NRL must be more transparent with player contracts
By Nicholashugo, 8 Jul 2012 Nicholashugo is a Roar Pro
- Tagged:
- Chris Sandow, Michael Jennings, NRL, Parramatta Eels, Penrith Panthers
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This all started when I tried to write a column about which 25 players I would want on my team for 2013 subject to the $4.4 million salary cap. Then I realised how hard the task was without an accurate idea of what each player is worth.
No club releases accurate data relating to player contracts as they are not compelled to do by the NRL.
The amount a player earns has always remained a secret between the club management, the agents and the players.
Only some of the highest paid players have their salaries reported and they can be inaccurate, due largely to the influence of third party deals.
No one seems to understand how much NRL players are actually getting paid.
For bigger sports leagues with salary caps, like the NBA and the NFL, there are sites dedicated to the details of every player’s contract, allowing fans to understand how much these athletes are getting from their beloved clubs.
If fans are shelling out money for merchandise, tickets and membership, shouldn’t they have a right to know what their club is paying their star players?
In the wake of the Melbourne Storm saga, surely transparency can only be good for the game. This would also significantly clear up uncertainty surrounding third-party deals.
For good or bad, focus will also be put on a team’s front office. If they make a good deal by paying less for a good player, fans will know their administration are shrewd negotiators. If they spent too much, fans will be able to put pressure on their team, making the board think twice before offering big deals in future. Just ask the Eels about Chris Sandow, the Panthers about Michael Jennings.
I think fans genuinely have the right to know how much their players are paid, whether some of the contracts are justified and they should be able to recognise when players are basically robbing the teams with their poor performances. They should also be able to campaign for solid players who are due to earn more.
In the long term, this will benefit both the clubs and the players, while cutting down the impact that agents can have on recruitment decisions.
Clubs will have a better understanding of the market price for a certain type of players and be less prone to overpay players just because their values have been inflated by agents that are good at ‘hyping up’ their clients. This will also provide an incentive for players to perform, given that they now have to justify their salaries to the fans as well.
Wouldn’t you want to find out how much some of your players are getting paid?
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July 8th 2012 @ 4:38am
peeeko said | July 8th 2012 @ 4:38am | Report comment
It would also bring an end to managers and newspapers massively overstating contract amounts
July 8th 2012 @ 1:59pm
Bearfax said | July 8th 2012 @ 1:59pm | Report comment
And you would have to up the salary cap to about $6 million to meet what is really being paid out, esp with 3rd party arrangements.
July 8th 2012 @ 6:40am
Patrick Angel said | July 8th 2012 @ 6:40am | Report comment
There is a massive privacy issue with publicly broadcasting what players are worth, and it makes it difficult when the payments are largely flexible and may not be what is payed.
It will have the opposite effect as well. Everyone though that if you made CEO’s publicly declare what they earned there would be shareholder rebellion and it would push the wages down, but the opposite happened. An entire industry popped up with agents running around getting lower paid execs pay rises by comparing their wage to CEO “A” to get a payrise for CEO “B”. CEO “B” would then be paid more so the agent would go to “B” and show his employers what “A” was now getting. If a player found out Jennings was on more than them, they’d be in the ear of their club in a minute demanding more money.
Agents are also a necessary evil, contracts are thick as a book and you really need a law degree to fully understand them, imagine a 22 year old plumbers son from Bathurst trying to negotiate that with a pro sports team, he’d get rorted. For a lot of players as well, more of their money would come from public speaking, endorsements, appearances, etc.
Agents will still bump up the price by doing the standard “I got an offer from French rugby, club X” etc.
“If fans are shelling out money for merchandise, tickets and membership, shouldn’t they have a right to know what their club is paying their star players?”
Big no from me, any more than you have a right to know what the cleaners are getting paid.
July 8th 2012 @ 7:37am
Nicholashugo said | July 8th 2012 @ 7:37am | Report comment
By saying that contracts need to be more transparent i am referring to the official figure of how much a club is paying the player. It has got more to do with the fact that how much a player earns directly relates to the club’s salary cap. I have no interest in knowing what players make in third party deals, and other income from endorsements or public speaking etc. In terms of if players are gonna demand more, I think the market will adjust itself, the salary cap is set so there is a limit as to how much they can ask for. In fact I am all for underpaid workhorses getting more. If Jonathan Thurston is reportedly earning 700k this year, I think Benji should be getting more than 500k as reported.
