The Sydney Swans and the COLA Myth

By Warren Cooper / Roar Guru

Twenty years ago the Sydney Swans Football Club was in a world of hurt after years of mismanagement. How the old VFL foundational club from South Melbourne is still with us today is somewhat of a miracle.

The Swans are on the cusp of becoming an AFL giant, having missed the finals only four times since 1994, the last of three consecutive wooden spoons.

Five grand finals and two premierships have stabilised the club after a long history of instability.

The clubs achievement’s out of the ruins of the early 1990s is remarkable, and the insult from the drama over the COLA is failure to acknowledge where the club has come from, and how they managed it.

The perpetuated myth the AFL gives the Swans handout after handout, when the AFL has had very little involvement with their overall success, stings. The majority of what the Swans have been able to achieve has been their own doing.

Signing Tony Lockett at the end of 1994 was not the brainchild of the AFL; it was Richard Colless’ and Ron Barassi’s decision. The Academy is also a Swans initiative.

The AFL allowed the Swans extra cap room to be able to assist players with the high cost of living in Sydney, which is not jut confined to Bondi, Neutral Bay or Mosman. A quick drive down the road to the Shire or up to the North Shore, or over to Leichardt or Newtown, high costs of living are going to greet the Swans players. And it’s not just rental and housing prices, NSW insurance premiums are through the roof.

The same reality is greeting the Greater Western Sydney Giants players over on the Hawkesbury. Parramatta is developing at the speed of light, only increasing the Sydney network demand for housing and rent. It’s one of the reasons why both the Hunter and Illawarra, Sydney’s neighbouring regions, also experience high costs of living.

However, as a far as the Swans are concerned, the COLA is not a major contributor to their success, and if anything, it helped stabilise the club’s list. Nothing more, nothing less. Prior to the 2011 season, the Swans were running at losses and on the back of huge profits. The Daily Telegraph reported in May of 2010 the club had been running at a loss of $2 million over three years.

In the last three seasons the club has reported profits of $114,956 (2011), $207,007 (2012 premiership) and $646,745 (2013.

Compare this to Collingwood, who at the end of last season reported a net profit of $16.4 million.

In September, The Financial Review reported the Sydney Swans will secure a net profit of about $15 million for 2014, but it doesn’t make the challenges of having an AFL club in NRL heartland disappear. And neither has the COLA been responsible for the Swans securing large profits. It’s never been a financial boost to the club.

Even so, the AFL’s silence for why the Swans were banned from trading players until 2017 is perplexing. There may be a method to the madness, and if there is, the AFL needs to come out and say so.

By then, the Swans should have had numerous retirements and player movements. Adam Goodes, Ted Richards, Heath Grundy, Rhys Shaw, and possibly Mike Pyke and Kurt Tippett will have retired or moved on, freeing up space for the Swans to do trades and be prepared for life post-COLA.

If this is the case, the AFL should explain rather than having AFL boss Gillon McLachlan insult the club with, “You can’t have everything, you can’t have everyone,” remarks. Swans and opposition supporters alike deserve to know and should not be left in the dark, because at the moment it looks like there is something to hide.

Is it lost on McLachlan the Swans were declared dead in 1993 and the laughing stock of Australian sport? A string of embarrassing off-field woes to go with the on-field woes didn’t help. The AFL slogan in the 1990s was, “I’d like to see that”. It was also the punchline to a joke, “the Sydney Swans win a game”.

AFL has come along way in Sydney, in a city and state where the game was once derided as aerial ping pong. Now it seems the AFL is in self-sabotage mode all because of irrational fears and hysteria swept up over the COLA. The game in Sydney does not need a return to those embarrassing days.

The belief the Swans exploited the COLA to secure Kurt Tippett and Lance Franklin on the back of winning a premiership has been the overriding factor in having it phased out. However, there has been no sensible explanation for how the COLA helped the Swans win two unlikely premierships in 2005 and 2012.

In 2005 it was with a side playing a brand of footy so ugly that then AFL chief Andrew Demetriou said Sydney would not win a premiership playing the way they were. In 2012, the Swans won a premiership from virtually nowhere. Only a few pundits dared to consider them a top four chance as they had a team of inexperienced youngsters mixed with a missing forward line, has-beens and rejects, and a Canadian rugby player.

Did the COLA suddenly build good culture and make the team play better? Did it suddenly produce second-to-none club administrators and list managers? Did it help John Longmire implement his ‘slingshot’ game plan, which led to the Swans’ 2012 flag?

Was the problem confounded to the Swans winning premierships, or what happened after the 2012 premiership – the recruitments of Kurt Tippett and Lance Franklin? Why would this be a problem when the Swans were doing what they have always been doing since Richard Colless took over the club in 1993? Or do the rules change when a club has a COLA?

Tippett and Franklin were recruited to keep the club moving forward, and the club was only doing what clubs like Hawthorn have been doing. If the Hawks can recruit James Frawley on the back of winning back-to-back premierships, to go with their own string of high-prized recruits over the years (Brian Lake, Ben McEvoy, Shaun Burgoyne and David Hale), then why can’t the Swans recruit Franklin and Tippett?

