AFL Victoria

Player Salary Cap Policy

July 2015

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AFL VICTORIA PLAYER SALARY CAP POLICY

1. Introduction The significant movement of players between community clubs, which contributes to the current inflationary nature of player payments across football in Victoria, has been identified as a key issue affecting community football over the past 5 to 10 years. At the AFL Victoria Community League’s Conference in December 2013, a commitment was made to take action. Concerns were aired that the burden currently being placed on clubs and volunteers to raise money to pay players in order to be competitive within their competition was unreasonable and was affecting the long term sustainability of community clubs and significantly contributing to difficulties faced by clubs to attract and retain volunteers. The Player Salary Cap (PSC) policy is designed to narrow the gap over time between high spending clubs and low spending clubs, by limiting growth at the top end. Further, it is expected that the implementation of the PSC policy will provide Clubs with “tools” to “not be allowed” to meet player demands. The implementation of the PSC policy has been designed to not be overly onerous on club volunteers to administer, and is expected to place a ceiling on player payments. 2. Objective of the Community Club Sustainability Program and PSC Policy The Community Club Sustainability Program (CCSP) subcommittee believes that equalisation of community football competition is vital for community football. Even and fair competitions lead to interest, which leads to bigger crowds, which leads to stronger clubs and competitions. Even competitions allow supporters and club volunteers the chance to turn up on any given match day with the knowledge that the outcome of the game is uncertain and that their team has a chance of winning. This mindset motivates people to become and remain engaged with their community club and provides rewards and recognition to all those that assist in putting a team out on the field. The philosophy of competition equalisation is accepted in sports all around the world. Professional sporting bodies have accepted practices such as drafts, salary caps, FIFA Fair Play, and the like, in order to help competitions ensure competitiveness and club sustainability. The objectives of the PSC policy are as follows, to:

• support equalisation of community football competitions; • ensure teams fielded in the competitions are strong and as equally matched as possible; • provide the best opportunities for players to develop and display their skills; • provide opportunities to compete at a community level within an orderly and fair system; • enable team spirit and public support; • encourage community and corporate sponsorships of community clubs; • reduce the inflationary nature of player payments to assist clubs survive financially and reduce

financial burden/stress on clubs; • promote player loyalty and junior development;

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• support the role volunteers undertake in managing their Clubs by;

- minimising the need to fundraise for player payments, - providing a more competitive environment on field, that encourages more volunteers to

support at club level, - providing incentive to spend more time and effort in the development of football, a

welcoming Club environment and growing the game within the local community. The purpose of the PSC policy is to assist club volunteers in managing both the type of payment made to player and place the ceiling on the total player payments that a club may distribute. This PSC policy sets out a framework of rules and guiding principles in relation to a Club Salary Cap system which should be adopted by community clubs in order to achieve the above objectives. If this policy is adopted by Metropolitan Leagues and Region Commissions, they will need to amend their relevant by laws to adopt all relevant provisions under this PSC policy. Further detail regarding the reasoning and application of a player salary cap can be found in Attachment 3 of this policy. 3. Definitions

3.1. AFL – Australian Football League. ACN 004 155 211

3.2. AFL Victoria - means Australian Football League (Victoria) Limited ACN 147 664 579.

3.3. Associate of a Club means and includes: • an office bearer, sponsor, or member of the Club;; • a partner of the Club or a partnership in which the Club is a member; • any person who is or was acting, or who proposes to act, on behalf of or in conjunction

with the Club.

3.4. Associate of a Player means and includes: • any relative of the Player; • the spouse or partner (legal or defacto) of the Player or any of their relatives; • trusts or provident funds for the players benefit or their relatives benefit and companies in

which the player or their relative or partners hold shares. • any person who is or was acting, or who proposes to act, on behalf of or in conjunction

with the player.

3.5. Club Salary Cap– means the total of the Salary Cap allocated to a specific Club by the Metropolitan League or Region Commission for each Season in accordance with this PSC policy.

3.6. CCSP subcommittee – means the subcommittee made up of current player payments working

party members. The members of the party include Region Commission Chairmen, AFL Victoria Staff Representatives, AFL Victoria Country Region Representatives and Metropolitan League C.E.O’s and General Managers.

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3.7. Community Club or “Club” – means an Australian football club which participates within a

community football competition that does not include State Leagues (i.e the VFL or TAC Cup competitions).

3.8. Competition – an Australian football competition in which the Community Clubs participate in

official fixtured matches.

3.9. Competitive Football – means any formally organised football competition conducted by a Metropolitan League or Region Commission excluding AFL 9s, school football and VWFL women’s competitions.

3.10. First Home and Away Match –means the first official competition match for the home and

away season of a Competition.

3.11. Footyweb System – means the online competition management system implemented for football competitions across Victoria.

3.12. Meaning of “By a Club” In these Regulations, wherever the expression “by a Club” is used in the context of the payment of Remuneration to a Player, it includes Remuneration that has been paid to a Player:- • by a Club; • on behalf of a Club; • by, or on behalf of an associate of a Club; • by, or on behalf of a Sponsor of a Club; • by, or on behalf of any other person or Entity associated or affiliated, whether directly or

indirectly, with a Club, an associated Entity or a Club Sponsor; • in any other circumstance whatsoever.

3.13. Meaning of “Paid to a Player” - in these Regulations wherever the expression “paid to a Player”

is used in the context of the payment of Remuneration, it includes Remuneration in either cash and in kind benefits that is paid, provided, made to or given:- • to a Player; • for the benefit of a Player; • to, or for the benefit of, an associate of a Player; • to, or for the benefit of a creditor of a Player; • at, or by, the direction of a Player; or • in any other circumstances declared by the Metropolitan League or Region Commission ,

in its reasonable opinion, to be Remuneration that has been paid to a Player

3.14. Metropolitan League - means the bodies affiliated to AFL Victoria to administer Australian Football in the metropolitan region of Victoria.

