THE AFL could take control of the cost-of-living allowance given to the Sydney Swans and Greater Western Sydney in a move which would douse tensions over the salary cap dispensation.

Under the possible scenario, the AFL would administer the money – approximately $900,000 in 2013 – ensuring it is not used as a lump sum to target recruits.

The allowance came under sharp criticism in 2012 when the Swans recruited Kurt Tippett at the end of the season, on what is believed to be a multi-million dollar long-term contract.

The AFL is known to have recently discussed the allowance and its future, with one suggestion being to regulate the money to individual players on its terms.





Current rules see the clubs afforded 9.8 per cent of the salary cap on top of the maximum of other clubs, designed to be shared among the players to help with living expenses in Sydney. Studies have shown Sydney to be one of the most expensive cities to live in the world.

Many in the industry have called on the allowance to be abolished, particularly after the Tippett deal.





But the League could alleviate some of the disapproval by administering the money itself – essentially taking the money out of an expanded salary cap and placing it in a separate fund.

The possible move may mean the League could keep the full allowance at arm's distance of the clubs, and measure the allowance on an individual basis for each Swans and Giants player.

Some factors it could take into account are age, length and value of a player's contract, and whether the player already owns a property or is renting.

Rules require the clubs to pay the cost-of-living allowance as an addition to the agreed contract figure.

However, it is believed a stipulation sees a hard-and-fast figure enforced only for players on the collective bargaining agreement base payment of around $70,000, who receive the set 9.8 per cent allowance (around $7,000 extra for a total payment of $77,000.)





It is understood the remaining money can be used at the clubs' discretion when negotiating contracts for the rest of their lists.

The AFL said it would not comment on the specifics of the contracts and total player payments for clubs.

Administering the allowance is just one suggestion.

Other ways the League may look to revamp the allowance is to add certain parameters where, for instance, each player gets a strict percentage of his base payment, or a tiered system, where players who earn between $200,000-$400,000 get a fixed percentage that may be higher than players earning above $400,000 and so forth.





The total allowance figure is also being reviewed, with GWS chairman Tony Shepherd particularly vocal in suggesting it should be increased.

Any change is unlikely to take effect in full until at the earliest 2015, but could be phased into next year for players who sign new contracts at the clubs.

A final decision on the allowance is unlikely to be announced before the end of the season as the AFL formalises its view.

Follow AFL website reporter Callum Twomey on Twitter at @AFL_CalTwomey