From next year, senior coaches can earn up to $100,000 outside the soft cap from marketing service agreements. Geelong coach Chris Scott's deal with a club sponsor, announced late last year, raised eyebrows and reportedly attracted AFL attention.
The soft cap limit will also rise by $750,000 next year, up from the original $250,000 boost. In 2027 the increase will be $350,000, an increase of $100,000 on what had been announced.
From next season, 20 per cent of the salary of the most senior assistant coach or coaching director will sit outside the soft cap. That is on top of 20 per cent of the senior coach's salary already being outside the cap.
"The combined impact of these changes for each club is estimated to be an additional $1.4 million of spend capacity per club over 2026-27, over and above the existing planned increases," the league said in a statement.
The AFL will also stump up $500,000 to support coaches in their professional development and career transition.
It follows months of growing angst among coaches and clubs, with the soft cap sharply reduced at the start of COVID-19.
In April, St Kilda coach Ross Lyon derided the coaches' association as a "paper tiger", while Essendon counterpart Brad Scott said he had never seen the coaching group as a whole feel so disenfranchised.
Brisbane premiership coach Chris Fagan made a presentation to the AFL commission late last year, while league chief executive Andrew Dillon has had a series of meetings in the past few weeks with senior coaches.
"The soft cap is in place to provide some guard rails, such that each club can afford to put together a competitive football program," Dillon said.
"How clubs choose to allocate and spend it across their football department is at their discretion to suit their specific circumstances."Coaches are key leaders who play a pivotal role in our game and at their clubs. This additional soft cap space, earning capacity and support, recognises this importance.
"The meetings we have had across the year allowed me to see first-hand their passion for the game and pressures associated with being a coach in such a high-profile role."
Coaches' association chief executive Alistair Nicholson welcomed the changes, also noting the league would provide more detail soon.
"In addition to the increases to the soft cap, which will increase a coach's earning potential, the introduction of a senior coach marketing agreement and the soft cap concession that will benefit the senior assistant coach or director of coaching, helps to recognise the significant contribution coaches make to the success of the game," Nicholson said.
"We also acknowledge the contribution to professional development and transition that will complement the support already provided by the AFLCA."
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