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By Brent Read and Bret Harris
April 30, 2008
AUSTRALIA's most powerful sporting unions have formed a united front in the hope of convincing the Federal Government to adopt radical tax breaks for the country's leading athletes.
The Athletes Association of Australia, an umbrella body which represents Australian football, rugby league, rugby union, cricket, swimming, netball and basketball, has formed a working party to develop a tax policy designed to make life more profitable for top athletes here.
The issue is especially critical for sports such as rugby league and rugby union, which have lost players to overseas clubs in recent years.
It is also prevalent for basketball and football, although Professional Footballers Association chief executive Brendan Schwab concedes that tax breaks are unlikely to stop that sport's elite seeking massive offers in Europe.
Cricket is also under siege as a result of the Twenty20 revolution and the formation of the Indian Premier League, which is offering the sport's pre-eminent players the chance to earn a million dollars for about six weeks' work.
Other sports such as swimming and netball are seeking a better return for their athletes given the finite nature of their careers.
Rugby League Professionals Association chief executive Matthew Rodwell confirmed a working party had been set up to work in tandem with leading tax accountants. Their aim is to eventually present the federal Government with a policy proposal which would better reward the country's elite athletes.
The NRL has consistently lost players to the English Super League in recent years, an issue which is only going to get bigger when that competition is expanded by two clubs next season.
Already the clubs expected to be included, Salford and Widnes, have begun circling potential recruits.
The move to the UK is attractive to NRL players because of the financial incentives on offer, particularly in England where players can place part of their contract money in offshore bank accounts.
"I think there needs to be some tax concessions here for our professional athletes to try to provide more incentive for them to stay on our shores," Rodwell said.
"It's in its infancy. What we're looking at doing is trying to lobby the Federal Government for some tax change regarding how a player can structure his contract."
Rodwell said the association was considering a proposal which would allow athletes to split their contract money, placing a portion of it in a trust which would be taxed at a low rate.
The association's move is not without precedent. The Irish Government recently introduced tax rebates for players who ended their careers in that country.
In football's case, Schwab is looking to extend the amount of time players spend in Australia's A-League before going to Europe.
"What is important in football is to ensure that players are retained in Australia so that they make a meaningful contribution to the A-League before they go overseas," Schwab said.
"If that means you stay until your mid-20s ... that will not only make the A-League more attractive but it will enhance their ability to succeed once they're in Europe."
Like rugby league, union is finding itself the victim of a player drain as a result of the riches on offer in Europe.
In recent years, star Australia players George Gregan, Stephen Larkham and Matt Burke have accepted big money offers to play overseas.
Although those players were in the twilight of their careers, the concern is that European clubs are targeting international and Super 14 players in their prime.
"We want to stop the player drain out of the country so we can foster competitive sport in Australia," AAA chairman Tony Dempsey, who is also chief executive of the Rugby Union Players Association, said.
Rodwell said the key was to present athletes with incentives to stay without denying them their opportunity to secure their future.
"I guess from our point of view I take my association hat off. I think it does rob the game of some of the elite," Rodwell said.
"I put the association hat back on, (and) you don't want to begrudge a player the opportunity to earn big dollars overseas.
"But you would also like to see some more incentives for the guys to stay and play in Australia throughout their prime."
Elite unite to demand tax relief - Cricket - Fox Sports
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