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Player Salaries and Revenues in the Australian Football League 2001–2009: Theory and Evidence

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  • Ross Booth
  • Robert Brooks
  • Neil Diamond

Abstract

In this article we consider the Australian Football League Players' Association (AFLPA) initial fixed percentage of revenue pay request for the 2012–2016 Collective Bargaining Agreement (CBA) with the Australian Football League (AFL) in the context of theoretical predictions of models of player salaries in both settings of profit-maximising and win-maximising clubs. We then explore the AFL data from 2001–2009 and show that the declining share of player salaries as a proportion of revenue is consistent with the predictions from these theoretical models. This poses the question of what the league and the clubs do with the additional revenue if they are not paying it to the players. We explore alternative talent investments (better coaching, improved facilities) as a club strategy and the changing spending on game development as a league strategy.

Suggested Citation

  • Ross Booth & Robert Brooks & Neil Diamond, 2012. "Player Salaries and Revenues in the Australian Football League 2001–2009: Theory and Evidence," The Economic and Labour Relations Review, , vol. 23(2), pages 39-54, June.
    • Handle: RePEc:sae:ecolab:v:23:y:2012:i:2:p:39-54
    DOI: 10.1177/103530461202300204
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    References listed on IDEAS

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    1. Ross Booth, 2005. "Comparing Competitive Balance In Australian Sports Leagues, The Afl, Nbl And Nrl: Does The Afl'S Team Salary Cap And Player Draft Measure Up?," Monash Economics Working Papers 02/05, Monash University, Department of Economics.
    2. Ross Booth, 2005. "Comparing Competitive Balance in Australian Sports Leagues: Does a Salary Cap and Player Draft Measure Up?," Sport Management Review, Taylor & Francis Journals, vol. 8(2), pages 119-143, May.
    3. Booth, Ross, 2005. "Comparing Competitive Balance in Australian Sports Leagues: Does a Salary Cap and Player Draft Measure Up?," Sport Management Review, Elsevier, vol. 8(2), pages 119-143, September.
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