New NRL chief executive Todd Greenberg has promised to review third-party agreements in a bid to level the playing field in the wake of the Parramatta scandal.
Parramatta are under investigation after being accused of giving favours to third-party sponsors for their players in contravention of NRL rules.
All third-party agreements must be made “at arm’s length” from the club or else it could be seen as a way of stretching the salary cap rules, allegations the Eels have denied.
Third-party agreements have long been seen as perpetuating the chasm between the haves and the have-nots of the competition because richer clubs are more likely to attract outside deals for their players.
“We have 16 clubs and they’re all in different spots and parts,” Greenberg told Triple M on Sunday.
“So someone like Brisbane, surely they’ve got a big advantage being a one-team town, and Penrith – they’ve got a massive junior participation base.
“Someone like the Roosters, they don’t have a strong participation base but sit in the heart of Sydney – so there’s all different models and what we have to do is respect those models, try to find a way to oversee it where there’s even competition.”
The NRL began a review of third-party sponsor rules late last year and Greenberg said the laws would be refined as they begin to negotiate the next collective bargaining agreement, which is due to come in in 2018.
“There is an issue there (with third-party agreements), there’s no doubt about that,” Greenberg said.
“We’ve got to find the balance to make sure the players can earn over and above their incomes.
“That, on the surface, you would think would be the top 50 or top 100 players who have that profile and can generate interest in the marketplace but you want to make sure some (clubs) don’t get left behind.”
The RiffMarn Stew Moses
Roar Guru
Quite simply the aim of the salary cap to produce a level playing field fails while TPAs exist. Either do one of two things - scrap the cap or make TPAs more transparent and allow clubs who don't have the corporate advantages to at least compete on an adjusted salary cap scale so that those clubs can come up and match the spend of those heavily topped up TPA clubs.
Cadfael
Roar Guru
Agreed but I would go a step further and ban TPAs. It works well for some teams but definitely not others. If they want a level playing field, TPAs have to go.
American Dave
Guest
It has been a long day so I might be misinterpreting things here. But my understanding of the 3rd party issue is that the club should have no involvement, making the statement about impacting clubs that are efficient at attractive v 3rd party deals a continuation of the rort in the intent of the system.
Dean - Surry Hills
Guest
I was thinking along the same lines Baz, but a slightly modified version. Keep the current cap, and then as follows: Third Party sponsors would pay all funds directly to the NRL, at a disclosed amount and announced prior to the start of the season. NRL players would then select what businesses and/or products they are willing to be involved with marketing/sponsorship wise. Clubs would help in this decision making process, to ensure that there is no conflict of interest with their own sponsors. Businesses would then request players to represent them from this list, and offer some or all of the money that they’ve contributed to the TPS fund for that players services. The player then has a right to refuse the sum if they think that the terms or money offered are insufficient. If the business is not willing to budge, then they can shop around for a player until they find one who is willing to accept their terms. If a player is in high demand, then they have the opportunity to make a substantial amount of additional income without a fixed ceiling. Good players are less likely to be poached if salary caps and TPS deals are laid out on the table for all to see. If players are not utilised in marketing campaigns then no payment shall be forthcoming. Proof of work is needed. Clubs or individuals found to be accepting payments outside of these arrangements would face automatic expulsion from The NRL. Hard, but fair.
Dean - Surry Hills
Guest
The Barry
Roar Guru
That's a good point but I reckon that's fans attitude rather than the NRL's. I wonder how much the NRL tries to attract third parties to sponsor the game as a whole. Could they have a fund of potential TPS who want to sponsor the game but aren't as concerned at being aligned with a specific club that they could farm out to the clubs that are struggling on their own? The sponsor is effectively an NRL partner but the coin goes to help the Knights or whoever.
Dogs Of War
Roar Guru
I don't think that's the case at all. If anything the NRL when it gets involved is trying to get teams boards in order which are generally the ones who are struggling. Independent directors and trying to get teams to get professional business people involved in clubs.
Will Sinclair
Roar Guru
Good comment. My main issue is that the approach of the NRL seems to be around limiting the ability of clubs who are efficient at attracting third-party deals, rather than assisting those clubs who struggle.
steve b
Roar Guru
Hang on a minute that's what the NRL were doing their was investigating salary cap breaches not just a bloody audit !
steve b
Roar Guru
Well said D.O.W agree 100%.
up in the north
Roar Rookie
The salary cap is a good thing, the Rugby League product is better because of it and once the NRL nails down the systems for Third Party Deals it will be even better.
pete bloor
Guest
Not really when you look at fraud committed elsewhere. Anyone expecting a regular audit process to be the financial equivalent of the DaVinci code ahs been sold a dummy.
Dogs Of War
Roar Guru
Well it's not like Greenburg doesn't know how this works having run the Bulldogs, so they just need to clear up the guidelines a bit better to ensure that all teams work under the same system. As Gus said, we really shouldn't be pushing that sort of money away from the game, and if it helps clubs retain players, then so be it. It does mean we don't need to raise the salary cap in a hurry.
steve b
Roar Guru
Very funny indeed.However what really gets me is the board at Parra has been under investigation for that bloody long by the NRL then they bring in Pricewatethouse and the ones who picked up on the breach first was the media wtf.Something very crook their .
pete bloor
Guest
I do think the way they allow teams to introduce third parties is a step too far as in my mind that is brokering a deal yourself. The issue is it's nigh on impossible to police. I'd think most of the "well run" clubs aren't breaking the rule, but rather using the wide guidelines to go against the spirit. That's the problem with how Parra seems to have gone about it - they've given you massive leeway to influence the process without falling foul of the rules and yet Parra's gone and basically paid them. It's also a problem in the have and have not's is just that some of these clubs are run by comically inept management teams. I know lots of smart people that aren't very good at running these type of multiple stakeholder businesses, it's much harder than the outsiders tend to appreciate, but gee their version of doing a bad job would make them look stellar compared to some of the results around the NRL.
pete bloor
Guest
Yep it's inconceivable that you could be both above board and be a better quality management team than say they Eels. The Eels biggest problem with stability is staving off all those S&P 500 firms from poaching their mercurial home grown management talent.
steve b
Roar Guru
Yeh better at keeping it under the carpet !
The Barry
Roar Guru
Cronulla, Manly and the Roosters exist in the same market. It shouldn't be any more difficult for Cronulla or Manly to attract third parties than it is the Roosters. Sometimes you have to admit that a club might just be better at something rather than claiming unfair advantages.
Roosters16
Guest
To make it clear the premiership would have 12 teams and the championship 10 teams.
Squidward
Roar Rookie
Yeah it's a complete mess. While players shouldn't be restricted of what they can earn. There's a huge disadvantage for clubs like Brisbane, roosters compared to like a Cronulla or manly for access to third parties that makes a mockery of the cap