Carlton Football Club salary cap breach
Encyclopedia
The Carlton Football Club salary cap breach was the breach of the Australian Football League
's salary cap
by the Carlton Football Club
, primarily in the late 1990s and early 2000s. The breaches were a major scandal for the club, and resulted in the club being fined almost one million dollars (a record fine for an AFL team), and restricted from recruiting players via the AFL Draft
, both of which had lasting implications on the club's position.
, shortly before the 2002 AFL Draft
was to take place, the Australian Football League
announced that it had found the Carlton Football Club guilty of "deliberate, elaborate and sophisticated" breaches of the salary cap during 2000 and 2001. The breaches were related to "under the table" payments made outside the salary cap to four players: Craig Bradley
, Stephen Silvagni
, Stephen O'Reilly
and Fraser Brown
.
The club had previously been found guilty of minor breaches of the salary cap, as had many other clubs in the league, but this was the largest and most systematic case of salary cap cheating in the league's history. The AFL accordingly reacted with strong penalties. The club was fined a total of $
930,000 (including $57,576 which had been suspended
from previous breaches). The club was also stripped of several early draft picks in the 2002
and 2003 AFL Draft
s, specifically:
Carlton later earned a priority draft pick
for the 2003 Draft
, which it was permitted to keep, even though that selection took place prior to the first round of the draft. This was used to recruit Andrew Walker
.
Although the club was penalised, no individuals within the club were ever formally identified or penalised by the AFL's investigation. The Carlton Football Club stated at the time that the only people at the club who had knowledge of the breaches were president John Elliott
, and directors Wes Lofts
, Kevin Hall
and Barry Stone. The players were never found guilty of any wrongdoing.
On-field, the club had fallen from playing finals in 2001 to winning its first ever wooden spoon
in 2002, after the retirements of many champion players from the 1990s. The loss of draft picks came at the time when the club needed them the most to rebuild its playing list. This resulted in the worst extended period of on-field performances in the history of the club. In the six seasons between 2002 and 2007, Carlton finished last three times, and five times in the bottom two. It was not until 2009 that the club had rebuilt its list sufficiently to return to the finals.
Off the field, the club had already posted an operating loss of $500,000 in 2002, and its decision to invest in the upgrade of Princes Park was proving to be poor, as AFL games were increasingly moved away from the stadium. After the penalties, the club's was not only forced to pay the $930,000 fine, but also (and, ironically) settle the under-the-table contracts it still had with Silvagni and Bradley. By 2005, the club was close to requiring assistance from the AFL's Competitive Balance Fund. To stay afloat, the club was forced to take a loan of $1,500,000 from the AFL in 2003 – a loan which it was still yet to repay as late as 2009.
The four directors implicated in the illegal payments were all removed from the club in the board election at the end of 2002. John Elliott was voted out as president, and the club sought to distance itself from him; the Elliott Stand at Princes Park was renamed the Carlton Heroes Stand. Carlton struggled to maintain off-field stability, with Ian Collins and Graeme Smorgon both serving unpopular tenures as president over the next few years, before Richard Pratt
took over in 2007. It was not until Pratt's presidency that the club returned to a stable off-field position.
The scandal has had a serious and long-lasting effect on the Carlton Football Club's professional reputation.
Australian Football League
The Australian Football League is both the governing body and the major professional competition in the sport of Australian rules football...
's salary cap
Salary cap
In professional sports, a salary cap is a cartel agreement between teams that places a limit on the amount of money that can be spent on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both...
by the Carlton Football Club
Carlton Football Club
The Carlton Football Club is a professional Australian rules football club based in Melbourne, Victoria. The club competes in the Australian Football League, and was one of the eight founding members of that competition in 1897...
, primarily in the late 1990s and early 2000s. The breaches were a major scandal for the club, and resulted in the club being fined almost one million dollars (a record fine for an AFL team), and restricted from recruiting players via the AFL Draft
AFL Draft
The AFL Draft is the annual draft of new unsigned players by Australian rules football teams that participate in the main competition of that sport, the Australian Football League.-History:...
