Leaked emails have revealed how the AFL will determine free agency compensation
A leaked email has revealed how the AFL determines its compensation picks for departed free agency, the memo delivering a warning clubs not to expect bumper dividends from their departed stars.
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The AFL has warned clubs they should not expect to be fully compensated for the departure of their superstar free agents.
In an email seen by the Herald Sun, the league has made clear clubs should not expect entirely equivalent returns for any player which exercises their free agency rights after eight years’ service.
The document also details how the AFL determines the compensation picks based on free agents’ new salaries and their age.
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However, there is an “expert committee” which reviews all pick outcomes and can recommend changes to the league’s general counsel in the event of an “anomalous result”.
Greater Western Sydney is slated to receive pick No.10 as compensation for Jeremy Cameron’s move to Geelong — if they do not match the Cats bid under the free agency model — but the Giants are determined to force a trade to secure a more attractive outcome.
Likewise Essendon (Joe Daniher) and Adelaide (Brad Crouch) want first-round compensation picks for their departing stars, but may have to settle for end-of-first round selection picks.
Crouch’s new salary at St Kilda will be significantly less than $700,000 a year, it was confirmed on Thursday.
But the AFL told clubs this week they should not expect bumper compensation pick returns for free agents.
The AFL memo said the compensation formula was “NOT DESIGNED to fully compensate a club for the loss of a player”.
Instead, the league advised the picks were designed to “reflect the relative values of various players to one another” after eight or more years of service to one club.
The scene is set for tense talks between clubs as the Cats have no plans to give up any of their three first-round picks to GWS in a trade.
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Cats’ pair Esava Ratugolea and Brandan Parfitt are also off the trade table, their managers have confirmed.
In the AFL document, the league detailed the five bands which determine the compensation picks, based on the “age of player” and their “average guaranteed payments – base plus ASA (additional service agreements)”.
Players must be in the top-five per cent of earners for their age bracket to trigger first-round compensation.
Top 15 per cent of the pay scale triggers an end-of-first-round pick. Top 30 per cent is a second-round selection.
Top 50 per cent is an end-of-second-round pick. Top 70 per cent is third-round.