Dave Smith should abandon his 'war chest' idea

By Scott Pryde / Expert

There has been a lot of attention in the media in recent days about Dave Smith and the NRL allowing a ‘war chest’ to be set up to keep stars of the rugby league game here in the NRL instead of code-hopping.

The idea is that some of a star player’s salary will be paid outside the salary cap to stop them from doing what Israel Folau did, or what Sam Burgess is about to do – leave the NRL to play a different code of football.

Well Dave Smith, I have news for you. This is a horrible idea with a capital H – in fact, you can capitalise the whole word. Some of you think it is a good idea to stop rugby league’s superstars leaving the game by spending a few extra bucks on them from outside of a team’s salary cap, right?

Let me explain why it isn’t.

The salary cap is there to keep the competition fair. This is being demonstrated this year, with the competition so far being one of the most unpredictable in history. Tipping games is about as easy as climbing Mount Everest and every game seems to bring a new surprise.

This is why the salary cap is great, because on the whole it keeps the playing field pretty level. By using the NRL’s ‘war chest’ money, the salary cap suddenly becomes something that can almost be forgotten.

Let’s take Sonny Bill Williams, one of the players that would be likely be attempted to be kept in the NRL. Let’s say the Rosters are willing to pay him $1 million a season, but he is demanding another $500,000 on top of it. By having the NRL pay this to keep him in the game, all of a sudden the Roosters would have another $500,000 to spend and be able to keep Sonny Bill Williams on top of that.

How does that become fair for other teams? How does that stick with the whole principle of the salary cap? It doesn’t.

Secondly, what’s to say players won’t start saying “oh rugby union are chasing me” just to chisel out a few extra dollars in their salary? No one could be chasing said player, but at the same time the player who would be ‘reportedly’ being chased by another code suddenly is able to get plenty of extra money out of the NRL, when in fact no one was chasing the player.

And then there is the added issue of which club a player goes to. Let’s say the Roosters suddenly decide they don’t want Williams anymore, but the NRL want to keep him in the game and they have six clubs vying for his signature. How do the NRL choose where he goes?

And if Israel Folau decides in the morning he wants to come back to the NRL, how does the NRL decide what club he goes to?

Finally, how is a star that is irreplaceable to the game defined by the NRL? If they spent money on every player who jumped up and down and said another code is chasing them, then the NRL will very quickly learn just how bad a mistake this war chest idea is.

Only a select few superstars would be truly irreplaceable to the game, but where does the NRL draw the line? The NRL will be dealing with some very annoyed and disappointed clubs if say for example they use the war chest on Sam Burgess but let other superstars go to rival codes.

The system of the NRL paying a portion of a superstar’s contract is flawed on many levels, and will only make the NRL go downhill. If the NRL really want to keep stars in the game, raise the salary cap some more.

They probably don’t have the funding to do that at this point in time, but the idea proposed by David Smith last week will never ever work.

The Crowd Says:

AUTHOR

2014-05-12T23:11:44+00:00

Scott Pryde

Expert


Good point Fil.

AUTHOR

2014-05-12T23:10:17+00:00

Scott Pryde

Expert


@Epiquin, they are using only a million for SBW, whereas he is worth 1.5 mil and can then spend the other half a mil elsewhere instead of on SBW. What is not to understand

AUTHOR

2014-05-12T23:07:33+00:00

Scott Pryde

Expert


EJ, The roosters still do have an extra 500k to spend because they are NOT spending that money on SBW, instead they are spending it elsewhere and having that 500k of SBW's contract covered by the NRL

AUTHOR

2014-05-12T23:05:17+00:00

Scott Pryde

Expert


I see your point but how do the NRL pick a club

2014-05-12T19:16:43+00:00

Jay C

Guest


Get over yourself EJ. Firstly, disagreeing with you does not constitute a lack of understanding. You are wrong and anyone with any knowledge of economics can clearly see it. You are taking a simplistic view, I would argue, because that is all you are capable of. You haven't answered any of my earlier concerns rather just gone on about how much SBW makes your pants tight. It is a terrible, knee jerk reaction that doesn't and can't fix the fundamental issues behind player deflection, whilst also creating an two tiered system of the haves and the have nots. Canberra will never get this luxury because they do not get FTA televised games and so no superstars can be created. It isunjust and will be a huge benefit to the four or five clubs who might receive it. It won't solve the problem because AFL still has tonnes more money than NRL and Rugby Union is a huge world game with operating revenue that belittles our own.

