- Aug 22, 2009
- 24,506
- 28,840
- AFL Club
- West Coast
Sorry? Where did I assume players spend all their money in Sydney? That's a two edged sword. Victorian or WA players earn more in real terms, but why would they only spend it in their states? Perhaps they chip away at the Sydney property market themselves?
You cannot account for what happens after the money is earned. Players can spend it on hookers and cabbage patch doll collections for all it matters. The issue is: how much do they get paid in their hand. And is that sum equivalent to a sum they would earn in another state?
As for the logic of it all, I did point out that it is the AFL trying to fix everything with a magic bullet here. So this is their logic not mine. But when consultants fly around the world doing contracts, they always include a CoL factor in their remuneration. Are they all gettting a cheque in one hand and instructions from their employers in the other ordering them where they have to spend it to make it fair? Of course not.
If you are trying to determine what CoLA will accurately account for a difference in cost of living, you can't just increase income by the % difference in the cost of living. This will over-compensate for the difference. That's all I'm saying. If Sydney is 10% more expensive than Melbourne, increasing income by 10% in Sydney will leave those in Sydney with more money than those in Melbourne, so long as they don't spend every cent they earn.
But as you said, the CoLA had nothing to do with the cost of living in Sydney. I'm surprised a Swans fans would admit that. I admire your honesty.