How First Year Draftees Can Maximise their Earnings with the New AFL Collective Bargaining Agreement (CBA)
With each passing AFL draft year, the calibre of talent continues to rise, exemplified by emerging prospects such as Nick Daicos (Pick 4, 2021 National Draft), Harry Sheezel (Pick 3, 2022 National Draft), and the newest sensation dubbed “the new Prince of Perth”, Harley Reid (Pick 1, 2024 National Draft).[1] The Melbourne Sports Law Association (MSLA) had the privilege of hosting Megan Comerford, General Manager – Legal at the AFL Players Association, during the 2023 Grand Final Breakfast. Megan provided invaluable insights into her instrumental role in negotiating the 2023-2027 Joint CBA (‘New CBA’) on behalf of AFL and AFLW players. Notably, Schedule 2A of the new CBA introduces significant enhancements for first year draftees, including increased base salaries, match bonuses, and the introduction of Performance Incentives.[2] In this Microblog, we will explore how first year draftees can maximise their earning potential in 2024, and examine how their contracts will evolve under the New CBA.
AFL Standard Playing Contract and the Minimum Length for a First Year Draftee
Under the New CBA, upon selection in the National Draft, an AFL player will enter into a AFL Standard Playing Contract with the minimum length of the contract being determined by the draft position.[3] Players selected between Pick 1 to 20 in the National Draft are entitled to a minimum contract length of three years,[4] whereas those picked from position 21 onwards have a minimum contract length of two years.[5]
However, players that have previously been on an AFL Primary List or AFL Rookie List,[6] or are over the age of 23 by 31 December in the year in which they are drafted by a Club,[7] are exempt from the Standard Player Contract, along with the minimum term of the contract.
Base Salary for a First Year Player in 2024
The base earnings of a first year player are determined by their draft position, as outlined in the Figure 1. [8] A top 10 draft pick will receive a base salary of $130,000. For players drafted between picks 11 and 20, the base salary decreases by $10,000, and for those between picks 21 and 50, it decreases by a further $10,000. Players drafted from position 51 onwards will have a base salary of $105,000.
Figure 1[9]
Senior Match Payments
A first year draftee earns a $4,000 bonus for every match played.[10] Considering the 2024 AFL home and away season comprises 22 matches per team, plus a potential four finals games, there's a total of 26 possible matches. If the first year draftee participates in every game, they could receive a bonus totalling $104,000.
Furthermore, in the third year of the Standard Playing Contract, the match bonus increases to $5,000 per match.
Figure 2[11]
Performance Incentives
A common contractual bonus in Player Athlete Contract is player-based incentives. [12] As mentioned in the ‘Introduction’, the New CBA has introduced Performance Incentives in draftees Standard Playing Contract. [13] These incentives include:
· Winning the Brownlow Medal: $50,000.
· Club Best & Fairest: $40,000 for winning their club's Best & Fairest, or $30,000 for placing in the top three.[14]
· All Australian Team: $30,000 for making the All Australian team, or $20,000 for making the extended squad.[15]
· Rising Star Winner: $20,000.
If a player manages to achieve all these Performance Incentives, they could potentially earn a total of $140,000 in bonuses.
Furthermore, achieving these incentives will not only result in a base salary increase in the following year but can also be achieved multiple times throughout their contract, except for the Rising Star Award, which is a one-time achievement.[16]
Figure 3[17]
First Year Domestic Player Relocation Allowance
The New CBA includes a relocation allowance for first-year players, encompassing various benefits:
Relocation Costs: Covers the expenses associated with moving the player's belongings closer to the club's training ground.[18]
Living Allowance: Provides financial assistance of up to $16,500 to help with the player's living expenses.[19]
Player and Family Travel Accommodation: Includes the payment of flights, petrol allowance, and accommodation for both the player and their family. [20]
Players can qualify for the First Year Domestic Relocation Allowance by meeting one of the three categories: [21]
Interstate Relocation Player: Required to cross a state border, with the total distance travelled to the club's training ground exceeding 150km.[22]
Regional Relocated Player: The total distance travelled to the club's training ground is greater than 150km.[23]
Outer Metropolitan Relocated Player: Required to travel between 80km and 150km to reach the club's training ground. However, this categorisation is subject to the club's discretion and AFL's approval of reasonableness. [24]
Maximum Income of a First Year Player
Let's take Harley Reid, the number one pick from the 2023 AFL National Draft, to illustrate an example of the maximum potential income for a first-year player. Reid has signed a Standard Playing Contract with a minimum length of three years. [25] In 2024, his base salary is $130,000, [26] with an additional $4,000 match bonus per game, [27] totalling a potential match bonus of $104,000.
