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Salary cap and list management problems - Good luck Walshy!

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Sep 25, 2005
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Collingwood
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Gippy Power
Noticing a lot of talk about the number (and moreover quality) of players at CFC being out of contract and the implications and challenges we have in keeping them. Its all good and well to have a discussion about list management and who stays and goes but its a very difficult discussion to have without assessing the state of our salary cap and the players out of contract. So I decided to have a play around with the #’s and put some hypothetical #s against them. Obviously I don’t have exact data so lets not take this as anymore than a discussion point and as a means of highlighting some of the complexities Pert and Walsh face in getting this done. If they can do it then as much as Hine is a genius then so to will these two blokes.

Total Player Payment Rules

.........so I went and did some work on what the TPP (Total Player Payments) are, the increases, the rules, the ASA, rookie and vets rules etc. I then applied the TPP (and ASA payments, rookie payments etc) to our list so I could get a sense of what how where we likely sit vs our salary cap in a world where we kept everyone. Now i readily admit its difficult to do that for a variety of reasons (eg back ending contracts etc) and hence I tried to make allowances for it (eg Ball and Jolly in fact I assumed they were very heavily front loaded). I wont share the table because I want any discussion to be broader than focussing on individual players and debating whether or not they are worth what we think they are worth. The upshot is we have about $9.85m to play with with a circa 5% increase in 2013 and then 3% beyond that.

TPP

My sense is that if you were to keep all the players you wanted to our salary cap would be over by about 10% or close to $500k - 1m. If I am anywhere near that then Pert and Walsh have a very big job on their hands and I suspect some ‘hard calls’ in front of them. Importantly, that’s not a number that can be fixed by just delisting 3-4 junior players and nor it is a problem that can be resolved by back-ending a whole bunch of contracts because the TPP only increases by 3% in the years after next. To my way of thinking I suspect the only way to solve is to convince a significant number of players they will need to take a collective discount to stay together. Based on what I am seeing that would have to be 10% of what others might throw at them. (eg Cloke accepts $850k pa instead of the $1m someone else will). Sounds relatively easy but for a guy like Cloke that is a big ask as he is about to embark on probably his most important contract. And even if everyone took a 10% haircut its on the basis some of the older guys out of contract have significantly reduced ones as Bally already has.

The Players needing upgrades

Travis Cloke – Many would say he is our biggest issue but I am not so sure. Pies will do everything to keep him and I am not concerned he will go. If required Collingwood will let others go in order to match any offer. The biggest I think is who will it squeeze out. Reid or Sidebottom? Anyway, Cloke would be on circa $400-450k today and be needing at least $850 - 900k I would have thought. Unfortunately for CFC, Mr Cloke seems to be keen to shop his son around and put the sword to the Pies on more money than Collingwood probably have to play with. What it does though is create a massive headache for the CFC because it undoubtedly means that one or two big names will have to go if thats where it gets to. I suspect the difficulty for them is they already have guys like Daisy and Pendles etc participating in the ASA so other clubs can probably offer trav more in that area and thereby have a considerably better offer. Anyway $900k gets him done and we move on.....

Scott pendlebury – Already committed but he would have gone from $600k or so to something around the $750k mark.

Ben Reid – I think he is the big issue and am pretty sure GWS have targetted this kid instead of Cloke etc. Why not? Young, tall, athletic and already an AA and GF player.......As far as I am hearing the game was always to bid the others up and hit Reid and a number of 600k is in the offing. There is no doubt in my mind he would be ranked from a list mgmt perspective in the top 4-5 at CFC so would be asking for $450-500k a year. I doubt he is on anywhere near that at the moment given 2010 was his breakout year so there is a considerable increase coming there and I would think the GWS guys are able to offer a bit more than that notwithstanding they have some salary cap issues of their own looming.

Steele Sidebottom – Steele would not have been on much more than 200k this year and I would think that he is in the top 7-8 players on their list and moreover is an A grade midfielder now Would have to be looking at offers from rivals starting with a ‘5’ in front of it so would think somewhere around $400-450k will be somewhere near the number required.
Dayne Beams – Very similar to Steele I would have thought. Not sure that the Suns have the cash but the Lions certainly would have some money to lure him home. Lions aren’t an attractive proposition though so would be staggered to see him leave and has said he is very keen to stay. I would think he would still need $400k though.

