The A-League is already under significant financial strain after clubs received a record low of just $530,000 each from the APL, a cut of nearly 75% from the $2m per club handed out at the end of 2022/23, and there are worries amongst its board that its clubs are spending beyond its means on player wages.
This is in part owing to the six concessional categories of its 'soft' salary cap, which included not only two marquee players outside the salary cap of $2.55m, but an additional two 'designated players' who were allowed to be paid anywhere between $300,000 and $600,000 in a bid to attract more household names to the league.
From 2025/26 onwards, there will be just one marquee player per squad eligible to be exempt from a salary cap of $3m per club that will have all other concessions removed entirely.
All clubs are reportedly currently spending more than $3m on player wages in 2024/25, meaning every side will be impacted by the changes.
APL Independent Chair and former Senator Stephen Conroy, who this week was appointed as Executive Chair on a temporary basis to "oversee the optimisation of the APL's operations", told reporters on Wednesday that he believes some clubs are taking the several exemptions too far.
"What we’re seeing is what we frankly think is an unsustainable trend in terms of their performance, their profitability and their losses," Conroy said.
Conroy, who described the salary cap as 'Swiss cheese' leading to an 'arms race' amongst clubs, has vowed that the APL won't be reducing the current minimum spend of $2.25m per year for each club.
"I would imagine the PFA (Professional Footballers Association) have got a view, but that will be subject to negotiations over the next six months going forward."
The plans for 2026/27 onwards is then to introduce a salary cap based on club revenues to ensure that no club is racking up overall losses to keep up with the salary cap ceiling, but few details have been released on these plans at time of publication.