More financial restrictions on way for struggling clubs

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.

“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.”