Sydney is the most volatile and competitive sporting market in Australia, and the Swans have to keep making sure they are moving forward in it by being successful. In 2002, Colless learned this quickly and his masterstroke was getting Andrew Ireland on board.

Ireland, along with Paul Roos, revolutionised the club’s recruiting process. No longer would they rely on recruiting big-name players, also ending the myth teams had to bottom out to get the best out of the draft. They began looking at need based and second-tier players who were desperate for a crack at senior AFL footy like Josh Kennedy and Ben McGlynn, and took punts on rejected players like Mitch Morton.

Along the way, the Swans’ winning culture drew attention to Sydney’s attractive lifestyle, luring players of the ilk of Lance Franklin. If Franklin is only one player who has looked at Sydney for this very reason, it’s frightening to wonder who else the Swans may have had to knock back.

In 2012 Colless said this had become a common reality for the Swans, when at one time, it was a struggle to get players to the Harbour City. Now players’ managers consistently sound the Swans out. Not a bad problem to have, but perhaps the AFL wishes they would be more interested in the other Sydney team they’re trying to establish.

At the very least, the GWS Giants have proven the COLA alone will not attract players, it’s the whole package, and that is what the Sydney Swans have been able to present.

The Swans should be happy to see the COLA go, but the AFL shouldn’t let the club experience pain either as it is phased out. In any case, if the COLA alone is responsible for their success, then the non-existent explanation of how bares great testament to the myth.

The Crowd Says:

2024-02-17T05:52:03+00:00

peterkip

Roar Rookie


What absurd logic. By your argument if an athlete takes steroids and doesn't win the Olympic 100m final that means steroids can't be cheating. If you ask every club if they would like to have $1million extra in their salary cap you would get 18 yes answers. It doesn't matter how you dress it up being able to pay your players $1million extra is a huge advantage. Just because the Swans also did other things well doesn't mean they were not getting an advantage over every other club. Should SA and WA teams have less salary cap because those states cost of living is less than Victoria?

2015-04-21T09:45:43+00:00

dc

Guest


then buddys happy and syd pour a cool million a season down the toilet

2015-04-21T09:42:59+00:00

dc

Guest


16 finals appearances in past 20 years, 4 out of last 10 GFs Give some states that actually produce your players a chance hey

2015-04-21T09:39:41+00:00

dc

Guest


come on horse we know you only got 5 real supporters up there, the second you dont make the 8 afl know noone will go, so they proping up a non football state into a powerhouse team. If afl let you trade you wouldve tried to get ablett swan beams and dangerfield Plus you got tippet for a steal

2015-04-21T09:34:31+00:00

dc

Guest


this is you horse isnt it?

2015-04-21T09:32:41+00:00

dc

Guest


the afl turning a non football state into a powerhouse club, what hope do the footy mad states have, syd win a flag they couldnt care less. ?Victorian team wins a flag, thousands party for weeks

2014-11-04T20:42:57+00:00

pauliewalnuts

Guest


What if he's not injured and doesn't choose to retire but is simply no longer good enough?

2014-11-04T11:47:37+00:00

Maggie

Guest


If Franklin can't play out his contract as a result of injury he would continue to be paid for the term of his contract. If he decides to retire voluntarily then he won't be paid but the remaining years of his contract would still be included in the Swans' salary cap. Neither scenario changes the per annum or the more meaningful present value calculations.

2014-11-04T10:17:28+00:00

pauliewalnuts

Guest


Who's "het up"? Or for that matter "wishing a career would end", or "the Swans would go away"? Or even Victorian. Some people in here sure jump to some strange conclusions. Cooper made a post calculating Franklin's salary on a per annum basis. I'm was simply pointing out how in this case that is simplistic.

AUTHOR

2014-11-04T08:15:32+00:00

Warren Cooper

Roar Guru


Are you saying Franklin is on a $12.6 million dollar contract andyl12? How did you arrive at the conclusion Buddy get's $1.4 million a year? All official reports have him on $10 million dollar contract over 9 years - that is all official media, AFL, and club reports. I've even provided a Google link for you to check them out for yourself. https://www.google.com.au/#q=lance+franklin+sydney+swans+contract

2014-11-04T07:50:29+00:00

Maggie

Guest


I don't understand why the risk attached to the length and value of Franklin's contract gets other clubs' fans so het up. Yes it is a risk and the Swans were risk-takers in negotiating the deal. Hawthorn (and GWS) had the chance to match or better it but were more conservative. Both choices are entirely legitimate. Presumably other clubs' supporters are pleased with their clubs' decisions. After initial palpitations most Swans' supporters are now excited that Sydney chose to be risk-takers. Year 1 was a hell of a ride for starters. And the risk is not as bad as is being painted here. As I point out in an earlier comment, the big annual amounts in Franklin's contract are reportedly towards the end of the 9-year period. There will have been two more collective agreements negotiated with the AFL players association by then and it is reasonable to expect player salaries will have grown considerably. Further, as I have also already said in an earlier comment, a considerable part of Franklin's contract is in the form of an Additional Service Agreement that doesn't fall under the salary cap. If Franklin chooses or is forced to retire early, that would presumably rule out contracting other players to do the same value of marketing in his place but it would have less effect on the salary cap position than you are implying. And I'm not sure what any of this has to do with the original article about COLA!

