Players reject A-League salary cap reforms designed to lessen ‘financial stress’ on clubs

The A-League and its players are set to clash over salary cap reforms announced on Wednesday.

A-League distribution fees may fall even further next season, while salary cap reforms – already rejected by players – are looming to ensure the survival of clubs suffering “significant financial stress”.

Australian Professional Leagues boss Stephen Conroy announced on Wednesday that the A-League’s current salary cap model – which includes a $2.55m “soft cap” and concessional categories including designated players, and homegrown and loyalty allowances – was “no longer working” in terms of its original purpose to “embed financial guardrails” and provide “competitive balance”

A “hard cap” of $3 million, plus one marquee player concession, will be introduced in the 2026-27 season.

To prepare for the change, clubs will next season operate under a hard cap trial of $3.5 million but still have to comply with the current salary cap system and existing

exemptions.

The existing minimum amount that clubs are required to spend on players – $2.25 million – won’t change.

pic.twitter.com/FaTjnZ7Y70

— Isuzu UTE A-League (@aleaguemen) April 16, 2025

However, Professional Footballers Australia on Wednesday night rejected the reforms, saying a binding Collective Bargaining Agreement was already in place for next season.

“The APL are unable to unilaterally impose these conditions on the players without their agreement, which has certainly not been provided,” PFA chief executive officer Beau Busch said.

“There is a CBA in place for next season. Any changes would have to be agreed with the players, and until today, they haven’t even been discussed.”

“We do not believe the APL is on the right track. The changes as described would limit the ability of leading clubs to attract and retain top talent.”

However, Conroy said there was an “unsustainable trend” in terms of clubs’ performances, profitability and financial losses.

“The level of the financial stress the clubs are under is significant, and it’s getting worse,” Conroy said.

The APL also remains under financial duress, meaning that distribution fees to clubs, which this season dropped from $2 million to an all-time low of $530,000, will at best remain the same next season and could drop if the organisation fails to achieve its “break even” target.

The PFA has rejected the Australian Professional Leagues’ attempted regulatory reforms.

Full statement: https://t.co/5e2eqo6VEP#SupportingThePlayers#BuildingTheGamepic.twitter.com/PTRBLYl2iw

— Professional Footballers Australia (@thepfa) April 16, 2025

“We’ve reached a point where we’re rebuilding our finances,” Conroy said.

“Our ambition was to break even this year. We are on target to meet that at the moment, (but) we’ve still got three months ago, so I’m not getting ahead of myself.”

As part of future competition reforms, a new model is set to be introduced in the 2027-28 season that will limit club spending based on revenues.

“The implementation of these reforms over the coming years is designed to ensure a competitive balance and to build long-term foundations for growth that helps unlock the full revenue potential of each club,” Conroy said.

“The APL board firmly believe this is the model for long-term success, giving clubs

time to assess and plan before a new model is agreed to for season 2027-28 based on

global best practice, that can deliver greater outcomes for talent development and a

better football product.”

Conroy has been the APL’s executive chairman since February when Nick Garcia was relieved of his role as A-League commissioner.

It was announced on Wednesday that Garcia was now the APL’s chief expansion and investment officer.

Originally published as Players reject A-League salary cap reforms designed to lessen ‘financial stress’ on clubs