Letters of intent are a waste of paper

By Daniel Nichols / Roar Guru

For all the good in rugby league, the big hits, the length of the field tries and the emotion, there is one aspect of the game that needs urgent attention.

That is the rule that says players signed before Round 10 can simply change their mind at any time.

When a player signs with another club prior to the Round 13 cut off, they don’t actually sign a contract, but instead a ‘letter of intent’ to play for a different club.

Upon signing one of these, the new club is quite within their rights to assume that player will honour his commitment to play for said club, and thus make recruitment decisions with this in mind.

On Sunday, the absolute ridiculousness of these contracts was shown when Sione Mata’utia, who has signed a letter of intent to play for the Bulldogs in 2016, publicly stated “our (him and his two brothers) first option is to stay in Newcastle”.

If their intent is to stay with Newcastle, why sign the letter of intent with the Bulldogs in the first place? Are the Bulldogs aware of this thinking or do they expect the brothers to be in Dogs colours in 2016?

Last season James Tedesco was announced as a marquee signing for the struggling Raiders, only to backflip on his decision to join the club. Andrew Fifita signed for the Dogs, only for the club to pull the contract before it was official.

Josh Papalii was announced as heading to the Eels only for Canberra to redouble their efforts to re-sign a player who had theoretically signed elsewhere.

What is the point?

If two parties come to terms on an agreement and sign off on it, it should be official, binding and the end of the story. If the player, or the club, want to back out of the signed contract, it should be up to them to negotiate terms to terminate.

A player who is signed by a rival club before the deadline can really use the faux contract as leverage in negotiations with their original club. Having already shown they’re willing to walk if their terms aren’t met, clubs will go that extra mile to re-sign star players.

The fact that Canberra were openly trying to convince Anthony Milford to backflip on a signed contract up until Round 10 earlier this season is a direct slap in the face to the contract set up.

For anyone wanting to offer up the obvious ‘what if a player isn’t sure of his decision’ argument, the answer is simple, don’t sign a contract unless you are sure.

Obviously there are special circumstances that lead to players backing out of contracts, as there are with decisions made in everyday life. These would be dealt with just the say way they are if they occur after the Round 13 cut off.

It’s too easy to sign a letter of intent with a new club, change your mind after re-negotiating with your current club, and back out of the deal, leaving the suitors stranded.

Clubs base important decisions around contracts signed, and plans can be thrown into disarray based on a last minute backflip, that is in no way against the rules.

Why would a club bother signing a star player before Round 13 if they have to sit nervously and wait to see if the player in question honours the deal when he can just as easily say, nah.

The Crowd Says:

2014-10-14T13:04:17+00:00

Casper

Guest


Wouldn't the nrl world be a better place without player managers? They only ever operate for their own best interests, putting out leaked stories to media mates. Look at the Josh Hoffmann saga, all driven by a player manager. Now Josh has had to restate his allegiance to NZ when he had no other option anyway.

AUTHOR

2014-10-14T04:53:10+00:00

Daniel Nichols

Roar Guru


Parrafan mate I think you're spot on. Sign a letter with another club, show you're semi serious about moving on, and the current club will rush to up its offer.

2014-10-14T03:43:14+00:00

Parrafan

Guest


I'm not sure if you touched on it Daniel but I think one of the main reasons players sign letters of intent is to raise their potential earning power. I think the classic case was Tedesco this season. By signing a letter of intent, he forced the Tigers to raise their offer and thus secured himself a more lucrative contract, whilst staying at the club he wanted to. Even if this doesn't work the player still has the security in knowing that by signing a letter of intent they have more than likely secured a spot at another club either way. Also you have player managers involved who are also trying to increase their cut of the pie as well. Added to this there is also an issue with potential conflicts of interest regarding some player managers. However, I think not allowing players to sign LOI, could possibly be viewed as a restraint of trade, so I'm not quite sure what can be done.

2014-10-14T00:20:34+00:00

mushi

Guest


Yep I think the failure is in the understanding of the fans (and the author) as to what these agreements are.

AUTHOR

2014-10-13T23:43:54+00:00

Daniel Nichols

Roar Guru


Works both ways mate. Clubs can terminate these 'agreements' at any time too. Just doesn't happen as often

2014-10-13T22:57:30+00:00

curaeus

Guest


So you feel sorry for poor unfortunate clubs who you can bet wouldn't waste a minute trying to cut short a players career with them if it suited some purpose not in the player's interests. Give me a break!

2014-10-13T21:54:26+00:00

Benedict Arnold

Guest


The whole contract negotiation system is a farce. While we are always quick to blame and point the finger at players for doing u-turns on contracts and backing out of deals it always seems to be the clubs complaining. Yet the clubs will happily move them on or treat them unfairly and nobody bats an eyelid. Just look at the number of players currently in contracts with clubs who are being shopped around. how would you feel if you were that guy? The clubs always do what's in the best interests for them but when a player does what's in their best interest it is always frowned upon.

2014-10-13T21:35:15+00:00

Don

Roar Rookie


Too much is made of players signing letters of intent and really the public should not even be made aware of it. A LOI (letter of intent) is simply a non binding agreement usually signed prior to negotiations taking place. Often it will include a non disclosure agreement and give the purchaser "exclusive rights" for the term of the negotiating period IE a means of taking the item (player) off the market while you negotiate. The real issue is players, managers and clubs talking about transfers before contracts have been drawn up and agreed to.

2014-10-13T21:00:01+00:00

mick

Guest


I think you'll find the legalities are embedded in Australian contract law. A letter of intent is not legally binding. There's your answer.

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