The A-League’s “Swiss cheese” salary cap model is being revamped amid concerns over clubs spending beyond their means on players and the prospect of even smaller distributions from head office than this season’s all-time low of $530,000.
Clubs in the A-League Men will be barred from spending more than $3 million on players from 2026-27, with a series of concessions allowing homegrown, loyalty, designated players and other categories completely removed.
The only players whose wages will count outside the cap will be marquees – and each club will be permitted just one of those.
The changes will be phased in next season with a $3.5 million hard cap “trial” to give clubs time to adjust to the new edict from the Australian Professional Leagues.
After that, from season 2027-28, the A-League will move to a system in which clubs will only be able to spend a proportion of their revenue on players, with the finer details to be ironed out with the clubs and Professional Footballers Australia in the coming weeks and months. Clubs will also have to have their finances routinely assessed by the APL to prove they are not overspending.
The motivation for the overhaul is not competitive balance but the financial sustainability of clubs and what APL executive chairman Stephen Conroy described as the “arms race” for players. Melbourne Victory, the only club that publicly reveals its financial statements, reported a loss of nearly $10 million last season.
Former A-Leagues commissioner Nick Garcia (left) and executive chairman Stephen Conroy.Credit: Getty
“What we’re seeing is what we frankly think is an unsustainable trend, in terms of their performance, their profitability, their losses,” said Conroy, who took a more hands-on administrative role in February after the mysterious redeployment of commissioner Nick Garcia to a new position overseeing expansion and investment.
“The level of the financial stress the clubs are under is significant, and it’s getting worse. What we’ve got to do is work with the clubs through these measures to ensure that every club is stable. Behind the scenes, because of the data that we get, we are concerned.”
Conroy said that no club in the A-League this season was spending below $3 million on players, and that the average spend was “well in excess” of that figure.
Conroy was confident the restrictions would not affect the A-League’s on-field quality and would instead take further advantage of the competition’s successful turn towards youth development and transfer revenue. Regulations will also be introduced to mandate a minimum number of younger players in squads, which will force clubs to sign a minimum of six under-21 players by 2026-27 and continue to promote talent from their academies.
Sydney FC marquee star Douglas Costa.Credit: Getty Images
Clubs were forced to tighten their belts after the APL’s decision last year to drastically reduce central distributions to clubs by almost $1.5 million to $530,000 due to shortfalls in the A-League’s broadcast deal. That amount does not come close to even covering the salary cap floor of $2.25 million – the minimum clubs have to spend on players – which Conroy said would not be removed.
However, Conroy could not guarantee that distributions would not drop even further, something he said was contingent on the APL achieving its ambition of breaking even this season.
No changes will be made to the A-League Women salary cap.
The financial outlook of the APL and A-League clubs should improve once a new broadcast deal is inked, taking effect from the 2026-27 season, for which talks have begun. Sources familiar with negotiations, speaking to this masthead on the condition of anonymity, have flagged a likely short-term extension with Network 10 and Paramount+ on slightly more favourable terms, since ratings, attendances and general interest in the competition have improved this season, albeit off a low base.
Conroy was hopeful of competitive tension, involving possible interest from ESPN, new Foxtel owners DAZN and Optus Sport, but was realistic about their prospects of a bumper deal given other sports rights are also on the market, including the NRL “gorilla” and Formula 1.
Meanwhile, Conroy all but guaranteed that Canberra United would continue in the A-League Women next season but confirmed a men’s team from the capital would not be introduced until 2026-27 at the earliest, although encouraging discussions are continuing with two interested investment parties.
“If we were able to add a Canberra franchise, giving us an even number of teams, 14 … that’s a strong place to be,” he said.
Conroy also said there were no concerns about the viability of any of the existing clubs, including Western United, which was reportedly the subject of a wind-up order over unpaid bills.
