The AFL has today communicated to clubs a set of Guidelines which will govern the provision of TPP relief for AFL and AFLW players who retire before the end of their Standard Playing Contract subject to a recommendation from the AFL Concussion Panel.
The Guidelines, which have been issued with the approval of the AFL Commission, potentially provide different relief for AFL and AFLW players.
TPP Relief for AFL players
In summary, for AFL players there are two features of the TPP relief provided for in the Guidelines:
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The ability to amortise the negotiated financial settlement with the player over the period of Standard Playing Contract in alignment with the contracted payment terms.
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Maximum thresholds of TPP relief in the three years following the year of retirement:
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In the year immediately following the year of the retirement (Year 1) - Max Threshold: 90%
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In the second year following the year of the retirement (Year 2), Year 2 Max Threshold: 75%
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In the third year following the year of the retirement (Year 3), Year 3 Max Threshold: 50%
No relief will generally be provided with regards to TPP commitments that extend four years or longer following the year of retirement. Clubs should ensure that this is appropriately factored into the risk assessment processes undertaken for player contracts that extend over four years.
The Guidelines are only applicable in the specific circumstance of retirement occurring subject to a recommendation being made by the AFL Concussion Panel. Retirements due to other injuries, or decisions made unilaterally by the Player or the Club, will be subject to existing TPP assessment rules.
The Guidelines do not provide a guarantee of TPP relief being provided with regards to any specific concussion-related retirement event.
The provision of TPP relief is at the complete discretion of the Concussion TPP Committee with consideration given to the terms of the relevant contract and the circumstances of each eligible retirement, and subject to the maximum thresholds approved.
TPP Relief for AFLW Players
In the usual course, where an AFLW player is no longer able to play due to injury, the retiring player receives their contractual payments, but payments made to the replacement player are not assessable in the Club’s TPP. However, under the provisions of the CBA and AFLW List Rules, no matter what Tier the retiring player is, they may only be replaced with a Tier 4 player.
Under the Guidelines, in circumstances where an AFLW player retires subject to a recommendation made by an AFL Concussion Panel, the Concussion TPP Committee may at its discretion permit the injured player to be replaced with a player from a tier above Tier 4 (on terms to be determined at its discretion). In consideration and determination of such a matter, the Concussion TPP Committee will again look at the terms of the relevant contract and the circumstances of each eligible retirement.
