Salary Cap Investigations
Posted: Wed Oct 05, 2016 1:00 pmInteresting reading from the CFL:
Makes one wonder how many of the 25 are from our league....
From the Player Payment Investigation Committee
Regulation 31
As everyone is aware, the Community Football League (“CFL”) introduced the current ‘salary cap’ requirements under Regulation 31 of the SACFL Rules and Regulations at the end of 2015 and at the same time created an Investigation Committee to investigate allegations of breaches and report to the CFL Board regarding matters relating to Regulation 31.
A SANFL Integrity Officer was also employed and part of his duties is to assist the investigation committee.
This is a very serious attempt to tidy up what most thought was ‘out-of-control’ player payments.
Investigation Committee
The Committee has met several times to discuss issues relating to Regulation 31 and strategies surrounding the many and varied allegations that have been made pointing to some clubs breaching the Regulation.
Committee members have also randomly spoken to over 25 Clubs within a number of Leagues seeking feedback on the processes of Regulation 31, the impact it is having, any suggestions, and in some cases queried some aspects of their playing list and associated player payments.
This process was very beneficial from both a club and the investigation committee perspective.
Information so far
Firstly, it is obvious that the vast majority of clubs are doing the right thing and they are to be congratulated on their efforts to curtail spending on player payments and also now focus on other areas of the Club such as facilities and junior football.
But, judging by the many calls to CFL offices, information supplied from many sources, the committee members’ own observations, and sheer common sense, there are a number of clubs that are not doing the right thing. It would seem that some committee and management members of those clubs, along with players, are flouting the system in a number of ways.
Some of the allegations include:
• Players receiving ‘sign-on’ payments;
• Players receiving cash or other benefits over and above contracted payments either from their club or third parties;
• Relatives or close friends of players (male or female) receiving extra payments on the player’s behalf;
• Players playing for clubs last year and making financial demands on that club which are not met – they then transfer to another club and now allegedly receiving far less money;
• Players being paid as a coach but not having any significant input into coaching on match days or at training sessions etc… there will be a definition introduced to the Regulations around playing coaches;
• Players, or their close relatives, openly bragging about their breaches of Regulation 31 – mostly when at social occasions. This is a common occurrence.
Obviously, these breaches must be investigated and they will be, along with some other queries with other clubs both in a random and targeted fashion.
What happens next?
All grand finalists in all leagues will be subjected to some level of investigation – that is not expected to be overly invasive.
Clubs strongly suspected of contravening Regulation 31 will be subjected to a more rigorous level of inquiry, and that may include, amongst other processes:
• The investigation committee seeking specific information;
• Interviews of players and officials;
• Audits of books and records;
• Requiring Sworn Statutory Declarations from key management and committee members involved in player payments, as well as players involved in suspicious payments. Those declarations will be regarding the individual’s direct involvement in issues surrounding player payments and Regulation 31;
• Conducting an official enquiry.
Officials and players are reminded that should they be asked to provide sworn statutory declarations that serious criminal offences can be committed if they swear to the truth of the contents of the declaration and any of the contents are later found to be false.
Clubs should also be aware that players who co-operate with any investigation are not necessarily subjected to penalties in exchange for their co-operation.
Systemic and serious breaches of Regulation 31 will be severely penalised as per the regulations.
Offer of lighter penalties.
The Community Football League and Investigation Committee urge any club that believes it may have breached Regulation 31, intentionally or otherwise, to contact Sean Toohey (SANFL Integrity Officer) to discuss rectification of their situation and with much lesser penalties available.
Final Word
Investigations will take time and we ask everyone to be patient, investigations will become easier over time once information around transfers, previous payments and end year financials become available.
It is also important and we encourage everyone to continue to provide information to the investigation committee.
The CFL is committed to Regulation 31 as is evident by the significant investigation network that has been established which now includes a part time resource purely focused on player payments.
This Regulation was requested by Leagues as an important mechanism to ensure fairness, equality, improve a players experience in football and importantly slow down escalating player payments and the demands being placed on Football Clubs.