2014-05-12T13:28:29+00:00

Fil

Guest


Salary cap increases will generate the same effect as the $7000 first home owners grant. Property prices automatically went up by that amount. If the cap goes up, manly may be able to offer DCE and foran more money, but other clubs will be able to offer the same percentage increase while the players will request more, based not on their market value but on how much extra cash is floating around

2014-05-12T13:04:02+00:00

Red "v"ictory of Jerusalem

Guest


Well said mate. Just have to keep bringing in more cash to the game so that the overall salary cap grows.

2014-05-12T12:52:14+00:00

Anakin

Guest


There's been plenty of stars before now - and there'll be plenty more after this crop leaves. The very fact ARU, AFL etc want them confirms what great athletes they are, and the fact so many of them return also confirms RL is the superior product. Like the Federal Govts budget, its an unecessary reaction designed to appease a few.

2014-05-12T12:45:25+00:00

Christian D'Aloia

Roar Guru


The NRL doesn't really have much of a choice in this situation. If a true star can be kept in rugby league, I think we should do whatever possible to keep them here.

2014-05-12T12:19:13+00:00

P22

Guest


Yes Epiquin, there may well be another club that could straight match the $1.7 mil, but SBW has already got his target, thanks to NRL top ups, and can now 'choose' to stay at the roosters with his desired wage rather than be forced to head to a club he doesn't want to be at or take a pay cut to stay, he has just 'manipulated' his pay rate, both clubs and the NRL. This scenario isn't fair, particularly if the roosters now win the premiership with this extra $500,000 of player input. SBW would potentially be able to by- pass lesser clubs that could afford him and need him, and stay with stronger clubs that can't afford him and don't deserve to keep him, all because he can hold the threat of heading to rugby to get his desired outcome.

2014-05-12T11:38:40+00:00

duecer

Guest


I think you'll find that contracts, signed or unsigned, will usually have a confidentiality clause attached to them. You can't just grab and contract from somewhere and then 'shop it around' to all and sundry - but good managers will create the expectation that their player is worth a lot more that he is currently getting - which is easy to do if several sides express interest.

2014-05-12T11:16:50+00:00

Epiquin

Roar Guru


It would be more than a rarity. If the player is indeed a superstar of that level there will ALWAYS be another club with space under the cap. If they choose not to use that room, or make room, then they lose.

2014-05-12T11:11:55+00:00

Epiquin

Roar Guru


Sorry Anakin. I see what you're saying, but I don't think it's correct for two reasons. Firstly, player managers aren't stupid. They know if a club is undervaluing their player. Plus if the club reduces their offering, knowing that the NRL will chip in, they will most likely fall shirt of the rival code's offering. They also allow other clubs to outbid them. If a club REALLY wants to keep a player, they won't let that happen. This brings me to my second point. Any other club that wants to bid will ALSO have that money coming from the NRL. So they can do the exact same thing you are proposing. I do agree that the money would do a lot of good at grassroots level.

2014-05-12T10:26:26+00:00

P22

Guest


Epiquin, I know it's going to be a rarity, but this 'chest' can allow the bigger stronger, richer clubs to maintain the better players. It also allows these 'superstar' players to dictate where they go. To explain the the SBW $1 mill scenario, If SBW gets interest from a a NZ rugby club and it's in the ball park of $1.7 mill. Meanwhile the roosters sign the last of thier out of contract players and have $1 mill left which they would use on SBW. They let the NRL know he's leaving for more money cos the roosters can't afford, so the NRL top up an extra 500,000 to keep SBW in league, so if every other club has a roster of $6 million, the roosters now have a roster of $6.5 million, doesn't matter who's paying it , NRL or whoever, their list is unfairly valued $500,000 above every other club.

