Players to win as cap breaks through $10m markPeter Ryan
afl.com.au
May 7, 2014 9:00 PMTOTAL player payments will exceed $10 million for the first time next year as the collective bargaining agreement review nears completion.
The expected increase is above the mandated 3 per cent rise that was factored into the original collective bargaining agreement, which would have taken TPP to $9.92 million per club in 2015.
AFL.com.au understands the rise will be closer to 4 per cent, which would see total player payments marginally exceed the $10 million mark.
The increase is in keeping with one of the competitive balance principles club bosses agreed to at Mt Lofty, Adelaide in March that pushed for "an aspiration to pay the players more, if affordable for the industry".
It effectively means clubs paying 100 per cent of the total player payments in 2015 will allocate at least $370,000 extra to player spend than they did in 2014.
The negotiations have led to players receiving more than the 3 per cent ($290,000 per club) increase mandated in the collective bargaining agreement that started in 2012.
There has been enormous growth in non-player spend within football departments in recent seasons, with players the only industry employees whose payments were capped.
Players have been adamant that future support of traditional equalisation measures - such as the draft and the salary cap - were dependent on competitive balance measures being introduced so players had an equal chance of winning a premiership through their career.
There is also an expectation that the veterans allowance, which enables clubs to pay eligible veterans $118,380 outside the salary cap in 2014, will be phased out over the next two years and extra funds allocated to total player payments in the next collective bargaining agreement.
Clubs are sweating on the outcome of the mid-term review because it will affect their immediate player payments strategy. Many now spend between 40 to 50 per cent of their total player payments on the top 10 paid players of the club.
Players and clubs will be briefed on the detail over the coming weeks in preparation for the meeting of club chiefs scheduled for June 4, when the new competitive balance strategy will also be outlined and debated.
One issue AFL clubs are expected to debate at that meeting is the role of the League in keeping clubs that receive redistributed revenues accountable.
It may lead to further expansion of the existing shared services department within the AFL.
Wealthy clubs have agreed to share revenue but there is an increased sense that recipient clubs need to be accountable. The question remains, however, as to how interventionist the AFL needs to be with such clubs.
Incoming AFL CEO Gillon McLachlan told AFL.com.au last Wednesday the League did not want to be managing those clubs that needed assistance to narrow the gap between wealthy and less wealthy clubs.
"What we will do is help them through that process and straighten them up if we think there are some challenging things going on and help them with resourcing and the IP (intellectual property) they need to be great clubs," McLachlan said.
McLachlan told K-Rock on Saturday the equalisation measures would not be rolled out until 2015 but the AFL was close to finalising proposals.
"[We've] gone to the AFL Commission, met with the sub-committee … and we're pretty much there," McLachlan said. "We're going to the clubs in the next few weeks and that will be rolled out on June 4."
All competitive balance measures introduced for 2015 will be reviewed at the end of 2016 before a new broadcast rights agreement is expected to kick off in 2017.
TPP per club (million) since 20122012: $8.79 mill
2013: $9.14 mill
2014: $9.63 mill
http://www.afl.com.au/news/2014-05-07/players-to-win-in-new-cap-deal