, both of which had lasting implications on the club's position.
Investigation
At the end of the 2002 AFL season2002 AFL season
-Round 2:-Round 3:-Round 4:-Round 5 :-Ladder:All teams played 22 games during the home and away season, for a total of 176...
, shortly before the 2002 AFL Draft
2002 AFL Draft
The 2002 AFL Draft consisted of a pre-season draft, a national draft, a trade period and the elevation of rookies. The AFL Draft is the annual draft of talented players by Australian rules football teams that participate in the main competition of that sport, the Australian Football League.In 2002...
was to take place, the Australian Football League
Australian Football League
The Australian Football League is both the governing body and the major professional competition in the sport of Australian rules football...
announced that it had found the Carlton Football Club guilty of "deliberate, elaborate and sophisticated" breaches of the salary cap during 2000 and 2001. The breaches were related to "under the table" payments made outside the salary cap to four players: Craig Bradley
Craig Bradley
Craig Edwin "Braddles" Bradley is a former South Australian Australian rules footballer and first class cricketer. He is currently a part-time assistant coach at the Carlton Football Club, the club he represented 375 times in the VFL/AFL....
, Stephen Silvagni
Stephen Silvagni
Stephen Silvagni is a former Australian rules footballer for the Carlton Football Club.During his long VFL/AFL career, from his debut in 1985, until his retirement in 2001, he gained the reputation as one of the greatest ever full-backs to play the game and was named as full-back in the AFL Team...
, Stephen O'Reilly
Stephen O'Reilly (footballer)
Stephen O'Reilly is an Australian rules footballer, who mainly played as a full back. He was educated at Aquinas College, Perth.-WAFL career:...
and Fraser Brown
Fraser Brown
Fraser Brown is a former Australian rules footballer in the Australian Football League.Originally from Lilydale, Victoria and known for his fierce style of play, Brown's highest achievements in football were playing in the 1995 premiership and winning the 1998 Carlton best and fairest.Brown will...
.
The club had previously been found guilty of minor breaches of the salary cap, as had many other clubs in the league, but this was the largest and most systematic case of salary cap cheating in the league's history. The AFL accordingly reacted with strong penalties. The club was fined a total of $
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
930,000 (including $57,576 which had been suspended
Suspended sentence
A suspended sentence is a legal term for a judge's delaying of a defendant's serving of a sentence after they have been found guilty, in order to allow the defendant to perform a period of probation...
from previous breaches). The club was also stripped of several early draft picks in the 2002
2002 AFL Draft
The 2002 AFL Draft consisted of a pre-season draft, a national draft, a trade period and the elevation of rookies. The AFL Draft is the annual draft of talented players by Australian rules football teams that participate in the main competition of that sport, the Australian Football League.In 2002...
and 2003 AFL Draft
2003 AFL Draft
The 2003 AFL Draft was the 2003 instance of the AFL Draft, the annual draft of talented players by Australian rules football teams that participate in the main competition of that sport, the Australian Football League...
s, specifically:
- Draft picks No. 1, 2, 31 and 34 from the 2002 National Draft
- All draft picks in the 2003 Preseason Draft
- Its first and second round draft picks in the 2003 National Draft
Carlton later earned a priority draft pick
Priority draft pick
The priority draft pick is a type of draft selection in the Australian Football League's AFL Draft. Priority draft picks are additional draft picks, located at or near the start of the draft, which are given only to the poorest performing teams, to provide additional help for those teams to improve...
for the 2003 Draft
2003 AFL Draft
The 2003 AFL Draft was the 2003 instance of the AFL Draft, the annual draft of talented players by Australian rules football teams that participate in the main competition of that sport, the Australian Football League...
, which it was permitted to keep, even though that selection took place prior to the first round of the draft. This was used to recruit Andrew Walker
Andrew Walker (footballer)
Andrew "Tex" Walker is a professional Australian rules footballer playing with Carlton Football Club in the Australian Football League .-Early life:...
