Top Australian Football League Clubs Fear Extra Tax In Equalization Debate

The Australian Football League's equalization debate "has taken a new twist," with power clubs "fearing the league could introduce a tax on overall club income on top of a cap on football-department spending as part of a plan to end the competition's great divide," according to Jon Pierik of THE AGE. Several club chiefs "questioned" whether an expected cap on football department spending, with a tax on those who exceed what could be a ceiling of A$20M-25M ($18M-23M), "would generate enough to make a difference when distributed equally between clubs or to the less affluent, particularly if many remain below the cap." Some clubs "are concerned about discussions relating to a tax on overall income, with wealthy clubs to be hit hardest under the model." A tax of this type "would require a debate on what constitutes club revenue," with one club questioning, for instance, "whether money raised from special foundation-type programs should be included" (THE AGE, 2/20).