Essendon trade moves and the secret 'COLA'-style payments people still don't understand

[Sydney Blue]

Imagine supporting a club that has a good chance of winning a grand final and starting a thread about insurance.

Thread title includes the words "payments that people still don't understand" and "Essendon trade moves"

What the hell is “insurance compensation”?

Replace the word "compensation" with "money". In this case, insurance compensation is the insurance settlement - money paid to Essendon players outside the salary cap, under the Essendon Football Club's insurance policy

what's not to understand?

Seems there are many that still don't understand, or maybe some just like to muddy the waters.

So perhaps another scenario (merely to illustrate how the salary cap is compromised).

• Hawthorn President publicly slanders Mitchell, O'Meara and Sicily
• Mitchell, O'Meara and Sicily sue Hawthorn Football Club for defamation
• Hawthorn Football Club's Insurance company has to settle claims against Hawthorn Football Club
• Negotiated settlement provides $2 million each for Mitchell, O'Meara and Sicily - outside the salary cap
• Within a month Mitchell, O'Meara and Sicily negotiate extended contracts with the club - inside the salary cap

Negotiated insurance settlement and negotiated playing contract can easily be related. Then more money is available within the salary cap for trading in talent.

Heppell, Hooker and the other Essendon players were paid large sums under the Essendon Football Club's insurance policy, and outside the salary cap. Now Essendon to have a lot of extra cash to outbid others and trade in additional talent.

Returning to my point : Insurance compensation paid to players who continued at the Essendon Football Club surely should have been included in the cap. To do otherwise has given Essendon a huge advantage during trade period for the next few years.

 

[Knox Harrington]

Hurley, Hooker, Heppell, Bellchambers, Myers, Colyer.

Not exactly a huge chunk of the list these days. Hurley and Hooker both had big offers from rival clubs. Assuming any level of decency left at the AFL would mean they'd have to be counting pretty heavily against the Essendon salary cap. Same goes for Heppell as captain. Bellcho as a decent starting ruck wouldn't break the bank and the other 2 wouldn't either.

I see Stringer, Saad and Dev Smith replacing the money Carlisle, Melksham and Hibberd would've taken up.

They've pushed Goddard to open up space for Shiel or other targets.

And in general their list is pretty young and untested and not overly deep. They should have space. North's list isn't much different and they're splashing the cash.

Now the number 1 pick was a farce but I've had that conversation on here too often and I don't plan on having it again.

A melbourne fan sooking about us getting a draft pick after tanking. Hypocrisy much.

 

[DapperJong]

Thread title includes the words "payments that people still don't understand" and "Essendon trade moves"



Replace the word "compensation" with "money". In this case, insurance compensation is the insurance settlement - money paid to Essendon players outside the salary cap, under the Essendon Football Club's insurance policy



Seems there are many that still don't understand, or maybe some just like to muddy the waters.

So perhaps another scenario (merely to illustrate how the salary cap is compromised).

• Hawthorn President publicly slanders Mitchell, O'Meara and Sicily
• Mitchell, O'Meara and Sicily sue Hawthorn Football Club for defamation
• Hawthorn Football Club's Insurance company has to settle claims against Hawthorn Football Club
• Negotiated settlement provides $2 million each for Mitchell, O'Meara and Sicily - outside the salary cap
• Within a month Mitchell, O'Meara and Sicily negotiate extended contracts with the club - inside the salary cap

Negotiated insurance settlement and negotiated playing contract can easily be related. Then more money is available within the salary cap for trading in talent.

Heppell, Hooker and the other Essendon players were paid large sums under the Essendon Football Club's insurance policy, and outside the salary cap. Now Essendon to have a lot of extra cash to outbid others and trade in additional talent.

Returning to my point : Insurance compensation paid to players who continued at the Essendon Football Club surely should have been included in the cap. To do otherwise has given Essendon a huge advantage during trade period for the next few years.

Next time read the room and stop wasting your time LOL

 

[Slartibartfast]

Thread title includes the words "payments that people still don't understand" and "Essendon trade moves"



Replace the word "compensation" with "money". In this case, insurance compensation is the insurance settlement - money paid to Essendon players outside the salary cap, under the Essendon Football Club's insurance policy



Seems there are many that still don't understand, or maybe some just like to muddy the waters.

So perhaps another scenario (merely to illustrate how the salary cap is compromised).

• Hawthorn President publicly slanders Mitchell, O'Meara and Sicily
• Mitchell, O'Meara and Sicily sue Hawthorn Football Club for defamation
• Hawthorn Football Club's Insurance company has to settle claims against Hawthorn Football Club
• Negotiated settlement provides $2 million each for Mitchell, O'Meara and Sicily - outside the salary cap
• Within a month Mitchell, O'Meara and Sicily negotiate extended contracts with the club - inside the salary cap

Negotiated insurance settlement and negotiated playing contract can easily be related. Then more money is available within the salary cap for trading in talent.

Heppell, Hooker and the other Essendon players were paid large sums under the Essendon Football Club's insurance policy, and outside the salary cap. Now Essendon to have a lot of extra cash to outbid others and trade in additional talent.

Returning to my point : Insurance compensation paid to players who continued at the Essendon Football Club surely should have been included in the cap. To do otherwise has given Essendon a huge advantage during trade period for the next few years.

EFC fans still in denial.

 

[Slartibartfast]

Were their shareholders appreciative of the millions fraudulently paid out?

It makes you wonder .

 

[DapperDoss]

It makes you wonder .