Makes one wonder how many of the 25 are from our league....
From the Player Payment Investigation Committee
Regulation 31
As everyone is aware, the Community Football League (“CFL”) introduced the current ‘salary cap’ requirements under Regulation 31 of the SACFL Rules and Regulations at the end of 2015 and at the same time created an Investigation Committee to investigate allegations of breaches and report to the CFL Board regarding matters relating to Regulation 31.
A SANFL Integrity Officer was also employed and part of his duties is to assist the investigation committee.
This is a very serious attempt to tidy up what most thought was ‘out-of-control’ player payments.
Investigation Committee
The Committee has met several times to discuss issues relating to Regulation 31 and strategies surrounding the many and varied allegations that have been made pointing to some clubs breaching the Regulation.
Committee members have also randomly spoken to over 25 Clubs within a number of Leagues seeking feedback on the processes of Regulation 31, the impact it is having, any suggestions, and in some cases queried some aspects of their playing list and associated player payments.
This process was very beneficial from both a club and the investigation committee perspective.
Information so far
Firstly, it is obvious that the vast majority of clubs are doing the right thing and they are to be congratulated on their efforts to curtail spending on player payments and also now focus on other areas of the Club such as facilities and junior football.
But, judging by the many calls to CFL offices, information supplied from many sources, the committee members’ own observations, and sheer common sense, there are a number of clubs that are not doing the right thing. It would seem that some committee and management members of those clubs, along with players, are flouting the system in a number of ways.
Some of the allegations include:
• Players receiving ‘sign-on’ payments;
• Players receiving cash or other benefits over and above contracted payments either from their club or third parties;
• Relatives or close friends of players (male or female) receiving extra payments on the player’s behalf;
• Players playing for clubs last year and making financial demands on that club which are not met – they then transfer to another club and now allegedly receiving far less money;
• Players being paid as a coach but not having any significant input into coaching on match days or at training sessions etc… there will be a definition introduced to the Regulations around playing coaches;
• Players, or their close relatives, openly bragging about their breaches of Regulation 31 – mostly when at social occasions. This is a common occurrence.
Obviously, these breaches must be investigated and they will be, along with some other queries with other clubs both in a random and targeted fashion.
What happens next?
All grand finalists in all leagues will be subjected to some level of investigation – that is not expected to be overly invasive.
Clubs strongly suspected of contravening Regulation 31 will be subjected to a more rigorous level of inquiry, and that may include, amongst other processes:
• The investigation committee seeking specific information;
• Interviews of players and officials;
• Audits of books and records;
• Requiring Sworn Statutory Declarations from key management and committee members involved in player payments, as well as players involved in suspicious payments. Those declarations will be regarding the individual’s direct involvement in issues surrounding player payments and Regulation 31;
• Conducting an official enquiry.
Officials and players are reminded that should they be asked to provide sworn statutory declarations that serious criminal offences can be committed if they swear to the truth of the contents of the declaration and any of the contents are later found to be false.
Clubs should also be aware that players who co-operate with any investigation are not necessarily subjected to penalties in exchange for their co-operation.
Systemic and serious breaches of Regulation 31 will be severely penalised as per the regulations.
Offer of lighter penalties.
The Community Football League and Investigation Committee urge any club that believes it may have breached Regulation 31, intentionally or otherwise, to contact Sean Toohey (SANFL Integrity Officer) to discuss rectification of their situation and with much lesser penalties available.
Final Word
Investigations will take time and we ask everyone to be patient, investigations will become easier over time once information around transfers, previous payments and end year financials become available.
It is also important and we encourage everyone to continue to provide information to the investigation committee.
The CFL is committed to Regulation 31 as is evident by the significant investigation network that has been established which now includes a part time resource purely focused on player payments.
This Regulation was requested by Leagues as an important mechanism to ensure fairness, equality, improve a players experience in football and importantly slow down escalating player payments and the demands being placed on Football Clubs.
*allegedly*
