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Australian Football League Clubs Rebel Against Unclear Formula Behind Equalization

Clubs are becoming "increasingly frustrated by a lack of transparency" from the Australian Football League over the millions of dollars "they have been forced to contribute via the controversial revenue tax," according to Greg Denham of THE AUSTRALIAN. The clubs are continuing their "strong opposition to the luxury tax," which has been labeled the "KFC secret recipe" by Geelong CEO Brian Cook. He said that the league has "no formula" for the equalization measure that is costing 10 clubs almost A$7M ($5.1M) over two years, claiming it is a measurement of "secret herbs and spices" loosely cobbled together. Cook: "There is no formula for this wealth tax that is hurting a number of clubs. We've asked the league several times for it since it was first floated -- and we're still waiting for an answer." In one of two new equalization measures starting this year, 10 clubs will contribute A$6.72M ($4.9M) over the next two years to "their poorer rivals." Cook said, "We are going into debt to pay the equalization scheme. A future tax based on past revenue: it just doesn't make sense. And there's no flexibility in the system to cater for club revenue decreases. Revenues change all the time." Another high-ranking Melbourne-based club administrator said that the qualification for clubs paying the tax was "shrouded in mystery." He said, "No one's got the faintest idea about it" (THE AUSTRALIAN, 7/31).

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