High Court Rules in Athletes' Favour

The Australian Athletes’ Alliance (AAA), the peak body of Australian players’ associations including the PFA, is pleased to report that the High Court of Australia unanimously ruled in June that agent/management fees paid by athletes are deductible as a business expense even when they are paid in connection to the negotiation of an employment contract with a new club. The ruling followed a test case ran with the support of the AAA on behalf of all professional athletes in Australia.

The Australian Athletes’ Alliance (AAA), the peak body of Australian players’ associations including the PFA, is pleased to report that the High Court of Australia unanimously ruled in June that agent/management fees paid by athletes are deductible as a business expense even when they are paid in connection to the negotiation of an employment contract with a new club.  The ruling followed a test case ran with the support of the AAA on behalf of all professional athletes in Australia.

Brendon Gale, Chief Executive of the AFLPA and Member of the AAA Board, issued the following statement:

“We are particularly pleased that after a number of years of prosecuting our case on behalf of our members before all relevant authorities, that the High Court has ultimately determined that our arguments had merit and that our case should prove successful. This decision will provide a positive benefit to all our members and indeed all other professional sports people.”

“Importantly I would also like to thank our legal team and their advisors for their successful advocacy and the ATO for accepting these matters as test cases. Today’s outcome would not have been possible without the assistance of the ATO in agreeing with us that the tax law required clarification in this very important area.  I would also like to thank both David Spriggs and Mark Riddell for their involvement.”

PFA Chief Executive Brendan Schwab, also a AAA Board member, today welcomed the decision, stating that it righted a longstanding wrong in Australia’s tax laws.  He warned professional footballers to be robust in the management of their tax and commercial affairs, and to ensure that the benefits of the ruling are passed onto the players through tax deductibility and not the agents through increased fees.