THE AFL argued for a 30 per cent cut to the salary cap in a shock opening play in negotiations with the AFL Players’ Association over the Collective Bargaining Agreement.
While the league and player union have since moved on from such a drastic figure, the two parties remain locked in talks over a new CBA to ensure the game can recover from the financial impact of COVID-19.
The current CBA wasn’t due to expire until 2022, but the global pandemic has hit the AFL industry hard, resulting in job losses at all levels and a major restructure of the AFL.
A revised salary cap and new list size limit, among many other factors, needs to be agreed before the free agency window opens on October 30 and the trade period on November 4.
This year the Total Player Payments (TPP) figure – the amount each club can pay its players – was $13,013,257.
A 30 per cent cut to the TPP would represent nearly $4 million, a similar figure to that already shed from the football department soft cap.
But this was merely an early foray into a complex negotiation and a proposal the AFLPA would never agree to.
Beside the TPP figure sits a raft of other factors, including the key pillar, which is the player retirement scheme.
The AFLPA’s lifetime health centre and career ending injury fund, development and mental health fund are also vital components to any new CBA.
It is not exactly clear how existing player contracts would be impacted by a cut to the salary cap, with clauses relating to the CBA now common place in player deals.
It is a similar tale when it comes to list sizes, which current industry speculation says will be only slightly cut to 44 – 38 primary-listed players, four rookies and two category B rookies.
There is no timeline for a resolution, but both parties are currently operating in good faith and motivated to get it done.