While challenging to achieve, if Reid were to attain the maximum Performance Incentives, he could earn an extra $140,000 in bonuses.[28] These achievements will also lead to an increase in the following years base salary, which will be discussed below.
Moreover, as an Interstate Relocation Player,[29] originating from regional Victoria and drafted to the West Coast Eagles in Perth,[30] Reid qualifies for benefits under the First Year Domestic Relocation Allowance,[31] including the $16,500 living allowance.[32]
Theoretically, Reid's total football income for his first year could amount to as much as $374,000, excluding the potential living allowance. However, this scenario may not be realistic, considering West Coast's current position near the bottom of the ladder and Reid's potential missed games.[33] [34]
Nonetheless, this scenario highlights the possibility for a future star entering the competition in their first year and earning a substantial income as an 18-year-old AFL player.
Performance-Driven Base Salary Increase
A first-year draftee’s base salary can increase in their second and third years through two means, depending on their performance in the preceding years:
Based on the number of games played; and
If they achieve one or more of the Performance Incentives.
Increase Based on the Number of Games Played
The number of matches played in a previous year will determine the increase of their base salary for the year following. For instance, if a first year player plays in 18 or more games, they qualify for a substantial $60,000 increase in their base salary.[35] Consequently, a top 10 pick in their second year could command a base salary of $190,000. Referencing the New CBA, Figure 4 illustrates the relationship between games played in 2024 and the subsequent base salary increase for 2025
Figure 4[36]
Increase Based on Performance Incentives
As previously outlined in the 'Performance Incentives' section, if a player in their first, second, or third year meets one or more of the specified performance triggers, they will be eligible for a base salary increase in the following year. However, this increase is limited to certain performance triggers, including as winning a Brownlow, which results in a $50,000 increase, achieving the Club Best & Fairest award, leading to a $40,000 increase, and making the All Australian team, resulting in a $30,000 increase.[37] Therefore, the total base salary increase based on performance incentives is capped at $120,000.
Maximum Base Salary Increase in Second Year and Third Year
Let's use Harley Reid as an example once more. As a top 10 pick, his base salary in 2024 is $130,000.[38] If he plays over 18 games in 2024 and achieves the milestones of winning the Brownlow, securing the West Coast Eagles Club Best & Fairest award, and making the All Australian team, his base salary in 2025 would increase to $310,000.[39]
If Reid somehow manages to replicate the same achievements in his second year, along with playing 18 or more games, it's worth noting that playing 18 or more games in a player's second year will increase their base salary in their third year by $110,000.[40] Consequently, his base salary in the final year of the Standard Playing Contract would escalate to $540,000.
Contract Extensions
The New CBA imposes restrictions on extending the AFL Standard Playing Contract of a draftee until after round 6 in their first year.[41] An exception to this rule is granted to a first-year player drafted at pick 21 or later, who, on draft night, can extend their initial two-year contract to a three-year Standard AFL Playing Contract.[42]
Following Round 6, players like Reid have the opportunity to negotiate and extend their AFL Standard Playing Contract with their clubs to further maximise their earning capacity.
Conclusion
In conclusion, the New CBA presents an array of opportunities for first-year draftees to maximise their earnings and secure their financial future in the AFL. With significant enhancements introduced under the New CBA, including increased base salaries, match bonuses, and the introduction of Performance Incentives, players like Harley Reid serve as prime examples of the potential income awaiting talented prospects.
While the hypothetical scenarios presented may seem ambitious, they underscore the potential rewards available to top-tier talent in the AFL. As players like Reid embark on their professional journeys, the New CBA serves as a blueprint for success, offering a pathway to financial prosperity and recognition on the field. As the league continues to evolve, so too do the opportunities for players to thrive under its provisions, ensuring a promising future for the next generation of AFL stars.
