Govern the A-League salary cap, or just scrap it altogether

By Janek Speight / Expert

Perth Glory will officially be disqualified from the A-League finals after accepting FFA’s punishment for breaching the competition’s salary cap. Yet this should not be the end of it. FFA need to address how they govern the cap or else there is little point having it in place.

After originally threatening Supreme Court action against FFA, within days Perth Glory accepted the resignation of CEO Jason Brewer and released a meek joint-statement with the governing body to confirm they will cop the finals ban.

It was a sudden turnaround, although completely the correct path of action, just as the punishment was entirely spot on. Thankfully Perth Glory lost their FFA Cup final against Adelaide United, saving the inaugural competition from a disastrous birth.

However, the wording of David Gallop’s statement, in which he claimed that Brewer had “acted alone”, along with FFA’s lack of transparency in how they determined the punishment, has clouded the investigation.

Firstly, the breaches have been ongoing for the last four seasons. Brewer was CEO at the club for just two years. The suggestion that he acted alone is clearly not the case. This has been building up for years, and it is extremely hard to stomach that only one person was involved.

Payments were made to family members, while third-party sponsorships, travel and accommodation costs were not reported appropriately. “Deliberate concealment” has been the term used. How on earth did Brewer conceal such breaches from an entire club?

We will likely never know the full details, just like we will never know how FFA failed to identify the discrepancies. It is also concerning that FFA only investigated after Fairfax Media‘s report in December about some of the dodgy practices, which turned out to be just a tip of the iceberg.

FFA may not be required to outline the specifics of the breaches, however it would help fans understand the difference between Perth Glory’s punishment and Sydney FC’s slap on the wrist from the inaugural 2005-06 season.

The details of Sydney’s salary cap breach are still a mystery. All we know is that the club were not stripped of their title and that their initial punishment was downgraded to just a three-point deduction for the following season and a fine of about $129,000.

There were also allegations that the club had breached the cap by as much as $100,000 during the 2009-10 season, another year where they coincidentally won the championship.

Salary cap breaches are clearly nothing new in the A-League and they have to be stamped out.

There is no question that FFA needed to come down hard on Perth Glory, and the punishment is just. However, it does shed bad light on the past regime that allowed Sydney to keep their title.

That could be down to a lack of media scrutiny, but also the fact that the last thing the A-League needed in its infancy was a major scandal.

An overhaul of the FFA’s governance of the cap is necessary. Policing has to improve. Fans cannot depend on the media to discover when and where the next breach comes from. FFA cannot stop at punishing Perth Glory and expect the problem to go away. Past history shows that that does not work.

If FFA is to impose a salary cap on A-League clubs then they have a responsibility to govern it properly. Otherwise, what is the point of having one in place?

The saga is not over. Not only is Perth Glory’s credibility smeared, but FFA’s ability to govern the cap is also under question. If they do not have the resources, then find them.

It is not FFA’s fault that clubs have breached the cap, and they should be applauded for their thorough investigation and prompt response. But it is their responsibility to catch the crooks, not the media. Who is to say other clubs have not found creative ways of their own to breach the cap?

The tenth season of the A-League has been tarnished. FFA made the correct decision in handing out a hefty penalty, now they need to follow up and investigate their own involvement in governing the salary cap.

The Crowd Says:

2015-04-19T00:45:30+00:00

nordster

Guest


Hey im not a billionaire yet, lets not get ahead of ourselves! Does Lowy have a hot grandson i can marry? Any minimum is arbitrary. A player should be allowed to play for as much or as little as they like. For some players on the fringes, being willing to accept less can allow them to get a run. It also allows for larger squad sizes. Someone starting out can prove themselves then and negotiate a better deal once they have. Removing minimum wage = more opportunity.

2015-04-18T09:44:37+00:00

Bondy

Guest


Putting the Glory 7'th is a cuddle from FFA ..

2015-04-18T08:05:06+00:00

Bondy

Guest


Off topic partially ( http://bleacherreport.com/articles/158246-does-gridiron-have-any-international-future) ...

