MLS Players Union Class Action Filed Over Youth Club Compensation

Three Major League Soccer organizations have filed a class action lawsuit against the Major League Soccer Players Union (MLSPU) and three professional soccer players who played for the youth teams in an attempt to fight a possible antitrust lawsuit by the MLSPU that would interfere with negotiations between MLS and U.S. Soccer to get compensation for American youth clubs.

The Dallas Texans Soccer Club, Crossfire Foundation Inc. and Sockers FC Chicago LLC, all U.S. Youth Clubs, filed the class action lawsuit Friday in Texas federal court.

They claim that they are owed compensation due to the international transfer of several former players.

“This action arises from the threat by the MLSPU on behalf of, and along with the individual Defendants, to bring an antitrust suit against the US Youth Clubs for attempting to obtain solidarity fees and training compensation from professional soccer clubs arising from international player transactions in accordance with the Regulations on the Status and Transfer of Players (‘RSTP’) of the Federation Internationale de Football Association (‘FIFA’),” the MLS class action lawsuit states.

The plaintiffs claim that they are subject to FIFA’s administrative rules “through a hierarchical chain of contracts.”

They state that each youth club signs on as a member of their state youth soccer association, which is part of the U.S. Soccer Federation Inc., which is a national association of FIFA. MLS is also a member of FIFA.

“The FIFA Rules and Regulations bind its members and must be adopted by national association members, except when compliance with a specific FIFA Rule is illegal under national law,” the youth soccer class action lawsuit states.

The three players named in the class action lawsuit include Clint Dempsey, who plays for the Seattle Sounders FC; DeAndre Yedlin, who is currently under contract with Tottenham Hotspur Football Club in London; and Michael Bradley, who currently plays for Toronto FC.

The youth clubs released a statement about their decision to name the players as defendants, clarifying that they only did so because it was necessary under the law in order to maintain the complaint.

They insist that they have no desire to “sue their own kids,” but that “the law is what it is.”

They state that they have asked the MLSPU to stipulate that the players are not needed to maintain the lawsuit and that if the MLSPU agrees, they will drop the players as defendants.

By filing the MLS class action lawsuit, the U.S. Youth Clubs seek a declaration that they can lawfully receive solidarity fees and training compensation from professional soccer clubs for international U.S. player transactions, which they say they are entitled to receive under the FIFA RSTP.

The plaintiffs also seek a declaration that the implementation of a system of solidarity fees and training compensation similar to the system adopted by FIFA RSTP for player transactions within the United States is not a violation of federal antitrust laws.

The plaintiffs are represented by David B. Koch and John Mongogna of Coats Rose PC and Lance D. Reich of Han Santos Reich PLLC.

The Major League Soccer Players Union Class Action Lawsuit is Dallas Texans Soccer Club, et al. v. Major League Soccer Players Union, et al., Case No. 4:16-cv-00464, in the U.S. District Court for the Eastern District of Texas, Sherman Division.