AFLPA signs new Total Player Payments deal

3 Aug 2006 - Jason Murnane

AFLPA Chief Executive Brendon Gale welcomed the Heads of Agreement, declaring the deal recognised the contribution players make to the game as well delivering security and stability for players and the football industry alike. 

The key elements of the Heads of Agreement include:

• Five year agreement on player payments and related benefits through to 2011.
• Increases in the competition-wide Total Player Payments (TPP) of 7.3 % in 2007 and 7.0% in 2008, followed by 3.5%, 3.3% and 3.3% increases in the years 2009-2011, resulting in an overall increase in the salary cap of approximately 25% over the five years. 
• Increase in the minimum wage and prescribed payments for first and second year players of 10% in 2007;
• Increase in minimum rookie payment of approximately 15% in 2007;
• $35 million contribution to the AFLPA Player Retirement Account over the term of the agreement. 
• $25 million to support all players with personal services, education and training opportunities and other related health and welfare initiatives over the term of the agreement. 
• AFLPA to provide private health insurance to all members of the AFLPA, and for 12 months following retirement or delistment.
• Introduction of more than $1 million in prizemoney to be shared by Players representing teams participating in the AFL Finals Series each year. 
• Allocation of approximately $2 million to a Past Player Health and Well Being Fund, for past players experiencing health related hardship.
• A revenue sharing arrangement that will enable AFL Players to share in AFL net revenues in excess of AFL financial forecasts.

For the five-year period 2007-2011, league wide TPP amounts will total $612.3 million, with a further $117.4 million to be paid to players via Additional Services Agreements and Allowances; Player Retirement Funds ($35 million) AFLPA Player Development and Welfare Funds ($25.4 million), Premiership Prizemoney ($5.5 million) and Player Marketing Payments ($1 million).
 

The TPP figures for the coming seasons are as follows:

2007 - $111.1 million ($6,943,750 per club)
2008 - $118.9 million ($7,431,250 per club)
2009 - $123.3 million ($7,706,250 per club)
2010 - $127.4 million ($7,962,500 per club)
2011 - $131.6 million ($8,225,000 per club)

Brendon Gale said that whilst negotiations between the AFLPA and the AFL had at times been challenging over the four months of negotiations, both 'sides' were committed to ensuring AFL football continues to grow, recognizing and offering opportunity to all stakeholders, including players, fans and clubs.  

Mr Gale said that the financial benefits secured for players over the next five years reflect the value they provide to the competition.

"Importantly, this package of financially - related benefits delivers value to the champions of the game, the ever reliable "foot soldiers", as well as those who are just starting out," he said.

"We believe that the level of increases in salary cap amounts combined with a range of funding and other benefits to be provided to players during and after their careers represents an appealing and responsible approach to delivering player payments in the current competitive sporting marketplace.

"The players have given us a clear direction that preparation for life after football is very important, and we are pleased to secure improved retirement funding and support services to benefit every listed player.

"Rookie players in particular will benefit from higher minimum salaries as well as increased retirement fund contributions in recognition of the important contribution they now make to the AFL competition.

"We are also particularly pleased to finally secure an arrangement whereby players will share in any improved financial performance of the competition as a key stakeholder group which contributes to the growth of the game.

"The AFLPA now looks forward to working with the AFL to resolve a number of remaining aspects of the CBA which we consider to be very important to securing the interests of players in the long term," Mr Gale said.

Negotiations to finalise the terms of a range of other matters to be contained in a new five-year CBA are continuing, however the parties agreed to record and announce their agreement on player payments to provide certainty for AFL Clubs and Players.

New levels of payments for first year players & rookie players, along with bonus payments for matches played.

	2007 First Year Player  Draft Choice  Base $  Match $  1st Round  50,200  2,400  2nd Round  45,500  2,400  3rd Round & subsequent rounds  43,200  2,400

	First Year Games Bonus   Matches Played in season 2007  Nil Games  1 to 5 games  6 to 10 games  11 plus games  Maximum bonus  Nil  2,300  2,300  2,300  6,900  Nil  2,300  2,300  2,300  6,900  Nil  2,300  2,300  2,300  6,900

	MINIMUM PAYMENTS          2007 Base $  Match $  Rookie Players  30,000   Nil Long Term Injury Replacement (pro rata 3rd Nat Draft 1st year Player)  43,200  2,400  Other Players  56,700  2,400