Not really

 

[mxett]

It is if your club cheated by using drugs preventing you from playing elsewhere.

OK lets say Trengrove was traded to another club then found his fractured navicular was mis-managed by the demons. He was awarded compensation for lost earnings, pain and suffering to the tune of 5mil. There goes 40% of the demons salary cap.

Sound right?

 

[windyhill]

How many more years until McGrath retires? Then I might consider Essendon legitimate.

Justin Charles likes this.

 

[mxett]

Agree with that example, but....

Insurance compensation paid to players who continued at the club surely should have been included in the cap. The insurance compensation was a player payment and, for the players that stayed, it was part of the overall negotiated settlement to encourage players to play at Essendon and not play elsewhere.

When Heppell and others were able to receive substantial compensation outside the cap, effectively front-loading player payments, that can only result in additional cap space for others. e.g. traded-in talent. Last year that was Devon Smith, Adam Saad and Jake Stringer, when Essendon outbid rival suitors to become the chosen destination. This year Shiel? Billings? Who else can Essendon recruit with the additional cap space.

If players who left Essendon also received similar compensation where is the issue? The players would have received that amount whether they stayed or not. Therefore it wasnt used to retain players at all.

 

[eth-dog]

So questioned my lawyer friend about this. He said if he allowed one of his clients to get $150k more in a class action (and that's what this essentially was) in the settlement as a different client who had the exact same amount of grievance he would be fired on the spot, be blacklisted by pretty much every firm in the world and never work as a lawyer again.

He then said the insurance company would never let that fly. So basically this thread is "OH SHIT WE HAVEN'T TALKED ABOUT DA DRUGZZZZZZ IN AGES"

 

[windyhill]

Without AFL intervention the club would have folded. The were allowed to make payments which should have come under salary cap.

A club, who along with Collingwood ,have carried the league in any measurement you care to bring up were never going to be left to die. Supporters wouldn’t let it happen ( nothing like a group of fans who voted their club to die) afl wouldn’t let it happen because they are too valuable to the brand. And too many people love the club.

 

[windyhill]

Cheaters never prosper.

Just the 16 flags.

 

[Slartibartfast]

OK lets say Trengrove was traded to another club then found his fractured navicular was mis-managed by the demons. He was awarded compensation for lost earnings, pain and suffering to the tune of 5mil. There goes 40% of the demons salary cap.

Sound right?

You really cannot accept EFC is responsible for cheating and thus responsible for the players wages which should be attributed to EFC. Why should the destination club be responsible for the wages of a club that cheats.
The problem is EFC lied and were not up front, if they were the players would have still been at the club but no , the whatever it takes attitude to avoid responsibility delayed the individual punishments .
EFC were handed a lifeline by the AFL in terms of player payments.

 

[Slartibartfast]

OK lets say Trengrove was traded to another club then found his fractured navicular was mis-managed by the demons. He was awarded compensation for lost earnings, pain and suffering to the tune of 5mil. There goes 40% of the demons salary cap.

Sound right?

If the EFC Dr had ALL the information but did not make the corrrect assessment that is correct.

 

[DapperJong]

EFC were handed a lifeline by the AFL in terms of player payments.

Probs just get over it

 

[mxett]

If the EFC Dr had ALL the information but did not make the corrrect assessment that is correct.

that's laughable. You cannot pay player compensations from player income pool. If one player deserves a massive payout for negligence every other player wont get paid.

 

[mxett]

You really cannot accept EFC is responsible for cheating and thus responsible for the players wages which should be attributed to EFC. Why should the destination club be responsible for the wages of a club that cheats.
The problem is EFC lied and were not up front, if they were the players would have still been at the club but no , the whatever it takes attitude to avoid responsibility delayed the individual punishments .
EFC were handed a lifeline by the AFL in terms of player payments.

If players who remained at essendon were the only players to receive compensation, or if they received more to keep them at the club, you'd have a point.

Was that the case?

 

[Turnover]

Keep striving for justice slartbartfart, or whatever it is you are seeking.

 

[_Swoon]

ITT people acting like fraud is no big deal, not a criminal offence and that pretty much everybody would do it given the chance

 

[Beer n Skittles]

So much cheating for so little result. What happened to the good old days when you'd ignore the salary cap & win a flag?

 

[Dave]

That should have been EFC.
i understand why it wasn’t but you have rules and they need to be kept.
When you move the goal posts as a matter of survival it devalues all the rules.
Idealistic I know but the clean up after the saga was dodgy.

Like the way Melbourne were found not guilty of tanking so they could keep their poker machine licenses despite the club being fined half a million dollars and coaches being suspended for tanking?

 

[Dave]

Heppell, Hooker and the other Essendon players were paid large sums under the Essendon Football Club's insurance policy, and outside the salary cap. Now Essendon to have a lot of extra cash to outbid others and trade in additional talent.

How so?

 

[Dave]

It makes you wonder .

It makes me wonder why the shareholders haven't taken action against the board.

I guess they're all in on the conspiracy too.

 

[Dave]

So questioned my lawyer friend about this. He said if he allowed one of his clients to get $150k more in a class action (and that's what this essentially was) in the settlement as a different client who had the exact same amount of grievance he would be fired on the spot, be blacklisted by pretty much every firm in the world and never work as a lawyer again.

He then said the insurance company would never let that fly. So basically this thread is "OH SHIT WE HAVEN'T TALKED ABOUT DA DRUGZZZZZZ IN AGES"

Shhhh $lick $lick $lickety $lick.

 

[Dave]

/Yaco