Anyone with half a brain can see that is an abject failure of policy, it’s just unfortunate it’s half too many for AFL VIC.
A system that rewards a player by deducting points for one year of loyalty is a failure.
No player should drop any points until they have served three seasons with the same club (i.e. shown loyalty to a club). Only at that point should a player drop a point a season until they become a one-point player.