3.15. Player membership details – means a players individual details provided for in the Footyweb

System.

3.16. PSC Policy - means this player salary cap policy as amended by AFL Victoria from time to time.

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3.17. Remuneration means any:

• advance; • allowance; • bonus; • consideration; • disbursement; • expenditure; • expense; • financial benefit given or promised; • fringe benefit; • incentive; • loan (other than a loan made on commercial terms at arms length); • match bonus or incentive payment; • money; • payment; • payment of insurance or other premium; • reimbursement; • remittance; • restitution; • reward; • salary or wages; • superannuation benefit; • property or right of any description; or • other advantage or benefit in any form whatsoever

3.18. Reserves Competition – means the Reserves or 2nd Competition within any league or division of

a Competition.

3.19. Reserves Team – means the team of players that participate within a Community Club’s Reserves football team.

3.20. Region Commission – means the bodies affiliated to AFL Victoria to administer Australian

Football in the relevant region of Victoria.

3.21. Season – means Community Football season between 1 April and 30 September each year (or such other agreed dates).

3.22. Senior Competition – means the senior or 1sts Competition within any league or division of a

Competition.

3.23. Senior Team – means the team of players that participate within a Community Club’s senior or 1sts football team.

3.24. Underage Player – means a player who participates in an underage competition i.e. Under 19

or below

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4. Affiliated Metropolitan League/Region Commission Responsibilities Each Metropolitan League or Region Commission affiliated to AFL Victoria:

4.1. will allocate the final figure for the Club Salary Cap to each Senior Competition and for each Club affiliate for the following Season in accordance with PSC policy, with all salary cap allocations to be lodged with the CCSP subcommittee by 31st July each calendar year (or such other date as determined by the CCSP subcommittee) and ratified by CCSP Subcommittee by 30th August (or such other date as determined by the CCSP subcommittee) for the following Season.

4.2. will consider all applications from Community Clubs for the allocation of additional Club Salary

Cap in accordance with this PSC policy (i.e. applications based on unique local circumstances under clause 6.3 of this policy).

4.3. may increase the Club Salary Cap to specific Community Clubs in accordance with this PSC policy to manage unique local conditions and meet the needs of local Community Clubs and the relevant senior Competitions and ratified by CCSP Subcommittee.

4.4. subject to approval of Club Salary Cap via the CCSP subcommittee, Metropolitan Leagues and Region Commissions must communicate the allocation of each Club’s Salary Cap to each of their affiliate Clubs for the following Season in accordance with PSC policy by 30th August in the previous calendar year (or such other date as determined by the CCSP subcommittee).

5. Affiliated Club Responsibilities Each affiliate Community Club:

5.1. where a player is receiving remuneration for participating in the clubs Senior or Reserves teams, will lodge each player’s Standard Playing Contract using the clubs on line portal ,within 7 days of signing and prior to that player participating in a match.

5.2. acknowledges that if a Community Club does not follow this procedure and decides to play a

player in a match, who has not had their Standard Playing Contract lodged, that Club will bear the risk of any subsequent enforcement penalty as determined by the relevant Metropolitan League or Region Commission in accordance with this PSC policy.

5.3. will ensure that for each season, the Senior and Reserves team player payments does not

exceed that Club’s Salary Cap for that season.

5.4. may make an application to its affiliate Metropolitan League or Region Commission for the allocation of additional Club Salary Cap in accordance with this PSC policy (i.e. for unique local circumstances). The application process is to be set down and communicated to affiliate Clubs by the relevant Metropolitan League or Region Commission.

6. Club Salary Cap

6.1. Metropolitan Leagues and Region Commissions will undertake their own process of Club Salary Cap allocations and will be responsible for determining Club Salary Cap for their affiliate Senior Competitions and clubs. The maximum of Club Salary Cap should only vary for

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individual clubs for legitimate circumstances necessary to achieve the evenness and equalisation objective of this PSC policy.

6.2. Metropolitan League and Region Commission may, acting reasonably and via an appointed

subcommittee, reassess a Club Salary Cap where it is deemed inappropriate based on clubs achievements and circumstances to the Competitions Club Salary Cap. Community Clubs will need to make an application detailing relevant evidence regarding the reassessment to its relevant Metropolitan League or Region Commission.

6.3. In order to determine club specific variances to a competition Club Salary Cap, Metropolitan

Leagues and Region Commissions shall adopt the following guiding principles regarding the additional allocation of Club Salary Cap to a Community Club in exceptional circumstances:

a) Additional Club Salary Cap allowance may be allocated to a Community Club which is

located in a region with a low population base.

b) Additional Club Salary Cap may be allocated if a Community Club endures significant hardship, lack of success, is coming out of recess, or is a recently merged or restructured entity.

c) Additional Club Salary Cap may be allocated where a Community Club has no U18 or U19 or younger underage sides and is not capable of developing a junior program due to reasons outside of its control.

6.4. Any alterations to a Community Club’s Club Salary Cap under this clause or for any other reason must be prior approved by the CCSP subcommittee.

7. Salary Cap Framework:

7.1. The salary cap will apply to all player remuneration payments, incentives and awards provided

to Senior and Reserve players selected to take the field throughout each season.

7.2. Payment of salary, expenses, Superannuation Guarantee Levy payments or any other benefits shall include gross payments of in cash or kind whether directly or indirectly to the player or to an associate of the player. This shall include payments made or benefits given by any person or organization within or outside the club to induce the player to play or given in consideration of the playing of football for the club.

