Finally the light at the end of the AFL pay deal

Like a fine wine, some things take a while to settle to everyone’s satisfaction. For the last 19 months the AFLPA and the AFL have waged a war of words in the media about affordability, cost and potential action.

There was talk of a temporary one-year deal, a three-year deal, and a mandatory five-year deal.

We were treated to an endless parade of player representatives threatening potential strike action and Fair Work Australia intervention, and the AFL saying that their final offer had been made, and that it would be five years whether people liked it or not.

Thursday’s announcement that everyone has come out a winner should be no surprise to anyone. Andrew Demetriou is nothing if not a worthy negotiator, and let’s not forget he was in charge of the AFLPA when they received their present deal.

Essentially everyone got most of what they wanted, and a few goodies appear to have been thrown in.

The players didn’t receive their stated goal of 25-27 percent of the game’s revenue, but they will receive 1.144 billion in pay and benefits over the next five years, subject to a review in three years’ time.

This is prudent as the AFL almost always ends up with more money than it plans for. In fact just the other day they announced they expect an extra 140 million to be found over the next five years.

The amazing thing about this revelation is if the players didn’t get 25 percent of the game’s revenue, it means the AFL and clubs will generate around six billion in cash revenues over the next five years. Thats a hefty amount to dream about.

By 2016, the salary cap will have risen to 10.2 million per club, much of this being funded by the AFL from TV rights.

Bear this in mind too, with total player payment increases being funded by the AFL’s income, and not the clubs, this means the AFL believes that it will in effect be able to spend almost the entire TV revenue on players, and still have enough left to fund the league’s operations – including the 200 million for Gold Coast and Greater Western Sydney. Clubs will have to pay a minimum 95 percent of the cap up from 92.5 percent.

In addition, clubs will be able to employ players in Additional Services Agreements to the value of up to a million dollars by the end of the deal.

Retirement funding has been increased to around $70 million. Players will finally receive some retirement pay. The AFL and AFLPA hasn’t been entirely clear on eligibility for this, but from what was released today it seems that retiring players will receive a guaranteed $20,000 per year after their careers are done.

While this doesn’t seem like much, there’s likely to be room for growth in future. It sure as hell beats nothing. Maybe we’ll see an end to retired players selling off medals for easy cash. The AFL is billing this as the best retirement scheme in Australian sport.

Player wages will rise to almost $300,000 on average, and rookie wages wil rise to $49,000 next year to almost $60,000 in the final year. This is a minimum, and no maximum is specified. That’s a big win for rookies, and a decent chunk for the mid-level AFL player.

Whether this makes AFL players the best-remunerated sportsmen in the country as claimed by the AFL is doubtful, especially with figures released recently showing cricket players dominating the pay scales locally, making millions per year.

Some will argue that the AFL funds more jobs, and there’s little doubt that the AFL do pay more overall.

Players will get a guaranteed day off per week enshrined in the collective bargaining agreement, and six weeks’ guaranteed annual leave, which is probably fair enough too. Player education and welfare will be more closely taken care of with all clubs to appoint a player development manager.

In addition the AFL has guaranteed decent seating on aircraft while travelling, including exit row seats, and multiple seats per player where required.

The veterans list is now gone, absorbed back into the general list, which will not include rookies at this time, despite this being the subject of a players’ association push during negotiations. Club lists will now expand to 46 plus up to six rookies. Effectively this ends up making 936 playing jobs.

For the first time, players injured in second tier competition – presumably only AFL-listed players in state leagues, rather than all state league players – will be covered for injury.

Benefits for players with career-ending injuries have been increased by up to 200 percent. Death and disability insurance cover will rise to $1 million from $500,000, and a quarter of a million dollars is allocated to former players with football-related health concerns.

All up it’s a pretty sweet deal on offer, and well done to both parties for getting it done before the NAB Cup was threatened. Bring on the AFL 2012 season.