Concussion claims pose growing financial risk for AFL and clubs
Concussion has understandably been viewed primarily as a player health and welfare issue, but there is also an important financial dimension that needs to be considered. Image: Chinnapong — stock.adobe.com
The financial fallout from concussion could become a significant long-term issue for the AFL and its clubs, as legal action over historic head injuries raises questions about how the competition accounts for future liabilities.
The AFL and its 18 clubs face potential financial liabilities associated with concussion, as a class action involving more than 100 former players continues through the Supreme Court of Victoria.
The issue has come into renewed focus following controversy over a concussion waiver used by Geelong Football Club, which sought to transfer responsibility for future brain trauma to a player with a history of concussion. The club subsequently withdrew the waiver.
The issue comes as the AFL faces an ongoing class action led by former Geelong player Jarad Rooke, alleging the AFL and a number of clubs were negligent in managing concussion and head knocks, resulting in permanent brain injuries among former players.
The legal action is significant not only for player welfare, but for the potential long-term financial implications for the AFL and individual clubs.
Concussion has understandably been viewed primarily as a player health and welfare issue, but there is also an important financial dimension that needs to be considered.
The uncertainty is significant because the outcome of these proceedings and the eventual financial exposure for the AFL and its clubs remain unknown.
Since 2023, the AFL has included the concussion proceedings in the contingent liabilities section of its annual report and financial statements.
A contingent liability is a potential financial obligation that depends on the outcome of an uncertain future event, such as legal proceedings.
In its 2025 annual report, the AFL states the proceedings currently have no financial impact on its accounts because their outcome remains uncertain. It also acknowledges it may have an obligation to indemnify AFL clubs and their personnel for uninsured losses associated with concussion legal proceedings.
At this stage, the AFL can't reliably determine what the financial outcome will be, which is why the issue is disclosed as a contingent liability rather than a recognised liability in the financial statements.
But that doesn't mean there is no financial risk. It means the extent of that risk remains uncertain.
A review of the latest (2025) annual reports of all 18 AFL clubs found considerable differences and variations in how potential liabilities were reported.
More than half made no mention of contingent liabilities, while others stated there were no matters expected to result in contingent liabilities.
The Western Bulldogs reported it had received claims, while St Kilda disclosed it was a defendant in legal proceedings.
Reporting could change as concussion-related litigation progresses and more clubs become directly involved in legal action.
As these proceedings develop, concussion-related liabilities may become an increasingly important consideration not only for the AFL, but for the financial reporting and risk management of individual clubs.
The Rooke class action covers eligible former players who played AFL football between 1985 and 14 March 2023. The proceeding alleges players suffered acquired brain injuries as a result of concussion caused by head knocks sustained while playing or training.
The matter is scheduled for a 12-week trial in the Supreme Court of Victoria beginning in July 2027, with court-ordered mediation scheduled ahead of the trial.
The potential financial implications come at a time when the AFL remains in a strong financial position, reporting operating revenue of $1.204 billion, an underlying operating profit of $65 million and $230 million in cash and cash equivalents in 2025.
However, the longer-term consequences of concussion could extend beyond any compensation ultimately awarded through legal proceedings.
The potential cost isn't necessarily limited to the outcome of one class action.
There can be broader implications through legal costs, insurance, future claims and reputational risk, particularly as understanding of the long-term effects of repeated head trauma continues to develop.
For the AFL and its clubs, concussion is an issue that could have financial consequences for many years to come.
Dr Halabi is an Associate Professor in Accounting at Federation University, a Fellow of Chartered Accountants Australia and New Zealand and a Fellow Certified Practising Accountant with CPA Australia. He is also co-editor of Sporting Traditions, the journal of the Australian Society for Sports History. During his country football playing days Dr Halabi was concussed twice leading to hospitalisation on one occasion.