7.3. Payments made by either the club or a third party to a player based upon their participation

that is not contained within the player’s contract are not allowed under this policy. 8. Coaches / Coaching Staff:

8.1. Payments made to a non-playing Coach or non-playing Coaching staff are not required to be included in a Club’s Salary Cap.

8.2. In relation to community club playing coach, the coaching element of their remuneration

must be specifically identified in their contract. This coaching element amount must not exceed 50% of their total remuneration, to a maximum of $20,000 with the remaining

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remuneration to be included within the Club’s Salary Cap. For example if a playing coach is paid $30,000, then $15,000 would be included in the cap, if paid $50,000, then $30,000 would be included in the Club’s Salary Cap.

8.3. Where the playing coach is a Co -Coach of a club, the coaching element amount must not

exceed 25% of their total remuneration, to a maximum of $10,000 with the remaining remuneration to be included within the Club’s Salary Cap.

Note: Only one senior playing coach is allowed to have a component of their payment sit outside the Club’s Salary Cap. All other playing or assistant coaches who play, will have their full payments included in the Club’s Salary Cap. 9. Employment

Clubs are able to assist with employment opportunities for a player, provided the terms and conditions are consistent with current commercial practices. Any employment linked to the operations of the club e.g. bar manager, canteen, fitness coordinator etc. must be declared under the Club’s Salary Cap. 10. Other Payments

10.1. Awards / Incentives Player incentives / match awards paid in cash need to be included in the Club’s Salary Cap. This includes Weekly Awards, or incentive / bonus payments made to a Player for awards that include (but is not limited to) Club and / or League best and fairest awards, goal kicking and like awards. Non-Cash awards limited to $300 per week in value with the maximum of $100 for any one player are not required not be included in the Clubs Salary Cap. Non Cash awards over $100 for any one player must be included in the Club’s Salary Cap.

10.2. Affiliation / Player Registration Fee’s / Insurance

All Player Registration Fee payments and any additional Health and / or Income insurance premiums paid for and on behalf of players shall be included in the Club’s Salary Cap. For the avoidance of doubt, Health and / or Income Insurance premiums which clubs are compelled to pay by the Metropolitan League or Region Commission are not included in the Club’s Salary Cap.

10.3. Sign On Fee’s Sign On Payments, including ‘reward or incentive’ payments to a Player for signing a Registration Form and / or Club Contract are not allowed under the policy. This includes a Sign On payment made directly or indirectly to the player or to an associate of the player or applied for the benefit of the player or associate of the player.

10.4. Base Payment

Under the principle “no play, no pay”, any payment made that is not dependant on the players ongoing participation with the club. i.e. Not a Match Day payment is not allowed under the PSC policy. For the avoidance of doubt, this includes Sign on Fees.

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10.5. Injury Payments

Payments made to players whilst injured are not allowed under the PSC policy, consistent with the principle “no play, no pay”. A Community club may apply to a Metropolitan League or Region Commission who may approve injury payments to be provided to a player on compassionate grounds with these payments not included in a Clubs Salary Cap.

10.6. Payments to Underage Players

Payments to players still eligible to play in an underage competition, except for games played in the clubs Senior (not Reserves) team are not allowed under the PSC policy

10.7. Finals Appearances Payments to players for finals matches are not allowed under the PSC policy. This will allow Clubs greater control with budgeting, and allow consistent application of the PSC policy.

11. AFL Victoria Standard Playing Contract: AFL Victoria has developed a standard playing contract for all affiliated clubs to use when contracting players. This contract includes consistent terms and condition and details all of payments and remuneration that will be provided to a player. A copy of the Standard Contract is included at Attachment 1of this policy All player contracts must be lodged electronically to the clubs portal within 7 days of signing and prior to playing their first game with the club. 12. Reporting:

12.1. Each club shall lodge with their Metropolitan League or Region Commission by the 30th April a statement setting out the names of players, details of all budgeted payments, expenses and benefits, including club awards expected to be paid to its players for the ensuing season. Each statement shall be verified and signed by the President and any one (1) of the following, Secretary, Treasurer or Football Manager of the club.

12.2. Each club shall lodge with a Metropolitan League or Region Commission by the 31st October a

statement setting out the names of players and details of all actual payments, expenses and benefits including club awards that have been paid for the season just concluded.

12.3. Each statement shall be verified and signed by the President and any one (1) of the following,

Secretary, Treasurer or Football Manager of the club.

12.4. A Metropolitan League or Region Commission at any time, other than those listed, may request an up to date statement to be submitted by a club.

13. Annual Report: Each club shall furnish the Metropolitan League or Region Commission with a copy of the club's Annual Report including Financial Statements within 30 days of holding their Annual General Meeting each year or in a manner consistent with local competitions requirement to lodge that clubs annual report.

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14. Implementation Metropolitan Leagues and Region Commissions should adopt this PSC policy by no later than 30th September in 2016. Metropolitan Leagues and Region Commissions must advise in writing to the CCSP subcommittee of its intention to implement the PSC policy prior to this date.

Metropolitan Leagues and Region Commissions are free to publicise Club Salary Cap to affiliate Clubs for the following season at their own discretion once approved by the CCSP subcommittee.

The implementation of the Player Salary Cap policy in 2017 may see unintentional errors occur in the application of the salary cap or in other administrative activities, as the industry familiarises itself with the new policy. Metropolitan Leagues and Region Commissions will have the discretion in 2017 to either address any of these breaches in the policy through education and training, or may decide to apply the enforcement provisions listed at clause 18 . In 2018 and beyond, all enforcement provisions will need to be implemented and applied.

