The Sydney Swans and GWS Giants in cost of living battle with AFL
The Sydney Swans and GWS Giants feel they are playing an uneven game compared to their Melbourne AFL rivals. See the figures why as one club said it’s “not an equal playing field”.
Sydney is the one city in Australia where corporate high flyers have a softer landing than AFL footballers.
If you are transferred to work in the Emerald City at the big end of town, chances are your wages will be beefed up to reflect the fact there are few more expensive places on earth to live.
But if you are a footy player or coach, well, it’s standard fare.
Achieving “competitive balance” and “equalisation” across the competition has been AFL chief executive Gillon McLachlan’s mission.
But the Sydney Swans and Greater Western Sydney Giants, armed with the backing of the Players Association, say the reality is they’re playing an unfair game compared to their Melbourne rivals.
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At the heart of the imbalance is the exorbitant cost of living in Sydney, combined with the fact many employees of the Swans and Giants are expats from other states.
On face value, the AFL is our most national sporting competition, but the growing sentiment outside Victoria is that it remains very much a Melbourne game.
According to Hays, one of the world’s largest recruitment firms, Australians in the corporate sector who transfer from other cities to work in Sydney can almost as a rule expect more pay for the same position.
In the banking industry, for example, a district manager in Sydney might command $15,000 more than in Melbourne or Brisbane, or $35,000 more than they would in Adelaide.
The AFL scrapped its Cost of Living Allowance for Sydney clubs when they felt the Swans abused it in the signing of Lance Franklin and Kurt Tippett. They have refused to look back.
“The cost of living differences between the markets is undeniable and the point we’ve simply made on that in the past is that, just because it’s the same dollar figure doesn’t mean it’s equal purchasing power. It’s just not,” said GWS chief Dave Matthews.
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“That points to two things for us. One is the cost of living, and the other is retention and Melbourne clubs are paying less than we would just as a function of circumstance.
“We’ve reached a point where we’ve got some incredibly talented, well-credentialed players who are getting big offers from other clubs and you’ve got to be able to defend against that.”
The Giants are currently fighting to re-sign off-contract superstar Stephen Coniglio, and although they remain confident of winning out in the end, they are up against it.
It’s understood that not one GWS player is on a cash apparel deal, such is the nature of Sydney’s competitive sporting market.
In Melbourne there might be as many as five players on each AFL list being supplemented by third party sponsors like media outlets and clothing companies, but at GWS, the big names are flat out getting themselves a free pair of boots.
“James Harmes from the Melbourne Demons has a deal with New Balance for example,” explains a leading AFL Player Agent.
“If you compare that, it’s like saying Matt de Boer (from GWS) has a deal with Adidas. And that’s not happening.”
The flip side to this argument is that Giants players love the relative anonymity of playing out of western Sydney, away from the scrutiny of the Melbourne bubble.
But the Sydney lifestyle comes at a cost.
Rent prices in Melbourne are estimated to be almost 22 per cent lower than in Sydney, and it can be 23 per cent cheaper to buy property in Melbourne than in Sydney.
Giants star Brett Deledio admits he’s lost money on the difference he receives and pays for rent since moving from Richmond, and the challenge is even tougher for coaches.
Swans assistant Dean Cox made some huge sacrifices to move his family from Perth, and it’s a commonplace battle for AFL staff.
While the AFL does offer a $15,000 bonus to players who earn under $300,000 to help with rent costs, coaches receive no such allowance under the soft cap.
“If one of our assistant coaches was getting offered a job in Geelong versus Sydney, it’d be hard to knock back Geelong,” said the player agent. “It’s just logic.”
Swans general manager of football Charlie Gardiner, himself a Melburnian who has moved his life to Sydney, says a blueprint for managing these issues has been set by other industries.
“The reality is that Sydney is the most expensive city to live in Australia. The issue is not unique to AFL — all national industries face a similar challenge to attract and retain employees,” said Gardiner.
“For us, it is compounded by the fact that only a very small portion of our players and staff are from Sydney or NSW. As it stands, it’s not an equal playing field.”
COST OF LIVING — MELBOURNE V SYDNEY
— Rent prices in Melbourne are 21.69 per cent lower than Sydney
— Property prices in Melbourne are 23.6 per cent lower than Sydney
— Consumer prices, including rent, in Melbourne are 13.58 per cent lower than Sydney
— Restaurant prices in Melbourne are 5.79 per cent lower than Sydney
— Groceries prices in Melbourne are 5.6 per cent lower than Sydney
Salary differences across Australia in banking industry:
District manager
Sydney $145,000
Melbourne $130,000
Brisbane $130,000
Adelaide $110,000
Perth $135,000
Source: Hays salary guide
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