The AFL don't have a leg to stand on.
When Essendon say they are not contesting it, they are not contesting the AFL's claims that Hird and Lloyd were paid as part of an internet deal. We are, however, disputing that it constitutes a breach of the salary cap.
After all, the AFL's then investigation officer, Michael Easy, deemed the transaction to be fair. We also have (had) a mountain of legal advice that the transaction did not constitute a breach of the salary cap.