2015-04-18T06:50:05+00:00

RBBAnonymous

Guest


Does it really matter if Perth finishes 7th or 10th. The FFA mentioned that if they put Perth 10th its more problematic. As a Wanderers supporter I have no issue with it.

2015-04-18T06:05:44+00:00

BtoThePower3

Guest


Why FFA has any connection with any betting company? Has any betting company extorted or blackmailed FFA? Or, has any FFA's senior member or employee got a share, partnership or a connection in any betting company? Or, has any Perth Glory's senior member or employee got a share, partnership or a connection in any betting company? Gambling is always bad. So, next time FFA is issuing a franchising license to any club, FFA has to check the owner's background also.

2015-04-18T00:11:09+00:00

RBBAnonymous

Guest


@ Nordster. Ok the question is what do you think a professional footballer in Australia should be getting as a minimum from a club. You have to remember if its too low then "professional" footballers whether they are seniors or youth players might go back to stacking shelves in Woolies than playing for a club you own :P

2015-04-17T22:27:51+00:00

nordster

Guest


I guess? Not sure i follow your point. They were always intended to be moved to private ownership. And now are.

2015-04-17T22:25:20+00:00

nordster

Guest


Yeah i know what u meant...im saying the barrier between senior and youth player should be removed effectively. Abolishing the minimum wage for the senior list would allow for more youth players to become 'senior' players. And increase the squad sizes without raising costs. The minimum wage is counter productive. People should be paid what they are worth. The minimum wage is an arbitrary level that actually reduces opportunities for squad positions to begin with. For most players its an irrelevancy anyway as they are not being paid minimum wage. But for those at the base of the game, they should be allowed to play for less should they choose.

2015-04-17T14:09:32+00:00

Batou

Guest


You mean when they were owned by the FFA?

2015-04-17T10:27:24+00:00

RBBAnonymous

Guest


Sorry you misunderstood me. There should be a minimum contract amount for full senior players. I wasn't talking about youth contracts. There still should be minimum youth contracts but they would be well below what the seniors in the team are getting. There still should be some protection for players and a minimum level ie enough for a full time professional to live and be a professional. Otherwise he is not being professional and either is the A-league. I would have no problem with a development club fielding their sides with a lot of youth players. It would be nice if they could sell them on to other A-league clubs, so transfer fees coming into the A-league needs to happen sooner rather than later. Having transfer news in the A-league would also generate fan interest on player movements and allow development clubs to earn much needed revenues if they wish to sell players in the market. It has to happen.

2015-04-17T09:52:54+00:00

Bondy

Guest


Statement from Tony Sage the Glory Boss ( To say that it’s been a difficult few weeks in football is an understatement. The events during this time, have left us all feeling shocked, sad, angry and very disappointed. Like you, I am gutted that our club has been eliminated from the finals campaign and would like to take this opportunity to apologise to all our members, fans, and sponsors for the situation the club finds itself in. Unfortunately I can’t undo what has been done, however, the club has already taken steps to ensure this never happens again. Last night Perth Glory accepted Football Federation of Australia’s sanctions and discontinued all court action against the FFA. Overnight, I also accepted the resignation of Jason Brewer who has stepped down as the club’s Chief Executive and I have also engaged the services of an independent auditor. That means, a line in the sand has now been drawn and the club will work with the FFA to improve Glory’s administration processes and protocols and hopefully our systems will be the benchmark of the Hyundai A-league. I must stress that while the club has accepted the FFA’s sanctions and fines, the club does NOT have a culture of systemic rorting. We reiterate that all payments were made from the club’s bank account. It is important to note that for seasons 2012/13 and 2013/14 the club failed to report benefits, in relation to accommodation and vehicles but it did NOT exceed the salary cap for those respective seasons. From this point on, our focus must be on taking the positive performances on and off the field this season, and preparing for 2015/16. This process starts this Sunday, when the boys take on Melbourne City in what will be the team’s last home game of the season. I know some of you are still hurting and may not want to come to the game, but Kenny and the boys need you now more than ever. This is a situation that has rocked me but it has made me more resolved than ever, to see Perth Glory FC fulfill its true potential. I hope we can all continue the journey forward, together. Sincerely, Tony Sage Chairman Perth Glory FC ) ....

