Football Australia announces removal of cap for professional transfer fees

Football Australia’s (FA) efforts to implement a modern and progressive domestic transfer system in-line with football’s global market within the Australian game has taken a positive step forward after FA ratified the removal of the cap on transfer fees for contracted players.The removal of the cap on transfer fees for contracted players follows a lengthy consultation period with various stakeholders across the game after the release of FA’s Domestic Transfer System Transformation White Paper in January 2021 and means that clubs outside the A-Leagues will be able to negotiate a fee for the transfer of a player on a contract, with free market forces determining the value of the transfer.

Since 2007, the maximum value of a fee that could be paid for the transfer of a player under a player contract and transferring domestically has been capped to 50 per cent of the total salary owing to the player under their existing player contract.

FA Chief Executive Officer James Johnson identified the development as a solid step forward in FA’s plan to implement a modern and progressive Domestic Transfer System for Australian football, and will provide economic, sporting, and transparency benefits for the sport domestically.“The Australian football ecosystem has been disconnected and misaligned, both domestically and with global football,” Johnson said.

“Conflicting regulations domestically have also contributed to Australian football’s current player development challenges and the stagnation of the Australian football economy, despite the significant growth of the global football transfer market over the past decade.

“The removal of the transfer fee cap aligns Australian football with global practice where the international transfer market is usually worth $7 to $10 billion and players are transferred regularly during the transfer windows. Globally, it is common practice that a player can be signed by a club for up to five years and if they are transferred before their contract expires, the new club must pay a compensation to the previous club in line with market rates. This is known as a transfer fee.

“What we have seen because of the transfer fee cap being in place domestically in Australia is the opposite to what we see in global football because domestically, clubs have not been incentivised by the prospect of a potential transfer fee to sign players on longer term professional contracts.

“The removal of the transfer fee cap, along with the introduction of aligned domestic transfer windows via our Domestic Match Calendars, now means that fees can be paid for the transfer of a professional player during a transfer window who is under contract. The change ensures clubs outside the A-Leagues have a clearer and better opportunity to be remunerated and recognised for their capacity to develop great players.

“In addition to the sporting benefits and the potential for a greater number of clubs across Australia to focus on developing and training players, we also believe that this change will encourage transparency around player contracting and stimulate the Australian football economy as funds are circulated throughout the football ecosystem.

“We believe this update will also generate positive and forward-thinking conversations in the Australian football market, as clubs consider ways to optimise their operations and take advantage of the new regulation. In parallel, Football Australia must play its role in educating ambitious clubs and the football community of the new regulation, so that clubs of all shapes and sizes understand how to operate effectively in this new landscape.

“We recognise that this change is not a silver bullet, and it should be considered alongside the other initiatives we have introduced into Australian football, such as FIFA-aligned transfer windows in a Domestic Match Calendar and club licensing. This is the latest step in what will be an ongoing journey of transformation of Australian football.

Discussions regarding additional Domestic Transfer System reform within the whole of game are ongoing, with numerous stakeholders within the sport being consulted regarding matters related to the introduction of transfer fees between A-Leagues clubs, loan regulations, training compensation, home grown player rules and other reforms. It is envisaged that these discussions will continue to progress throughout 2022, with further announcements regarding Australia’s Domestic Transfer System to be made in due course.Note: The removal of the cap on transfer fees for professionally contracted players does not permit A-Leagues clubs to transfer players between one another for a fee. However, it does enable A-Leagues clubs to engage in negotiation with, for example, a National Premier Leagues (NPL) club regarding the transfer of a professionally contracted player. Similarly, NPL clubs may engage with one another regarding the transfer of professionally contracted players within Australia’s transfer and registration windows.

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The A-Leagues Final Series important status also a secret hinderance

The Isuzu A-League finals series is a huge event in the footballing calendar, though its contribution to stagnant attendance numbers in the league is something to be said.

If the 2025/26 finals series follows similar patterns to those before it, it will gather huge traction and strong ticket sales.

It is the largest event for the domestic league, bringing in massive amounts of viewership through media and gate receipts.

Finals series from years past have shown this, with the 2024/25 final, a Melbourne derby, being sold out within 48 hours and gathering significant viewership online.

The idea of a finals series lies within the Australian sporting ethos; the other sporting codes have had this tradition for most of their existence, especially in recent history.

Football, though, is different from the rest of the sporting codes in Australia, unique even. This has historically contributed to its inability to integrate into the same supported status as other codes.

