As the AFL prepares to meet club chiefs at next week's season launch in Adelaide, the details of its plan to reduce the growing gap between the competition's haves and have-nots are starting to become clearer.
Club sources told AFL.com.au on Tuesday that in addition to a luxury tax and football department cap, the AFL is proposing to introduce a tax on overall club revenue, in addition to scrapping the veterans' allowance and the Sydney Swans' cost of living allowance.
Most clubs are believed to be generally supportive of the AFL's proposals, but Collingwood is among a small group of concerned clubs, with the revenue tax the club's biggest worry.
The AFL is yet to determine the amount at which the football department cap will be set, but it is understood it will be around $20-21 million.
Collingwood led the competition in football spending last year with $22.5 million, $5.6 million more than North Melbourne and the Western Bulldogs.
If the AFL's proposal had been in place then, the Pies would have been taxed $1.25 million under a $20 million cap and $750,000 under a $21 million cap.
Along with Greater Western Sydney, the Swans are permitted to spend 9.8 per cent over the salary cap – about $1 million – because of the higher cost of living in Sydney.
But a strong club backlash in the wake of the Swans' prized signings of Kurt Tippett and Lance Franklin over the past two trade periods has helped convince the AFL that the 2012 premier no longer needs a leg up.
However, it is understood GWS will still be allowed to spend above the salary cap as it continues to find its feet in the AFL.
AFL CEO Andrew Demetriou told AFL.com.au last week that any allowance given to the Giants from next season would be to assist its establishment efforts and not to help it cope with Sydney's higher cost of living.
For the past two seasons, clubs have received a discount of $118,000 for every player who has spent 10 or more seasons there.
Geelong has been one of the biggest beneficiaries of the rule and last year was able to spend $1.06 million above the salary cap when it boasted nine veterans.
However, it is understood the AFL is keen to ensure clubs' salary caps become as even as possible.
One football manager told AFL.com.au he was concerned having to include veterans' total salaries under the cap would make it harder for clubs to counter free agency offers made to experienced stars.
An AFL spokesman said the League had been conducting on-going talks with clubs about potential equalisation measures and would provide a further update to club chiefs in Adelaide next week.
Twitter: @AFL_Nick
