AFL announces salary cap shake-up for early retirement

The AFL has announced changes to total player payments (TPP) in relation to AFL and AFLW players who retire, due to concussion, before their contract ends.

Clubs now have the ability to settle a negotiated financial settlement with a player over the period of their contract in alignment with the contract payment terms.

From year one of retirement, the maximum threshold of the TPP relief is 90 per cent, followed by 75 per cent in the second year and 50 per cent in the third year. By the fourth year, no relief will generally be provided. In a statement, the AFL said clubs should factor this in when extending contracts over four years.

These guidelines are only specific to players who have retired with recommendation from the AFL concussion panel.

"Retirements due to other injuries, or decisions made unilaterally by the player or the club, will be subject to existing TPP assessment rules," the AFL said in a statement.

"The guidelines do not provide a guarantee of TPP relief being provided with regards to any specific concussion-related retirement event.

"The provision of TPP relief is at the complete discretion of the concussion TPP committee with consideration given to the terms of the relevant contract and the circumstances of each eligible retirement, and subject to the maximum thresholds approved."

Former Sydney Swans star Paddy McCartin and Collingwood defender Nathan Murphy are two players who have recently retired on the advice of the concussion panel.

Nathan Murphy.

In terms of the AFLW, current rules stipulate that a player retiring due to injury receives their contractual payments, with the replacement player's payments not assessable in the club's TPP.

Under the CBA and AFLW list rules, a retiring player must be replaced by a tier four player. However, if a player retires due to the recommendation of the AFL concussion panel, the concussion TPP committee can permit a replacement player from a tier above tier four.