A-League players should be paid the same as NRL, AFL
By NUFCMVFC, 6 Aug 2009 The Crowd is a Roar Guru
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There has been much debate about the place of the salary cap in the A-League and the composition it should take: in Jesse Fink’s Bundesliga A Model For The A League article, for example.
Clive Palmer has called for changes.
It is a complex issue with many dimensions at play, and with that, a large variety of perspectives.
Throwing my two cents into the equation, this author is fan of the base “cap” structure always being in place over the proposal that a cap based on turnover should be put in place, as has been mooted with a UEFA cap.
The fundamental operating costs of the league should always be kept low. The A League should always be a fairly lean operation, primarily to ensure that the local league can ably weather any ‘troughs’.
Also to ensure that regional teams can always viably field regionally based teams and so leave as best a national geographic footprint as possible (which cannot occur with other Australian sports).
And then, also, because even when football’s revenue does increase substantially from future media deals, rather than the wages merely going into paying players, as is the case with the EPL’s vast revenues, football’s money should go into facilitating football’s infrastructure – both physical but also administrative in terms of investment in refined scouting and football departments.
The money should go into better training facilities, coaching techniques, women’s and youth teams.
Not to mention diverting some into the lower tiers of the football economy to fill a gap all too often left by councils.
This may even be useful in filling a sponsorship void that will inevitably be present in any future A2 league, hence sustaining one.
Football would probably do well by developing its own media assets so as to reduce the inter-dependence on other media outlets which are ‘inconsistent,’ to say the least.
There are two competitive dimensions at play.
First, to ensure there is general competitiveness across the A League, to make sure that we don’t have a situation as is the case with Scotland or the EPL at present.
The Mariners, Fury’s and prospectively the Tasmania’s and Canberra’s need to be able to field loosely competitive teams to ensure community interest. Not to mention preventing the hoarding of decent players just to sit on the bench when they could be on the field for a different team.
The other side of the equation is competitiveness in Asia.
It is in the A-League’s interest to be able to field competitive teams in the ACL as well as moderate the player drain to richer Asian leagues such as the K League, CSL and even J League.
This serves a good purpose of facilitating acceptance, but this cannot be allowed to become endemic to the point where it seriously compromises the A-League’s talent pool.
Then there is the need to bring back returning Socceroos, keep promising Olyroos from going to Europe as quickly, as well as import good quality foreign players to subsidise players leaving for Europe as well as introduce a cultural flavouring and diversity.
With all of this in mind, this author would advocate a system whereby the cap ensures base wages on average would be generally in line with what AFL or NRL players earn to ensure a viable career path.
With smaller squads, we would need less money to achieve this.
In conjunction with this, the youth marquee spot as it is now, where the $150,000 can be spent on up to three players, is good as it encourages retention as well as youth development and the blooding of youth players by clubs.
This can be useful and encourage smaller clubs unable to spend millions on marquees every year to go down the route of developing Rukavytsa’s, Burns’s, Zullo’s and Minniecons, and keep them for a bit longer, so ensuring the viability of investing in substantial Academies, as the Mariners are.
There should be two Marquee spots – an Australian marquee, to ensnare returning Socceroos (rather than have them go elsewhere such as Popovic to Qatar,) like Sterjovski and Culina, and a “Foreign” marquee for the Milton Rodriguez’s, Dwight Yorke’s, Fred’s and Hernandez’s.
Team’s that can afford them or have ambitious owners can then choose to splash the cash on them, giving them something of a competitive advantage over teams electing or unable to do so, but not being so wanton to ensure the dynamic becomes too uncompetitive.
It is feasible that there will be increased capacity for transfer fees in future.
This is good in terms of keeping Hernandez’s in the league, but it also needs to be controlled as often the money spirals out of control and can often be better spent on infrastructure and football departments.
