A League Salary Cap system

[Taurus]

Might by worthwhile having a specific thread that can be maintained & used as a source of information in relation to the salary cap.

http://www.a-league.com.au/about

Salary Cap System

 

A summary of the Hyundai A-League salary cap

1. What is the purpose of the Salary Cap?

The Salary Cap facilitates competitive balance and parity between Clubs by ensuring that the playing talent is distributed amongst the Hyundai A-League Clubs. In doing so, this increases the attraction of the competition to fans, sponsors and broadcast partners.

The Salary Cap also safeguards the economic viability of the Hyundai A-League by ensuring that Clubs are not put in a position where they are forced to spend beyond their financial capabilities in order to stay competitive on the field.

2. What is the Salary Cap in the Hyundai A-League?

The Hyundai A-League Salary Cap is $2.60 million for the 2016/17 Season. Clubs must spend at least the Salary Floor which is $2.340m (representing 90% of the Salary Cap).

The Salary Cap applies to the 20 to 23 Players that Clubs have registered to their Hyundai A-League Player Roster. Unless specifically exempt, all payments and benefits (eg. cars, accommodation, etc) provided by a Club to a Player are included in the Club’s Salary Cap.

3. What can Players receive outside the Salary Cap?

Players can receive payments from Clubs outside the Salary Cap in certain circumstances as approved by FFA. These ‘exemptions’ or ‘allowances’ incentivise Clubs to spend in specific strategic areas such as attracting marketable world class players to the Hyundai A-League (Marquee or Guest Players), retaining long-serving Players on multi-year contracts (Loyalty Players), encouraging the development of young Australian Players (Homegrown Players) or identifying late-developing Players that may have missed the traditional player pathway (Mature Age Rookie).

The following discretionary payments are outside the Salary Cap:

• Designated Players – A Club can spend an unlimited amount on two Players (Foreign or Australian) it nominates as Designated Players;
• Guest Player – A Club can spend an unlimited amount on one Guest Player who must satisfy the prescribed marketability criteria as approved by FFA. A Guest Player is restricted to a maximum of 14 Hyundai A-League matches;
• Season 2016/17 Guest Player – A Club can spend an unlimited amount on one Season 2016/17 Guest Player who must satisfy the prescribed marketability criteria as approved by FFA. The Season 2016/17 Guest Player is not restricted to a maximum number of Hyundai A-League matches;
• Homegrown Players – A Club can spend up to a collective $150,000 on 3 Australian Players aged 23 or younger that have come through the Club’s youth system. Any payments to such Players above the $150,000 allowance are included in the Club’s Salary Cap;
• Loyalty Players – A Club can spend up to a collective $200,000 across any number of Players that have given 5 or more consecutive seasons of service to the Club. A portion of a Loyalty Player’s contract value is excluded from the Salary Cap based on a progressive scale from 25% (5th continuous season) to 50% (10th continuous season onwards);
• Mature Age Rookie – A Club can register an Australian Player that is aged 21 or older who last played in an Australian competition (eg. PlayStation4 National Premier Leagues) and has not played in a fully professional league for at least 18 months;
• Contracted NYL Players/ Scholarship Players – Each Club can contract up to 6 under 20 Australian Players on the minimum youth salary (Contracted NYL Players) or national minimum wage (Scholarship Players). Any payments above the minimum youth salary or national minimum wage (whichever is applicable) to these Players are included in the Club’s Salary Cap;
• Salary Cap Banking – A Club can access any underspend from the previous two Seasons to be utilised in the current Season, up to a maximum of 105% of the Salary Cap for that Season; and
• Relocation Expenses – Clubs can reimburse Players for bona fide relocation expenses (eg. airfares, temporary accommodation, storage) outside the Salary Cap up to prescribed amounts in order to assist a Player relocating to a new region for football employment.

4. How many Players does a Club have on their Hyundai A-League Player Roster?

At all times during the Season, a Club’s Hyundai A-League Player Roster must have:

• a minimum of 20 Players;
• a maximum of 23 Players;
• a minimum of 2 Goalkeepers;
• a minimum of 3 Australian Players aged 20 or under; and
• a maximum of 5 Foreign Players.

During the Hyundai A-League 2016/17 Season, a Club may only register either a Guest Player or a Season 2016/17 Guest Player during the Hyundai A-League Season but not both. A Season 2016/17 Guest Player is included in the 20 to 23 Players on a Club’s Hyundai A-League Player Roster. Guest Players and Mature Age Rookie Players sit outside the Club’s Hyundai A-League Player Roster.

Players on a Club’s Foxtel National Youth League (NYL) Player Roster, including Contracted NYL Players and Scholarship Players, are also eligible to participate in the Hyundai A-League.

5. What is the minimum salary for a Hyundai A-League Player?

The minimum salary for Players in the Hyundai A-League in the 2016/17 Season is:

• Under 20 - $41,533 (excluding superannuation); and
• 20 and over - $55,715 (excluding superannuation).