Sharrod Wellingham - He will be another that I would think will be needing a reasonable upgrade. I would think he is on about $200k and no doubt could command a number around $350-400k. His best footy is in front of him and reportedly keen to stay so wont be playing the 'mercenary' card (unlike others) I would think. Club have been good to Sharrod as well and would like to think he realises the importance of that structure to him.

Harry O’Brien - I struggled a bit with Harry. Couldn’t see him leaving but again I struggle with how much they can afford to pay him. I would think he is on around $250-300k and suspect that will need an upgrade of some sort but lets say he would need to be around $350k.

Andrew Krakouer - He is a really interesting one. Word is he was on something around 80k and if he had gone well again this year could have expected it to be doubled. Be interesting to see what his expectations are and the club's ability and willingness to pay much more are. Personally I would like them to keep him because we are in a premiership window, the kids coming through in that spot are still a bit raw and he is a proven finals player. Suspect a number around mid 100’s is about right.

Lachlan Keefe – I am not sure if Lach is in or out of contract but if he is out of contract he will be wanting much more. He would be on $80k or so and reasonably expect $150k given the sorts of offers others will throw at him. Clubs like the Lions who are cashed up could provide him a decent front end loaded contract and get him up there to release Merrett etc. Sydney would be another club that could do with him as would the Hawks etc.

Alex Fasolo – His 2 year contract will be up and he could reasonably expect to go from $75k to $150k. Kid is a talent and has played a lot of senior footy at such a young age.

Tyson Goldsack – Is up for renewal and widely regarded as a player who if had been at most other clubs would have played a lot more senior footy. Seems to love the club though and tight with Cloke etc so should stay but I think he will want more money. Wont be huge but club would do well to accommodate him. Suspect would need mid 200’s.

Brent MacAffer – Not sure but I think he signed on for 1 more year. I suspect it will for circa $150k or so and the club would be keen to retain on the same terms for next year. I think they realised in the 2010 GF how important his strong body was around the fwd stoppages / contests and how we missed him in the 2011 GF. He is an important player for mine and we should aim to keep him but he could be vunerable.

Chris Tarrant – Suspect Tazz will need to be resigned but I wouldn’t worry as happy to play for little and wont expect any more.

Luke Ball – I think he I have read he is playing for not much over the next year or two after having a pretty significant contract up front.
And that is to say nothing of the players coming off contract after 2 years of being on their ‘base’ draftee salary which usually varies from $65-100k depending on where they were drafted etc. FWIW I assumed a base rate of $65k for most of them as none were Rd 1 draftees. So Ceglar, Ugle, Young, Buckley could also have their handout. None of them really impact the ‘dial’ so no point stressing about them to much but lets say between $85-100k for each of them.

The Size of the problem

I came to a view that based on the above and where I thought others were at (eg Assumed Ball and Jolly were front loaded contracts) that we were circa $750k in the deficit. Thats what the club will need to find to get to their numbers. Again remember they can front and back load contract and in fact next year the salary cap goes up by $500k so there is some room to move with Clokes contract etc but notwithstanding Pert and Walsh have some work ahead of them and we should all be pretty mindful of it.

The Sacred Ones

Times are good at Collingwood and they have a premiership window for many years to come. Key to that though is keeping Swan, Pendlebury, Thomas, Wellingham, Sidebottom and Beams as the core midfield group along with Cloke, Brown, Reid, Witts as your talls and Shaw, Fasolo, Obrien as your defender and mid fwd types. Everyone else would have to be discussed I would think and the club would have to be prepared to deal on if they had to.

What ‘might’ happen

Ben Johnson - I dont think it looks great for Ben. From my assessment at least one big name would have to go and he would have to be on circa 350k I would think. The body is failing BJ and he has acknowledged himself that if we won a GF this year he would be out. I think Ben will certainly be on his way unfortuantely. As an aside, dont reckon I've seen a player improve his foot skills as much as he did.

