Club payouts to sacked coaches will count in AFL’s new football department spending cap Grant Baker
Herald Sun
October 07, 2014 9:00PMCLUBS will be forced to count big-money payouts to sacked coaches in the AFL’s new football department spending cap.
Already this off-season, Adelaide and Gold Coast have sacked contracted coaches Brenton Sanderson and Guy McKenna.
And should Essendon remove embattled coach James Hird — who is due to be paid about $750,000 in each of the next two seasons, the Bombers will also be counting the cost inside the cap.
Sanderson was also contracted for the next two years, with a reported payout in the order $600,000 a year.
It’s believed clauses in McKenna’s contract — which was due to expire at the end of next season — could limit the Suns’ payout to about $200,000.
No “special circumstance” exceptions will be given to Adelaide or Gold Coast by the AFL, and it is thought very unlikely to be a consideration if Hird — given limited support by the Essendon board on Monday — is sacked.
Clubs agreed to the football spending cap as part of the AFL’s equalisation strategy this year.
Teams spending above the cap — set at $9.3m for non-player football spending — will pay 37.5 cents in the dollar as a luxury tax next year, and 75 cents in 2016 when the equalisation system will be reviewed.
AFL boss Gillon McLachlan said in August he expected only two or three clubs would be required to pay tax, and Hawthorn president Andrew Newbold has declared the premier will be one such club.
The other are thought to be Collingwood and West Coast.
But the Sanderson payout coupled with a new salary for his replacement Phil Walsh could push Adelaide into taxpaying territory.
A full payout to Hird would also see the Bombers likely paying tax.
The football spending cap does not include payments to players, which will exceed $10 million at each club for the first time in 2015.
http://www.foxsports.com.au/afl/afl-premiership/club-payouts-to-sacked-coaches-will-count-in-afls-new-football-department-spending-cap/story-e6frf3e3-1227083034798