Glory was on Thursday issued with a show cause notice for its failure to disclose a series of player payments which included third party agents’ fees, accommodation and car allowances, with FFA declaring it will send a delegation to audit the club’s books in the coming days.
Sage, who took control of Glory eight years ago, admitted the club was “sloppy” in its reporting of player payments and perks but said: “The way we have reported the payments is wrong, but it’s the way we have reported payments each year since I became involved and we followed the processes set in place by FFA."
Sage was referring to a brief period prior to his arrival at the club when it was under FFA control in 2006-2007.
“We simply followed their procedures. We haven’t changed them in that whole time," Sage said.
When contacted by The World Game, the governing body rejected the implication its guidelines are unclear in the area of plyaer payments.
"FFA is currently undertaking a process to investigate what is a serious allegation in relation to Perth Glory's Total Player Payments over a number of years," an FFA spokesperson said.
"FFA refutes any suggestion the Salary Cap guidelines are unclear and encourages Perth Glory to concentrate its efforts on the current situation of answering the Show Cause notice.
"The Hyundai A-League Player Contract Regulations clearly state that player agent fees and any benefit or advantage, including accommodation and motor vehicles, provided by a Club (directly or indirectly) to a Player constitute Player Payments and should be included in the salary cap.
"These regulations are updated and sent to all clubs on an annual basis and discussed at annual workshops with the relevant staff from all 10 clubs. The regulations are crystal clear.
"All clubs are required to keep and submit to FFA a Player Payments Reporting Register, which includes specific line items for accommodation, motor vehicles, player agent fees, airfares, FBT and other benefits deemed to be Player Payments."
In spite of the ongoing audit process, Sage was confident his club would not be heavily punished.
“I don’t know what they will do," he said. "But I know in the past it’s been a case of being slapped over the wrists in the beginning and when there were multiple issues action was taken.”
He is referring to the A-League’s only other salary cap scandal, when Sydney FC was fined $129,000 and docked three competition points in 2006.
“With us, considering it was inadvertent and we didn’t do it deliberately and didn’t breach the cap, I wouldn’t think it would too much of a sanction.
“Maybe there will be a slap over the knuckles, or a suspended fine. I don’t know what will happen, really.
“It’s clear we did not breach the cap but it’s also clear we are also administratively sloppy.”
Sage added that those responsible for such accounting practices have long since departed the club and the whole saga is “just one of those unfortunate things”.
“The situation, as it stands now, is that FFA will come over and instruct us on the way to report these payments and put processes in place to make sure it doesn’t happen again,” he said.
FFA's statement on Thursday read: "The show cause notice does not allege that these payments resulted in the club exceeding the salary cap in the relevant years."The alleged breaches involve failure to disclose benefits to players relating to accommodation costs, car allowances and the payment of third party agents fees for the 2012/13, 2013/14, 2014/15 Hyundai A-League seasons."
Sage said the drama had not unduly affected the club.
“Yes, sponsors get nervous but fans and players, it doesn’t really affect them,” he insisted.
“Our CEO Jason Brewer called a meeting with all the players to tell then ’It’s over, we did not breach’ and we believe the worst now can probably be a slap over the wrists.
“As a club, we are now just concentrating on playing well and staying top of the league.”