At the end of the day, agents are still gonna be good at their jobs, just look at the free agent deals struck in the NBA this week, i.e. Landry Fields. making the salary information available will not affect how contracts are negotiated.
July 8th 2012 @ 11:03am
Noel said | July 8th 2012 @ 11:03am | Report comment
What makes you , or anyone else , think that player fees should be public knowledge . The only people who should be allowed to access this information are the player , the club finance dept. , and the cap officials . It’s nobody else’s business . What business is it of yours how much a person earns , be he a Rugby League player or a mining contractor , a doctor or carpenter ,
do you want your salary to be public knowledge ? probably not , nor does a player in any team .
July 8th 2012 @ 11:14am
Nicholashugo said | July 8th 2012 @ 11:14am | Report comment
The difference is, there isn’t a salary cap being applied on a mining contractor, a doctor or a carpenter.
July 8th 2012 @ 8:59pm
Rabbitz said | July 8th 2012 @ 8:59pm | Report comment
Exactly where do you get that idea?
Every company has a salary cap. It is all about good corporate governance.
Seriously, you (and anyone else not directly involved) have no right to that type of information. Frankly, just because you are a follower of a particular sporting team does not infer any sort of right to private information.
Beside, other than being a sticky beak why would anyone care?
July 8th 2012 @ 9:03pm
Nicholashugo said | July 8th 2012 @ 9:03pm | Report comment
Um the NBA, the NFL? leagues where NRL has got the whole salary cap concept from?if you are still unsure, I have posted links at the comment section on this page.
July 8th 2012 @ 7:09am
Matt said | July 8th 2012 @ 7:09am | Report comment
I give money to the bank, should I know what all the staff are being paid?
I don’t agree at all. The clubs admin is being paid to figure everything out and make the decisions. It’s not a democracy
July 8th 2012 @ 7:44am
Nicholashugo said | July 8th 2012 @ 7:44am | Report comment
I think the front office should be held accountable for incredibly bad contracts. Club admins are being paid to make good decisions, not for giving a 4 year contract to Chris Sandow. investment bankers get sacked for making bad investments, why should club admins be spared?
July 8th 2012 @ 7:59am
Mushi said | July 8th 2012 @ 7:59am | Report comment
But likewise nic you can’t tell me via public info every trade and investment bank has on.
July 8th 2012 @ 8:14am
Nicholashugo said | July 8th 2012 @ 8:14am | Report comment
I can’t tell you every trade and investment banks have made but I can show you how it can be done in another sports code with a salary cap implemented.
http://hoopshype.com/salaries.htm
July 9th 2012 @ 8:14am
mushi said | July 9th 2012 @ 8:14am | Report comment
That’s great I didn’t introduce the Investment bank analogy you did. You just didn’t realise it didn’t apply to your case.
July 8th 2012 @ 8:31am
Dayer said | July 8th 2012 @ 8:31am | Report comment
it’s a business operation. the clubs have boards that that can veto the deal before it is offered to a player and No to your transparency, gives the media something to write about, right or wrong. Businesses gamble all the time. Some CEO waste Millions/Billions and still get Paid big bucks. The buck stops at the CEO.
July 8th 2012 @ 7:37pm
Matt said | July 8th 2012 @ 7:37pm | Report comment
They made good decisions, they make bad decisions.
Often though they buy a decent player, then they have a bad few seasons. Or in Sandows case, I didn’t think he was that good a player, PLUS he’s playing in a rubbish team… it’s pretty hard to do well when everyone else sucks, not too many tries are just setup and finished by 1 person.
They generally do – same as coaches.
July 8th 2012 @ 8:08am
eagleJack said | July 8th 2012 @ 8:08am | Report comment
But then what will hacks like Kent and Rothfield spend their days writing about?
And our good mate oikee will see that Manly are far from the $10m team he has been purporting and much closer to $4m than $4.4m.
Nah leave it as it is. It’s much more fun this way.
July 8th 2012 @ 8:46am
steve b said | July 8th 2012 @ 8:46am | Report comment
I remember quite some years ago the RLW did run an article giving the round about payments for some teams ,,but yes it would be intresting to see the breakdown from the top four clubs and then the bottom four,, just to see if money did make a huge difference in where they sit on the table ,,or it was just great purchasing on different players ,,Im sure player agents would love this list….