2014-11-04T07:32:10+00:00

Maggie

Guest


Andy, Franklin's contract has been reported to be $10.2 mill over 9 years. Even by the simple average you are using that is not $1.4 mill per year. But over a 9 year period an average p.a. Is not a meaningful figure. You need to look at the present value in year 1 of the contract of the full $10.2 mill. ("Present value" is a calculation that takes into account that a dollar today is worth more than a dollar tomorrow.) And that is why the heavy back-loading of Franklin's contract makes sense. Indeed in the case of Alastair Lynch (who signed a 10 year contract at age 25 to play for Brisbane), with the growth in player salaries over the decade he was being underpaid in his final years and renegotiated the deal. I'm not suggesting that will be the case for Franklin, but it does show that what sounds outrageous today often looks like a good deal 10 years later (think house prices for example).

AUTHOR

2014-11-04T06:39:33+00:00

Warren Cooper

Roar Guru


I guess we shall see - some players age like fine wine. Buddy, at present, has shown no signs of slowing down. Goodes and Franklin have a similar athleticism and physique (Buddy being a bit taller), there is no reason to suggest he won't see out his contract. Even Lockett had a wipe out season at the Swans in 1997 with injuries and suspension - some suggested he was done and dusted, and headed for the scrap heap. Plugger came back and won the Coleman Medal in 1998. Never write off champion players - regardless of who the play for.

2014-11-04T06:19:07+00:00

swansfan

Guest


All the continual carry-on (emanating largely from Victoria) about Buddy making a change in his career is getting boring. Whether we like it or not professional football is a job and like any job, high-profile or not, people have the right to choose their path. Before Buddy went to Hawthorn he was somewhere else. At the end of last season he had three choices, Hawks, Swans, GWS. I suspect the decision he made was for many reasons aside from da money including that there was something about the Swans that he liked and wanted to be part of. All power to him. I can report to all you grieving Hawks that many, many Swan's fans, initially weren't thrilled. However as I noted previously he has won us over. This year Jarryd Hayne NRL decided to take off to America, the Parramatta Eels will sorely miss him but I'm unaware of the continual whining, moaning and bad-mouthing about him that Buddy has had to put up with. You could say Jarryd Hayne broke his fans' hearts too but c'est la vie he's made a choice as he's perfectly entitled to. Grow up folks.

2014-11-04T05:27:52+00:00

andyl12

Guest


Cooper- Buddy's Sydney contract is $1.4 million a year. Regardless of how you try to spin things.

2014-11-04T05:11:43+00:00

pauliewalnuts

Guest


"What makes you believe Buddy won’t see out his contract?" History? Probability? Common sense? People like Goodes are in the massive minority. That'll be 19 years in the game. Can't see it happening, particularly the way the modern game is trending. Even if he does play over those final few years the Swans will be paying big money to someone well past their best.

AUTHOR

2014-11-04T04:55:00+00:00

Warren Cooper

Roar Guru


Yes, if, and its a big if, Buddy fails does not play out his contract, the Swans will have to pay it out under the salary cap - just like the Bulldogs will have to do on an unproven Tom Boyd ($ 1 million a year for 6 years). What makes you believe Buddy won't see out his contract? At the time he retires, he will be around the same age Adam Goodes is now. It is certainly not impossible - its more like wishful thinking on the behalf of Swans detractors. Its poor form to wish any career would end before it is supposed to, even if you're thinking "realistically". Neither does your question take away the point the Hawks and GWS would have paid Buddy more than the Swans currently do.

2014-11-04T03:47:27+00:00

pauliewalnuts

Guest


Correct me if I'm wrong but Buddy will be paid his 10mil even if he doesn't play until the end of 2022.....which he won't. Those per annum figures will require some revision at that point.

AUTHOR

2014-11-04T03:34:51+00:00

Warren Cooper

Roar Guru


If Buddy had of stayed with Hawthorn, he would be earning $1,250,000 a year at the Hawks over four years. At the GWS he would have been earning $2 million a year over 6. At the Swans he is earning $1,111,111.10 a year over 10 years. Presently he doesn't get $1 million a year at Sydney. He has a back ended contract. Why would he go to the Swans for a back ended contract when he could have been earning a lot more instantly at either GWS or the Hawks?

2014-11-04T03:03:22+00:00

Stephen Pollack

Guest


Gilligan McG makes the character on Gilligan's Isle look intelligent by comparison. The AFL needs a Big picture leader not a small minded individual like Gill!

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