.
Although the club was penalised, no individuals within the club were ever formally identified or penalised by the AFL's investigation. The Carlton Football Club stated at the time that the only people at the club who had knowledge of the breaches were president John Elliott
John Elliott (businessman)
John Dorman Elliott is a former president of the Liberal Party, and former president of Carlton Football Club. In 2003 he was found guilty of trading while insolvent and in 2005 declared bankrupt...
, and directors Wes Lofts
Wes Lofts
Wes Lofts is a former Australian rules footballer who played for Carlton in the Victorian Football League during the 1960s.A key defender, Lofts represented the Victorian interstate team in both 1963 and 1967...
, Kevin Hall
Kevin Hall
Kevin Hall is a former Australian rules footballer who played for Carlton in the VFL.Making his debut in 1963, Hall played mostly as a defender and was at a half back flank in Carlton's 1968 premiership side. He was a premiership player with Carlton again in 1970 and 1972, playing as a fullback...
and Barry Stone. The players were never found guilty of any wrongdoing.
Aftermath
The penalties struck Carlton at a very inopportune time. Historically one of the most successful clubs both on and off the field, decisions made in the late 1990s meant the club was already struggling in both areas in 2002, and the impact of the penalties severely weakened the club's position for the next five or six years.On-field, the club had fallen from playing finals in 2001 to winning its first ever wooden spoon
Wooden spoon (award)
A wooden spoon is a mock or real award, usually given to an individual or team which has come last in a competition, but sometimes also to runners-up. Examples range from the academic to sporting and more frivolous events...
in 2002, after the retirements of many champion players from the 1990s. The loss of draft picks came at the time when the club needed them the most to rebuild its playing list. This resulted in the worst extended period of on-field performances in the history of the club. In the six seasons between 2002 and 2007, Carlton finished last three times, and five times in the bottom two. It was not until 2009 that the club had rebuilt its list sufficiently to return to the finals.
Off the field, the club had already posted an operating loss of $500,000 in 2002, and its decision to invest in the upgrade of Princes Park was proving to be poor, as AFL games were increasingly moved away from the stadium. After the penalties, the club's was not only forced to pay the $930,000 fine, but also (and, ironically) settle the under-the-table contracts it still had with Silvagni and Bradley. By 2005, the club was close to requiring assistance from the AFL's Competitive Balance Fund. To stay afloat, the club was forced to take a loan of $1,500,000 from the AFL in 2003 – a loan which it was still yet to repay as late as 2009.
The four directors implicated in the illegal payments were all removed from the club in the board election at the end of 2002. John Elliott was voted out as president, and the club sought to distance itself from him; the Elliott Stand at Princes Park was renamed the Carlton Heroes Stand. Carlton struggled to maintain off-field stability, with Ian Collins and Graeme Smorgon both serving unpopular tenures as president over the next few years, before Richard Pratt
Richard Pratt (Australian businessman)
Richard J. Pratt was a prominent Australian businessman, chairman of the privately-owned company Visy Industries, and a leading figure of Melbourne society. In the year before his death Pratt was Australia's fourth-richest person, with a personal fortune valued at billion...
took over in 2007. It was not until Pratt's presidency that the club returned to a stable off-field position.
The scandal has had a serious and long-lasting effect on the Carlton Football Club's professional reputation.
See also
- Canterbury-Bankstown Bulldogs salary cap breachCanterbury-Bankstown Bulldogs salary cap breachThe Canterbury-Bankstown Bulldogs salary cap breach was the breach of the National Rugby League's strictly-enforced salary cap by the Canterbury-Bankstown Bulldogs committed during the National Rugby League's 2002 season...
- Melbourne Storm salary cap breachMelbourne Storm salary cap breachThe Melbourne Storm salary cap breach was a major breach of the National Rugby League's strictly enforced salary cap by the Melbourne Storm club over a period of five years...