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Is the NRL salary cap legal or illegal?

Roar Guru
21st July, 2010
35
2131 Reads
John Hartigan, chairman and chief executive of News Limited (left) with Chief Executive Officer of the National Rugby League David Gallop (centre) and Melbourne Storm Chariman Rob Moodie. AAP Image/Tracey Nearmy

John Hartigan, chairman and chief executive of News Limited (left) with Chief Executive Officer of the National Rugby League David Gallop (centre) and Melbourne Storm Chariman Rob Moodie. AAP Image/Tracey Nearmy

Over a working (cough, cough) lunch I downed some lovely Hunter Reds along with my mates Jack D and Johnny W, while we had an interesting discussion. Aside from Jackie and Johnny, my newly acquired mates included a couple of lawyers and a couple of accountants.

As in all these high-powered meetings, things quickly turned from the day’s agenda to news, and then sport.

We discussed whether or not, when the chain broke, should the riders push to get the yellow shirt. The World Cup was discussed at length, as was whether the AFL management needed shouting for being too good, Rugby League and Ricky walking away, and why he didn’t do it earlier.

We then moved back to the Tour and how brave Cadell was.

So we all let our thoughts be known and solved many of the world’s problems. Then the topic that took up much of the afternoon and a few bottles of those lovely Hunter Reds cropped up: the salary cap used by the football codes, aside from rugby, and whether or not they were legal.

The lawyers told us accountants that they believed that the salary caps were in breach of the Trade Practice’s Act. More, if challenged, the courts would rule in favour of players.

Well, well, well, I said, you mean only the goodwill of the players is keeping the salary cap in place?

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Yes, was the reply.

This got me thinking. My poor A-League in its infancy could not survive without the cap, as my beloved Mariners could never compete against the evil Sydney and Melbourne teams. Meaning, perhaps the Choppers [Sydney] and the Tard’s [Melbourne] would rule forever.

As the reds [that’s me, others where on the Jacks and Johnnys] were taking effect, the volume of our discussion and sometimes unexplainable laughter came to the attention of the hotel staff, who threatened to cut off the supply of refreshments unless we quietened down.

The draft got discussed and the evil AFL [remember it’s Sydney, and we had been well refreshed] again was considered lucky not to have any challenge.

We finished with no real agreement, at the request of the hotel manager, who seemed quite pleased we left.

Does anyone have any support or evidence that the legal guys were wrong in that a salary cap is in technical breech of the Trade Practices Act?

Otherwise, aside from union, we are all living on the goodwill of the various players unions.

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