Data backs move to scrap ‘outdated’ A-League salary cap
A-LEAGUE transfer fees could skyrocket if the salary cap is scrapped according to global transfer data, with the controversial equalisation measure coming under the microscope. HAVE YOUR SAY
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A-LEAGUE transfer fees could skyrocket if the salary cap is scrapped according to global transfer data, with the controversial equalisation measure coming under the microscope.
Calls are growing louder for the ‘outdated’ cap to be removed, with industry experts saying clubs are handcuffed and players’ development hindered, exacerbating the gulf between Australia and the world.
Extraordinarily, keeper Zeljko Kalac’s $1.7 million move from Sydney United to Leicester City 23 years ago remains Australia’s outbound transfer record, when (Brazilian) Ronaldo’s $32 million move from PSV Eindhoven to Barcelona was the world record.
Global transfer fees have exploded since (Neymar’s $355 million move from Barcelona to PSG is no.1), rising 235 per cent from 2012-17 alone ($2.71 billion to $6.37 billion) according to FIFA transfer data.
Australian transfer fees slumped 35 per cent in the same period.
Only a handful of A-League transfers have exceeded the $1m mark, including Daniel Arzani, Daniel De Silva, Aaron Mooy, Rostyn Griffiths, Mitch Langerak and Mark Milligan.
The Sunday Herald Sun understands one of the “weaker” clubs supports the abolition of the cap, so long as the transfer ban between A-League clubs is lifted, believing it can create a new economy.
Most clubs support an “extensive review” of the cap, with a host of non-capped European leagues having greater competitive balance than the A-League.
Melbourne City, Melbourne Victory, Western Sydney and Sydney FC regularly spend $5 million-plus – well above the $3m cap, which Central Coast and Wellington generally hover around.
“In many ways, the cap disconnects Australia to world football – which can be incredibly damaging to clubs. They have not been able to build value through transfers and there is an arbitrary barrier to attracting and retaining the sort of local and international talent the A-League needs,” players’ union chief John Didulica said.
“Just because we started with the cap – for very sound reasons - doesn’t mean we blindly march on 15 years later. I think we all agree with that point, it’s just about building a system that will be fit for purpose as the league grows outwards and upwards.”
Leading agent John Grimaud has negotiated the moves of Mathew Leckie, Robbie Kruse, Langerak and Christian Theoharous abroad and believes that the instability is hurting Australian players.
“If there was no cap, clubs would try harder to keep younger and better players for longer, offering them better terms, which provides more contract stability,’’ Grimaud said.
“That should translate to higher transfer fees for the talents. Guys like Arzani would have been on longer deals. Too many players are being lost for training compensation (free transfers).
“From our experience, if you think going over for free is a great thing, think again - there’s no risk on the overseas clubs’ part. But if they had to pay $1-2m transfer fee and a good salary, the player is viewed as a more valuable commodity.
“If you go over with more value, you have more of a chance of success.”
A salary cap review meeting will take place on Tuesday between FFA, A-League clubs and the players and Sydney FC chief executive Danny Townsend said it must be reviewed but A-League fiscal sustainability remains paramount.
“We’re definitely open to exploring ways in which we can be more effective in its application and look at alternatives if there are for similar type of regulatory structure around pay,’’ Townsend said.
“We don’t want an unsustainable league. Owners aren’t going to keep pouring money in for the sake of it, football must be a sustainable business and ensure that the distribution of revenues is done in a fair and equitable manner.”
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