicable Free Agency Window opens. Additionally, only players who take up at least 12% of the base salary cap qualify for HIP status—a threshold that has been in place throughout the rule’s existence—though the league may lower it at its discretion.

The settlement also establishes a framework for regular financial disclosures, enabling the PA to review the league’s revenue-sharing numbers. These calculations directly affect the annual salary cap under the Collective Bargaining Agreement, giving the union greater transparency and oversight.

In response to the grievance filed over the league’s rejection of a Trinity Rodman contract with the Washington Spirit, the league maintains its authority to reject contracts that circumvent the salary cap. However, any rejection must now be communicated to the PA with a written explanation within 72 hours. Furthermore, clubs and players may agree to annual salary increases or decreases in post-CBA contract years beginning in 2031, limited to 15% of the preceding year’s salary, according to the PA’s statement.

The agreement preserves the league’s footwear sponsorship policy but now honors pre-existing endorsement deals for most players and removes previously issued fines. This compromise addresses player concerns while maintaining the league’s commercial partnerships.

Players and clubs can now negotiate new categories of performance-related bonuses and salary increases into Standard Player Agreements. These include club appearance and minute milestones, consecutive starts, goalkeeper goals-against-average, individual honors and end-of-year awards, senior U.S. women’s national team matches, and FIFA and Concacaf tournament matches. Existing housing and automobile benefits are also preserved.

“Behind each of these grievances are rights that matter to Players’ careers and livelihoods, from the compensation they can negotiate to the benefits they depend on,” said Tori Huster, Deputy Executive Director of the NWSLPA. “Our Union is committed to ensuring that the lived experience of Players lives up to the terms we collectively bargained for.”

NWSL Executive Vice President Bill Ordower echoed the sentiment: “Throughout this process, we were focused on finding solutions that work for the league and our players and ultimately benefit our fans. We’re pleased to have reached a resolution that does exactly that and allows everyone to stay focused on the tremendous opportunity ahead. We appreciate the NWSLPA for their partnership and work in resolving these important issues.”

The resolution comes after months of negotiations and represents a major step forward in the league’s labor relations. By addressing the HIP Rule and other grievances, the NWSL PA amend HIP Rule resolve five other grievances, setting a new precedent for player empowerment and league transparency. The agreement not only resolves immediate disputes but also lays the groundwork for a more collaborative future between the league and its players.

As the NWSL continues to grow in popularity and competitiveness, this settlement ensures that players have a stronger voice in shaping their careers and the league’s future. The NWSL PA amend HIP Rule resolve five other grievances, demonstrating that constructive dialogue can lead to meaningful change. With these issues behind them, both the league and the union can now focus on the continued development of women’s soccer in the United States.