Wests Tigers coach Jason Taylor describes back-loaded NRL contracts as scary, Sydney Roosters counterpart Trent Robinson agrees they are risky.
The strategy has come under renewed focus after Wests Tigers’ decision to urge captain Robbie Farah to seek another club from next season, despite having two years left on his contract when he is reportedly due to earn almost $1 million a year.
Although Farah’s situation may not be entirely due to salary cap issues, it highlighted the concerns over “back-ending” contracts, whereby players earn much more in the last years of their deals.
“Back-ended contracts are a scary thing,” Taylor said on Thursday.
“The processes that we’re putting in place are going to ensure we don’t have situations like this in the future.
“We are making really smart decisions and making sure that going forward we don’t find ourselves in this position as a club.
Right now myself and (interim chief executive) Phil Moss, we are dealing with a salary cap that is really messy.
“We are working really hard to clean it up.”
Taylor admitted the Tigers could still find themselves paying several hundred thousand dollars to Farah next year if he didn’t get the full amount of his contract at his new club and they had to make up the difference.
Sydney Roosters coach Robinson underlined the importance of managing back-loaded contracts as as part of an overall salary cap strategy and stressed some clubs had done it better than others.
“Teams have managed them well and teams haven’t managed them well and they find their squads in different strengths or weaknesses, so it’s vital to any club,” Robinson said.
“It can make the difference in competing for a competition or not.”
Robinson questioned whether it was necessary for clubs to lock themselves into long-term back-loaded deals when the NRL was constantly unearthing new talent.
“You have to be careful with huge increases at the back end of deals, it can get you in trouble,” Robinson said.
” I think there’s a broader thing when it comes to that. The beauty of our game is we produce so many good players.
“We’re looking at Sonny Bill (Williams) who we (the Roosters) had, go back to rugby union.
“We’ve had Sam (Burgess) go over to England and playing in their (rugby union) squad.
“We’ve got Jarryd Hayne in the NFL. We’ve got Izzy (Israel Folau) playing for Australia (in rugby union).
“We produce players year after year.
“Guys were questioning whether (the Roosters) Roger Tuivasa-Sheck could play fullback at the start of the year and now he’s one of the best in the competition and we just keep producing players.
“So long, long deals with huge jumps are risky for clubs. They are important sometimes to sign a player, but you just have to be careful.”
Jay C
Roar Guru
Stinging mate. Ouch. Where'd you get that zinger. Grade 4.
Robbo
Guest
How did you get the title of GURU, was it in a box of cornflakes?
Jay C
Roar Guru
Souths are so good at business they got kicked out and had to sell their soul to a Has been actor to even make the cut. ?
3 Hats
Guest
I personally think the Salary cap is only a small portion of the reason why Farrah is being dumped! One of my mates I play cricket with, a Solicitor, a Tigers insider spoke to me. He said the problem with Farrah was that Robbie believed that he was above everyone else there at the club. Apparently Farrah thinks he is the Captain, coach and the CEO all in one... He told me that Jason Taylor voiced his concerns at pre season, and tried unsuccessfully to resolve this issue....It didn't work so Farrah's management was told to look elsewhere. I heard about this 3 or 4 weeks ago. All of the NRLs rosters are almost full, so I can't see Farrah staying in the NRL...UK may be his only option. What a gigantic fall from grace! We all now know Souths are not interested in this dead wood Farrah. Souths don't need disruptive individuals affecting our young guys.
3 Hats
Guest
Managers don't give a toss....their only interested in their 10% Which is about 6.5% now!
3 Hats
Guest
There are ZERO back ended deals at SOUTHS as Souths know how to do good business! JAY C Please tell me what the hell has Gallen got to do with THIS ARTICLE back ended contracts? If you want to comment on Gallen....go to the OTHER article and have your say? NOT THIS ONE! ADMINS do your job...
pete bloor
Guest
Which are no longer allowable
Don
Roar Rookie
I was heavily involved with NRL sponsorship in a previous role where the company I worked with were the major sponsors of an NRL side. Went through the hoops with NRL TPPs a few times. An example being when we wanted a supplier of ours to sponsor a star player so we could do a joint promo with a dinner, signed merch and a club coaching clinic. We couldn't sponsor him as we were an existing sponsor. This rule still exists or else Nick Politis or Rusty Crowe could sponsor all his players. Back then the NRL were very rigid in scrutiny of the TPPs. A schedule of appearances, mocks ups of media and merchandise had to be supplied to verify the deal was above board. Only after this and a few more stipulations was the NRL satisfied and the deal went ahead. I suspect the TPP policing has been relaxed somewhat in the past couple of years with the SBW type example.
Don
Roar Rookie
I'm no Bronco fan - far from it. But pretty well every club has access to 3rd party deals for a player of Farah's profile. Media, car, sportwear (he is already a Skins ambassador,) beverages, clubs etc. there are plenty of deals to pick up that may only be $50K to use his profile and do some appearances. Get 8 or so and you have $400K... It's not like he is some first year unknown rookie.
baldie
Guest
lol, like other clubs have access to TPP's like the broncos do.
Birdy
Guest
Is it a sign of insecurity when you feel you have to point out your own joke? From my first post, " people must realise that money Don't Come Easy." ... DCE..... Ha ha
Train Without A Station
Roar Guru
Yeah I agree part of the salary cap is to save clubs from themselves. They are finding ways around it to ruin themselves now. Such as back ended contracts.
pete bloor
Guest
Watching NRL 360 the other night Walters, Ikin and Toovey were pretty quick to say the NRL has already put the kybosh on substantive backend or escalation that isn't performance driven. Agree the concept is quite elegant if used correctly but the reason they've got a salary cap is that we don't' think the whole group can operate sustainably in an open market
Train Without A Station
Roar Guru
Back ended contracts are the stupidest idea (the use of them at least. The concept itself is quite innovative) in current sport. It is literally stealing from tomorrow to play for today. No contract should be back ended any percentage higher than planned or even expected salary cap increase.
Birdy
Guest
Definately a case of Taylor getting in first. These type of people just can't help themselves. Beau Ryan part of the tiger rat pack stated on the footy show last night that Taylor will be sacked next year. Better Farrah goes to ESL and Ryan get a job on the telegraph
no one in particular
Roar Guru
Real good writeup Don
no one in particular
Roar Guru
My cynicism radar is working overtime on that article
Con Scortis
Roar Guru
I never read the Terrorgraph but had a read of the piece. Seems a bit suss to me, especially when there was also another article about Gallen titled "Mr 1.2%" about how only 1.2% of fans in their player survey reckon he's the best player in the game. Seriously, how is that a surprise? Talk about creating a story / headline over nothing. Rhetorical Question: why is it that stories like this almost always appear in the Murdoch papers but hardly ever in the Sydney Morning Herald?
Wayne Lovell
Roar Guru
Don this is excellent insight into the inner contractual goings on, are you a manager?
Niall
Guest
Gallen deserves to be criticised if the initial incident is true, but what does the bloke expect him to do the second time when Gallen was apparently friendly and did give the kids some of his time? Smile and say thanks for calling me a dickhead?