Angel City FC published a statement Monday regarding its league-imposed sanctions for salary cap violations, which NWSL announced on Oct. 3. While the team acknowledged its “mistakes,” it also said it disagreed with part of the league’s conclusions.
The league stated that in 2023 Angel City had entered into five “side letters” with players that were not disclosed to the league that improperly included excess benefits that should have hit ACFC’s salary cap, but did not. Subsequently, the league determined that Angel City had exceeded the cap by approximately $50,000 for four weeks during the 2024 season as a result of their 2023 agreements.
The league discovered the salary cap violation when a former Angel City player signed with another team and asked about their side letter compensation.
“We acknowledge our mistakes and take full accountability,” the club’s statement said. “We are implementing new policies to ensure compliance going forward.”
Statement from #AngelCityFC pic.twitter.com/mCUqO7tvWK
— Angel City FC (@weareangelcity) October 14, 2024
The statement also said the club disagreed with part of the league’s findings.
“Our understanding, based on the League’s Salary Cap Rules, was that childcare payments do not count against the salary cap,” it said. “We believe that ACFC did not exceed the salary cap and formally requested a reconsideration of the three-point deduction.”
The Athletic was provided with the league’s 2024 competition manual regarding salary cap regulations. Per the manual, both parental and dependent care expenses up to the IRS maximum ($5,000 in 2024, the same as 2023) and parental and dependent care benefits provided by the team do not count against the salary cap. These standards are the same as those set out in the 2023 competition manual.
Per the 2023 manual, “dependent care benefits” are categorized as flights for children to attend their parent’s away matches, flights for any childcare provider on away matches, and hotel rooms for the children, their parent and the childcare provider. While these benefits do not hit the cap, they must still be reported to the league for tax purposes.
The 2023 manual also says in section 3.1.6.3: “Any amount in excess of the IRS annual maximum will count against the Team’s Salary Cap.”
This will be updated.
(Photo: Katelyn Mulcahy / Getty Images)
