THE SYDNEY Swans have taken a swipe at those who have criticised their expanded salary cap that takes into account the cost of living in the Harbour City.

The Swans will attempt to reach a trade with Adelaide this week that will see Kurt Tippett join their premiership-winning club.

Swans CEO Andrew Ireland said the expanded cap was required to cover the additional price living in Sydney comes with.
 
"I think it's offensive that people start to pick on the allowance, which is clearly ok," Ireland said.

"[Former Hawthorn president] Jeff Kennett makes comments about it being as dear in Melbourne - it isn't as dear in Melbourne.

"In fact, when we did the review, our view was that the difference in the cost of living was something like 15 per cent, not 9.8.

"It just astounds me."

Ireland denied there was a "slush fund" from their allowance, and that "every player on our list gets 10 per cent" extra.
 
"Otherwise, you would think the managers aren't doing their job," he said.

"The thing that seems naïve to me is, we've got 44 players on our list who are represented by managers who know that the allowance exists, so every time we do a contract, it is 'This is what he'll get paid elsewhere, we want 10 per cent".

"We've got a cost of living allowance. It is clearly dearer in Sydney. Even [Collingwood president] Eddie McGuire, who's probably railed against these things, spent some time living [in Sydney] and accepted it is much dearer than living [in Melbourne]."

Ireland also said Tippett would be on less than he was paid at Adelaide next year, if the trade went through, refuting claims he would be on a million-dollar deal to continue his career in the red and white.

With a number of Swans approaching the end of their careers, Ireland indicated there would be more room their salary cap in the coming years.

"We're in a good position to be able to pay Kurt a contract that he wants," Ireland said on day one of the Gillette AFL Trade Period.

"He'll play for us [next] year for less than what he was getting paid at Adelaide.

"That's my understanding of it, this year, and obviously all clubs tailor their payments to suit where you currently are.

"We've got a number of players who are over 30, none of them who we think will retire next year, but we are going to be a position in the next few years to have some more space in our cap as older players retire.

The two clubs met ahead of the start of day one of the exchange period, with both stating they would negotiate in good faith.

"We've got to do a deal with Sydney. That's Kurt's choice of club and that's what we'll be doing," Adelaide list manager David Noble said.
 
"We'll negotiate with Sydney in good faith and if someone else happens to come into the mix, then we'll consider it."

Jennifer Witham is a reporter for AFL Media. Follow her on Twitter @AFL_JenWitham.