AFL players set to pocket minimum $1.8 billion after breakthrough in pay deal
AFL PLAYERS have been guaranteed a fixed 28 per cent slice of all unbudgeted AFL revenues and will pocket minimum $1.8 billion after breakthrough pay deal talks.
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PLAYERS will pocket a minimum of $1.8 billion over the next six seasons under last week’s breakthrough pay agreement.
The monster pay day equates to 28 per cent of total AFL industry revenues and sees the average player wage climb to $371,000.
But the bonanza could be even greater if club and league revenues rise above forecast projections between 2017 and 2022.
The Herald Sun can reveal the AFL has agreed to pay players the equivalent of 11.2 per cent of all unbudgeted club revenues across the next six years.
Bonus payments under the contentious “club clause” will be funded by the league.
It is unclear whether club bosses have been made aware of the compromise clause struck last week over two days of talks at Crown casino.
Players, led by AFLPA board members Patrick Dangerfield, Rory Sloane, Scott Pendlebury, Leigh Montagna and Easton Wood, refused to budge on a push for a cut of unforecast club revenues, arguing it would establish them as genuine partners of the game.
Players have also been guaranteed a fixed 28 per cent slice of all unbudgeted AFL revenues.
Had the revenue sharing model been in place during the past decade, players would have been paid at least an extra $65 million as the league grew richer than it had forecast.
AFL revenues alone since 2009 have come in more than $246 million above budget.
All extra payments to the game’s 817 players will be directed into individual retirement funds and will not affect the annual salary cap.
PAY DEAL: PLAYERS TO VOTE AFTER DEAL THRASHED OUT IN TWO-DAY TALKS
NEW OFFER: AFL INCREASES INITIAL OFFER
STICKING POINT: TRAVEL, ACCOMODATION A STICKING POINT
Players will pocket a dividend depending on the number of years served on a list — not the size of their contract.
The AFL has also agreed to fund annual increases in separate player marketing and promotional payments made to players known as Additional Service Agreements.
ASAs were frozen under a cash offer tabled with the AFL Players’ Association three weeks ago.
The salary cap for this season jumps from $10.37 million to $12.45 million, plus ASAs of more than $1 million a club.
The six-year pay offer to be voted on by all players in the coming weeks includes a wage increase of 20 per cent this year, 1.2 per cent in 2018, 1.3 per cent in 2019 and rises of 2 per cent in 2020, 2021 and 2022.
The league’s most recent offer included increases of just 1 per cent a season for the final five years.
Another clause ensuring player wages do not decrease — even if industry revenues fall — will also be written in to the collective bargaining agreement.
The $1.8 billion in payments over six years includes additional AFL funding for retirement, hardship, welfare and player development schemes.
A majority of AFL players have a provision in their contract that automatically entitles them to this year’s 20 per cent pay rise.
AFL’S FINAL PAY OFFER
- Heavily front-ended six-year increase — 20 per cent in 2017, followed by 1.2 per cent in 2018, 1.3 per cent in 2019 and rises of 2 per cent in 2020, 2021 and 2022.
- Average wage (not including rookies) rises from $309,000 to $371,000 this season, hitting $403,00 by 2022
- Club salary cap jumps from $10.37m to $12.4m this year and hits $13.54m by 2022
- Players guaranteed 28 per cent of unbudgeted AFL revenues and 11.2 per cent of unforecast club revenues (to be paid into retirement funds)
- Gradual increase in $1.022m club promotional and marketing allowances (Additional Service Agreements)
- Improved travel and accommodation conditions
- Veteran’s allowance scrapped
- Bolstered welfare, player development, hardship and injury schemes
Total Player Payments/Average wage
2016: $10.37m, $309,000
2017: $12.45m, $371,000
2018: $12.6m, $375,000
2019: $12.76m, $380,000
2020: $13.02m, $388,000
2021: $13.28m, $396,000
2022: $13.54m, $403,000
Note: Wages exclude rookie players
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