15. Salary Cap Committee

The Metropolitan League or Region Commission must from time to time appoint a Salary Cap Committee that has and may exercise such powers as detailed in this Policy or as may from time to time be delegated to it by the Board of the Metropolitan League or Region Commission. The Salary Committee shall be comprised of not less than three (3) persons determined by the Board provided that no member of the committee may be an officer or employee of an affiliated Club.

16. Authority to undertake investigation – Metropolitan League or Region Commission

16.1. Appointment of Integrity Officer – AFL Victoria accredited

A Metropolitan League or Region Commission shall from time to time appoint an AFL Victoria accredited Integrity Officer who has and may exercise such powers as detailed in the PSC policy. The Integrity Officer must not be an officer or employee of an affiliated League or an affiliated Club of that League.

16.2. Authority / Powers of Integrity Officer

An affiliated club must permit a person appointed by the Metropolitan League or Region Commission to have full and free access to all books, documents and other papers of that affiliated club or any person or entity controlled by that affiliated club which that person believes may be relevant to any matter relating to the a Club’s Salary Cap.

16.3. Copies Upon being so requested,

An affiliated Club and/or a player must provide the Integrity Officer with true copies of such records , documents or other papers in the possession of or under the control of the affiliated club and provide such other information and answer such questions as the Integrity Officer believes may be relevant to any enquiries they may make.

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16.4. Payments to be included if explanation unsatisfactory

The Integrity Officer may seek an explanation from an affiliated Club as to the nature of any payments made or benefit provided to a Player. In the event that the affiliated club fails to explain the payment or benefit provided to the satisfaction of the Integrity Officer they may deem such payment or benefit to be included in the Club Salary Cap for the purposes of this policy.

16.5. Applying a charge

If after conducting an investigation, the Integrity Officer forms the opinion that any person or affiliated club has or may have engaged in conduct in breach of any of the provisions of the PSC policy, the Integrity Officer may lay a charge against the person or the affiliated Club.

17. Hearing of Breach

17.1. Where a charge is laid alleging a breach of the PSC policy the Salary Cap committee must give notice of the charge to each person or affiliated Club charged. The Manager of the Metropolitan League or Region Commission must then fix a time, date and place of the hearing of the charge and inform each person and/or Club charged of those particulars not less than seven (7) days’ notice of the time, date and place of the hearing must be given.

17.2. The Salary Cap Committee may vary the time or place specified and must give to each club or person charged at least seven (7) days written notice of any such variation.

17.3. A person or Club charged under the PSC policy has the onus of establishing on the balance of probabilities that a matter or matters contained in the report made by the Integrity Officer are and/or any other evidence presented in support of a charge is untrue or incorrect and that they did not engage in the conduct alleged in the charge.

17.4. At the hearing of any charge conducted by the Salary Cap Committee 17.4.1. give every person or Club charged an opportunity to be heard; 17.4.2. allow the person or Club charged to be represented by any person including a Legal

Practitioner; and 17.4.3. hear and determine the charge before it in a fair and unbiased manner.

17.5. A report made by the Integrity Officer will be prima face evidence of the matter or matters

contained in that report provided that a copy of the report has been provided to the person or Club charged prior to the commencement of the hearing.

17.6. At the conclusion of its hearing the Salary Cap Committee may:-

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17.6.1. declare the charge to be sustained and propose any penalty or sanction provided for

under this PSC policy, including reasons, for the consideration of the Salary Cap Committee; or

17.6.2. declare the charge dismissed; or 17.6.3. adjourn the hearing to a fixed date or indefinitely.

17.7. If the Salary Cap Committee is satisfied that any Club, Player or other person who is in breach

of or has failed to comply with the PSC policy has acted honestly and reasonably it may relieve that Club, Player or person either wholly or partly from any penalty on such terms and conditions as it thinks fit.

17.8. The Salary Cap Committee is not obliged to give reasons for any decision which it makes in relation to a charge heard under this Policy

18. Enforcement

It will be at the discretion of Metropolitan Leagues and Region Commissions as to the enforcement provisions they apply to affiliate Clubs in 2017, however from 2018 onwards, should any Club knowingly make a false or incorrect declaration regarding Player Salary Cap Allocations, the Club may be penalised by the Metropolitan League or Region Commission in line with the penalties set out in this clause.

Penalties may include (without limitation): (a) Club fines (b) Relegation (when in a divisional competition) (c) Loss of premiership points – current season and in the future (d) Loss of Totol Team Points under the Player Points System Policy – current season and in

the future (d) Suspension from finals – current season and in the future (e) Player / Official suspensions – for those players/ officials that knowingly provide false

information to the Club; (f) Any other penalty determined by the Metropolitan League or Region Commission or the

CCSP subcommittee from time to time. 19. Leniency

Any club, official, or anyone associated with a club (whether past or present), but not a player, who comes forward to the Metropolitan League or Region Commission to report any breach or possible breach of the PSC policy, may obtain leniency from the Metropolitan League or Region Commission insofar as any penalty that is imposed as a result of that breach.

20. Immunity

Any player, either currently or previously registered with a club is entitled to come forward to report any breach or possible breach of the PSC policy and they may receive immunity in regard to that report. As such if the report is found to have constituted a breach or possible breach of the PSC policy, the player may not receive any other penalty in regard to that report.

21. Penalties for a Deliberate Breach of the PSC Policy

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21.1. Player Penalty

Should a player sign a contract a Standard Playing Contract that does not contain all the benefits they or an associate of the player are receiving to for a player to participate for that club, that player will be suspended for a period not less than one (1) year as a Player or Official, as determined by the Metropolitan League or Region Commission.