Cameron Wood – Been in the system a long time and still not there in my view. In saying that, would be a big risk to take in Jolly to 2012 and then only have Witts and Ceglar – particularly given we are in a premiership window so I could see them persisting with him but probably on $150k and I think he could probably be replaced with a rookie listed experienced ruckmen for considerably less.

Simon Buckley – If he is on anymore than $100k and is out of contract then I would think Simon is probably likely to go unless something significant changes in his performance level. A low base and match payments might be the answer for him.

Luke Rounds – I think he will be gone but it wont be a huge saving.

In Summary

The optimist in me says that they can probably get there as my table using the above sort of #’s gets us to about a $250k deficit for next year but I assume that could be sorted out with front and back ending various contracts. The problem with the front and back ending is it causes a problem for the blokes needing to be resigned in 2013. For example Didak, Dawes but also the younger ones who could be making a big impression by then. Alternatively, it might also mean a tough call on Krakouer or Caf or someone like Jolly retiring ahead of schedule.

What I do know is that if we can get them all signed up then Walsh and Pert would have done an amazing job. Good luck fella’s.....
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Just a quick thought, when I hear a lot of these discussions, it sounds like many people think we're sooooo close to bursting on the cap, as if we're paying players from scratch.

We're paying players from an existing base, and we have NO idea how close to our cap we are. I don't think the club has ever revealed it, and no journo has bothered to guess.

Just because people ASSUME we're at capacity, doesn't mean we are.

The most recent rumour suggested Cloke was only on 450K per year as soon as 2 years ago. In that time, he had won our leading goal kicker and best and fairest before the negotiation was done and would have been considered in our top bracket.

Now, if Cloke was in our Top 3-5 highest paid 2 years ago, that means our highest paid wouldn't have been much higher than 550-600K, which would have been Swan.

Given Davis and Brown are now gone, space has freed up, but if those numbers are even CLOSE to correct, then we are nowhere near our cap and have been hoarding our cap space for what is happening right now as well as the future. It's why we were able to sign up Pendles, Swan and Thomas so easily.

We have more cap sapce than is being rumoured. I can assure you.

People just logically assume that we're bursting at the seams because we won a flag. Remember, most of these players were already on contracts when we won the flag and not many have had to renegotiate until now or LAST year, which means that during 2011, we had a TONNE of cap space, which means we still have some given we've only signed up and handful of important players.

The more and more I think about it, the more I reckon we'll keep everyone that matters.

We could have let go of Toovey to keep Davis, ditto with Macaffer, but we kept them both. We could let go of Sharrod in order to keep Cloke but we're about to sign him up.

We wouldn't be doing that if we didn't have the cap space to do so. Our club isn't run by monkeys.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Relax. We will sign everyone and chase some more. We won't tart ourselves in the chase though. If we don't get anyone we will wait.

In the long run free agency will force poorly performed clubs to keep match payments up to keep players and allow amitious players to look seriously at well run clubs. I wish we were in this environment at the end of 2002.
 

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We could have let go of Toovey to keep Davis, ditto with Macaffer, but we kept them both. We could let go of Sharrod in order to keep Cloke but we're about to sign him up.
But we told MacAffer there was no contract for him until after Davis had decided to return to WA. That would suggest to most that we are butting our heads against the cap limit.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Just because people ASSUME we're at capacity, doesn't mean we are.

Pretty sure we are. I like your optimism but everything coming out of the club suggests that theres a real squeeze going on, Davis left because we couldn't spare 100k for him. We need to put Swan, Pendlebury and Cloke all on 700k a year or more, thats a massive slice. I think you're way overestimating what some of the players who have left were on, losing Brown and Macaffer hardly opens up any space at all, while the contract Pendlebury signed earlier in the year probably eats all that up plus more.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Eade said on 360 the other night that we are right at our cap limit. Make of that what you will.

Of course he'd say that.

They're not going to tell the players we have tonnes of space.

