AFL Trade News: Unpacking Free Agency Compensation

AFL Trade News: Day Two LIVE Coverage

You asked, we deliver. Here is a rundown of the AFL’s free agency compensation system.

How Compensation Works in AFL

The AFL compensates clubs that lose free agents to significant contract offers with draft picks. However, no compensation is awarded if a club also secures a free agent of similar value that year. For example, clubs like St Kilda and GWS, which lose key players like Harry Perryman, will receive draft picks if they do not acquire others.

High Compensation Picks Explained

The compensation value can be unexpectedly high for certain players due to the larger contracts they receive. A disconnect occurs when players not seen as top athletes at their current club attract high draft picks. This issue ties into the draft system, where compensation correlates to a club’s draft position.

Determining Compensation Values

The AFL uses a secretive formula that evaluates player contracts, including average annual earnings and player age. Changes this year mean that contracts longer than five years or shorter than two years do not influence compensation calculations. Additionally, clubs can exploit restricted free agents by offering lucrative contracts to ensure high compensatory draft picks.

The Five Bands of Compensation Picks

• First round
• End of first round
• Second round
• End of second round
• Third round

The rise of the salary cap has also impacted compensation, requiring higher contracts to secure first-round picks. Players like Battle and Perryman likely received average contracts nearing $900,000, resulting in first-round compensation picks.

Fairness in Compensation is a topic of debate. While some argue that it unfairly affects clubs in the draft, the current system aims to balance competitive equity by allowing player movement.

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