Therefore, a mechanism where transfer fees (instead of salary cap) are generally pegged to turnover is a good idea to keep fee expenditure under control, perhaps with some exceptions (teams can elect to take some money out of the cap to get deals over the line, or be innovative by electing to pay an open transfer fee but foregoing a marquee spot without adversely impacting operating costs).
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August 6th 2009 @ 10:07am
Pippinu said | August 6th 2009 @ 10:07am | Report comment
Kurt is right that the AFL first year player is on about $50,000 per annum, not too different to the A-League first year player of around $35,000 (less for a youth contract); and that Aloisi earns more than any other AFL player.
But it’s the detail in between these two extremes that paints a slightly different picture.
1. In the AFL, over 700 professionals earn an average annual salary of some $220,000, for a total salary bill of around $150 million. Tha’ts not big by world standards, but it’s reasonably big in the Australian context (recalling that the FFA received $128 million in TV rights spread across 7 years, i.e. the annual AFL salary bill is eight times larger than what the FFA gets from TV rights on an annual basis, and that includes the Socceroos).
2. Excluding marquees, the average A-League salary is around the $95,000 mark, with a total salary bill for the comp of about $22 million (about one-seventh of the AFL salary bill) – and in all honesty, at least half the clubs are struggling to meet that modest salary bill.
I’m not saying that parity isn’t possible – but on these figures, it does look a long way off.
Now taking away the salary cap might mean that two or three clubs increase their average salary bill (and I’m looking at MV and GC), but the rest can’t do it without going bankrupt.
On another thread, and I’ve seen this expressed on the Roar before, the future for all A-League clubs will consist of relying on wealthy benefactors to simply pour in millions of dollars into the sport just for the hell of it.
I know that happens right around the world, but I imagine the average Australian millionaire has a bit more sense than that, and in truth, it doesn’t look like a sustainable business model in the long run.
August 6th 2009 @ 10:11am
True Tah said | August 6th 2009 @ 10:11am | Report comment
Matt
Melbourne Victory is making profits and there is a pretty good chance that the Mariners are as well. I doubt any of the other clubs are making profits yet.
With the gist of the article, the HAL will pay the same pay to NRL and AFL players when it can command the media attention and crowds that these codes get. John Aloisi is already the most highly paid Australian sportsman in Australia, so its a bit of a moot point?
Why not argue that HAL should pay what the EPL, La Liga, Greek, Israeli leagues can offer??
Robbos how big were the crowds in the ACL for the Mariners recently?
August 6th 2009 @ 10:40am
Michael C said | August 6th 2009 @ 10:40am | Report comment
TT -
and that’s the point – isn’t it, only so many people play a sport purely on the basis of how much they might or might not get paid. (not saying there aren’t people who weight this factor into considerations).
And how much a 14 yr old compares potential wages vs joy of play vs moving to Russia vs staying in their home town……..different strokes and all that.
So – realistically, the HAL still is more concerned with the money on offer for soccer players in Japan, Europe, USA, – - whereever. And, all logic dictates that Australia will never scale the heights of the EPL. (actually logic dictates that the EPL financials should’ve seen the EPL collapse under the weight of the GFC – - but, I gather that logic and good business governance doesn’t enter into it when wealthy men get the chance to ‘mingle’ with celebrities and feel self important!!).
August 6th 2009 @ 10:32am
AndrewM said | August 6th 2009 @ 10:32am | Report comment
The AVERAGE wage in AFL is about 230k : source : http://www.bigfooty.com/forum/archive/index.php/t-539270.html
The AVERAGE wage in the HAL is 125k : source : http://www.abc.net.au/news/stories/2008/05/08/2239499.htm
Obviously there are players on alot less and alot more in both codes.
Also Free to Air ratings are different from PayTV ratings.. Would be good to get a better drill down on AFL, NRL and HAL in 2009.. I am not sure if they get published? But I do know the HAL rates well.
In terms of FTA (mosty) this is listed here : http://www.talkingfooty.com/tv_ratings_2009.php and the HAL has a blank coloumn which will be filled in as the season goes… So these ratings will be a comparison against FTA only.