21.2. Club Penalties 21.2.1. Breach under $5000

If the aggregate of the Club Player Payments in a Season exceeds the Club Salary Cap by an amount up to $5000.00, the penalty will be a fine equal to the amount by which the Club Player Payments exceed the Club Salary Cap plus the costs of an Investigation and in addition, at a Metropolitan League or Region Commissions discretion, may include:

(a) the removal of not more than an aggregate of six (6) Total Team Points as detailed under

the AFL Victoria Player Points System (PPS) policy over the following two (2) Seasons; and/or;

(b) the loss of not more than an aggregate of eight (8) premiership points for the Senior team of the Club over the following one (1) Seasons;

(c) being Ineligible for the Final Series of the Senior and or Reserves competition’s the current and/or following season;

(d) being relegated no less than one division and no more than two divisions from the division the club was participating in at the time a breach was detected.

21.2.2. Breach between $5000 - $25,000

If the aggregate of the Club Player Payments in a Season exceeds the Club Salary Cap by an amount more than $5000.00, but less than $25,000, the penalty will be a fine equal to the amount by which the Club Player Payments exceed the Club Salary Cap plus the costs of an Investigation and in addition, at a Metropolitan League or Region Commissions discretion, may include: (a) the removal of not more than an aggregate of twelve (12) Total Team Points as detailed

under the AFL Victoria Player Points System (PPS) policy over the following two (2) Seasons; and/or;

(b) the loss of not more than an aggregate of twelve (12) premiership points for the Senior team of the Club for each of the following two (2) Seasons;

(c) Ineligible for the Final Series of the Senior and or Reserves competition’s the current and/ or following two (2) Seasons;

(d) being relegated no less than one division and no more than two divisions from the division the club was participating in at the time a breach was detected.

21.2.3. Breach over $25,000

If the aggregate of the Club Player Payments in Season exceeds the Club Salary Cap by $25,000.00 or more , the penalty will be a fine equal to the amount by which the Club Player

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Payments exceed the Club Salary Cap, plus the costs of an Investigation and in addition, at a Metropolitan League or Region Commissions discretion, may include:

(a) the removal of not more than an aggregate of sixteen (16) Total Team Points as detailed

under the AFL Victoria Player Points System (PPS) policy over the following three (3) Seasons; and/or

(b) the loss of not more than an aggregate of twenty (20) premiership points for the Senior team of the Club for each of the following three (3) Seasons.

(c) Ineligible for the Final Series of the Senior and or Reserves competition’s the current and /or following three (3) Seasons

(d) being relegated no less than one division and no more than two divisions from the division the club was participating in at the time a breach was detected

22. Appeal and Review

22.1. Metropolitan Leagues and Region Commissions will undertake their own process of Club Salary Cap and will be responsible for determining this for their affiliate Senior Competitions and Clubs. A clubs Club Salary Cap should only vary within a competition in legitimate circumstances necessary to achieve the evenness and equalisations objectives of this PSC policy and as determined by the Sub Committee as detailed in clause 6.3 of this policy .

22.2. Where a Club is of the view that its own Club Salary Cap is deemed inappropriate and

following review by the Sub Committee of the Metropolitan League or Region Commission as detailed at clause 6.2 of the PSC policy, any appeal against that Club Salary Cap allocation must be heard by that Metropolitan League or Region Commission under their own appeals process.

22.3. An appeal against a decision to enforce an enforcement provision under this PSC policy should

be made via the AFL Victoria Community Club Sustainability Manager and will be reviewed by the CCSP subcommittee.

The CCSP subcommittee will review the PSC policy throughout the 2017 Season and amendments and variations may be made by the CCSP subcommittee from time to time. Attachments 1. Standard Playing Contract 2. Club Player Payment Summary 3. Purpose and Reasoning of Community Club Sustainability Program

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Attachment 1

STANDARD PLAYING CONTRACT

This contract does not come into effect until the player has been cleared from their previous club/league (if applicable).

A player must be 18 years of age or over to sign a contract independently otherwise the contract must be ratified by the player’s parent / guardian

This playing contract is entered into by

: ........……………….………………………………………………………… (‘the player’) and

: …………………….......……………………………………………………… Football Club (“the club”) as an affiliated club of

the :...........………………….……………………….…Football League and affiliated with AFL Victoria

The parties have executed THIS CONTRACT on: …….……./……….…../…………..

for the following SEASON(S): ………..……………………..

In accordance with information contained in this document, the following details set out the payment amounts from the club to the player in return for services associated with the club.

$ AMOUNT

MATCH PAYMENTS _____________ (per senior match won)

_____________ (per senior match lost or drawn)

_____________ (per reserves match won)

_____________ (per reserves match lost or drawn)

COACHING PAYMENT (playing coaches) _____________ Details: .......................................................

.................................................................................................

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Note: For Senior playing coaches 50% of this amount to a maximum of $20,000 is excluded from any Club Salary Cap calculations

OTHER PAYMENTS / BENEFITS _____________ Details: ..............................................................

_____________ Details: ..............................................................

_____________ Details: ..............................................................

AMOUNTS TO BE DEDUCTED FROM MATCH PAYMENTS

ANNUAL SUBS _____________ Details: ..............................................................

SOCIAL FUNCTIONS _____________ Details: ..............................................................

PROPERTY _____________ Details: ..............................................................

OTHER _____________ Details: ..............................................................