[1] Mark McGowan, ‘Hail Harley: Reid's the new 'Prince of Perth' but is he the Eagles' saviour?’, The Age (Online, 28 April 2024) <https://www.theage.com.au/sport/afl/hail-harley-reid-s-the-new-prince-of-perth-but-is-he-the-eagles-saviour-20240425-p5fmib.html>
[2] AFL Players’ Association Limited, ‘AFL and AFLW Collective Bargaining Agreement’ (Australian Football League, 2023) <https://cdn.aflplayers.com.au/app/uploads/2023/10/2023-2027-AFL-and-AFLW-CBA-MASTER-LONG-FORM-FINAL-DISTRIBUTION-VERSION.pdf> (‘New CBA’).
[3] New CBA, Schedule 5A – AFL Player and List Management, Item 3(a).
[4] New CBA, Schedule 5A – AFL Player and List Management, Item 3(a)(i).
[5] New CBA, Schedule 5A – AFL Player and List Management, Item 3(a)(ii).
[6] New CBA, Schedule 5A – AFL Player and List Management, Item 3(a)(iii).
[7] New CBA, Schedule 5A – AFL Player and List Management, Item 3(a)(iv).
[8] New CBA, Schedule 2A – AFL Player and List Management, Item 5(a).
[9] New CBA, Schedule 2A – AFL Player and List Management, Item 5(a).
[10] New CBA, Schedule 2A – AFL Player and List Management, Item 5(b).
[11] New CBA, Schedule 2A – AFL Player and List Management, Item 5(b).
[12] ‘Bonus Structures in English Professional Football - LawInSport’, LawInSport (Journal Article, 16 April 2014) <https://www.lawinsport.com/topics/features/item/bonus-structures-in-english-professional-football>.
[13] New CBA, Schedule 2A – AFL Player and List Management, Item 5(d).
[14] New CBA, Schedule 2A – AFL Player and List Management, Item 5(e).
[15] New CBA, Schedule 2A – AFL Player and List Management, Item 5(e).
[16] ‘AFL Rising Star’, AFL.com (Web Page) <https://www.afl.com.au/rising-star/history>.
[17] New CBA, Schedule 2A – AFL Player and List Management, Item 5(d).
[18] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.2(b)(i).
[19] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.2(b)(ii).
[20] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.2(b)(iii).
[21] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.1.
[22] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.1(a).
[23] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.1(b).
[24] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.1(c).
[25] New CBA, Schedule 5A – AFL Player and List Management, Item 3(a)(i).
[26] New CBA, Schedule 2A – AFL Player and List Management, Item 5(a).
[27] New CBA, Schedule 2A – AFL Player and List Management, Item 5(b).
[28] New CBA, Schedule 2A – AFL Player and List Management, Item 5(d) and Item 5(e).
[29] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.1(a).
[30] Bryn Wakefield, ‘Who is Harley Reid? Potential No.1 draft pick dominates AFL Under 18s National Championships’, The Sporting News (Online, 7 October 2023) <https://www.sportingnews.com/au/afl/news/harley-reid-no1-draft-pick-under-18-national-championships/izp3givisimbteedwbwb0r5x>.
[31] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.2.
[32] New CBA, Schedule 4 – Employment Terms and Conditions, Item 5.2(b)(ii).
[33] ‘Toyota AFL Premiership Ladder, AFL.com (Web Page) <https://www.afl.com.au/ladder?Competition=1&Season=62&Round=962>
[34] ‘Reid managed for Suns clash, West Coast Eagles (Web Page, 25 April 2024) <https://www.westcoasteagles.com.au/news/1538311/reid-managed-for-suns-clash>
[35] New CBA, Schedule 2A – AFL Player and List Management, Item 5(c).
[36] New CBA, Schedule 2A – AFL Player and List Management, Item 5(c).
[37] New CBA, Schedule 2A – AFL Player and List Management, Item 5(d).
[38] New CBA, Schedule 2A – AFL Player and List Management, Item 5(a).
[39] New CBA, Schedule 2A – AFL Player and List Management, Item 5(d) and Item 5(e).
[40] New CBA, Schedule 2A – AFL Player and List Management, Item 5(c).
[41] New CBA, Schedule 2A – AFL Player and List Management, Item 5(g).
[42] New CBA, Schedule 2A – AFL Player and List Management, Item 5(g).