• Any player will be eligible for High Impact Player status

• Requirements had included top 100, marketability lists

• Sides also resolve grievance on Rodman contract refusal

The NWSL and the NWSL Players Association have reached a settlement to drop the restrictive criteria around the controversial High Impact Player (HIP) rule, allowing any player to earn the league’s highest salaries.

The NWSL introduced the rule late last year, allowing teams to spend an additional $1m above the salary cap to sign star players. Players with the designation had to meet one of eight criteria, ranging from US national team minutes and Ballon d’Or recognition to NWSL Best XI honors to media lists, including the Guardian’s Top 100 and a ranking that ordered athletes by marketability.

The NWSLPA opposed the mechanism and filed a grievance, arguing that the classification of players was a violation of federal labor law and the existing collective bargaining agreement. About 100 players had qualified for the designation based on the criteria – a total that included the likes of Trinity Rodman and Sophia Wilson but would have excluded such players as two-time NWSL MVP Sam Kerr and US star Catarina Macario.

Under the settlement, which was announced Friday, the eligibility criteria were eliminated. Beginning 1 January 2027, clubs will be able to designate any player as a High Impact Player, so long as their salary equals at least 12% of the base salary cap. The league can also set a limit on the number of HIP players per club.

The two sides settled six grievances in total, including one over the rejection of a contract proposal between the Washington Spirit and Rodman. Another involved the league’s footwear policy, which had dictated what brands players could wear during games.

“This settlement is certainly evidence of the NWSLPA’s strength and commitment to enforcing the terms of the Collective Bargaining Agreement,” NWSLPA director Meghann Burke told ESPN.

“Disagreements are a natural part of any mature labor relationship, particularly in a league that is growing and evolving as quickly as ours,” NWSL executive vice-president Bill Ordower said in a statement. “What matters is how you work through them. This agreement gives the players, clubs and league greater clarity and certainty moving forward, while protecting the integrity and competitive balance that is fundamental to the NWSL.”

The initial version of the HIP Rule was introduced by the league last December. It allowed teams to spend $1m above the salary cap – for the 2026 season, set at $3.7m – to keep star players amid a wave of talent departing for Europe, where teams are not bound by salary caps.

The rule was ratified by the league’s board of governors in December and went into effect on 1 July. It became known informally as the “Rodman Rule” because its introduction coincided with the Washington Spirit star’s prolonged contract saga this past offseason.

Rodman had received lucrative offers from teams in Europe that the Spirit could not have matched under the NWSL’s salary cap rules. In November, before the HIP rule was introduced, the Spirit attempted to re-sign Rodman to a deal that would have averaged more than $1m annually, but NWSL commissioner Jessica Berman blocked the offer and said it violated the league’s rules because of its backloaded structure. The NWSLPA filed a grievance on Rodman’s behalf, calling the refusal a “flagrant violation” of player free agency rights.

Weeks later, the league introduced the HIP rule. Rodman re-signed with the Spirit in January on a record deal worth more than $2m annually, including bonuses, under the HIP terms. The union grievance over the initial refusal of Rodman’s contract remained open after she signed the new contract.

The league will still have the ability to reject contracts for salary cap circumvention, but it must notify the union of the decision and provide an explanation within 72 hours.

The settlement also addressed the league’s footwear policy. Throughout this season, some players have received warnings and fines for wearing cleats from brands that were not official sponsors. The league will now honor pre-existing endorsement deals for most players and withdraw previous fines.