After months of drawn-out negotiations, the AFL and the AFL Players' Association have declared the pay deal a win for each side.
The six-year deal means the players will receive an immediate 20 per cent pay increase to lift the average wage to $371,000 this year.
After that, there will be incremental pay rises for the next five years, with 1.2 per cent in 2018, 1.3 per cent in 2019 and 2 per cent a year for the last three years of the deal.
The new deal will also raise the salary cap for each club by $2 million to $12.4 million this season.
AFL Players Association president Matthew Pavlich says the Collective Bargaining Agreement is a fantastic outcome.
"From the players' perspective, the guiding principle throughout this CBA negotiation was partnership, and we're thrilled to be able to secure that here today, and share that, and (it's) something that recognises the significant contribution the players make to the game. For the first time in the game's history, the players' wages will be tied to industry revenue. It's a fantastic outcome and something that we were steadfast on achieving."
On the other side of the negotiations, AFL chairman Richard Goyder says the deal recognises the players are partners in the game.
"Our players, AFL players, play the toughest, fastest and most spectacular game in the world, and they deserve to be genuine partners in the success of the game and well-rewarded for that."
AFL chief Gillon McLachlan says the deal rewards the players, who deserved to be paid well.
But he says it does not take away from the AFL's commitment in other areas.
"We have money to invest in community football and our fans and supporters, and we are now putting together a body of evidence that says we're doing more than talking to that. And we continue to work to make sure that our game is as accessible as it can be to as many Australians as we can."
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