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A fairytale season from Perth Glory could descend into ignominy and disgrace if Football Federation Australia’s allegations that they have “significantly” breached the salary cap this season are confirmed.
It would be just the latest blow for a club and its fans that have gone through constant mediocrity since the start of the A-League. It will also tarnish the competition in what was supposed to be a celebratory tenth year.
While the fortunes of the Newcastle Jets, Central Coast Mariners, Brisbane Roar and Western Sydney Wanderers have already attracted negative headlines throughout the season, Perth Glory, along with Wellington Phoenix, were supposed to represent the feel-good antidote.
The Asian Cup effect has failed to translate into increased exposure and interest in the A-League and this latest development will hardly help.
Since Fairfax Media journalist Dominic Bossi and freelance writer Joe Gorman first reported on Glory’s salary cap breaches back in December, Perth has faltered on the field, losing its grip at the top of the table.
Whether FFA’s ongoing investigation into the alleged breaches has contributed to that slide is uncertain, but it must have had some influence on a run that has yielded just one win in 10 matches.
FFA originally issued a show cause notice in February this year for alleged breaches relating to accommodation, agent fees and transport costs relating to the three seasons prior to 2014-15. The allegations were nothing to get too worked up about, as the payments are perfectly legitimate under salary cap rules.
The cap was not suspected to have been broken and so the breaches appeared more the result of an administrative cock-up, perhaps a simple case of failing to declare legitimate payments. The questions were more around why Glory management had failed to report their expenses.
However, as a result of the initial investigation FFA unearthed fresh evidence and now alleges that the club failed to “disclose reportable payments and [exceeded] the salary cap”. This includes agent fees, third party sponsorships, travel, accommodation and transport allegedly relating to five players.
Bossi reported on the first of this month, unfortunately without an April Fools’ punchline, that about $150,000 may have been paid to star striker Andy Keogh through a family member’s account and that the club had allegedly reported to FFA that the player’s actual salary was just $150,000.
Those allegations are not only damning of Perth Glory, but also of FFA.
Firstly, it is hard to believe that the number crunchers at FFA truly thought Perth had secured a Republic of Ireland international on such a relatively paltry sum. That should have sent alarm bells ringing immediately. More importantly, however, it is astonishing that Perth, if the allegations are true, expected to get away with it.
It is also worrying that FFA had to rely on media reports in order to uncover the alleged breaches.
Looking at Perth Glory’s roster, it also seems hard to believe that they have gone over their $2.55 million salary cap. With Michael Thwaite and Nebojsa Marinkovic excluded due to their marquee status, where has the money gone?
How much are the contracts of Mitch Nichols, Youssouf Hersi, Sidnei and Ruben Zadkovich worth? If the salary cap has been breached, then Glory have been paying over the odds for some of their squad members. Comparing their squad with those of Sydney FC and Melbourne Victory, it is astonishing to think that they may have outspent their rivals.
Perth Glory now have until next Wednesday, April 8, to respond to the show cause notice. It does not give FFA a lot of time to impose a fine or points deduction, which is being widely touted, if they are unsatisfied with the response.
It is likely FFA will come down hard. Damien De Bohun declared that “deliberate concealment” was to be taken much more seriously than “administrative mistakes”, suggesting FFA believe the alleged breaches were intentional.
It is now Glory’s job to somehow explain how an alleged $150,000 payment into a third party account could be blamed on administrative problems.
Owner Tony Sage has laid the blame firmly with his chief executive Jason Brewer, who has also accepted that if the alleged breaches are confirmed he will take the flak, which would result in an immediate resignation.
Sage told the Daily Telegraph that Brewer has assured him that the discrepancies came down to a “misunderstanding”.
A points deduction is a minimum requirement from FFA if the allegations are proven true, meaning a scramble to get the decision finalised would ensue to ensure the A-League’s regular season standings are finalised before May.
Perth Glory could also choose to appeal, further dragging out the implementation of possible point deductions.
Yet Sage made a decent and legitimate argument when speaking with the Daily Telegraph.
“You can’t go past history, and Sydney FC were fined for a breach [in 2006] before they lost points for subsequent offences. I’d be shocked if we were treated any differently,” he said.
Sydney’s breaches were discovered during the 2006-07 season, relating to the 2005-06 season, when they won the inaugural championship. They were issued a fine of $129,000 and three competition points.
Should Perth Glory be made an example of if the alleged breaches are confirmed? Or does FFA have a responsibility to refer to past discretions when handing out punishment?
A 26-point penalty would possibly need to be implemented to mathematically ensure Glory cannot make the finals (in the case of Perth winning their remaining four games and Brisbane losing their remaining four). Even an eight-point penalty could still see them safely through to the A-League finals.
Yet David Gallop, who has past history of salary cap breaches in the NRL with Melbourne Storm, may decide to stray from precedent on this occasion. He may want to come down hard and make an example of Perth Glory, meaning a blanket ban from the finals could be more appropriate rather than a points reduction.
Would that represent an appropriate punishment, however? It is hard to judge against Sydney’s case, as the extent of their breach was never disclosed.
Either way, this does not make Glory manager Kenny Lowe’s job any easier, no matter what he says publicly about how this is affecting his squad. The possibility of losing not only the premiership due to poor form, but now a finals spot altogether due to poor management, will hang heavy over the players and coaching staff.
In the tenth season of the A-League, and following the euphoria of an Asian Cup victory, this is not how Australian football fans would have wanted to end 2014-15.
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