2015-04-17T09:31:02+00:00

Bondy

Guest


I put my A League tips in late due to the early kick off in Wellington I still had time to tip in the Phoenix vs Mariners game, the Mariners were 2-0 up after 50 min's " wisely " I made them my power play we got rolled 3-2 at the death ,buck me ......

2015-04-17T09:22:15+00:00

nordster

Guest


Abolishing minimum wage and CBA would get a lot of resistance ...not all of it rational or economically literate. :) First off, this minimum may become difficult to maintain for teams who want to pay below the 85pc floor. Depends on how the amounts break down per player and what they can afford. Some teams ...especially in the context of a multi division league...may want to have a wage budget radically below the current 85pc of the cap. Also this relates to squad sizes....abolish the minimum wage and even small clubs could have large squads supplemented by as many youth players as they want to have on their list. All good for competition for places, intensity and such. Already they employ youth players on less than the minimum wage but are limited in how many they can move into the senior list in a given season. From my limited knowledge of the details, maybe this has changed. The whole point of removing the general floor would be to give small clubs the possibility of being development clubs. Why restrict this unnecessarily with the imposition of an arbitrary minimum wage? Young players can live on less, be at home with parents, or clubs can set up accomodation or billeting etc. Sponsors can give them part time jobs so they stay out of trouble and develop some back bone, non football skills and work ethic. I appreciate the sentiment behind the minimum wage but it really is counter productive for youth players. Especially at smaller clubs. Having studied the minimum wage in economics more broadly....from a free market perspective of course....it holds true across the board. With this broader debate in mind i appreciate how difficult it will be for some to let go of!

2015-04-17T09:19:49+00:00

Bondy

Guest


Thats interesting ...

2015-04-17T08:51:02+00:00

RBBAnonymous

Guest


Nordster I agree the salary floor should be removed but not a minimum wage for players. Right now I believe clubs need to spend 85 per cent of the cap which might be totally inappropriate for a development club. There is no flexibility for clubs in how they spend their cap. Just get rid of it altogether. Its interesting listening to Charlesworths comments because he recognises that getting rid of the cap would help his club when visiting teams come to play. People would come to watch the Mariners as much as they would to see the quality of players from the other side. Even if you are losing by playing better sides you will no doubt also get better and lift the standards of the club.

2015-04-17T07:59:56+00:00

Gareth

Guest


Next season will be the perfect time to sign some big name marquees imo. After the Asian cup and clubs like real Madrid, Liverpool and spurs visiting in the off season, football fans will be in the mood for watching more world class players. This season may have had a sour ending but I think there us still huge potential for next season

2015-04-17T07:20:36+00:00

nordster

Guest


Yep....the travelling wanderers support at gosford has probably drove it home to him. All we needed was a taste of some true super clubs to see the potential. It needs to happen soon for WSWs sake as they risk stagnation. When they were pulling in the peak crowds and the sponsors, they should have been free to spend that dividend and strengthen. Thats what will drive this league forward.

2015-04-17T07:17:43+00:00

aladdin sane

Guest


completely agree with him, and vindicates everything myself, nordster, SVC and one of the RBB lads were saying. The whole argument can be settled with Charlesworth's quote 'If the rich are getting richer and also the poor are getting richer, that can only be good for the game.' How the hell anyone can argue with that is beyond me. Case closed, cap should go!

2015-04-17T07:10:25+00:00

Brick Tamland of the pants party

Guest


Yep you really are relying on inside info really. Lesson to all clubs be very nice to your staff, loose lips sink ships as they say.

2015-04-17T07:01:24+00:00

nordster

Guest


At least i got someone else to use the word 'philosophy' on these cap threads. Onward and upward...

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