A-League news: FFA set for stand-off with players over cap cuts as players’ union weighs into dispute
The A-League salary cap remains on shaky ground with the football players’ union nonplussed at the current model and a stand-off looming over whether it should go altogether.
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The A-League salary cap is not only failing in its stated aims but also “directly contributing to a raft of negative unintended consequences”, according to football’s players’ union, who will this week step up a campaign to see it reformed.
Discussions over the cap will be a key flash point when the PFA and clubs pick up discussions over a new Collective Bargaining Agreement. It is understood the players will push hard for it to be abolished.
As revealed last week, it is feared that the stand-off, and the looming slashing of the game’s salary cap for next season, could result in an exodus of the league’s biggest names.
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And that could be leveraged into calls for the end of the $3.2 million salary cap altogether.
It is a position which has been raised previously by the players union, who argue it does little to promote competitive balance nor the financial sustainability of clubs.
And with the league facing a critical juncture, players believe the time to act is now.
“The restraints imposed by the salary cap means that its ongoing operation requires continual agreement from the players and this agreement has always been highly conditional,” Professional Footballers’ Association co-CEO Beau Busch told News Corp.
“The players’ position is clear; the current model requires significant reform.
“In its current form, the salary cap is not achieving its stated objectives and is directly contributing to a raft of negative unintended consequences such as extreme player churn and fan disengagement.”
Last month, FFA CEO James Johnson revealed the 11 principles upon which it was hoped Australian football could build and grow from — with one being establishing a domestic transfer system, which could reward clubs for developing and producing talent.
However the PFA believes this would not be feasible while continuing to operate under a restrictive salary cap.
“Attempts to introduce a domestic transfer system, while continuing to operate a salary cap, would be hugely problematic and is likely only to result in the further erosion of competitive balance and financial viability,” Busch added.
“The extreme churn caused by the salary cap results in there being no market for players, which has been evidenced by the introduction of loans in the A-League and their lack of take-up.”
When the COVID-19 shutdown hit earlier this year, the financial instability of clubs were laid bare — with teams unable to cope without standing down players and slashing costs across the board.
Critics of the salary cap point to the disparity in on-field results as proof that it isn’t working, with the powerful, wealthy clubs remaining atop the ladder in recent years, while those run on a tighter budget consistently bringing up the rear.
Sydney FC have won two of the past three championships and, having notched a record fourth Premier’s Plate last month, are warm favourites to add a fifth grand final win this season.
By contrast, last-placed Central Coast Mariners seem destined to add a fourth wooden spoon from the past six seasons.
FFA were contacted for comment.
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A-LEAGUE EXODUS FEARED OVER LOOMING CAP CUT
Players are headed for a huge stand-off with Football Federation Australia over an expected slashing of next season’s A-League salary cap, a move which could trigger a star-studded exodus.
Some of the competition’s biggest names could revolt if next year’s contracts are drastically reduced, opening the door to demands for the right to leave immediately given the materially changed nature of their deals.
The situation carries echoes of that experienced recently by the NBL, where dual MVP Bryce Cotton as well as fellow high-profile stars Casper Ware and Xavier Cooks were among those to take up the option to walk out on deals after being asked to take COVID-19-related cuts.
A mass clear-out of talent would be the worst-case scenario for Australian football ahead of a critical season for the A-League, which is entering the last year of its broadcast agreement with Fox Sports.
“Attracting and retaining talent is crucial to our professional leagues and will be critical as we tackle our collective challenge of rebuilding the sport,” Professional Footballers Australia CEO Beau Busch told News Corp.
“As evidenced since the resumption of the A-League, the on-field quality remains incredibly high, so efforts to preserve and enhance this must sit at the heart of any recovery plan.”
The renegotiated broadcast deal, inked in June in a move which saved the ongoing 2019-20 A-League season, is worth $32 million for next season – down from the $57.6m per year under the previous arrangement.
That significant revenue reduction, coupled with the financial disasters associated with the COVID-19 shutdown and related diminished crowds, leaves the A-League and its clubs in a worrying position and is why a shrinking salary cap is firmly on the agenda.
But it’s understood the players are unwilling to accept further cuts, having already agreed to enormous concessions to continue this season – believed to be as little as 17 per cent of their contracts, plus the Government’s JobKeeper payments.
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Of added concern for players on multi-year deals is that the current collective bargaining agreement, renegotiated in the wake of the COVID-19 shutdown in order to complete the 2019-20 season to run through until August 30, could prevent them from seeking lucrative moves to overseas clubs.
Should players be asked to take pay cuts for next season, they would effectively be given the opportunity to end their contracts – but not until September 1.
And with the transfer window for most of Europe already open, clubs are already on the hunt for talent which leaves A-League players left in the lurch.
The European window is nominally set to close on October 5, however FIFA has flagged an option to extend windows where necessary – or have additional windows to allow more player transfers, given the extreme circumstances.
Negotiations between the clubs and the players’ union opened this week on a new CBA.
FFA were contacted for comment.
Originally published as A-League news: FFA set for stand-off with players over cap cuts as players’ union weighs into dispute