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Leagues and Governing Bodies

Australian Football League Clubs Accept Budget Cap As 'Inevitable'

Most of the Australian Football League's "powerful clubs view the introduction of a cap on football department spending as a fait accompli, with even financial powerhouse West Coast accepting that a cap on football budgets is inevitable and necessary to contain costs," according to Jake Niall of THE AGE. The majority of clubs "are supporting the concept of a cap on football department spending, with those who exceed the cap paying a luxury tax." With the Eagles -- arguably the AFL's richest club -- "accepting the merits of capped football departments (with a tax) -- cashed-up rival Collingwood remains the major opponent of the cap-and-tax system." Not only did the Eagles "accept that a cap on football spending was necessary," their CEO Trevor Nisbett said that "they were unlikely to exercise the right to spend over the cap and pay a tax -- the system that clubs believe will be phased in, starting from 2015." Nisbett: "We're both resigned to it happening and, for the interests of the game, it probably has to happen. Most clubs are resigned to the fact that there's going to be cap on spending'' (THE AGE, 2/12).

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