I'm just saying we have more space than we're being led to believe, but we're also very strategically spending it where it's required.

I'm not trying to say we have tonnes of it either, but the club has to think 5-10 years down thwe track when it comes to money, it can't just think of now, and I think they're going to leave themselves with an 'out' when it comes to cap space.

The only way we'd be truly at the brink of the cap is if we're paying our bottom tier players overs.

Because the Top tier isn't on as much as they should be if Cloke was 400-450K only 2 seasons ago, and most likely is on that right now.

When your highest paid player is on 700-750K and you only have less than a handful of players anywhere near that amount, you can't be bursting at the seams. You just can't.

We would have offered Davis a pay cut because Bucks didn't think it was worth paying Davis those sorts of dollars for a player with one year left, when we were paying Cloke only 100K more than that.

You telling me Travis is worth only 100K more than Leon (not asking you specifically, but in general)?
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

When your highest paid player is on 700-750K and you only have less than a handful of players anywhere near that amount, you can't be bursting at the seams. You just can't.

You absolutely can. Particularly when you have 4 players on that or demanding that. You're way overestimating how much space there is. It's a zero sum game, for every dollar one player gets it's necessarily comes out of the pay of another player. Do the numbers, assume that Cloke, Pendlebury, Thomas and Swans combined pay comes out at an average of around 650k. Thats 2.6 million. 26% of a 10 million cap for 4 players when you have 40 on the list.

You're forgetting about a sizable mid level group including Shaw, Reid, Dawes, Sidebottom, Beams, Wellingham, O'Brien among others who are on non-negligable pay and will most likely be looking for more in the next few years, particularly Beams, Reid and Sidebottom.

The is stretched to the limit, it's pretty much obvious. I think Pert and Walsh will be up to the task but I think any fantasies about us having a secret stash of cap space with the players we need to retain is just that, fantasy.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Ben Reid – I think he is the big issue and am pretty sure GWS have targetted this kid instead of Cloke etc. Why not? Young, tall, athletic and already an AA and GF player.......As far as I am hearing the game was always to bid the others up and hit Reid and a number of 600k is in the offing. There is no doubt in my mind he would be ranked from a list mgmt perspective in the top 4-5 at CFC so would be asking for $450-500k a year. I doubt he is on anywhere near that at the moment given 2010 was his breakout year so there is a considerable increase coming there and I would think the GWS guys are able to offer a bit more than that notwithstanding they have some salary cap issues of their own looming.

So you are saying Reid is the most likely to Leave to GWS?
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

If Reid was pinched, at least we'd have a cheap back-up in Keeffe. Don't want that to happen, but good to know we have some back up.

Thinking more laterally, I think the club could profit from trying to set up players in lucrative post football careers. Need to expand player welfare role into a swanky CES.
 

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Re: Salary cap and list mgmt problems - Good luck Walshy!

LOL Keep dreamin

Well, a bit more luck would have netted us at least 2 more.

2002 - Jason Cloke isn't suspended (ridiculous suspension, highlighted more so by Barry Hall getting off in 05), Umps get a few calls right on the day and we win

2007 - Prelim goes for another minute or 2 and we sneak in to then pump a shitty Port Adelaide and win

That's just with a stroke of luck.

Throw in Free Agency and the players we potentially could have scored without having to trade and it's a completely better side playing off in those Grand Finals.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Given the vets list, retirements, delistings etc, I still think that should be enough.

Hasn't the limit gone up past 10 in the new EB?

Those are the figures for the 2010 season so the extra high payment is because of the GF replay. Given the retirements we had we probably saved $1-1.5 million plus the $600,000 boost from the new EB. The salary cap is set at $9.3 million this year

So last year we signed up Pendles, Thomas, Swan and Dawes on contracts which eats at least $1 million out of that. In a best case scenario that see's us needing to spread a further $1.1 million onto the already existing contracts that Snoop mentioned. With Cloke probably taking a quarter of that himself things will be very tight!!

TBH Spice I have no idea how he got those figures. All I can say is if they're accurate he's done well.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Just a quick thought, when I hear a lot of these discussions, it sounds like many people think we're sooooo close to bursting on the cap, as if we're paying players from scratch.

