‘Unsustainable ... and getting worse’: More belt-tightening on way for A-League clubs

The A-League’s “Swiss cheese” salary cap model is being revamped amid concerns over clubs spending beyond their means on players and the prospect of even smaller distributions from head office than this season’s all-time low of $530,000.

Clubs in the A-League Men will be barred from spending more than $3 million on players from 2026-27, with a series of concessions allowing homegrown, loyalty, designated players and other categories completely removed.

The only players whose wages will count outside the cap will be marquees - and each club will be permitted just one of those.

The changes will be phased in next season with a $3.5 million hard cap “trial” to give clubs time to adjust to the new edict from the Australian Professional Leagues.

After that, from season 2027-28, the A-League will move to a system in which clubs will only be able to spend a proportion of their revenue on players, with the finer details to be ironed out with the clubs and Professional Footballers Australia in the coming weeks and months. Clubs will also have to have their finances routinely assessed by the APL to prove they are not overspending.

The motivation for the overhaul is not competitive balance but the financial sustainability of clubs and what APL executive chairman Stephen Conroy described as the “arms race” for players. Melbourne Victory, the only club that publicly reveals its financial statements, reported a loss of nearly $10 million last season.

Former A-Leagues commissioner Nick Garcia (left) and executive chairman Stephen Conroy.Credit: Getty

“What we’re seeing is what we frankly think is an unsustainable trend, in terms of their performance, their profitability, their losses,” said Conroy, who took a more hands-on administrative role in February after the mysterious redeployment of commissioner Nick Garcia to a new position overseeing expansion and investment.

“The level of the financial stress the clubs are under is significant, and it’s getting worse. What we’ve got to do is work with the clubs through these measures to ensure that every club is stable. Behind the scenes, because of the data that we get, we are concerned.”

The APL’s announcement has not gone down well with Professional Footballers Australia, the players’ union, which released a statement on Wednesday evening outlining its opposition to what it described as “half-baked” changes.

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

Sydney FC marquee star Douglas Costa.Credit: Getty Images

“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. On the substance of the proposals, we do not believe the APL is on the right track.”

Conroy said that no club in the A-League this season was spending below $3 million on players, and that the average spend was “well in excess” of that figure.

Conroy was confident the restrictions would not affect the A-League’s on-field quality and would instead take further advantage of the competition’s successful turn towards youth development and transfer revenue. Regulations will also be introduced to mandate a minimum number of younger players in squads, which will force clubs to sign a minimum of six under-21 players by 2026-27 and continue to promote talent from their academies.

Clubs were forced to tighten their belts after the APL’s decision last year to drastically reduce central distributions to clubs by almost $1.5 million to $530,000 due to shortfalls in the A-League’s broadcast deal. That amount does not come close to even covering the salary cap floor of $2.25 million - the minimum clubs have to spend on players - which Conroy said would not be removed.

However, Conroy could not guarantee that distributions would not drop even further, something he said was contingent on the APL achieving its ambition of breaking even this season.

No changes will be made to the A-League Women salary cap.

The financial outlook of the APL and A-League clubs should improve once a new broadcast deal is inked, taking effect from the 2026-27 season, for which talks have begun. Sources familiar with negotiations, speaking to this masthead on the condition of anonymity, have flagged a likely short-term extension with Network 10 and Paramount+ on slightly more favourable terms, since ratings, attendances and general interest in the competition have improved this season, albeit off a low base.

PROFESSIONAL FOOTBALLERS AUSTRALIA STATEMENT

Professional Footballers Australia (PFA) has rejected the Australian Professional Leagues’ (APL) attempted regulatory reforms. 

Today, the APL released a series of purported changes to the employment framework of the A-League Men, which would take place over the next three seasons. 

The announcement occurred despite a binding Collective Bargaining Agreement (CBA) being in place until next season and negotiations over a new agreement set to commence in the coming weeks.  

“Simply put, the APL are unable to unilaterally impose these conditions on the players without their agreement, which has certainly not been provided,” PFA Chief Executive 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.

“The framework beyond next season will be negotiated as part of a future CBA. Today’s announcement is simply the APL negotiating with themselves. As always, the employment conditions of players will be the product of proper, good faith bargaining; not unilateral decision making.   

“On the substance of the proposals, 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, restricting the league’s capacity to access millions of dollars of Asian Football Confederation (AFC) prize money and World Cup Club Benefits. They would weaken the product during a broadcast renegotiation and at a time when the league is desperate to attract fans.  

“Finally, the announcement speaks again to the APL’s flawed governance model. Club directors are always likely to find themselves conflicted between their club’s short-term interests, and the game’s long-term, strategic needs. Because of previous decisions taken by APL, the league has a revenue problem.  

“The players have always been reasonable negotiating partners, however they will not accept half-baked cost-cutting solutions while the same governance structure which got us here remains in place.”   

Conroy was hopeful of competitive tension, involving possible interest from ESPN, new Foxtel owners DAZN and Optus Sport, but was realistic about their prospects of a bumper deal given other sports rights are also on the market, including the NRL “gorilla” and Formula 1.

Meanwhile, Conroy all but guaranteed that Canberra United would continue in the A-League Women next season but confirmed a men’s team from the capital would not be introduced until 2026-27 at the earliest, although encouraging discussions are continuing with two interested investment parties.

“If we were able to add a Canberra franchise, giving us an even number of teams, 14 … that’s a strong place to be,” he said.

Conroy also said there were no concerns about the viability of any of the existing clubs, including Western United, which was reportedly the subject of a wind-up order over unpaid bills.