Australia and the World Past and Present

Free agency in the AFL allows out-of-contract players to move to another club without their current club having to agree to a trade.

It was introduced at the end of the 2012 season after negotiations between the AFL and the AFL Players Association.

Before free agency, a player could effectively be controlled by his club unless a trade was arranged. Free agency gave long-serving players greater freedom to choose where they played.

There are two main types of free agency.

There is unrestricted free agency (UFA). Under UFA, a player can move to the club of his choice and his current club cannot stop him. Generally this applies to players with at least 10 years of service at one club, players with at least 8 years of service who are not among their club’s highest-paid, or delisted players.

There is also Restricted Free Agency (RFA). Under RFA, a player’s club has the right to match a rival offer. If the club matches the offer, the player must stay at his current club, negotiate a trade or enter the draft.

Why was free agency introduced?

The AFLPA argued that AFL footballers had less employment freedom than workers in most industries. Free agency was designed to give players greater control over their careers and reward long service.

At the same time, the AFL wanted to preserve competitive balance. Therefore it retained the salary cap, the national draft and compensation picks for clubs losing free agents.

So, what are the consequences of free agency?

Star players have gained more bargaining power. Players have more leverage when negotiating contracts. Clubs often offer longer and more lucrative deals to prevent stars from reaching free agency.

Still, player contracts vary. Much depends on an individual player’s ability and where they are in their football career lifecycle.

The typical AFL player contract is between 2 and 3 years.

Since the late 2010s, most national draft selections have received an initial two-year contract. Clubs then decide whether to extend them. This gives clubs flexibility if a player does not develop as expected.

Most AFL footballers who have proven themselves sign contracts of 2 years if there is uncertainty about form or injury or 3 years if they are regular senior players.

Three years is often considered a standard contract length for a player in his prime.

The AFL has seen a trend toward increasingly long contracts for star players.

Examples include Buddy Franklin signing a nine-year deal with the Sydney Swans in 2013.

Older players are usually offered one-year contracts, or one-year contracts with trigger clauses for an additional season.

A player generally becomes eligible for free agency after eight seasons at the same club. Clubs often try to re-sign players before they reach free agency, offering longer deals around the six or seven-year service mark.

Many players never reach free agency eligibility. This is one reason free agency affects a relatively small proportion of the playing population, even though it receives a great deal of media attention.

The AFL has seen a greater movement of experienced players between clubs since the introduction of free agency.

One criticism is that successful clubs and clubs in desirable locations tend to attract more free agents. Clubs such as Geelong, Sydney and Richmond have generally been more successful at recruiting established stars than struggling clubs. Critics argue this can undermine equalisation.

When a club loses a free agent, it may receive a compensation draft pick. Since 2012, dozens of compensation selections have been awarded. Supporters say they protect clubs losing talent, while critics argue they create anomalies in the draft order.

Free agency also allows players to return home more easily. Many players have used free agency to return to their home state or move closer to family. This has been particularly significant for Western Australian players returning west, South Australian players returning to Adelaide and Victorian players returning from interstate clubs.

Trades still dominate player movement and free agency has not replaced trading. Many high-profile moves still occur via trades because players are contracted or because clubs seek better compensation

Has free agency been good for the AFL? The answer depends on perspective. Players have greater freedom, higher salaries and more control over career decisions.

For clubs free agency has made it harder to retain stars. They also face greater pressure to offer longer contracts.

Free agency has shifted bargaining power toward established players and has become one of the most important features of modern AFL list management.