It's time the AFL simplified the system and the answer is obvious - allocate each club points which they can use as currency to bid on players from other clubs (trade), buy draft picks, or bank for future seasons.
Allocation of points
Each draft pick already has an estimated points value (e.g. pick 1 is worth 3000, pick 10 is worth 1395) - the 49,436 points would be allocated so that lower-placed clubs receive more points. My preference would be to allocate points based on the number of wins over the previous 3 seasons, with each win reducing a club's allocation by 50 points (100 points for finals wins) - this would assist teams that are constantly struggling rather than good teams that had one poor season.
Trading
Clubs would be able to trade points directly for players - there would no longer be any need for complex trades involving multiple clubs and various draft picks. Clubs would be allowed to trade next year's points, but at their own risk (for instance if they finish high on the ladder they may have insufficient points and would be forced to trade).
Free agency
This would operate as it currently does, however compensation would use points rather than a pick. My preference would be for the team receiving a free agent to pay the compensation to the team losing a free agent - the compensation amount should, however, be below what would have been received in a trade (in some cases zero). This would ensure the total pool of points remains constant.
National draft
The draft would operate as an auction for picks. I've thought carefully about how this would operate so that clubs do not blow all of their points on early draft picks and have provided details below for those interested - there is a bit of complexity in there.
Top 10: The top 10 picks would be determined by a direct auction - lower-placed clubs and those who have traded players would typically have the most currency and would likely win the bid for early picks. However, a club with many points may strategically aim to get picks 4 and 5 rather than pick 1, for example.
Pick 11: Pick 11 would be 'sold' to the club with the highest remaining points balance after the top 10 auction. This pick would be a 'benchmark' pick - its 'cost' of 1329 points would be scaled up or down depending on how many points were used on the top 10. For instance, if clubs bid more than expected for the top 10, pick 11 would be cheaper - this would help prevent clubs from 'overbidding' in the top 10 auction. The club with pick 11 can choose to either take a player or sell the pick to another club (who may be willing to pay more).
All other picks: Each subsequent pick would then be sold to the club with the highest balance for its pre-determined value, with the option that the pick is sold to another club. Like pick 11, each pick would have its cost scaled up or down according to how many points were bid for the top 10 - this ensures that the total value of all picks equals the total pool of points.
Father son/academy selections: If an eligible player is selected, a club can choose to match the bid - they must pay the amount of points used to acquire the draft pick minus any discount. The club that originally bought the pick would have the full points returned. If taken outside the top 10, the value of all subsequent picks would adjust slightly to ensure the total picks value equals the total pool of remaining points.
Other restrictions: Each club must indicate at the beginning of the draft how many picks they intend to take - they must keep some points in reserve for future picks (i.e. they cannot bid all of their points on pick 1 unless they intend on taking only one pick). Each club would be allowed a maximum of one trade on the night involving future points (allowing multiple trades could mean clubs manipulate the draft order).
Rookie draft, pre-season draft and mid-season draft
Would operate as they currently do (reverse-order-of-finish), though the points currency system could be extended to these drafts. One option would be to allow the trading of future draft points for picks in these drafts.
To finish, I note that others on this site have come up with similar ideas - I have also written about this before. However I believe it's a good idea and intend to keep putting it forward until the AFL adopt it.
Allocation of points
Each draft pick already has an estimated points value (e.g. pick 1 is worth 3000, pick 10 is worth 1395) - the 49,436 points would be allocated so that lower-placed clubs receive more points. My preference would be to allocate points based on the number of wins over the previous 3 seasons, with each win reducing a club's allocation by 50 points (100 points for finals wins) - this would assist teams that are constantly struggling rather than good teams that had one poor season.
Trading
Clubs would be able to trade points directly for players - there would no longer be any need for complex trades involving multiple clubs and various draft picks. Clubs would be allowed to trade next year's points, but at their own risk (for instance if they finish high on the ladder they may have insufficient points and would be forced to trade).
Free agency
This would operate as it currently does, however compensation would use points rather than a pick. My preference would be for the team receiving a free agent to pay the compensation to the team losing a free agent - the compensation amount should, however, be below what would have been received in a trade (in some cases zero). This would ensure the total pool of points remains constant.
National draft
The draft would operate as an auction for picks. I've thought carefully about how this would operate so that clubs do not blow all of their points on early draft picks and have provided details below for those interested - there is a bit of complexity in there.
Top 10: The top 10 picks would be determined by a direct auction - lower-placed clubs and those who have traded players would typically have the most currency and would likely win the bid for early picks. However, a club with many points may strategically aim to get picks 4 and 5 rather than pick 1, for example.
Pick 11: Pick 11 would be 'sold' to the club with the highest remaining points balance after the top 10 auction. This pick would be a 'benchmark' pick - its 'cost' of 1329 points would be scaled up or down depending on how many points were used on the top 10. For instance, if clubs bid more than expected for the top 10, pick 11 would be cheaper - this would help prevent clubs from 'overbidding' in the top 10 auction. The club with pick 11 can choose to either take a player or sell the pick to another club (who may be willing to pay more).
All other picks: Each subsequent pick would then be sold to the club with the highest balance for its pre-determined value, with the option that the pick is sold to another club. Like pick 11, each pick would have its cost scaled up or down according to how many points were bid for the top 10 - this ensures that the total value of all picks equals the total pool of points.
Father son/academy selections: If an eligible player is selected, a club can choose to match the bid - they must pay the amount of points used to acquire the draft pick minus any discount. The club that originally bought the pick would have the full points returned. If taken outside the top 10, the value of all subsequent picks would adjust slightly to ensure the total picks value equals the total pool of remaining points.
Other restrictions: Each club must indicate at the beginning of the draft how many picks they intend to take - they must keep some points in reserve for future picks (i.e. they cannot bid all of their points on pick 1 unless they intend on taking only one pick). Each club would be allowed a maximum of one trade on the night involving future points (allowing multiple trades could mean clubs manipulate the draft order).
Rookie draft, pre-season draft and mid-season draft
Would operate as they currently do (reverse-order-of-finish), though the points currency system could be extended to these drafts. One option would be to allow the trading of future draft points for picks in these drafts.
To finish, I note that others on this site have come up with similar ideas - I have also written about this before. However I believe it's a good idea and intend to keep putting it forward until the AFL adopt it.