_____________ Details: ..............................................................

Please note that consistent with AFL Victoria Community Club Sustainability Policy, neither the player or an associate of the player shall directly or indirectly receive any monetary amount or any other consideration the in respect of or in connection with the participation of the player of the following nature:

• sign on fees when a player signs a contract; • Payments to players still eligible to play in an underage competition, except for games played in

the clubs Senior (Not Reserves) team; • match payments to players for finals appearances; • payments to players whilst injured; • any payment that is not dependant on match day participation e.g . Base Payments

To assist with allocating the appropriate player points under the Player Points system, Players that are requiring a transfer to this club are required to tick the box if answering yes to the following questions: In the previous season at the players former club, did the player

Finish Top 10 in the Competition Best and Fairest in the Senior Competition

Finish top 5 at the former club Best and Fairest in the Senior Competition

Finish as leading Goal kicker for the Senior team of the former club (minimum 40 goals) in the Senior Competition Represent the VAFA in their Premier A Representative Team

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All player contracts must be lodged electronically to the clubs portal within 7 days of signing consistent with the requirements detailed the AFL Victoria Player Salary Cap Policy . The manner and dates for payment (outline when payments will be made) .....................................................................................................................................................

.....................................................................................................................................................

The player must comply with the following conditions (Detail below):

.....................................................................................................................................................

.....................................................................................................................................................

.....................................................................................................................................................

.....................................................................................................................................................

The club and player acknowledge that this contract has been entered into in good faith. The contract shall only be valid, when the player becomes registered with the club. This contract shall terminate on

the 31st day of October in the final season referred to above.

The player acknowledges they have received a signed copy of this contract at the time of entry into the contract.

SIGNED by the PLAYER: .........................................................................................................

And Parent / Guardian (if under 18) ....................................................................................

In the presence of:

NAME: .....................................................................................................

SIGNATURE: .............................................................................................

POSITION within CLUB: ...........................................................................

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Playing Contract

CONDITIONS

PLAYER OBLIGATIONS 1.1 Attend all training sessions and team meetings of the Club.

1.2 Follow all reasonable directions of the Senior Coach, and / or President, of the Club.

1.3 Play in all football matches in which they is selected to play or as otherwise directed by the Club unless a duly qualified Medical Practitioner rules him unfit to play.

1.4 Comply with all reasonable requirements of the Club relating to preparation for matches, attendance at social functions, behaviour and dress.

1.5 Not play or train for Australian Football with any other Club or team (save for a State representative team or the league representative team) without first obtaining the consent in writing of the Club.

1.6 Do everything reasonably necessary to obtain and maintain the best possible physical condition so as to render the most efficient service to the Club and to submit from time to time and as and when required by the Club to a complete a thorough medical fitness test and examination..

1.8 Not engage in any dangerous activity which in the opinion of the Club may affect the Player's ability to perform their obligations under this Contract without first obtaining the consent in writing of the Club.

1.9 During league matches, wear only such items of playing apparel as may be approved of or prescribed by the League and to the extent that the same are not inconsistent therewith, the Club.

1.10 Not comment on a matter which the Club has notified the Player is a matter upon which Players of the Club are not to comment publicly.

PLAYER BOUND TO RULES 2.1 The Player hereby agrees with the Club that they is bound by:-

(a) the Rules and Regulations of the Club;

(b) the Rules and Regulations of the League within which the Club plays (including requirements of players and clubs regarding registration); and

(c) the Rules and Regulations of AFL Victoria Inc., including any modifications thereof made from time to time (“the Rules”).

2.2 The Player hereby acknowledges the Rules restrict the freedom of the player to transfer from one Club to another without first obtaining consent of the League, but agrees such Rules are necessary and reasonable for the purpose of:-

(a) achieving an even and well-matched competition;

(b) ensuring the competition is organised and administered to benefit the Clubs, League and Players;

(c) encouraging Clubs to support junior development of Players to ensure the future of the competition;

(d) protecting and promoting the game of Australian Rules Football; and

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(e) protecting the interests of the League, Clubs and Players.

DISPUTE 3.1 In the event of a dispute arising between the parties during the term of this Contract or following

the termination hereof, the matter may be referred for determination to the nominee of the league. A request for determination by an aggrieved party shall be made in writing to the other party and shall contain a precise statement of the issue in dispute and all relevant facts giving rise to the dispute. The League may adjudicate upon any dispute in accordance with its rules in force at the time.

TERMINATION This Contract may be terminated by:

4.1 The Club if the Player is in breach of any of their obligations hereunder and the breach continues for a period of 14 days after notice in writing by the Club to the Player requiring the breach to be remedied.

4.2 The Player if the Club is in breach of any of its obligations hereunder and the breach continues for a period of 14 days after notice in writing by the Player to the Club requiring the breach to be remedied.

4.3 The Player immediately by notice in writing given to the Club upon their name being included, in accordance with the Rules of the Australian Football League (“the AFL”), on the official list of players of any team competing in the AFL competition.

PLAYER MOVEMENT TO VFL / AFL 5.1 The player will remain contracted with the club named in this contract until the expiration of the

contract. It is noted and agreed to by all parties to this contract that any AFL Victoria and/or AFL contract the player enters into will take precedence over this contract and that the rules and regulations of the AFL Victoria or the AFL will be adhered to.

WAIVER 6.1 A waiver by any party of any of the terms and conditions of this Contract in any one case shall

not be deemed or construed to be a waiver of such term or condition for the future or for any other or subsequent breach.