August 6th 2009 @ 10:55am
Pippinu said | August 6th 2009 @ 10:55am | Report comment
The 125k average would include the marquee salaries.
August 6th 2009 @ 10:47am
Pippinu said | August 6th 2009 @ 10:47am | Report comment
AM
that ratings link is a good one – but seeing it only does FTA, I don’t think you will get any A-League ratings showing up. In relation to rugby, it only shows what’s on FTA, nothing else.
August 6th 2009 @ 10:48am
Pippinu said | August 6th 2009 @ 10:48am | Report comment
You can get Pay TV ratings here:
http://www.astra.org.au/
August 6th 2009 @ 10:52am
AndyRoo said | August 6th 2009 @ 10:52am | Report comment
http://www.aupaytv.com/forum/viewforum.php?f=8
Shows A league and Rugby are fairly close.
August 6th 2009 @ 10:53am
Midfielder said | August 6th 2009 @ 10:53am | Report comment
NU
Another tho provoking article…
I will come in from the left side on this…. and honestly believe a potential way to increase TV rating.. money for football at all levels and asset building is to agree … an agreed break up of future media revenue in advance…
Given we have various broadcast platforms …. ie. A-League / W-League, ACL etc… each platform to have their own percentage breakup among the stakeholders…
To explain the Football community is a very board church (using John Howards language) it starts at park teams, associations, state teams, A-League, W-League, 9 national sides overseen by state bodies (two state bodies in NSW) and FFA.
To explain by way of example. Media pavements going to the A-League (outside club sponsorships) are divided in a pre agreed formula between, A-League clubs, FFA, State Bodies, & Associations. The money going to each group can be targeted like the funds to the associations towards coaching.
The marketing works by connecting to football family by saying if you watch the A-league some of the advertising money goes to our park side. Thus watching the Mariners crave up MV tonight aside from being enjoyable will get your kids better facilities…
Off topic for a bit NU … but for those that missed it yesterday a new online football mag was released … its called Half Time Heroes … well worth a look … we may not have main stream media but by heck we are starting up some decent online stuff .. best of all its free … hope you enjoy http://issuu.com/nearpost/docs/halftimeheroes1?viewMode=magazine
Sorry NU .. back on topic… guys
August 6th 2009 @ 1:46pm
Redb said | August 6th 2009 @ 1:46pm | Report comment
Who is Glen Siever?
August 6th 2009 @ 11:12am
Towser said | August 6th 2009 @ 11:12am | Report comment
Dont get this article. It seems to be about 2 different subjects. One the old chestnut of the place of the salary cap in football & its variations & benefits for & against & the maintaining the sustainability of a fledgling 5 year old competition & two whether A-league players should be payed the same dough as AFL & NRL players. Both these comps having long estabilished support & ties to TV companies & sponsorships etc earned over a substantial period of time in their respective markets. For the second part (as a totally different question in my book)surely as the A-League competes directly for players with overseas football ,it would have been more appropriate to measure its viability against the wages paid in any one of a number of overseas leagues paying much more than the average of the A-League.
August 6th 2009 @ 11:23am
Pippinu said | August 6th 2009 @ 11:23am | Report comment
Towser
I reckon you’d have to go to the 3rd world and extremely low profile football leagues to find a comp that is paying less than the average salaries that we are paying.
At a guess, we are around the 4th tier of English football, maybe into the lower reaches of the third tier (Division 1), but that’s just a guess off the top of my head (although these things are notoriously difficult to compare because of the wide disparity between the top earners and those at the bottom).
I think the lower reaches of the Eerste divisie (Dutch 2nd div) would also be around where we are – here you will find decent players running around in stadiums where ground capacity is around 3,500.
August 6th 2009 @ 11:25am
Pippinu said | August 6th 2009 @ 11:25am | Report comment
I should clarify that my last post was talking about average salaries, not the quality of football (although, there is generally a very close link between the two, to varying degrees).