AFL Salary Cap Primer

[MightyMagpie]

I thought it might be useful to provide a summary of the salary cap provisions in the new CBA.

There are several relevant provisions:

1. The amount of Total Player Payments for each AFL Club shall be as set out in item 1 of Schedule B.

2. The amount of total payments to Players for each AFL Club for Additional Services Agreements shall be as set out in item 2 of Schedule B.

3. Minimum Terms and Conditions (Schedule C).

4. Each AFL Club must expend no less than 95% of the combined annual Total Player Payments and Additional Services Agreements limits in Football Payments to Players on its List in each relevant year.

5. AFL Clubs may spend over 100% of the combined Total Player Payments and Additional Services Agreements limit (Combined Limit), if in any of the preceding three years the Club has spent below 100% of the Combined Limit. The permitted amount of overspend will be tied to the level of underspend in the relevant preceding period. For example, if a Club was $500,000 below the combined Total Player Payments and Additional Services Agreements limit in 2017, and paid 100% of the Combined Limit in 2018 and 2019, the Club would be entitled to spend $500,000 above the Combined Limit in 2020. If a $500,000 overspend was not made in 2020, the Club has lost the right to overspend in 2021. It is agreed that the overspend amount is to be capped at a maximum of 105% of the Combined Limit in any given year.

Schedule B – Total Player Payments and Benefits
1. Total Player Payments
The Total Player Payments for each AFL Club will be as follows: Year 2017 2018 2019 2020 2021 2022
TPP Limit
12,445,028
12,594,368
12,758,095
13,013,257
13,273,522
13,538,993
2. Additional Services Agreements (ASA)
The Additional Service Agreements limits for each AFL Club will be as follows: Year 2017 2018 2019 2020 2021 2022
ASA Limit
$1,061,347
$1,093,187
$1,125,983
$1,159,763
$1,194,555
$1,230,392

Schedule C – Minimum Terms and Conditions
1. Base and Senior Match Payments
(a) An AFL Club shall pay each Player it employs other than a first year draft choice Player, a second year Player, a Rookie Player or a Player promoted from the Rookie List, a minimum base payment per annum and a minimum Senior Match payment per Senior Match as set out in the table below: Year Base Payment Senior Match Payment
2017
$100,000
$4,300
2018
$105,000
$5,000
2019
$105,000
$5,000
2020
$110,000
$5,000
2021
$110,000
$5,000
2022
$115,000
$5,000

...

2. First Year Players
(a) An AFL Club shall pay each first year draft choice Player it employs the base payments and Senior Match payments per Senior Match set out in the following table: 2017 First Year Player Bonus for Senior Matches Played in Current Year Year Draft Base Match Max Bonus Choice $ $ Nil 1-5 6-10 11+ $
2017
Round 1
88,200
4,300
Nil
4,000
4,000
4,000
12,000
2017
Round 2
80,200
4,300
Nil
4,000
4,000
4,000
12,000
2017
Round 3 + and pre-season draft
76,000
4,300
Nil
4,000
4,000
4,000
12,000

[with increases going forward].

[MightyMagpie]

Another point is that the playing list can vary (with changes for next season):

(i) The number of Players on the Club’s Primary List shall be not more than 40 and not less than 38;
(ii) The number of Players on the Club’s Category A Rookie List shall be not more than 6 provided that a Club must not have more than 44 Players on their Primary List and Category A Rookie List at any time;
(iii) The number of Players on the Club’s Category B Rookie List shall be not more than 3.

Nominated rookies disappear and category A rookies can now just be selected for senior games.

You can effectively pay players more with a smaller primary list (~2.5% at 39 and ~5% at 3.