AFL increases termination payouts in big win for under-fire coaching staff

New AFL chief executive Andrew Dillon is acting quickly, introducing a raft of improvements to the soft cap ahead of next season. See who benefits the most.

AFL increased payouts for sacked coaches.

The AFL has doubled the termination clause payouts for senior and assistant coaches to help provide some of the game’s most under-pressure figures more financial protection.

This masthead can reveal the league has agreed to increase the maximum payouts at AFL-funded clubs to 12 months for senior coaches and six months for assistants.

It guarantees senior coaches (whose contracts have been terminated early) a full year’s salary upon their departure as part of another welcome move from new chief executive Andrew Dillon.

The move will also increase the accountability for club boards to make considered decisions around extending and terminating coaches’ contracts.

Previously, senior coaches such as ex-St Kilda boss Brett Ratten and departed Gold Coast coach Stuart Dew were paid out a maximum of six months of their remaining contracts upon being sacked.

Stuart Dew was sacked halfway through 2023. Picture: Getty Images

Assistant and development coaches and lesser-paid football staff, who had maximum three-month termination clauses, were faced with even less security.

But Dillon has swiftly introduced a raft of improvements to the soft cap and coach contracts ahead of the new season following extensive talks with clubs and the AFL Coaches’ Association.

AFL CA chief executive Alistair Nicholson said the increased termination payouts would help provide a more suitable safety net for coaches upon their early exits from clubs.

“It puts minds more at ease considering the volatile nature of the profession and in particular for assistants and development coaches, the difference between three and six months (payout) is quite significant in the worst case scenario,” Nicholson said.

“It gives their families more breathing room and balance, so we think this helps the overall mindset of a profession which has had a pretty hard-fought few years.

“And then at a higher level for the senior coaches there is some scope to have some down time following an intense period, so there’s more protection there.

“But also it provides a little more accountability for boards in decisions they make when they jump into coaching appointments.”

Andrew Dillon has made some big changes in a short period as AFL CEO. Picture: Getty Images

Last month, this masthead revealed the league would allow senior coaches to be paid 20 per cent of their salary outside the soft cap, giving clubs scope to spend hundreds of thousands of dollars extra on their football departments.

Some relocation costs for coaches will also now fall outside the cap, while clubs will be penalised less in luxury tax for going over the soft cap.

A new underspend mechanism will also be introduced for next season allowing clubs who spend less than the soft cap limit to carry forward up to $100,000 to the next season.

The changes provide greater recognition, reward and support for AFL coaches whose pay was slashed amid a 37 per cent cut to the soft cap during COVID-19, leading to an increase in concerns regarding coaches’ mental health.

In particular, Western Bulldogs coach Luke Beveridge said the “wellbeing component” for coaches had become “a real struggle”, resulting in a “huge issue” behind the scenes.

But Nicholson warmly welcomed a decision from Dillon and new football boss Laura Kane to consider the coaches’ concerns and improve conditions in recent months.

“Momentum is moving with how we are prioritising the coaching profession and making it as attractive as possible because of the critical role they play,” Nicholson said.

“I think that will be important to continue in the coming years.”