2014-05-12T10:14:08+00:00

eagleJack

Guest


While I do understand where you are coming from Anakin, you ignore that other clubs can put in offers for the player. The club he is currently at may offer $1m, knowing that the NRL are chipping in $500k. But what is stopping another club offering $1.3m? Effectively taking his value to $1.8m. By undervaluing the player by only putting up $1m they are opening themselves up to losing the player. And if the player agrees to terms, and they have offered over market value, then there is no problem. All clubs are given an opportunity to bid for the player. You could only say a club was getting an unfair advantage if the NRL did not offer the top up to all the clubs when viewing this particular deal. Which wouldn't be the case. And remember this top up will only be given if there is a genuine threat from another code for a genuine superstar. One that brings in additional revenue. The NRL won't be just handing money out for every player that their agent "claims" will leave the game. It will be for "exceptional circumstances" only

2014-05-12T09:52:28+00:00

eagleJack

Guest


Oh Jay C you really don't understand this do you.

2014-05-12T09:32:58+00:00

Anakin

Guest


Technically this CAN free up $$ under a club's cap. Without the NRL top up, the club (whatever club) may be prepared to offer what the player wants, say $1.5 million, over 'x' number of years .. and this may well be enough to entice the player to stay .. however if they're aware the NRL is throwing cash the player's way, they may now table an offer of only $1m - with the knowledge the extra top payment will get the deal over the line; essentially saving them $$ they may have otherwise expended on their cap limit. Compare to this to another club who wants to keep a player that the NRL does not consider eligible for a top up payment, yet the player is demanding for example $1.2 million. Suddenly this latter club is worse off than the former. Now before anyone goes on about player value, and the relative merits of different clubs offering players different amounts (ie: the player is worth whatever a club is prepared to pay), that is not the point. The point is a club has now essentially gained a $$ advantage over other clubs in terms of cap spend because they have been subsidised by the NRL.I'm against the cap itself - for many reasons - but that's an argument for another day; and I'm also opposed to this new system. Let players do what they want to do, and if that;s chase $$ elsewhere, then so be it. IMO the new funds the NRL have can be better spent at a grassroots level and simply keeping the production line of stars rolling through League's ranks.

2014-05-12T09:00:57+00:00

Epiquin

Roar Guru


Seriously!?! Why don't people understand this??? This scheme does not give an unfair advantage to any club! Once again, using the SBW example, I will spell it out point by point. - If SBW is offered big money to go to rugby, the NRL will offer him a bonus to stay in Rugby League (eg $500,000). - the Roosters can then offer him whatever money they have under the salary cap (eg $1million). - If he signs with the roosters, he will get $1million from the Roosters + $500,000 from the NRL. - this does NOT free up $500,000 for the Roosters to spend on another player. - Another club (eg the Raiders) have every right to offer SBW whatever money they have under the cap (eg $1.1million) - if SBW signs with the Raiders, he will get $1.1million from the Raiders + $500,000 from the NRL. - if SBW signs with the Raiders, the roosters have $1million, not $1.5million to spend on another player. - if SBW turns down more money at the Raiders to play at the Roosters, it is NOT an unfair advantage because he didn't make the decision based on more money from the NRL because he gets that money regardless of who he signs for. The money is not linked to the club. He does not only get the money if he signs with a certain club. He does not get more money based on signing with certain clubs. Does this make sense yet?

2014-05-12T08:48:36+00:00

Jake Bater

Guest


Ah true true

2014-05-12T08:46:10+00:00

Epiquin

Roar Guru


I agree Fil, but I think concessions for long serving players should be handled under a different scheme, with more management from clubs, rather than the NRL.

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