Jump to content

Squad Development 2017/18 Part 2


Recommended Posts

I doubt FFA can force Melbourne City to do anything regarding a contract between Manchester City and a free agent. It is my understanding that for the salary cap burden of a player, the only things that are included are the players parent club wages (which I believe are included in the cap at 50%), or their wages and any loan fee that the A-League club pays to the Parent club, whichever is higher.

Since Melb City aren't going to be paying a loan fee to Manchester City, and because CFG would sign Arzani as a free agent, they can offer him a smaller wage in exchange for a large sign-on bonus from a subsidiary in the UAE which the FFA can't touch, which will help them reduce their cap burden.

FBT wouldn't apply to a sign-on bonus, just regular income tax. In any case for the purposes of the Salary Cap they'll only have his wages under the cap (as MelbC won't pay a loan fee to ManC), not any additional bonuses he was given to sign on with CFG which took place before he was loaned to any other club.

Link to comment

So I’ve heard people saying this before but I think you’re mixing up the Martinez thing where we paid 50% of his wage. It’s the reason why most loanees end up being marquees for accounting purposes when they come from countries with high wages

Regarding sign on bonus, most certainly count under the cap. From the HAL site -“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.”

Really the only excludes expenses are relocation costs. Those get taxed by both Australia and the UK over a certain amount. So the player will lose almost everything over about 3000 pounds.

Almost all relocation costs get hit under the Fringe benefits Tax Act. You can only avoid it if is a salary deduction. 

Rwgarding disclosure, the FFA loan form actually has a section for declared payments. If Melbourne don’t fill it in/lie and get caught, they’re season will be over

 

Link to comment
1 hour ago, Upthehill said:

So I’ve heard people saying this before but I think you’re mixing up the Martinez thing where we paid 50% of his wage. It’s the reason why most loanees end up being marquees for accounting purposes when they come from countries with high wages

The FFA changed the rules after the Rogic/Troisi loan deals to cover the fact that Troisi & Rogic were marquee level players being counted in the salary cap at the minimum wage as the very high loan fees weren't included in the salary cap. Only the minimum wage salary that Victory were paying Troisi & Rogic directly was.

After that incident the FFA changed the rules so that clubs could not just avoid the salary cap by paying an upfront fee with a low direct wage contribution. At least that is my understanding of what the FFA did.

1 hour ago, Upthehill said:

Regarding sign on bonus, most certainly count under the cap. From the HAL site -“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.”

Yes they count in the cap when an A-League club pays a bonus to a player. This would be a relocation bonus, or a sign-on bonus for a new contract by an A-League club. Note that paying a cash bonus to an employee so they could then arrange a relocation isn't FBT it's just income tax. If the employer arranges it and paid directly then it would be. In any case taxation isn't the issue.

City Football Group of Dubai/Manchester City of England is not an A-League club.

If City Football Group signed Arzani as a free agent he would be a CFG employee under contract to Dubai or England. The ATO would be interested in any sign-on bonus but the FFA would not be involved as yet except to sign off on the transfer certificate.

If they then loan him to Melbourne City that is the point the FFA get involved with the salary cap, and as Melb C wouldn't be paying Manchester C any loan fee only his wages are included.

The major problem when trying to sort out this stuff is that the FFA don't publish a full guideline anywhere. They have the basic information on the A-League site but it's not the whole set of cap rules.

Link to comment

They’d just do a Neymar.

PSG didn’t technically pay a transfer fee, Neymar payed his release clause out of his own pocket and signed for PSG as a free agent. The reason he could afford the 222 million Euro release clause was because Qatar’s rulers (PSG’s owners) hired him to be an ambassador for the 2022 World Cup. For 222 million Euros.

CFG could just sign Arzani on a free transfer, make him a “brand ambassador” for Etihad Airways for a million dollars then pay him A-League minimum wage and loan him back to Melbourne City.

Link to comment
1 hour ago, mack said:

Yes they count in the cap when an A-League club pays a bonus to a player. This would be a relocation bonus, or a sign-on bonus for a new contract by an A-League club. Note that paying a cash bonus to an employee so they could then arrange a relocation isn't FBT it's just income tax. If the employer arranges it and paid directly then it would be. In any case taxation isn't the issue.

Re FBT that just simply isn’t true. I arrange this for my staff that come on 457 every single month. Doesn’t basically matter how it’s paid, you’re paying FBT adjustment come tax time. I’m not sure which accountant has advised you that but get a new one.

Regarding payments included, we’ve had these discussion before on this thread with other involved. It’s about the year in which a bonus is paid in. It isn’t simply excluded because a parent company pays it. This would be abused to no end if this were the case. The written salary cap rules disagree with your interpretation on this

Link to comment

http://www.novantesimo.com/ufficiale-lazio-ceduto-oikonomidis-al-western-sidney-wanderers/

From Google translate.........

Last-minute surrender to Lazio, but departure totally painless, with a player who moved elsewhere on a temporary basis. This is Christopher Oikonomidis, Australian striker, who is sold to .............Western Sidney Wanderers. Here is the official statement that formalises the operation: "The S.S. Lazio announces that footballer Christopher Oikonomidis has been sold on a temporary basis until next June 30th at the Western Sydney Wanderers Football Club ". As mentioned earlier, it is a goodbye without too many regrets, from the moment the player had not yet fallen on the pitch with Lazio during this season............

 

They don't seem too upset he is leaving.....lol

Edited by sonar
Link to comment
5 minutes ago, scarcev said:

After watching that highlights package why didn't we sign the right winger that gave him all of those gift tap in's... :ninja:

Simone Palombi, currently on loan at Salernitana. Not having a great season, stuck on the bench, only played a handful of games all season. Keeps getting hurt.

Link to comment
  • mack unpinned this topic

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...