AFL Victoria Australian Football League (Victoria) Limited ABN

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1 AFL Victoria Australian Football League (Victoria) Limited ABN IKON Park, Gate 3, Royal Parade, CARLTON NTH Vic 3054 GPO Box 4337, Melbourne, Victoria 3001 T: (03) F: (03) E: MEMORANDUM To: Metropolitan Leagues and Region Commissions From: Darryl Collings Community Club Sustainability Manager Date: 28 th July 2016 Cc: Re: Steven Reaper, Brett Connell, Jim Cail, Mick Daniher, Draft AFL Victoria Salary Cap Policy This memo has been developed to provide a summary of the Draft AFL Victoria Player Salary Cap (PSC) policy to assist clubs with an overview of the Salary Cap framework as clubs commence planning for the 2017 season. In summary the draft Salary Cap Policy covers all payments and benefits made By a club or on behalf of a club To a player or to an associated party of a player For that players participation at their affiliated club As detailed in the playing contract between a club and a player Meaning of By a Club 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 Paid to a Player includes payments made 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

2 Players Contract Detail of all benefits received by a player must be contained in the Players contract which is included in the draft Salary Cap Policy. Appreciating that clubs may be signing players as the current season draws to a close, it is strongly suggested that clubs use the playing contract template provided at attachment one of this document until the policy is finalised and the Standard Playing Contract is available for clubs to use. Salary Cap Framework: 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 Payment of salary, expenses, Superannuation Guarantee Levy payments or benefits shall include gross payments in cash or kind 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 Playing Coaches The coaching element of a playing coaches 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 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 PSC. 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 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 Clubs Player Salary Cap SC Match Awards 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

3 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 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. 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. For the avoidance of doubt, this includes Sign on Fees. Injury Payments Payments made to players whilst injured are not allowed to be paid under the PSC policy, A Community club may apply to a Metropolitan League or Region Commission to have Injury payments not included in a Clubs Total Club Player Payments on compassionate grounds 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. Finals Appearances Payments to players for finals matches are not allowed under the PSC policy..

4 PLAYING CONTRACT TEMPLATE Attachment 1 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: 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

5 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 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):

6 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 31 st 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:...

7 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 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 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;

8 (c) (d) (e) encouraging Clubs to support junior development of Players to ensure the future of the competition; protecting and promoting the game of Australian Rules Football; and 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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