Tuesday, August 11, 2020

ROGUE M-LEAGUE TEAMS SINK DEEPER WITH DOUBLE CONTRACTS FOR PLAYERS, COACHES

Tony Mariadass

 FMT

August 8, 2020 9:42 AM

 

The raging disputes of unpaid wages to M-League football players and coaches reflect the depths of greed and dishonesty to which the warring parties are prepared to sink.

It is an old problem created by the players, coaches, and state football associations (FAs) and clubs themselves who connive to under declare salaries to the authorities.

Such scheming is glaring in the double contracts signed by players and coaches with their employers.

The practice of double contracts is not new: it has plagued the M-League during the semi-professional era from 1987-1994 when wage caps were imposed by the FA of Malaysia (FAM).

Then, state FAs and clubs hired players with higher salaries than the capped wages.

They then submitted the contract with the capped wage to the FAM and signed a separate one for the additional amount agreed upon.

The wage cap was lifted when football went professional in 1994 due to the free transfer market.

Today, even without salary caps double contracts exist – the first with a lower pay and the other higher.

They collude in order to pay less taxes and make reduced contributions to the Employees Provident Fund and Social Security Organisation.

Sometimes, it is the player and coach who request for the double contract, other times the FAs and clubs hold sway.

The consequences kick in when the aggrieved individuals take their case to FAM, only to learn that the national body recognises the first agreement as the official deal.

That would explain why disgruntled players or coaches are reluctant to lodge a complaint with FAM or the Professional Footballers Association of Malaysia when their wages are not paid or underpaid.

Those who seek the assistance of both the bodies end up getting lesser money based on their first contract which is deemed ‘official’.

The same happens when team managements change midway through a season and recognise the first agreement.

A case in point is that of a coach who suffered a 50% reduction in his wages, based on the first contract submitted to FAM, when a new management took over the team.

He took the matter to FAM’s Appeals Committee after the Status Committee recognised his first contract.

The coach, who also claimed he was not paid for a few months, has the option to seek redress in the Civil Court if he is unhappy with the decision of the Appeals Committee.

Little wonder then that the M-League is riddled with salary disputes every season.

If everyone continues with underhand tactics, what next for Malaysian football that went professional 25 years ago?

Clearly, professionalism will never be achieved, and the integrity of M-League teams will be compromised.

Irresponsible actions will negate efforts by FAM to encourage teams to develop strong governance and organisational structures, implement stable financial management and increase credibility.

 

BLOG VERSION

Double contracts need to be halted in Malaysian professional football era

 Mind-set needs to change with State FAs, clubs and players and coaches to sign legitimate contracts to avoid wage wars.

 

The undeniable greed of players and coaches, and cunningness of State FAs and clubs, have led them to very often under-declare wages to authorities and it is now one of the main reasons for wage disputes and non-payment of wages in Malaysian football.

This has resulted in ‘double contracts’ signed by players and coaches with their football employers.

However, with the FA of Malaysia only recognising the ‘Official’ contract submitted to them before the start of the season, when disputes arise, players and coaches lose out.

The players, coaches and State FAs and clubs, have to shoulder the blame for the mess which has been with the M-League from the early 90s, when wage caps were imposed by FA of Malaysia.

The State FAs and clubs, to lure players to play for them, would offer a player higher wage than the capped wage and submit the original contract with the capped wage to the FAM and then sign a separate contract for the additional amount agreed upon earlier.

During the current era when there are no wage caps, players, coaches, State FAs and clubs, continue to sign ‘double contracts’ to reduce the amount to be paid to the Inland Revenue Board (IRB), Employees Provident Fund (EPF) and Social Security Organisation (PERKESO).

Sometimes the players and coaches request for the ‘double contract’, other times the State FAs and clubs are the ones who make the request.

When this horrible practice finally stops, then maybe FAM can hope for a change of mind-set and all to follow the proper procedure with club licensing and conversion from Football Associations to Football Clubs as a must and in place for the 2021 season.

The Club Licensing is a tool for both the development and benchmarking of professional football clubs. Under this system clubs must meet with certain criteria to participate in National and/or AFC competitions and also includes: -

·         Developing strong governance and organisational structures

·         Implementing stable financial management and reporting

·         Increasing reliability, credibility and integrity of the clubs and league

·         Improving the clubs’ administration, management and organisation.

One of the reasons why a player is reluctant to make immediate complains to the FA of Malaysia or the Professional Footballers Association of Malaysia (PFAM) when in late or non-wage payments, is because of his ‘double contracts.’  He will only go to FAM or PFAM, as a last resort and more often than not, the decision will not favour the player or coach and will end up getting paid based on the ‘official contract’ deposited with the FA of Malaysia.

Players and coaches normally request or agree to sign ‘double’ contracts, out of trust and of course to earn extra money without having to declare it to the authorities.

But sometimes players are left high and dry when the team management is changed midway through a season and the new management only recognises the ‘official contract’ in place.

 There is at least one known case currently on the table, of a coach who was initially paid the agreed sum with his employers for a few months, but when there was a management change, he was only paid the salary submitted to FA of Malaysia, which was almost half the sum agreed upon.

The coach claims his contract with FA of Malaysia was altered, but it is the duty of the coach or any player, to read every page of the contract and understand every detail before signing each page as he is required too.

The case is now with the FA of Malaysia appeals committee after the Status Committee had decided whatever arrears to be paid to the coach is based on the official contract submitted to them.

The coach has forwarded an appeal petition to the FA of Malaysia Appeals Committee, with documents to prove that he was paid the initial agreed sum for the first few months before his wage was reduced some months later. He also has a signed document to the original amount agreed upon.

There were also some months when he was not paid. The Appeals Committee will hear the case soon and it will be interesting to see what the outcome is.

The coach has the option to take his case to the Civil Court if he is unhappy with the decision. The coach and employer could have avoided this unnecessary and lengthy process if everything was done above board and adhered to the original agreement.

That players, coaches, State FAs and clubs resort to these under-the-counter tactics when it comes to wages in this professional football era, is indeed disgraceful.

It is little wonder then that season in and out, Malaysian football is faced with players and coaches’ wages disputes.

Malaysian football has enjoyed professional status now for 25 years after an initial five years of semi-professionalism, so it is indeed disheartening to hear about such dishonest goings on and it certainly does not augur well for the game.

It is high time powers that be decide once and for all to whether go fully professional or return to amateur football. In my book that's not a very tough decision to make.

Ends.

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