Free Agency compensation equation explainer - Trade Mornings - Day 5 (29.09.26)
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How do age and contract value affect AFL free agency compensation?
So for the fans listening, you're talking band one, band two, how does This get adjudicated. How do is does it come down to the contract? Is is it purely financial? If you're willing to pay a player X amount, he's worth X amount as a pick.
Yeah, so it's worth it's based on three factors. One is the age of the player. So the younger the player the more likely you you are gonna get band one compensation. And like how do you
adjudicate the age? Like what
Well, the age of the player at the end of the year of the that they're moving. So a twenty six year old is more likely to get band one compensation than the thirty year old. Yeah. Or thirty four year old 'cause they have longer to go in their career and they can contribute more to the club that they're going to. So
is it a case by case thing? Like a case? Case by case. Case by case. Right. Right.
But I'll I'll explain this. So the the age is one factor. Another factor um is the um average uh money on the contract, yeah. Which is which speaks for itself. So whether it th the average is seven fifty or eight fifty or one point five, whatever it is. So it's based on age, um, it's based on the money.
How does the AFL rank free agents into compensation bands?
Um and it's also oh geez it's also based on the um the the the cohort of players. So what the AFL does, they they bring together all the free agents that are available and um where you rank on in that cohort is what band you're most likely to be part of. So
and who's on the judging panel of that, or is it or is it all data and point related? It's
data and point related. So the cynics, and there are a lot of cynics, would say the secret herbs and spices is not trustworthy because we don't know we don't know specifically what it is. Right. But we've been I've been in a briefing in the AFL where they've laid out in an Excel document, not with the players' names, they'll say like player X is here 'cause he's this old and he's worth this much money and in this cohort that means he sits in this band. It's
interesting. So
Do player accolades affect AFL free agency compensation?
So
Zach Butters is unequivocally band one. Yeah. So he's one point eight to two million dollars a year, nine year contract, and he's what is he, twenty six years old. Do they take into account accolades and achievements? No, they don't. That's what I'm saying with Toby Green. Like they don't take into account the fact he's captain of a club, he's an all time great, he's a f well, he was a franchise player. They don't do any of that. It's just based on those numbers. So I remember when Zach Williams went from uh the Giants to Carlton, he was on seven fifty times five or times six. That was Because back then that's just a locked in band one, no issue.
How has salary inflation changed the threshold for Band 1 compensation?
Whereas now if Jordan Butts deal is the same from the Crows to the Dogs, that's unlikely to be band one because players are paid more now. Mm-hmm. So the inflation means that you probably need nine hundred to nine fifty to be band one. Yeah. Like I need to look it up. What was Jack Sylvani last year at Carlton? I don't that I think they got band two for him.
Yeah.
Can clubs trust the AFL's free agency compensation formula?
But three or four years earlier that would have been band one as well. So do we trust this process? Look, there are enough cynics out there to make me think that the AFL manufactures it to um i in a very small way to support the clubs down the bottom of the ladder.
Yeah.
So that if you're losing a good player you get a better compensation pick. Um I don't know what the alternative is really. Is there one? The reason the A4 doesn't want to tell everyone exactly what the formula is, is because they don't want clubs manipulating it. Yeah. So that's what they would say.
How are free agency compensation picks meant to equalize the AFL?
So make your own assessments. Zero four two six three or seven five eleven.
It's more fair than, you know, when was it was it Oscar Allen when when he moved and or there there was some players that have moved in the past and because they were down the bottom of a ladder that club, it was like, Oh, you get picked two, like the the pick after the pick you were meant to get, which that doesn't make sense. At least this formula that the AFL has in place seems a little bit more fair across the board.
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Chapters
7 chapters
1
How do age and contract value affect AFL free agency compensation?
0:00–0:56
2
How does the AFL rank free agents into compensation bands?
0:56–1:43
3
Do player accolades affect AFL free agency compensation?
1:43–2:14
4
How has salary inflation changed the threshold for Band 1 compensation?
2:14–2:31
5
Can clubs trust the AFL's free agency compensation formula?
2:31–3:00
6
How are free agency compensation picks meant to equalize the AFL?
3:00–3:50
7
Why can premiership contenders attract free agents more easily than struggling clubs?
3:50–4:24
Speakers
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