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Attachment 2

(Insert Name ) FOOTBALL CLUB - TOTAL PLAYER PAYMENTS

201x PLAYER EARNINGS - BUDGET / YEARLY RECONCILIATION

Match Payments - Home and Away Games

PLAYERS SENIORS RESERVES TOTAL MATCH

Surname First name No. Of Games Rate $ Amount $ No. Of Games Rate $ Amount $ PAYMENTS $

1 $0 $0 $0

2 $0 $0 $0

3 $0 $0 $0

4 $0 $0 $0

5 $0 $0 $0

6 $0 $0 $0

7 $0 $0 $0

8 $0 $0 $0

9 $0 $0 $0

10 $0 $0 $0

11 $0 $0 $0

12 $0 $0 $0

13 $0 $0 $0

14 $0 $0 $0

15 $0 $0 $0

16 $0 $0 $0

17 $0 $0 $0

18 $0 $0 $0

19 $0 $0 $0

20 $0 $0 $0

21 $0 $0 $0

22 $0 $0 $0

23 $0 $0 $0

24 $0 $0 $0

25 $0 $0 $0

Player Incentives / Awards

No. Of Games Rate $ Amount $ No. Of Games Rate $ Amount $ PAYMENTS $

Best Players Awards $0 $0 $0

Best Players Awards $0 $0 $0

PAYMENTS $

$0

We hereby verify that this is an accurate summary of budgeted / actual (delete as relevant) remuneration made to players

________________________ ../../20xx ______________________________ ../../20xx

President Secretary/ Treasurer / Football Manager (delete as relevant)

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Attachment 3

Purpose and Reasoning of Community Club Sustainability Program

Why we need a salary cap?

A salary cap is required in order to assist in sustaining community football. Currently, every community football competition in Victoria (except one), has clubs participate in an environment that requires the payment of players to be competitive. Often, the payment of players and how much or how little you can pay them, can determine your level of competitiveness within that competition. Given this, in order to remain competitive, community football club volunteers are thrust into an environment whereby raising money to pay players has become the norm. This expectation is creating additional strain and stress on a volunteer workforce that is already stretched by way of numbers, and is continually burdened by greater compliance regulations that are applied from a range of stakeholders.

In a survey conducted in late 2014, 83% of club believed we needed a system of regulation to manage escalating player payments. This same survey identified the issues of player payments was increasing, with only 22% of clubs paying less than $50,000 in player payments in 2014, compared with 37% back in 2011. Furthermore, 34% of clubs were now pay above $100,000 a season to players, which is up from 21% in 2011.

All money raised to pay players is coming via the efforts of volunteers, whose motivation is to be competitive in the competition they play.

Some clubs and their volunteers may have the good fortune of having strong revenue streams to support their on-field efforts, however through often no fault of their own, the majority of clubs can find creating funds to pay players just to be competitive extremely tiresome

This strain on a volunteer workforce to raise money to pay participants is effecting volunteer motivation (even within successful clubs) to the point that volunteering is becoming a short term experience for many people, and in some cases, is leading an inability for clubs to retain volunteers. Furthermore, clubs unable to even be competitive after maximising their efforts to raise money and pay players, are finding it even more difficult to have motivated volunteers, with volunteer turnover in these clubs extremely high. The loss and decline of volunteers no doubt affects the sustainability of community football clubs, as these voluntary organisations do not survive without a strong volunteer workforce.

Why the salary cap is reasonable in the interest of all parties, and why it is no bigger than necessary to protect the Community Football Clubs?

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The Player Salary Cap policy is designed to ensure it is reasonable for all parties, in that the salary cap figure will be set by local people, who have intimate knowledge on the capacity of the game locally to reward and recognise the efforts of players. Currently, most clubs are at capacity in relation to what they spend on players, in that in most cases clubs are spending nearly everything they raise on senior players, with little commitment to funding alternative projects such as facilities, junior development etc. This mindset has evolved over time through the competitive environment football clubs participate in, whereby on-field performance has been closely linked to a clubs status. This salary cap is not designed to stop players being paid, but rather a tool to ensure clubs (no matter what their capacity is to raise money) can participate in a competition in which they have a reasonable chance of being competitive. Given all the money raised to pay players is via volunteer efforts, we believe the salary cap is reasonable in that club volunteers can undertake their work knowing;

- There is a cap in relation to the money they can raise to play players, and therefore there is an end point to fundraising efforts in relation to senior football.

- Other clubs within their competition are also participating under a payments cap, which will provide more opportunity for clubs to compete on a more level playing field.

- Club volunteers still have the autonomy to reward and recognise players at their club for the role they play.

For players, we believe the cap is reasonable for the following reasons;

- Players can still be paid to play, with a player’s individual earning capacity only influenced by the overall team salary cap. E.g. a club can pay an individual player as much as they want, as long as it falls under the cap.

- Players are still capable of being adequately remunerated for their efforts on-field, especially considering, the money they are being paid is via volunteer efforts.

- Players themselves will be participating in competitions under the knowledge an opposition clubs level of competitiveness will not be linked to how much more they can pay their players.

Why the salary cap is reasonable in view of the public interest.

Volunteers are the lifeblood of community football, and without them community football would not exist. If the burden of volunteers remains through having to raise money to pay players, and furthermore continue to raise more money than last year to become even more competitive, then the game will lose volunteers, and we will lose community football clubs because of it. Community football clubs are a significant part of the Victorian landscape and without them, the Victorian public will be worse off. In 2014, the La Trobe University undertook a research paper into the value of a Community Football Club. It found that for every $1 spent on a community football club, there was at least a $4.40 return in social value. It noted that “people associated with a football club experienced greater social connectedness, wellbeing and self-reported physical and mental health”. Some other key outcomes included;

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- Football clubs are 3 times more useful for developing social networks than work, education and

other community group networks. - Football clubs provide individuals particularly aged between 15-24, with significant increased

chances of securing employment via the social networks provided by a club. - Individuals associated with a football club have a greater level of self-reported wellbeing at every

age group compared to a sample of the Victorian population. - A football clubs reach is significant and extends beyond its players, coaches, administrators and

volunteers; for every 1 player, football clubs reach 10 people in their community generating increased civic pride.

