Official Salary Cap Info (how it works and what is included)

[Wedgie]

Yes another salary cap topic but I think this one deserved one on its own:

Thanks to the source of this information who asked not to be revelaed, I'm sure a lot of us (myself included) are very happy to get a few misconceptions (mostly mine) cleared up, basically the salary cap include:

- All payments that benefit the player

- all match payments (except finals payments assuming the finals payments are the same as minor round. PAMFC used to pay twice the minor round ‘rate’ for finals – the difference would be in the cap)

- above award payments when paid by a club or sponsor, supporter or supporter group (‘barman’s wages $25/hour, play ‘A’ receives $45/hour – the difference would be included I the cap)

- sign on payments

- injured game payments above 50% of normal match payments (player B receives $400 per game and $300 per game missed through injury - $100 included in cap)

- any insurance premium (some players insure their match payments)

- supplementary wages (club guarantees player C will earn $50k in employment but can only secure a job that pays $40k, $10k in cap)

- flights

- best and fairest payments

- after match awards

The AFL listed players are not paid yet the club incurs a $350 per player per game notional expense if player has played less than 40 games of SANFL/AFL and $500 for more than forty games

Reserves payments are not included.

Stat decs are required to be signed by the GM/CEO and Club President that all records are factual.

Salary Cap officer can look at any contract and does ask direct questions about employment by sponsors, provision of cars/loans et cetera.

The system is not perfect but it was only introduced initially to protect clubs from themselves when some where operating above their means and has since become a mechanism to even the competition. There is no doubt all clubs except two in 2005 could have paid considerably more than $305k.

[Wedgie]

PS My source also mentioned that a restriced import rule probably wouldn't work. Their opinion was that it:
will drive the price of talented recruits up further if there is a limit to how many come in per year what is Alleway worth if only 18 interstate recruits can come in per year?). let’s continue the junior development, lets keep trying to improve ourselves with players who have talents not already in the ranks and lets strive to be a world class competition (name another second tier competition with the crowds, money, passion of the SANFL?) the only sport in the world maybe the baseball minor leagues but noting else matches it. We have a fantastic product that needs nurturing, protection and perhaps some flexing of the salary cap now that a clear majority can afford higher payments.

And for those who think they might know who my source in this matter is, I can categorically state this person has nothing to do with the North Adelaide Football Club.

PPS I'll find out if the information in regard to more severe penalising is true if clubs blatantly and knowingly exceed the salary cap too and get back to yas.

[am Bays]

Ta for that very illuminating, one of misconceptions has been cleared up, I thought reserve game payments were included in if the payer is on the League list.

[Wedgie]

Ta for that very illuminating, one of misconceptions has been cleared up, I thought reserve game payments were included in if the payer is on the League list.

Yeah, there's about 10 things there that I wasn't aware of, shows how ignorant I was.

[cd]

Wedgie - there are different penalty rates determined as to nature of breach.

If unintentional, ie cant count!! then is $ for $ thus a few years ago when we were approx $5000 over by miscalculation the fine was $5000.

If determined as intentional then fine, I believe, is 3 times the amount over, and for a second intentional offence i believe it goes up again.

I am not Wedgies source either but believe the above to be true.

[Wedgie]

Wedgie - there are different penalty rates determined as to nature of breach.

If unintentional, ie cant count!! then is $ for $ thus a few years ago when we were approx $5000 over by miscalculation the fine was $5000.

If determined as intentional then fine, I believe, is 3 times the amount over, and for a second intentional offence i believe it goes up again.

I am not Wedgies source either but believe the above to be true.

Thanks for that CD, I have learnt a hell of a lot today about something I thought I knew about and in fact knew bugerall (yeah I know, nothing new there! )

Its good that supporters can be kept in the know by people like you and other sources.

Also very interesting how many people are in fact reading this site now and who they are, not bad for a 3 month old site, can't wait for the footy season as it will be even more full on!

[godoubleblues]

good one Wedgie, I guess most of us have taken the salary cap for granted in the past
in other words we havent had a ******* clue how the hell it works
thanks for the enlightenment

[drebin]

Good to see housing/rent is not included other wise a few footballers might find their net income suffers having to pay for housing/rent and being forced to move from luxury digs!

[redandblack]

Thanks for all that, Wedgie. I think that's all in line with what I've been saying. I'm sure cd is correct about a deliberate breach attracting a fine of up to 3 times the breach.

I would think Port Magpies would have spent a large part of their cap just on signing-on fees.

Their explanation of how they can fit under the cap will make a first-class comedy act.

[TimmiesChin]

Are there any provisions for above award payments to the players partner ?

[Wedgie]

Wedgie - there are different penalty rates determined as to nature of breach.

If unintentional, ie cant count!! then is $ for $ thus a few years ago when we were approx $5000 over by miscalculation the fine was $5000.

If determined as intentional then fine, I believe, is 3 times the amount over, and for a second intentional offence i believe it goes up again.

I am not Wedgies source either but believe the above to be true.

I was told today that its $1 for $1 for first offence.
$2 per $1 for second offence.
$3 per $1 for third offence.
etc, etc, etc.

[doggies4eva]

PS My source also mentioned that a restriced import rule probably wouldn't work. Their opinion was that it:
will drive the price of talented recruits up further if there is a limit to how many come in per year what is Alleway worth if only 18 interstate recruits can come in per year?). let’s continue the junior development, lets keep trying to improve ourselves with players who have talents not already in the ranks and lets strive to be a world class competition (name another second tier competition with the crowds, money, passion of the SANFL?) the only sport in the world maybe the baseball minor leagues but noting else matches it. We have a fantastic product that needs nurturing, protection and perhaps some flexing of the salary cap now that a clear majority can afford higher payments.

And for those who think they might know who my source in this matter is, I can categorically state this person has nothing to do with the North Adelaide Football Club.

PPS I'll find out if the information in regard to more severe penalising is true if clubs blatantly and knowingly exceed the salary cap too and get back to yas.

This issue about driving up the value of interstate recruit salaries is an interesting one. I would think that a club has certain $s each year to spend on recruits so what would happen if they were restricted to say only 2 new recruits from outside their zone would be to make the quality recruits in higher demand hence higher paid and the lesser attractive ones cheaper because they are competing for fewer places. What it would mean would be clubs would have to spend more on recruiting from their own zones - hence better development plans. This can't be a bad thing.