Changes To The Salary Cap = Sanctioned Cheating

[Mezzoculo]

Wait, what? Are we all against clubs having the opportunity to quickly rebound from a bottoming out period? I've read many, many comments here lamenting the fact that Carlton's next premiership window won't be for another decade or so. The raft of measures announced yesterday (which were PREPARED IN CONJUNCTION WITH CLUBS) are aimed at preventing 'dynasty' teams that occur in many other elite sports. I'm all for that.

Also, most of the article addresses the AFL's attempt to equalise 'non-player football department spending' which has increased ridiculously over the past decade or so. This is a good thing as it prevents big clubs from sidestepping the onfield salary cap via massive spending increases in coaching staff / equipment / medical treatment.

Suggesting the AFL just 'leave the game alone' ignores these relatively recent and club-initiated changes to the game.

 

[Wickzki]

I'll be completely shocked if the AFLPA don't come out and slam the move. Veteran players will see the end of their careers come sooner rather than later unless they're on a team in a premiership window or they're a highly regarded player (other teams want) because teams that aren't in a winning position will want to stock up on rookie listed players earning next to nothing in comparison.

Essentially this is a legalized form of tanking. Not in a premiership window? Bottom out and bust the cap a year or so down the line.

We're not in a premiership window right now. Seeya Waite, Judd, Carrazzo, McLean. Oh, Bryce and Chris, about your contracts, we'll back end that sucker for you. Pay you next to nothing next year. We'll sit at the absolute minimum a club has to spend on the cap next year. We want Traloar and Jeremy Cameron. We can bust the salary cap to do so considering how much less we paid our players for sucking it up in 2015.

Given how many players we're planning to clean out we're probably one of the best positioned teams for this rule change.

I can't even begin to imagine how much this rule will help Essendon rebound when half their team is suspended.

 

[Jabba73]

Opens up some new grey areas to be exploited because we obviously don't have enough already given Buddy is contracted until he qualifies for the pension at 70.

On the other hand, the banking system probably opens up free agency to more clubs at the lower end of the ladder as they can save the cash and use it to front load a contract if someone worthwhile is available. I will reserve judgment on this part.

Of more concern is the exemption of player development managers from the cap on footy department spending, there will be some dubious counting of personnel as player development managers or some highly paid job sharing arrangements in place soon.

Disagree with removing Veterans list payments as it rewarded teams who had players who were loyal to the club, now the only reward is the ability of players to test the market through free agency. If clubs have no incentive to have players reach long term goals at the club, the temptation for struggling clubs would be to off load (through trades) anyone they would be likely to lose once eligible for FA.

The tax amounts worked out are being discussed in another thread and seem to hurt the middle tier clubs the worst. The sooner we get away from the revenue draining games at Docklands the better. The Pies should pay a higher price for the fixturing free kicks they recieve every season such as extra Friday night games, Anzac day, MCG home games etc. if the AFL was truly serious about evening out the competition.

 

[Scodog10]

Opens up some new grey areas to be exploited because we obviously don't have enough already given Buddy is contracted until he qualifies for the pension at 70.

On the other hand, the banking system probably opens up free agency to more clubs at the lower end of the ladder as they can save the cash and use it to front load a contract if someone worthwhile is available. I will reserve judgment on this part.

Of more concern is the exemption of player development managers from the cap on footy department spending, there will be some dubious counting of personnel as player development managers or some highly paid job sharing arrangements in place soon.

Disagree with removing Veterans list payments as it rewarded teams who had players who were loyal to the club, now the only reward is the ability of players to test the market through free agency. If clubs have no incentive to have players reach long term goals at the club, the temptation for struggling clubs would be to off load (through trades) anyone they would be likely to lose once eligible for FA.

The tax amounts worked out are being discussed in another thread and seem to hurt the middle tier clubs the worst. The sooner we get away from the revenue draining games at Docklands the better. The Pies should pay a higher price for the fixturing free kicks they recieve every season such as extra Friday night games, Anzac day, MCG home games etc. if the AFL was truly serious about evening out the competition.

Of the 9 we receive in 2014 which do you have an issue with? I don't support return fixtures against both Carlton and Essendon, but all three clubs share that leg up...

 

[Jabba73]

Of the 9 we receive in 2014 which do you have an issue with? I don't support return fixtures against both Carlton and Essendon, but all three clubs share that leg up...

None, I also have no I issue with the other 5 away games you play at the MCG. Just pointing out that having 9 home games at the biggest and best stadium is very beneficial to your club when selling membership packages. Also the games you get on public holidays also advantages you more than the teams that are not scheduled to play on those days. I am simply stating facts.

If the AFL is truly wanting to even out the competition, they could look at this chicken/egg situation to determine if the favourable fixture is part of the reason you have more success with memberships than say North Melbourne. It is not simply a reflection of onfield success that memberships are higher for some clubs. If it is due to the extra benefits the AFL afford you through the draw, then it is not unreasonable to expect some return from their investment in your success.

 

[Taylor]

living in Shitney, earning 250k/year... even if you were paying rent of $1000/week, that still leaves you with 198k... a good tax lawyer will have all the schemes lined up so that the players pay a minimal tax rate anyway.

Here is the quick way of doing it. Incorporate yourself, get your salary paid to the corporate entity who pays you minimum salary/month (lets say 40-50k/year). At the end of the year, get your corporation to pay you a directors bonus of the remaining salary in the bank account. Boom... dont have to pay tax on 200k-210k.

After all, you are a contractor to the football club...

You do have to pay tax on the $200,000 to $210,000 "bonus". As far as the tax department is concerned you have earned $250,000 that year.

Even if you try and pay 30% corporate tax rate on the money before paying yourself a full franked dividend you still have to pay the top up tax up to the same figure because you earned $250,000 that year.

The way to do it is exactly as you said, but your girlfriend and your parents are also shareholders of your Footy Pty Ltd as trustee of Footy Dist Trust. Then you have four lots of $62,500, four lots of $18,300 tax free thresholds and a reduced tax liability.