The article after tonight's debacle can't be timed perfectly...

By Dom Bossi

A week in which A-League clubs' ability to compete in Asia came under the microscope has coincided with a push to abolish the salary cap by the players themselves.

After 15 years of strict financial regulations governing A-League player wages, the players' union, Professional Footballers Australia, is sewing the seeds for the removal of the cap when CBA negotiations begin with Football Federation Australia.

Their motivation is to end the high turnover of players, improve the financial viability of the competition, increase player pathways and the development of youth in Australia. A report that will form the basis of their argument to gradually remove the salary cap contains significant research comparing the A-League's on- and off-field performance against other leagues and questions whether the A-League salary cap actually ensures competitive balance in football.

"Fifteen years on, we operate the same model that has been tinkered with around the edges. It’s no longer fit for purpose. The current system is theoretically supported for two reasons. The first is competitive balance, which data over recent years will challenge. The second reason is club sustainability, yet the current model denies clubs access to potentially significant financial upside," PFA chief John Didulica said.

The current regulations allow 23-man squads under a $3.03 million salary cap, of which two designated players can be paid outside, exceptions for long-serving players, homegrown players and mature-age rookies.

Despite recent concessions, the A-League still has one of the highest rates of player turnover in world football. This year, almost two-thirds of the players in the competition are coming off contract, illustrating a culture where clubs resort to short-term deals.  According to those working in the industry, that's largely perpetuated by the salary cap constraints.

"If you look at the list of players that are out of contract every year it is frightening," player agent John Grimaud said. "That’s an indictment on the league and you wonder why we don’t get transfer fees for players. Clubs aren't inclined to scout properly so they don’t take risks with signing players. They sign them for one year and if they make it, good. If they don’t, they cut them and move on. That’s the problem with the salary cap."

Australian football is missing out on significant revenue streams which the PFA claims is due to the salary cap. With short-term contracting so widespread, the A-League is missing out on the massive global spike in transfer fees. In the past six years, transfer fees received by Asian clubs has doubled from $84 million to $170m. Over that period, transfer revenue in the A-League fell from $3.7m to $2.6m.

"The salary cap has proven to act as a barrier to our players developing as footballers, to clubs building sustainable businesses that capitalise on the growth of the global football economy and to our sport building better teams and competing – on all fronts – with greater success," Didulica said
Against teams operating without salary cap restrictions and squad size constraints, Australian teams are falling behind in other income streams. In AFC Champions League performances bonuses and prize money, competing Australian teams received $326,000 last year. Japanese teams were rewarded with over $6m.

By failing to retain more national team players, many of whom are no longer playing in high-profile European leagues, A-League teams are lagging behind in World Cup benefits paid by FIFA to clubs to compensate clubs for the number of players took part in the tournament. From the 2018 World Cup in Russia, $1.7m was paid to A-League teams, South Korean teams received $4.4m and J-League clubs were given $5.1m .

Money aside, there are questions raised by the PFA over the competitive balance provided by the cap. According to PFA research, there is a greater proportion of games won by a margin of three goals or more in the A-League than the major five European leagues. The A-League has had a more varied list of winners, in part due to the final series, though Central Coast Mariners appear set to finish bottom for three of the past four seasons and the points ratio between wooden spooners and premiers has almost doubled in the past nine years.

The clubs are yet to reach consensus on the future of the salary cap. Some appreciate the cost certainty. Others see it as preventing them from reaching their full potential and competing for silverware in Asia.

United under the Australian Professional Football Clubs Association, the A-League club owners are split. The APFCA chairman, Western Sydney Wanderers owner Paul Lederer, says the matter remains a delicate topic within the group but one they must address in the near future.

“It’s a major subject that has got to be considered very carefully," Lederer said. "There will be discussions in the next few weeks about that, probably very shortly as to where do we stand as clubs and what do we want to do.”

They appear unanimous in relaxing the cap constraints. As part of their submission for a new A-League operating model, APFCA want to increase the number of foreign players in the A-League from the current limit of five and follow in the footsteps of the MLS in USA, where clubs have eight spots on average.

However, if current trends are anything to go by, more foreigners means a higher wage bill. The A-League is on course to become independent from the FFA, giving clubs significantly more influence in the operations, rules and regulations of the competition meaning they might get their wish.

Under the proposed new operating model, the FFA will - at the very least - retain a golden vote on the board of the new entity, enabling them to block or pass any motion or amendment. Already, the FFA is looking at ways on relaxing the tight restrictions on squads and salaries but are not yet willing to remove the cap entirely.

