AFL players to get all the money Patrick Smith
From: The Australian
August 16, 2011 THE economics of AFL clubs will change forever and dramatically following the AFL's commitment to force clubs to pay 100 per cent of monies owed to footballers under the annual salary cap payments, this year set at $8.21m per club.
AFL chief executive Andrew Demetriou told The Australian yesterday that the league supported wholeheartedly a demand by the players' union, the AFLPA, that clubs be stopped from economising on payments to players so they could fund other football initiatives or pay off debt.
The initiative is expected to be enshrined in the new collective bargaining agreement between the AFL and the players' union beginning next year.
The settlement of this issue between both the game's administrators and players is seen as an encouraging but not definitive movement to resolution of the drawn-out and, at times, volatile CBA negotiation.
For the AFL it serves two purposes. It will end the disparity of salary payments between rich and poor, weak and successful clubs and their players. And while Demetriou stressed the decision was not part of the equalisation formula under review by the league, it would help restrict the spiralling funds being directed to club football departments.
The minimum clubs must now allocate for player wages is 92.5 per cent of the salary limit set for a particular year. A base payment requirement was introduced in the 1998 CBA after Fitzroy, which was forced to merge with Brisbane Bears in 1996, had been paying as little as 70 per cent of the cap as it struggled to survive in the precarious environment of proposed mergers, relocation and closures. It was set then at 95 per cent and reduced further to 92.5 per cent in 2003.
At the time it was considered a worthwhile compromise as a clutch of clubs struggled to survive financially and it was deemed unfair that clubs with inferior lists should pay as much as the most talented.
But the desire for a full release of the salary cap payments has been on the AFLPA wishlist from early this year in negotiations of the new CBA. The AFLPA considers it unfair that teenagers by the luck of the draft could be sent to clubs with enough resources to fully pay their footballers or to others that by circumstance were forced to direct some player monies to other priorities.
"We both encourage and support the player desire to have all the money allocated under the salary cap end up directly with the players. It does not rule out clubs still paying 92.5 per cent of salaries going to players in wages but the other 7.5 per cent must end up with the players as well. It could be taken up in part by injury payments but whatever is left needs to go in additional services agreements (promotion/marketing contracts) or, say, superannuation. It is the players' money after all," Demetriou said.
"We put it before the chief executives at our latest meeting and the consensus was that it was a fair result," he said.
However the ramifications of the decision for club football departments remain unclear. Clubs have already begun manoeuvring for the introduction of free agency which comes into effect at the end of 2012 when it will be possible for clubs to access a limited number of players who have served eight or more years with one club.
Several clubs have front-ended or prepaid current contracts to allow room to recruit elite players released under free agency. While others have restricted player payments to push money into recruiting assistant and development coaches and increasing the medical staff.
In August, 2009, The Australian revealed exclusively that the AFL had begun to explore the intricate strategies which would ensure all clubs would have sufficient funds to pay for the minimum requirements of football departments. Part of that consideration had been to fund the total player payments for each club.
However, club chief executives confirm there has been a change in thinking at AFL level and they have been told that the salary cap will not be part of the formula to close the gap between the small and big spenders. The push from clubs now will be to ensure the league compensates them for not being able to shave money off the player bill.
One club football manager said: "There is enough time to readjust any contracts that need attention but it is imperative the clubs get extra money to take up the shortfall."
Demetriou would not confirm last night that the AFL had factored that into any new equalisation policy.
http://www.theaustralian.com.au/news/sport/afl-players-to-get-all-the-money/story-e6frg7mf-1226115499583
