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The State of the Salary Cap?

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Melbourne believes its salary cap is still in excellent shape despite the forced retirement of Steven May requiring the club to spend well over $1 million in the 2026 salary cap on players no longer on its list this year.

May came to a financial settlement with the Demons on a contract that saw them paying out the base component of his deal and some of his potential incentives.

He had made clear during early discussions he did not want to move on but eventually came to an agreement with the club when it became clear they were steadfast in making a clean break from him despite his onfield achievements.

Given his brilliant form when he signed that contract extension, that deal will likely cost the Demons over $500,000 this season.

They will save some cap space this year given the negotiated settlement is less than his full 2026 contract.

As the Herald Sun revealed on Monday the Demons have elevated Casey forward Paddy Cross, a 23-year-old electrician from Nar Nar Goon.

Cross has been involved in scratch matches and training with the club in recent weeks after joining the Casey Demons in 2023 and kicking 24 goals as a mid-sized forward in 18 games last year.

The Demons are paying about half of Clayton Oliver’s $1.3 million wage at GWS until 2030, although St Kilda will this year pay a portion of Jack Steele’s 2026 contract.

Melbourne will this year have to pay 30 per cent of Angus Brayshaw’s contract under an AFL rule that sees clubs secure salary cap exemptions for medically retired players.

Under those rules in the three seasons after a player is retired clubs secure 90 per cent, 75 per cent and then 50 per cent exemptions on a player’s contract before paying the full contract until the end of any deal.

The Demons have paid out Brayshaw’s salary as part of their 2024 financial result but still have to factor in his full wage in their 2027 and 2028 salary cap.

Melbourne will have to use some of its cap space on Oliver, May and Brayshaw this year but has budgeted for that fact and believes its cap is in a good spot for future years.

 

So in 2028 there will be $1.5m out the door before we pay anyone.

The club can spin that as much as they want to but that will hurt if we want to be good. It’s a competitive disadvantage.

 
4 minutes ago, rpfc said:

So in 2028 there will be $1.5m out the door before we pay anyone.

The club can spin that as much as they want to but that will hurt if we want to be good. It’s a competitive disadvantage.

Not great is it. 650-700K a year for Oliver until 2030 🤢

1 hour ago, rpfc said:

So in 2028 there will be $1.5m out the door before we pay anyone.

The club can spin that as much as they want to but that will hurt if we want to be good. It’s a competitive disadvantage.

List/cap management has been horrific.


Relax ppls. Contracts and payments are not public knowledge. I trust the club to have a strategy for future success. May’s contract was accounted for this year well before his retirement.

Paddy’s rookie contract is minimal.

2 hours ago, Demonland said:

Given his brilliant form when he signed that contract extension, that deal will likely cost the Demons over $500,000 this season.

9th in the B+F and clearly started to slip but got an unnecessary contract extension (as everyone seemingly did) to hold off the exodus of a bunch of players who have all since exited anyway!

Brayshaw situation is what it is, not much point rehashing that one. And if we haven’t brought the money forward we’re effectively front loaded others to make sure it’s accounted for.

Similar kind of thing for Clarry. Although if it’s 650k against a 18.44 cap it’s 3.5%, it’s not a killer.

Unfortunately our lowly status is likely to hurt us more than lack of cap room.

Very hard for a club that’s naturally well down the order to land players until you’ve really built something from the draft up that makes it worth joining.

 

Our salary cap management post 2021 has been sadly lacking.

When many were expecting a "premiership Discount" we ended up with a retention anchor.

Sure you can look at each one and explain why but we lacked an overall strategic approach which will stymie us for the next five years.

C'est la vie


May's contract gone end of this year. End of 2027 Max will have retired or if he stays probably on much less $. Ditto end of 2028 for Steele, Viney, Mihocek. That should all add to quite a few dollars ... $3m? by end of 2028.

The club can move other contracts forward or back around the above known salary space.

Plus the ability to under/over spend the cap so smooth it over several years.

No need to worry. Sal cap is a bit smoke and mirrors!

11 minutes ago, Rodney (Balls) Grinter said:

We just need to start paying in farms like Geelong do.

Shh. someone is going to cotton on to this eventually. UNLESS.... perhaps a former geelong leader who works for the AFL now could investigate.


4 minutes ago, biggestred said:

Shh. someone is going to cotton on to this eventually. UNLESS.... perhaps a former geelong leader who works for the AFL now could investigate.

And incriminate himself? Pfft like that's going to happen.

The fact that we signed May in March last year for another year requires an investigation. Our list management is amateur.

1 hour ago, Lucifers Hero said:

May's contract gone end of this year. End of 2027 Max will have retired or if he stays probably on much less $. Ditto end of 2028 for Steele, Viney, Mihocek. That should all add to quite a few dollars ... $3m? by end of 2028.

The club can move other contracts forward or back around the above known salary space.

Plus the ability to under/over spend the cap so smooth it over several years.

No need to worry. Sal cap is a bit smoke and mirrors!

The fact that we are not in contention and that we don't have significant cap room IS a reason to worry. Our club needs a timeline to win our next flag and our list management is not coherent.

27 minutes ago, Fat Tony said:

The fact that we are not in contention and that we don't have significant cap room IS a reason to worry. Our club needs a timeline to win our next flag and our list management is not coherent.

there's no such thing as 'significant cap room' in the afl

every club must pay at least a minimum 95% of their total cap, with an allowance request to dip down to 92.5% (afaik dogs are the only club to ask and receive this), and a tolerance to 105%, to a even keel over a period of time (i've heard recently it's 2 years, but i thought it was 5 year rolling period)

You really would have thought we would have learned our lesson with Brayshaw and Oliver but then we gave Viney a four year extension when he was thirty.


14 minutes ago, whatwhat say what said:

there's no such thing as 'significant cap room' in the afl

every club must pay at least a minimum 95% of their total cap, with an allowance request to dip down to 92.5% (afaik dogs are the only club to ask and receive this), and a tolerance to 105%, to a even keel over a period of time (i've heard recently it's 2 years, but i thought it was 5 year rolling period)

If you're smart about how you manage your cap you can open up opportunities to splurge like the Saints did last year.

9 hours ago, whatwhat say what said:

i suspect our salary cap is in a 'good position' as there's a large bunch of players who are still on their 1-3 year rookie scale

Plus retirements incoming? TMac and Milkshake for starters. Then Max Gawn and Viney 🥲

2 hours ago, Rodney (Balls) Grinter said:

We just need to start paying in farms like Geelong do.

We are the MFC, no farms but stock market. 😎

 
11 hours ago, Dr. Gonzo said:

List/cap management has been horrific.

You weren't exactly banking on Oliver & May losing the plot & Brayshaw being medically retired....

1 hour ago, Fat Tony said:

The fact that we signed May in March last year for another year requires an investigation. Our list management is amateur.

Wasn't in March. Was reported in March, actual extension was some time in the 2024 season to prevent him running off to Carlton, despite being contracted for 2025. Which isn't all that much better.


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