The NWSL and its Players Association have agreed to remove the restrictive eligibility requirements connected to the disputed High Impact Player (HIP) rule, making it possible for any player to receive one of the league’s largest salaries.
Introduced late last year, the rule gave clubs permission to spend an extra $1m beyond the salary cap when recruiting leading players. To qualify, players previously had to satisfy at least one of eight conditions, including appearances for the US national team, Ballon d’Or recognition, NWSL Best XI selection, or inclusion in prominent media rankings focused on performance and commercial appeal.
The NWSLPA challenged the system through a formal grievance, claiming that the method used to classify players conflicted with federal labor law and the current collective bargaining agreement. Roughly 100 players met the original requirements, including Trinity Rodman and Sophia Wilson, while accomplished names such as two-time NWSL MVP Sam Kerr and US international Catarina Macario would not have qualified.
The agreement announced on Friday removes those eligibility conditions. From 1 January 2027, clubs may classify any player as a High Impact Player provided that the player earns at least 12% of the base salary cap. The league will retain the authority to limit how many HIP players each club can designate.
The parties resolved six grievances altogether. These included a dispute concerning the rejection of a proposed contract between the Washington Spirit and Rodman, as well as a disagreement over rules limiting which footwear brands players could use during matches.
NWSLPA director Meghann Burke said the outcome demonstrated the union’s determination and ability to ensure that the collective bargaining agreement is properly enforced.
NWSL executive vice-president Bill Ordower said disagreements were inevitable in an established labor relationship, especially within a competition experiencing rapid growth and change. He added that the agreement would give players, clubs and league officials greater certainty while preserving competitive balance and the integrity of the competition.
The league first introduced the HIP rule last December. It permitted teams to exceed the salary cap by $1m, with the 2026 cap set at $3.7m, as part of an effort to retain leading players while increasing numbers moved to European clubs that do not operate under salary-cap restrictions.
After receiving approval from the league’s board of governors, the rule took effect on 1 July. It was widely nicknamed the “Rodman Rule” because its arrival came during the Washington Spirit star’s lengthy contract negotiations in the previous offseason.
Rodman received valuable proposals from European clubs that the Spirit could not match under the existing salary limits. Before the HIP rule was created, the Spirit tried in November to offer her a contract averaging more than $1m per year. Commissioner Jessica Berman rejected the proposal, arguing that its backloaded payment structure breached league regulations. The NWSLPA then submitted a grievance for Rodman, describing the decision as a serious infringement of her free-agency rights.
The HIP rule was unveiled several weeks later. In January, Rodman agreed to remain with the Spirit after signing a record contract valued at more than $2m per season.
The union’s complaint regarding the earlier contract rejection remained unresolved even after Rodman completed her new deal. Clubs are not obligated to identify players signed through the HIP system, but several athletes who met the former conditions have since joined or renewed contracts with league teams. They include Lindsey Heaps in Denver, Barbra Banda in Orlando and Rose Lavelle at Gotham.
The league may continue to reject contracts designed to bypass salary-cap regulations. However, it must inform the union of such a decision and provide its reasoning within 72 hours. Clubs must also receive regular updates concerning salary-cap figures and league revenue during the year.
The agreement additionally resolves concerns surrounding footwear regulations. Some players had been warned or fined this season for using cleats made by companies without official sponsorship arrangements. Under the revised policy, most existing personal endorsement agreements will be recognized and earlier fines will be withdrawn.
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