We're paying players from an existing base, and we have NO idea how close to our cap we are. I don't think the club has ever revealed it, and no journo has bothered to guess.

Just because people ASSUME we're at capacity, doesn't mean we are.

The most recent rumour suggested Cloke was only on 450K per year as soon as 2 years ago. In that time, he had won our leading goal kicker and best and fairest before the negotiation was done and would have been considered in our top bracket.

Now, if Cloke was in our Top 3-5 highest paid 2 years ago, that means our highest paid wouldn't have been much higher than 550-600K, which would have been Swan.

Given Davis and Brown are now gone, space has freed up, but if those numbers are even CLOSE to correct, then we are nowhere near our cap and have been hoarding our cap space for what is happening right now as well as the future. It's why we were able to sign up Pendles, Swan and Thomas so easily.

We have more cap sapce than is being rumoured. I can assure you.

People just logically assume that we're bursting at the seams because we won a flag. Remember, most of these players were already on contracts when we won the flag and not many have had to renegotiate until now or LAST year, which means that during 2011, we had a TONNE of cap space, which means we still have some given we've only signed up and handful of important players.

The more and more I think about it, the more I reckon we'll keep everyone that matters.

We could have let go of Toovey to keep Davis, ditto with Macaffer, but we kept them both. We could let go of Sharrod in order to keep Cloke but we're about to sign him up.

We wouldn't be doing that if we didn't have the cap space to do so. Our club isn't run by monkeys.

i think its pretty clear we were close to our cap;

- Had to let Davis go
- Even then could barely scrounge the money for Tooves
- Almost lost Caf
- Ball took a huge pay cut
- Club couldnt afford to pay tazz much more than $100k

think its a reasonable assumption to suggest we were pretty close to the cap.
 

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Re: Salary cap and list mgmt problems - Good luck Walshy!

If Reid was pinched, at least we'd have a cheap back-up in Keeffe. Don't want that to happen, but good to know we have some back up.

Thinking more laterally, I think the club could profit from trying to set up players in lucrative post football careers. Need to expand player welfare role into a swanky CES.

we need to get them a job at the HSU;)
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Well, a bit more luck would have netted us at least 2 more.

2002 - Jason Cloke isn't suspended (ridiculous suspension, highlighted more so by Barry Hall getting off in 05), Umps get a few calls right on the day and we win

2007 - Prelim goes for another minute or 2 and we sneak in to then pump a shitty Port Adelaide and win

That's just with a stroke of luck.

Throw in Free Agency and the players we potentially could have scored without having to trade and it's a completely better side playing off in those Grand Finals.

now that I do agree with.

You can add in for '02 they were spending 15% more than us as well.....Storm could have done with hand out!

What ranckles me with the salary cap is there is no relief for players who are home grown. None of our stars are players we have pulled from other clubs and that should be taken into consideration and some sort of additional benefit applied. Doesnt need to be huge.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Thinking more laterally, I think the club could profit from trying to set up players in lucrative post football careers. Need to expand player welfare role into a swanky CES.

I think that might be one of our greatest assets. Players taking a hit in their salaries now to be looked after later which it seems is already happening.
 
You can add in for '02 they were spending 15% more than us as well.....Storm could have done with hand out!
And to top it off they ended Caracella's career. One of two players I can remember leaving them (along with Headland).
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

Our greatest asset is foresight and the exit of 7 200 game players and front loading into the cap space opened up. Nearly all players stay at their original club for less money let alone when the original club is well run and competing for oremierships. The Abletts of the world are the execption and that exception was seemingly aided by the issues with the coach. The other players that jumped ship to GC all had issues with their club. The GWS poachings were younger players and from clubs without bright outlooks. Davis may well regret his decision, the rest won't.
 
Re: Salary cap and list mgmt problems - Good luck Walshy!

We're always paying close to limit aren't we ? Don't we have to pay about 90 something percent no matter what ?
 

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Salary cap and list management problems - Good luck Walshy!

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