 

[JayZko]

What's the point of the salary cap when there's a Melbourne city.. enough said lol,,,, the team with an unlimited bank account , while as for glory the only thing they did wrong a few years back is not having a parent club that's the ffa's lapdog "city" group the ffa is so over the moon cause city are rich won't ask for anymore the other owners of aleague teams may as well hand back there licensees hey I wouldn't mind being called red bull western Sydney Wanderers 

 

[spectacular291]

Great Idea Taurus. 

One thing that is often forgotten about in the argument for scrapping the salary cap is that you also scrap the floor threshold as well as the ceiling threshold.

Which means that with the minimum wage of an over 20 player (technically the new floor threshold in a non salary cap league) - the least amount of money to spend is $1,403,182.28 (inc Super, excluding Payroll Tax - different for each state) for 23 players (not taking in to consideration any U20 player or other concessions). This would be a potential saving of approximately $1.2m that certain clubs would be willing to achieve (CCM for instance). 

I think if there is going to be discussions about scrapping the salary cap, which at this stage there doesn't look to be anything serious, there needs to be a floor ceiling to ensure the continued quality of the league. In saying that, majority of clubs will embrace the competitive nature and will spend. 

But with continued pressure to expand for a national second division - I think the salary cap will be here to stay in order to provide a level of stability for new clubs being promoted or relegated. 

 

Edited June 5, 2017 by spectacular291

[Paul01]

4 hours ago, spectacular291 said:

Great Idea Taurus. 

One thing that is often forgotten about in the argument for scrapping the salary cap is that you also scrap the floor threshold as well as the ceiling threshold.

Which means that with the minimum wage of an over 20 player (technically the new floor threshold in a non salary cap league) - the least amount of money to spend is $1,403,182.28 (inc Super, excluding Payroll Tax - different for each state) for 23 players (not taking in to consideration any U20 player or other concessions). This would be a potential saving of approximately $1.2m that certain clubs would be willing to achieve (CCM for instance). 

I think if there is going to be discussions about scrapping the salary cap, which at this stage there doesn't look to be anything serious, there needs to be a floor ceiling to ensure the continued quality of the league. In saying that, majority of clubs will embrace the competitive nature and will spend. 

But with continued pressure to expand for a national second division - I think the salary cap will be here to stay in order to provide a level of stability for new clubs being promoted or relegated. 

 

Marinators should be forced to use their bank this season!

[Hughesy]

When you think about it, the variety in competition that the salary cap is meant to manufacture is becoming extinct. The past 3-4 seasons would suggest that following a strong season for Sydney and Victory that they will now drop down and WSW and Brisbane should be back up top again. It's turning into a bit of a predictable cycle. 

[Hughesy]

https://tags.news.com.au/prod/newskey/generator.html?origin=https%3a%2f%2fwww.foxsports.com.au%2ffootball%2fa-league%2faleague-news-pfa-report-shows-salary-cap-is-not-working-highlights-player-churn%2fnews-story%2fcd0c88d7767030d8c39fc5836ca32d6a&15015861051827331344

[Prydzopolis]

http://amp.smh.com.au/sport/soccer/aleague-clubs-allege-ffa-proposes-to-cut-marquee-player-fund-20170802-gxo27l.html

$3m marquee fund gone

It looks like the Tim Cahill Guest Player Spot will never be used again  

[luisenrique]

Lol, what a farce. Glad it's gone tbh, but what a joke that it only applied to Cahill, not Eduardo (allegedly) or Diamanti, or anyone else.

[Paul01]

22 minutes ago, Prydzopolis said:

http://amp.smh.com.au/sport/soccer/aleague-clubs-allege-ffa-proposes-to-cut-marquee-player-fund-20170802-gxo27l.html

$3m marquee fund gone

It looks like the Tim Cahill Guest Player Spot will never be used again  

So there's no more vision then?

[Taurus]

Clubs knocked back the 300k allocation for marketing (as they should have) a couple of weeks ago, when FFA offered them 3.5m a season. 

Clubs are not responsible for marketing the league, that responsibility rests with FFA, the governing body.  

IMO clubs should receive a reimbursement equivalent to 300k or 1/10th of fund, if they invest in a marquee grade player.

Article by Bossi is gobbledygook & is just rehashing old news. 

[StringerBellend]

So they are changing it from the Cahill fund to the Yoshi fund 

[Prydzopolis]

This relevant for A-League CBA too?

[Prydzopolis]

Insight into the loan rules

“Under salary cap rules, loan players wages are included under the loan club's salary cap, along with any fees paid to the parent club and 50% of any wages still paid by the parent club to the player while he is on loan.”

From: https://www.fourfourtwo.com.au/news/mariners-still-paying-part-of-sydney-stars-wages-499095