EXCLUSIVE
Perth chief executive Russell Clark is set to depart the club as the fallout from a salary cap investigation threatens to undermine the club’s first season under new coach Mark Stone.
And grand finalist East Perth are also facing severe sanctions over allegations they failed to record legal payments to help midfielder Michael Randall defend a drug charge.
Both clubs could start next season on minus 12 points given that they are understood to have breached the 2023 salary cap by up to $20,000.
WAFL rule 5.8 states the penalty for a total player payment breach between $10,001 and $40,000 is 12 premiership points, the equivalent of three wins, a reduction of 15 player points and a fine of up to $50,000.
The recent history of WAFL salary cap breaches suggests that a substantial point penalty would effectively end the team’s season before it started.
South Fremantle were penalised eight points in 2023 and finished eighth with just six wins.
Reigning premiers East Fremantle were penalised four points in the 2024 season and qualified for finals but were beaten in the elimination final.
It is understood that Perth did not record fringe benefits tax for flights supplied to players last year.
They also failed to record superannuation payments as part of a $20,000 sign-on fee for a recruit last year.
East Perth recruited Randall from Peel in 2022 and then provided legal support for the player after he tested positive to the banned stimulant phentermine while playing for the Thunder in 2021.
But after 29 matches at the Royals, Randall has told East Perth he wants to transfer to Perth.
Clark and Perth president Adrian Barich did not return calls today.
East Perth chief executive Dean Turner said the club was hopeful it would be cleared of any breach, given that previous WAFC board meetings had found that legal advice in tribunal matters was not part of the salary cap.
IMAGE: Perth Demons