"Don’t throw it away but fix it," Head of the A-League, Greg O'Rourke, said. "You’d want to make changes around home-grown talent, loyalty players, more investment in Australian players. You might want to talk about having more designated players in and out of the cap to build the quality of the product."

https://www.smh.com.au/sport/soccer/players-leading-push-to-abolish-a-league-salary-cap-20190309-p512xh.html

If not removing the cap at least remove the floor.

Something seriously needs to change anyway.

Because they want a payrise.

The clubs still want the cap and I'll think it will stay.

I'd be fine with removing the floor.

Same. Lifting the floor can work wonders . But sadly  the ffa and media don't want it to happen as it's not the Aussie way

That's the thing, the suits hold the sport too much due to the ability to have no interest in following the global model for football.

If we do follow it, Australia will improve in the football chain.

My only issue with the cap as its seen as a safety net for the clubs in there spending of players, it was fine in the early years but not sure if its the right move as the league moves into an independent entity.

It doesn't promote success it punishes for it, that's happened for too long.

First step might be to remove the floor and go from there whether the whole thing needs to go after that.

Not sure about allowing 8 foreign player spots though, I'd hate for us to end up like Cyprus where their local league is decent but basically no domestic players get a run. 5 is plenty enough, and in-line with continental standards.

I also wouldn't mind something like a luxury tax above a certain point to prevent the big clubs absolutely annihilating the smaller ones. 

This. If anything I'd rather lose foreign spots instead of adding more.

just remove the bloody cap. let the cream rise to the top.

The players are paid out of the TV money, otherwise there would not be a league.
The clubs get an equal share. Whether that share is correct is a different question.
Removing the cap in Toto will send some clubs/franchises to bankruptcy

However, Charlesworth has been banking the difference between the cap and the floor by spending at the cap floor only and not investing in his clubs squad. He is supposed to spend the banked amount in a prescribed period which I think is 2 years.

Players will always ask for more money whether or not they deserve it.

Why?

Let em die.

-PB

Yeah,  I don't think

No Cap = Bankruptcy. Clubs aren't just going to cave to wage demands. 

Good.

Increased wages means we respect our talented players more which means the club demands higher transfer fees.

Hopefully then clubs will wake the f*ck up and start developing talent so they can make a massive profit off of them.

What is this, 1993? The fact people still parrot this shit is baffling

Imagine using that as an excuse.

Good.

Good article, it shows how the cap actually locks clubs out of global resources and stifles the growth of the league and players very well.

Amazing that people still parrot the"they will all go broke" line, yet they don't see the irony that, with TV revenue looking set for a massive drop, the clubs are more likely to go broke anyway.

Why pay the same ordinary recycled players more money?

https://www.youtube.com/watch?v=FTQbiNvZqaY

How many players are overseas on low to medium wages?
Bringing in better quality imports makes a better quality, more professional league for your home grown players to play in.
Pay is incentive, I know I would be happy to work and train harder for better pay.
The biggest step our games need to make is developing players who are at the very least worthy of a decent wage at home.

It's raising the ceiling, not the floor.

Dregs will always be dregs.

-PB

The clubs that will die will be poorly run ambitious clubs. The bottom clubs will continue to function as removing the cap doesn't have any effect on their spending or business model.

Its not a case of wanting a pay rise. It should be a case of paying players whatever the market rate is. It is about clubs making better decisions on their roster and being able to live within their means. If a player becomes too expensive THEN DON'T SIGN THE PLAYER. Its not that hard. 

And thus the cream rises to the top.

I.e. the whole point of removing the cap and promotion/relegation.

-PB

It will, as long as we can live with a flow of clubs falling by the wayside, no probs at all.

More likely to happen with a salary cap then without one. 

CCM's squad on an open market doesn't hit the Salary Cap minimum. but because of the cap floor 95% of their squad is overpaid. 

CCM have to spend the same amount of money (without marquees) as Victory, Sydney and City. 

With no cap Victory,Sydney and City can spend within their means to recruit the best squad possible. 

With no cap CCM will not be forced to try and keep parity with higher revenue clubs, and can build towards more sustainability with youth. 

Would the removal of the cap really help clubs like CCM or Roar?? I just cant see it doing anything but bankrupting clubs. 

They can go to the 2nd division where costs are less and crowds of 4k are acceptable.