NRL to introduce salary cap for on off-field spending in 2017

By ADRIAN PROSZENKOThe NRL will introduce a limit on football club spending next year in the biggest club equalisation measure since the establishment of a salary cap.The governing body and its clubs are in the process of signing off on a whole-of-game funding agreement that effectively extinguishes any threat of a Super League-style breakaway competition. Rugby League Central has sent all clubs a copy of the memorandum of understanding which, when signed, will become a binding agreement that secures their financial future and holds them to a perpetual license to play in the NRL competition.It's understood the document - obtained by Fairfax Media - has been signed off by a number of clubs. Others are expected to do likewise to qualify for the promised up-front payment of $1.125 million each in early July, made possible by the record broadcast deal. The clubs stand to earn an additional $100 million from 2018 to 2022, with additional grants totalling 130 per cent of player payments over that period.Head office is keen to ensure its franchises don't squander those funds, while also seeking to create an even playing field by controlling off-field expenditure. To that end, for the first time there will be a ceiling on the amount of money spent on football departments from 2017.The cap will likely apply to the dollars spent on the head coach and his staff, sports science, high-performance units, study trips and other means of achieving an off-field edge. There is a discrepancy of about $10 million between what the richest and poorest clubs spend off the field, with the new cap to bridge the gap."The parties will form a working group consisting of both ARLC and NRL club representatives with the express mandate to research and develop a football department cap system by no later than 31 October 2016," the agreement states."The terms of reference of this [six-person] working group will include development of the protocols for calculating football department expenses, cap limits and rules, reporting of information, compliance monitoring processes and penalties for non-compliance. An agreed process for capping football department expenses will be incorporated in the New Club Licence."The AFL introduced an "equalisation tax" two years ago after confirming there is a correlation between football department spending and success on the field. Exactly how it is applied in the NRL remains to be determined, with rigorous debate sure to ensue before a figure is settled upon.Brisbane and Melbourne are among the biggest-spending clubs off the field, paying head coaches Wayne Bennett and Craig Bellamy seven-figure sums. Wests Tigers, Gold Coast and Newcastle - the clubs that have gone cap-in-hand to the NRL for financial assistance - spend just a fraction of the amount on staff and facilities.Another contentious issue is the NRL's move to remove ratchet clauses from player contracts. While the clubs and the League are aligned on the issue, the move puts them on a collision course with the Rugby League Players' Association. With the salary cap yet to be set for 2018 and beyond, most star players and their managers are holding off on a decision or asking for pay rises commensurate with any salary cap increases. The RLPA wants ratchet clauses to remain but the MOU states they are to be abolished, with a separate working party to be formed to oversee the drafting of a new collective bargaining agreement with the players."As a first step, ARLC and NRL clubs will agree a whole of game position regarding the use of ratchet style clauses in player contracts which they shall jointly and immediately take to the RLPA for approval," the document states.Another working party will be formed by June 30 to focus on the issue of 'centralised stadia and match placement' for Sydney clubs. It's understood the NRL won't be able to dictate to clubs where to play matches, although several want clarification on the issue before signing off on the agreement.

"Matterson defence is pretty good, if he has a decent off season he could get that bench spot, can play anywhere in the forward pack, so could be handy "

"Point is , he'll hardly be getting Moses money just cause he gets to kick. . We aren't shy to throw a decent paycheque out there and we certainly have some. If we offered that clown that kinda coin , I'm sure we wouldn't have been offering Peasant…"

"He is 35 this year but man he is still playing some good footy. But do you take the risk that father time creeps up right when we get him? Garrick is replacing Nawaqanitawase."

Replies

Snakey - Sack Dylan Brown April 28, 2016 at 12:55am

Very interesting stuff, another cap within a cap, this must be over and above what a club pays its head coach, 1.2 m aint much, it reads like there will be a cap on how much you can pay your coach and coaching staff?

The clubs might be happy about that but i doubt the coaches will lol
Dave April 28, 2016 at 1:06am

What juniors

if they cap off field spending then one of the areas it looks like it might target perhaps inadvertently is development.

The cap will likely apply to the dollars spent on the head coach and his staff, sports science, high-performance units, study trips and other means of achieving an off-field edge

That could easily see top level players coming through the clubs not have access to people to help develop them. The NRL don't want an even comp they want a low quality comp.

Rather than limiting the ceiling in the NRL how about raising the floor.
Yobz April 28, 2016 at 4:23am

Now we can have TPAs for the rest of the club to get around the new cap.
N1cK April 28, 2016 at 5:28am

Seems like they are doubling down on salary caps. Why not have every team receive a participation award?

The fact that at the time when the nrl was part owned by news limited, one of the teams they owned was cheating the cap I think says how well it has worked and been policed.
sixtiesboy April 28, 2016 at 6:25am

Absolutely agree Fong. Rather than concentrating on dragging the successful clubs back down, the NRL should be looking to raise the professionalism of the struggling clubs. It beggars belief for any organisation to aim for lower standards. If they offer more funds to all clubs then the struggling clubs can improve what they do - you don't need to drag others down!
Cʜɪᴇғy Mclovin 🐐 April 28, 2016 at 6:26am

What a joke. It's a restraint of trade not paying employees what they are worth on the open market.
Greenturd should be the person taking a pay cut.
Numbers April 28, 2016 at 6:45am

I seriously don't know how this will be accurately monitored. This will just increase underground spending.
- Xman > Numbers April 28, 2016 at 9:41am
  
  Exactly what a joke, I'm not sure which organisation is run worse anymore the parra eels, the NRL or the Labour Party.
- Hell On Eels > Numbers April 28, 2016 at 10:40am
  
  Hyperbolic chambers scrapped ? New Ice machines iced ?
  
  Player health & recovery processes might be compromised.
  
  You wouldn't want to experiment on any new ground breaking, evolutionary but expensive technology would you, unless you had concessions (but that would be an unfair advantage). Blow your off field cap off the field.
Kurupt April 28, 2016 at 6:56am

Garbage, absolute garbage.
This game will never grow due to the inept and sterile people running it.
All this new cap is going to do is reduce the spending capacity of the lower clubs, while the likes of Brisbane, Melbourne and Rorters cheat this cap too.
If I was a coach I'd be taking this bùllshit to the high court as a restriction of trade.