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How does free agency work?

Richmond's Brandon Ellis is a restricted free agent in 2019 - AFL,Free Agency,Trade,Contracts,Explainers,Tag-Explainers
Richmond's Brandon Ellis is a restricted free agent in 2019

THE AFL introduced free agency at the end of the 2012 season, giving players another vehicle where they can transfer from one club to another. Free agency is a common form of player movement in major football and sporting codes around the world.

Under rules agreed between the AFL and AFL Players’ Association in February 2010, restricted and unrestricted free agents may consider offers from rival clubs during the post-season period.

Compensation in the form of AFL allocated draft picks apply to clubs with a net loss of free agents. This is based on a formula determined by the AFL.

The Veteran’s List allowance has been amended to apply to players with 10 years’ service at one club and will be based on a set amount of Total Player Payment (TPP) per player calculated as a percentage of TPP.

RESTRICTED FREE AGENTS

Players who are in the top 25 per cent of salaries at their club (that is, in the club’s top nine-10 paid players) are eligible for restricted free agency the first time they are out of contract, if they have served at least eight years with the club.

For example, a player who is contracted after his seventh year for one, two, three, four or five years will be eligible for restricted free agency when next out of contract having completed either eight, nine, 10, 11 or 12 seasons respectively.

A top 25 per cent player is eligible for unrestricted free agency when next out of contract, provided a player can never be an unrestricted free agent until completing at least 10 years’ service at one club.

For example, a player who signs a one-year contract after his eighth season is not eligible for unrestricted free agency until he has completed at least 10 years’ service.

Restricted free agents have the right to move to a club of their choice, subject to the current club’s right of first refusal over their services. That is, if the current club can ‘match’ the offer from a suitor club, the player must stay or enter the draft. The tabled offer includes only football payments and Additional Service Agreements (ASA) amounts. 

UNRESTRICTED FREE AGENTS

Primary List

Players delisted by a club are unrestricted free agents but a player who retires or delists himself is not eligible to be a free agent.

Players who are not in the top 25 per cent of salaries at their club (that is, in the club’s top nine-10 paid players) are eligible for unrestricted free agency if they have served at least eight years with the club.

An unrestricted free agent can automatically move to the club of his choice.

Rookie List

A rookie-list player who retires is not eligible to be a free agent.

A first-year rookie not receiving a second-year rookie contract offer is considered a delisted player and therefore is an unrestricted free agent.

A first-year rookie not accepting a second-year rookie contract offer is not considered a delisted player and must nominate and go through the draft.

A second-year rookie not accepting a third-year rookie contract offer is considered a delisted player and therefore is an unrestricted free agent.

PLAYERS WHO PREVIOUSLY CHANGED CLUBS AS FREE AGENTS

Under rules introduced in 2019, a player who previously moved as a free agent, is coming out of contract and has not been at their new club for eight years now qualifies for unrestricted free agency. 

This accounts for any player who has crossed as a restricted, unrestricted and delisted free agent, with former listed players picked up in the NAB AFL Mid-Season Rookie Draft also qualifying.

Players delisted from senior lists and retained as rookies also are included. 

In 2019 that meant that 50 extra names were added to the free-agency pool from the previous list released in March

HOW THE TOP 25 PER CENT IS DETERMINED

The top 25 per cent of players on a club's list (top 9-10 paid players) are based on the guaranteed contract values in the relevant contract year (including ASAs).

The AFL releases the names of those eligible players before round one of each season. An updated list of restricted and unrestricted free agents is issued during the season when changes occur and a final list issued during Grand Final week.

MATCHING OFFERS

A contract offer is matched if the football payments and ASAs are equivalent under the offer and the contract proposed by the player's current club. To qualify as a matching offer, the player's current club must make an offer on the same terms as the new offer tabled by the player including:

•  Contract length
•  Base payments
•  Total match payments
•  Total ASA payments

Total performance incentives based on AFL awards or honours, club best and fairest finish or games played (not including finals). Any incentives for team performance do not have to be matched. A player cannot table an offer to be matched for less than a two-year contract length.

COMPENSATION

A club that has a net loss of players transferring to/from other clubs as free agents in one transfer period is entitled to compensation via National Draft picks allocated by the AFL.

The compensation formula produces a points rating for players based on:

1. The new contract of the free agent
2. The age of the free agent

Draft picks are allocated to clubs based on the net total points for free agents lost and gained during the transfer period.

Draft picks will be allocated to one of five places:

•  1st round
•  end of 1st round
•  2nd round
•  end of 2nd round
•  3rd round

In applying the formula, an expert committee reviews the formula outcomes. The committee has the power to recommend alternative outcomes to GM – Football Operations where the formula produces a materially anomalous result.