July 8th 2012 @ 8:54am
Nicholashugo said | July 8th 2012 @ 8:54am | Report comment
http://www.grantland.com/story/_/id/6749669/if-ruled-nba-world
Behold! How a sports writer can write an enjoyable column even if everyone knows how much players are getting paid! The point is, bad contracts are still gonna get handed out, but at least we know the extent of the damages…
July 8th 2012 @ 9:28am
Rabbitz said | July 8th 2012 @ 9:28am | Report comment
Nicolas,
How much do you earn?
Who is your employer?
Who is your Tax Accountant?
Come on, fess up. It is important for the general public to know.
What do you mean that information is private?
You do understand that the players employment contracts are just that. Employment contracts are just that and they have nothing to do with you or anyone other than those involved in the contracts.
Sportsmen and women are not public property nor are their employment details.
Would you ask the bartender or chef at the leagues club about their financial details? After all they are leagues club employees too.
July 8th 2012 @ 9:50am
Nicholashugo said | July 8th 2012 @ 9:50am | Report comment
Again. I am not proposing that we find out the actual income the players are earning from every possible avenue, just the figures clubs have to keep on their books for salary cap purpose so we can better understand things like why Dave Taylor is leaving the Souths, how screwed are the Eels over the next three seasons with Chris Sandow and how did the Storm afford GI, Cam Smith, Billy Slater, Copper Cronk and Adam Blair under the salary cap,
July 8th 2012 @ 12:32pm
Dayer said | July 8th 2012 @ 12:32pm | Report comment
Nicholas, what you are proposing is that the ARLC and/or clubs have a list of players base/cap salary without third party and other payments added to be made public but to me and most of the responders think that is still a matter of privacy.
What probably should be made public after all the contracts are done is that each CLUB make public what they have left on the salary cup. What do you think?.
July 8th 2012 @ 1:04pm
Nicholashugo said | July 8th 2012 @ 1:04pm | Report comment
like this?
http://www.nfl.com/news/story/09000d5d82a421db/article/available-salarycap-space-for-all-32-nfl-teams
it should be done and if its the best the league is willing to do i will take it. But then again, NFL and NBA do provide the public with cap salaries of their players. i understand the salary cap systems are structured differently in these leagues but its its hard for the NRL to convince the fans that the salary cap is policed appropriately when it is structured in a manner that allows a lot of discretion for clubs.
it is just hard to understand if other codes have adopted a transparent model, what is stopping the NRL from doing the same? it doesnt make the code look good when compared to these other viable rival models.
July 8th 2012 @ 5:17pm
Dayer said | July 8th 2012 @ 5:17pm | Report comment
Thanks for the link, good information. wouldn’t it BE great to have that much cap for the NRL clubs … LOL
I ready do think this would work and be easier for ARLC to monitor and govern. If the clubs are lying then they are fined heavily. It really is in the Hands of the ARLC.
It’s our right not to disclose our earnings to the public let the media have a guess and let us fans roll with it.
July 8th 2012 @ 9:39am
jdubya said | July 8th 2012 @ 9:39am | Report comment
I tend to agree here. I think that the NRL should have implemented this change in response to the Melbourne fiasco, although it is a difficult issue because at the end of the day we really have no right to know what somebody earns.
July 8th 2012 @ 10:01am
Edward Kelly said | July 8th 2012 @ 10:01am | Report comment
“Privacy” :scoundrels use this word to hide behind. People have a right to privacy in their bedroom but in terms of sportspeople using “Privacy” to hide behind it is a bit overrated when these details are not really secret and especially when other sports and sportspeople have shown the way and are very open about payments. Given there is also a salary cap, members of clubs and supporters of teams do have a right to know, these details are held by the NRL and are they really secret? I am sure most managers know what every player is getting and what each club is spending and has to spend, it’s just the poor old supporter that doesn’t know. Anyway, shouldn’t all these details be published in each clubs audited annual report, well yes but clever accountants can hide much in an annual report.
July 9th 2012 @ 10:12am
mushi said | July 9th 2012 @ 10:12am | Report comment
Where is you prescribed right, point to what gives you the right under Australian law to know what these guys are paid.
If you are petitioning for the right then why is sports the only sphere fo scoiety to which this right is conveyed?
July 8th 2012 @ 10:22am
tonysalerno said | July 8th 2012 @ 10:22am | Report comment
I would love to know how much each player is on, but unfortunately it is a matter of privacy. Players releasing their figures to the public leaves them open to scrutiny. It is very hard to fit 25 players under a 4.4 million dollar cap. Although the lack of information leaves the salary cap fixing etc.