Pies, Hawks take $1.3 million equalisation hit

Hello, you either have JavaScript turned off or an old version of Adobe's Flash Player.

CLUBS will be able to bank salary cap money and use it to lure stars in future seasons under new equalisation measures unveiled by the AFL.

About 10 clubs will be effectively taxed a maximum of $500,000 based on their revenue over the next two years, while some clubs could be slugged further if they choose to exceed a soft cap on football spending in 2015-16.

Also confirmed was the abolition over the next two years of the Cost of Living Allowance for Sydney, although it came as a surprise that GWS will have that allowance replaced by a rental assistance scheme aimed at lower-earning players.

The veterans' list allowance will be phased out over 2015-16.

Collingwood, West Coast and Hawthorn will have their distribution from the AFL cut by $500,000 and must also fund increases in total player payments to players of $150,000 a year over the next two seasons.

That pay rise for players is on top of the 3 per cent increase that had been written into their current Collective Bargaining Agreement as a baseline, and means their pay will go up by about 5 per cent a season overall, sitting at $10.7 million next year.

A further seven clubs — including Carlton, Richmond, Geelong and Fremantle — are also likely to have their funding reduced by the AFL.

The salary cap banking measure, which will come into effect immediately, will mean a club that is spending $600,000 under the cap this year could spend an extra $1.2 million next year, or in 2016.

AFL chief executive Andrew Demetriou, commission chairman Mike Fitzpatrick and CEO-elect Gillon McLachlan announce the changes. Source: Getty Images

New AFL boss Gillon McLachlan said the mechanism gave poorer clubs a better chance to retain or attract players when the new equalisation measures kicked in, and their businesses improved.

"When six of our clubs are spending 95 per cent of our salary cap, that is a challenge, so what the banking mechanism says is even if one year (a) club can't spend 100 per cent (of the TPP) … if they can turn their business around (it gives) them the opportunity to retain players and pay them what they should have been paying by paying overs for a period of time," McLachlan said.

The AFL is yet to finalise the soft cap in football spending, but it will be the projected 2015 industry average spend plus $500,000.

As a guide, the average football spending excluding player payments in 2013 was about $10.3 million.

Clubs that spend above the cap will be taxed 37.5 cents in the dollar in 2015 and 75c in 2016.

Club figures have told the Herald Sun that the caps to the effective revenue and football spending taxes have severely limited the amount of money that will be redistributed from the rich clubs to the poor, but the AFL will increase funding to disadvantaged clubs from the Club Future Fund.

To qualify for extra funding clubs must satisfy the league they are hampered by structural inequities and have fewer growth opportunities but are being well managed. They will have their financials scrutinised and will not be eligible for funding unless their revenue is below the competition average and they are not spending above the footy spending cap.

AFL chairman Mike Fitzpatrick said: "the AFL's strengthened competitive balance measures have been introduced because the financial gap between our big and small clubs continues to grow and the capacity of many clubs to invest in their football departments and to grow other elements of their respective businesses is challenged".

Hawthorn president Andrew Newbold said the equalisation working party had fulfilled its aims — despite criticism from various quarters.

"I have said this to our people, from a Hawthorn point of view it's not a truly desirable result, but from a whole-of-competition mindset it's exactly the right thing to do.

"The thing to bear in mind is we will also fund the $150,000 uplift in the salary cap, so the net result for Hawthorn is we are $1.3 million worse off over two years.

"I heard the view of people in middle and lower-ranking clubs that they would like more. But it is costing Collingwood, West Coast and Hawthorn $1.3 million over two years. We have had our tough times ourselves. So it's a good result for the industry and it wasn't easy because it took a lot of robust discussions."

Collingwood president (and Millionaire Hot Seat host) Eddie McGuire and the Magpies will have to part with a percentage of the club's earnings to help poorer clubs under new AFL rules. Source: News Corp Australia

St Kilda chief executive Matt Finnis said the steps taken by the league "indicate the game is moving in the right direction".

It's understood some clubs still believe they are unfairly taxed, although Richmond was mystified about suggestions it had been shocked by some of the measures, given CEO Brendon Gale is a member of the working party.

The AFL is yet to sign off on exemptions from the football department cap, which could include welfare staff, travel and some recruiting budgets.

Fremantle chief executive Steve Rosich said the Dockers would continue to lobby on excluding travel from the cap.

"We understand and agree in principle with what the AFL is seeking to implement. We are continuing our conversations on what some of the exclusions from non-player footy costs which includes travel. We also have concern over the relativities in financial costs between some clubs."

West Coast Eagles chief executive Trevor Nisbett said there were still many details to finalise: "The working party are still working through it. It is what it is. We've agreed to the principles but there are some details to come and that will happen down the track."

And Port Adelaide chief Keith Thomas forecast further changes as the effects of the measures became apparent.

"We agree with the principles and need for competitive balance. A lot of hard work has gone into this important project and we think the outcomes are fair. No doubt the industry will continue to refine them as we develop more insight as to how effective these measures will be,'' he said.

AFL Players' Association boss Ian Prendergast said he was pleased the players had been recognised with what will be a greater share of football spending.

"We welcome the announcement of the key principles today and hope that they continue to underpin what the AFL are doing to achieve competitive balance, together with the notion that every team has the chance to win on any given day," Prendergast said.

Anda sedang membaca artikel tentang

Pies, Hawks take $1.3 million equalisation hit

Dengan url

http://sportifoclube.blogspot.com/2014/06/pies-hawks-take-13-million-equalisation.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Pies, Hawks take $1.3 million equalisation hit

namun jangan lupa untuk meletakkan link

Pies, Hawks take $1.3 million equalisation hit

sebagai sumbernya