Many in the Australian footballing community, supporter groups, players, coaches, and even the new Director of Football Australia, have voiced concerns over fan numbers in the league competition.

It wouldn’t be absurd to say that maybe, though profitable now, the finals series is actually taking away from the league itself.

Consider the media image: the league winner is called the “minor premiership,” and ticket sales and viewership figures reveal a huge disparity between the two parts of the A-League.

It must be said that an alternative that could work in unison with the league and possibly increase viewership of the league itself would be a great advantage.

It would allow the league to gain more jeopardy and drama, which could build greater interest in attending league games.

One alternative is already here.

No other sporting code in Australia has both a league competition and a cup competition. Football in Australia does.

The Hahn’s Australia Cup is our equivalent to the FA Cup in England or the Copa del Rey in Spain.

These are competitions that offer a finals option in a different competition entirely. They generate huge traction while never diminishing the importance of the league and, therefore, its popularity.

These cup competitions cannot be discussed without acknowledging some obvious differences.

They don’t face the same popularity issues that football does in Australia. It’s obvious the Hahn’s Australia Cup doesn’t yet gain the traction that the finals series does.

However, for a healthy footballing environment with increasing fan numbers, it should.

The idea of elevating the Hahn’s Australia Cup and scaling back the finals series is a complex question, one that is treated like a “no-go zone” by many in the Australian footballing community, and that is understandable.

Though big changes like this might, in the end, be credible options for the future of the sport in this country.

Larger plans must be set in motion, strategies that can be worked towards and refined along the way. It is the process by which all large organisations, business models and even national governments build their strategies.

Such a shift will be scrutinised and pushed back against.

Though with further fine-tuning and smart investment in development, not to mention the introduction of promotion and relegation and the possibility of changing the footballing calendar.

It could replicate the success that these two-competition models already enjoy in other leagues.

The added importance that the premiership would gain, the reality that every game matters, could alongside other strategies entice fans to more games, increase viewership and ticket sales, and create more dedicated fan bases. It works in other nations, very well in fact.

The possibility of two teams lifting a trophy, rather than one single event defining it all, sounds like a strategy that could deliver more engagement over longer periods of time.

Maybe Australian football doesn’t need to answer this question just yet. It is complex, difficult and it would require a great deal of work, including significant investment into the game, which is another issue entirely.

Yet as low attendance numbers persist in the A-League, even alongside increased media viewership, something needs to change for football in Australia.

The rise in popularity of this game and its dedicated community deserves bold ideas and forward thinking.

Ideas like this could eventually begin to change the landscape of the beautiful game in Australia for the better.

FA Board of Directors Welcomes Two New Appointments

Rachel Wiseman and Angela Mentis will join the FA as Directors, reflecting a continued drive within the governing body to prompt a new era for football in Australia.

 

Leading with expertise

Both Wiseman and Mentis join the FA at a time of immense change and ambition.

In February, the appointment of Martin Kugeler as CEO was symbolic of new beginnings for the industry. And now that Wiseman and Mentis are on board, the FA looks set for a defining year.

“We are pleased to welcome Rachel (Wiseman) and Angela (Mentis) to the Football Australia Board,” expressed Football Australia Chair, Anter Isaac.

“These appointments reflect a deliberate effort to strengthen the Board’s capability across commercial strategy, digital transformation, financial services and major rights environments.”

If Australian football is to progress across digital, commercial and beyond, industry experts must sit at the centre of governance.

 

Aligning experience and vision

Most recently Chief Executive Officer Member Capital at NRMA, Wiseman brings experience and knowledge in executive roles, and legal practice.

Further to overseeing the growth and diversification of NRMA since 2016, as well as leading Tabcorp Holdings Limited as General Manager, Commercial Development – International, Wiseman has past experience in the sports landscape.

As Director of Business Affairs for Fox Sports Australia between 2007 and 2024, Wiseman negotiated agreements to broadcast key sports rights. With Football Australia looking to grow its financial power and commercial strategy in the coming years, Wiseman’s knowledge aligns perfectly with the governing body’s vision.

Mentis is an industry leader in financial services, with an extensive range of skills across customer and culture transformations.

Furthermore, following more than 30 years of work spanning Australia, New Zealand, Asia, United Kingdom and USA, Mentis will help the FA with essential, high-quality leadership.

While at the National Australia Bank, Mentis led a division over 900 people across Australia, Vietnam and India. And as the first female Chief Executive Officer at the Bank of New Zealand from 2018-2021, there is no question that Mentis’ credentials and expertise will bring about significant change and organisation at the FA.

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