- Sponsors typically support community football clubs to assist them to deliver community benefits rather than for a commercial gain

- Football club leaders, on and off field are considered community role models - The average community football club in Victoria makes an annual economic contribution of

$630,000 (Street Ryan Economic Contribution Assessment of Australian Football)

Without some form of regulation to the spiralling player payments, the burden on volunteers will not only remain, but will increase, which will risk the sustainability of community football clubs, which is no doubt a risk to public interests.

Why can’t we just rely on the points system?

While the Player Points System may slow the movement of players between clubs, it will not limit the amount of money a club needs to raise to pay players to remain competitive and therefore sustainable. The points system has no effect on clubs with established playing lists e.g. junior players, or players who have participated with that club over a period of more than 3 years. Due to this, with the before mentioned players all having a points value of 1, without a salary cap, their club may be not only capable of paying them large amounts of money, but will also then be capable of paying any potential recruits significant amount of money. We have already seen examples of current 1 point players, quickly acknowledging their ‘value’ to the club in relation to being low on the points scale, and seeking to be remunerated to a higher level.

Why we are not unreasonably limiting an individuals earning capacity?

The Salary Cap policy does not limit an individual players earning capacity beyond the clubs salary cap. A club has the ability to allocate the money within its cap as it sees fit, with neither the salary cap, nor points policy stoping that player from moving to the club of their choice should they not be happy with their current arrangements. The club of their choice, may need to prioritise the recruited player above other priorities, however if both the club and player are aligned, an individual player can play wherever they want, and get paid however much they wish, as long as it’s under the cap figure.

Why we encourage external employment outcomes?

As outlined in the La Trobe University research paper of 2014, “football clubs provide individuals, particularly those aged 15-24, with significantly increased chances of securing employment via the social networks provided by the club”. This policy in no way limits a player’s potential employment opportunities

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as this is an outstanding by-product of being involved in a community football club. The policy however does look to ensure that if a player’s employment is linked to their involvement at the particular community football club, that player needs to be remunerated for their on-field efforts in line with what would be deemed a ‘reasonable’ for their on-field standard.

Why we need to articulate what constitutes payment between a club and player, and why it is necessary to legislate against certain payments e.g. injury, finals

Given community football clubs are volunteer lead and managed, the policy aims to not only support club sustainability, but at times protect a club against a volunteer who is acting in good faith, but may not have the clubs best long term interests at stake in their decision making efforts, through a lack of experience or skill set. Unlike a professional sporting environment, some volunteers will be inexperienced in some club matters, especially relating to player remuneration, which is unlike other workplace activities. This policy is structured and consistent across the state, to support volunteers in their work, and provide guidance. History shows us that the voluntary nature of community football, and the pressure applied to club volunteers to achieve on-field success by people inside or outside the club may cause some club volunteers to be ‘creative’ in the way they remunerate players. This policy looks to ensure a consistent approach to the offerings to players and payments included in the salary cap policy.

Why volunteer football administrators cannot carry all the burden of enforcement provisions and why we need to place the emphasis on players not accepting money outside their contract to participate with a club e.g. money from a third party to them or an associate.

Given the voluntary nature of football clubs, it is unreasonable to suggest volunteers can monitor their player’s interaction with a third party. As has been suggested previously, the aim of the policy to is decrease the burden and stress on our volunteer network, and actually start to enhance the role they play in community football. This policy needs to provide support and safe guards to assist in protecting both themselves (volunteers) and the club they are appointed to administer. It is important to remember, club volunteers to do not receive any direct benefit from the payment of players, and that they already accept a range of responsibilities with little or no cash reward to administer a club. With third party payments made to a player being a breach of the policy, but with no professional working environment existing to actually monitor this clause, the policy outlines the need to place the responsibility of accepting a third party ‘deal’ on the only person capable of knowing it exists – ‘the player”. Any penalty for a third party deal that is solely applied to a club, would directly impact on club volunteers and their administration role of the club and by association would increase the burden on all volunteers within the club environment.

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Furthermore, while it would obviously impact on volunteers within the specific club that may be in breach, it would also cause angst and apprehension to volunteer’s state wide in either continuing or accepting a voluntary role within a community football club into the future. Given players or their associates are the ones that receive a potential benefit from a third party payment, we do not believe it us unreasonable to expect they take some ownership of the potential enforcement/penalties outcomes should a breach to the policy be found.

Why a standard playing contract is required.

Given the consistent nature AFL Victoria would like to see the Salary Cap Policy applied across Victoria and the policies aims of supporting and further guiding our volunteer workforce, it was thought a standard state wide playing contract would assist in the achievement of these outcomes.

The contract also guides the player on their responsibilities in accepting payment to play, and further educates all parties in the relevant and important components of the Salary Cap Policy.

Why playing coaches need to have a cap on their remuneration?

Senior coaching positions in community football clubs often take either one of the following forms;

- Stand-alone senior off field coach - Joint senior coaches, both being off-field - Joint senior coaches, with one being off field, one being on field (playing) - Standalone senior on field playing coach

While the policy has no issues with any of these forms, it would like to avoid the situation whereby the appointment of a playing coach, whose remuneration is for services related to non-playing activities such as recruiting, training, selection, media, promotion, talent ID, junior development etc., is not adequately acknowledged in the policy. Given this, the policy articulates that given a playing coach has responsibility above and beyond just playing, some of their remuneration needs to sit outside the cap. It was the view of the working party that 50 % of a coaching fee up to $20,000 can sit outside cap, with this figure to continue to be reviewed over time.

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