Sorry Cronulla, but violating the salary cap in the past isn't just a "historical issue"

By Joe Frost / Editor

When is the NRL going to get real about the salary cap? Apparently not any time this season, after the Sharks were given the all-clear to participate in the upcoming finals.

On Wednesday afternoon, Todd Greenberg fronted the press to assure the rugby league public that there’s no fire, despite the smoke billowing out of the Sutherland Shire.

“Every club in the NRL, that includes the Sharks, are cap compliant in 2018. The 2018 finals series will not be affected by this investigation,” the NRL CEO said at a press conference on Wednesday afternoon.

It came after the Sharks put out a press release on Tuesday evening saying they had self-reported “discrepancies relating to historical third-party player payments”, and the NRL said its integrity unit is looking into “salary cap matters” at the club in the 2015 and 2017 seasons.

Now, I’m not a historian – and technically anything that happened even a second ago is in the past, so therefore part of history – but I am a pedant, so please, indulge me this question: are we really going to let a potential breach that occurred last season be termed a “historical issue”?

By referring to the discrepancies as “historical” – which Cronulla did twice in their 120-word statement – the club was aiming to minimise the impact these issues have on the present.

And they have been successful in this endeavour, with the NRL seemingly comfortable allowing the Sharks to play finals footy, because they’re cap compliant this year.

But the salary cap can’t be treated as a year-at-a-time proposition.

While we hear about players getting x dollars over y seasons, these are rarely flat annual salaries, and it’s where all the talk of front- and back-ended deals come in.

A player might take significantly less in the first year of their contract, because that’s when the club is experiencing cap pressure, but then they’ll get a balloon payment in the final year to make up for that first-season shortfall.

As such, when you’re in a competition that has strict rules over how much financial recompense an entire squad can receive, exceeding that amount gives your club a significant advantage the others don’t get, which helps you recruit and retain quality players.

And when players sign contracts that last multiple seasons, that advantage can last for a number of years, even if you only went over the limit once (or, as the case may be, twice).

Yet, if the Sharks are found to have been doing this in two of the last three completed seasons, the NRL is apparently willing to let it go as far as this season is concerned, because it didn’t happen this year.

(Photo by Matt King/Getty Images)

How does that wash?

While Cronulla CEO Barry Russell has said that the issues do not relate to the current playing squad, it doesn’t really matter who received the money.

Even if all the club’s current players are clean as a whistle – and we have no reason to suspect they are not – their recruitment and retention was made immeasurably easier if the club had two years’ worth of undeclared funds to pay past players and therefore structure other deals.

If you’ll pardon a lame analogy: when you’ve got a larger pool, you can keep the bigger sharks.

So how the hell can the NRL simply say, “Oh, you were only maybe cheating last year or a couple of seasons earlier? Just as well it’s got nothing to do with this year.”

It has everything to do with this year!

The cap – and someone’s bank account – doesn’t restart because a grand final’s been played, but that’s the message the NRL sends if they simply say that the finances of two of the last three years can have no effect on the current season.

Look, maybe at the end of this whole investigation, it will turn out Cronulla made an error that barely deserves a fine – honestly, that happens regularly enough, and part of the reason Greenberg is comfortable with the Sharks being in the eight is that their potential breach “is not on the scale of previous investigations”.

But to be willing to term a salary cap issue – for a highly successful club, that allegedly occurred two years out of three, and as recently as last season – as being “historical” and therefore having no bearing on this year’s finals completely fails to grasp the cap’s purpose.

The Crowd Says:

2018-08-31T01:46:40+00:00

Matt H

Roar Guru


Don't worry about the Cap. Anthony Milford just gave the scoop that he's learned how to kick, after only three years of practice! Other teams beware!

2018-08-31T01:45:22+00:00

Matt H

Roar Guru


Were you ashamed of them when they sign Mark Gasnier for $50,000?

2018-08-31T01:44:35+00:00

Matt H

Roar Guru


I wold suggest Melbourne and Bulldogs supporters didn't feel like they'd been hit with a wet lettuce leaf. And Manly will likely have their cap reduced in coming years, that can hurt a club for a long time.

2018-08-31T01:40:00+00:00

Matt H

Roar Guru


I'd like to see Cronulla field 14 players this week so they can get the trifecta.

2018-08-30T08:08:40+00:00

Renegade

Roar Guru


Storm fans need to get a grip... or actually read what’s going on in this situation? Enough of the tin foil hats at 10 paces... some people genuinely need alfoil.

2018-08-30T07:32:07+00:00

Joe

Roar Rookie


It is a joke when it is being breached pretty much every year and that is only the ones that get caught or self reported. Not getting anything in a bunch either, just stating what I think of the salary cap so no need to get personal.

2018-08-30T07:15:43+00:00

The Barry

Roar Guru


Don’t worry about the cap Dogs have just signed Corey Harawira-Naera from the Panthers!! Woot woot

2018-08-30T05:16:40+00:00

AGO74

Guest


Yeah I think you've just about got it The Barry. My two cents worth: 1. The NRL has taken a few months to resolve this because it is low priority due to it likely being a minor breach of the type that occur every year (there's always a once a year story on how someone breached by $x and another by $y but were all immaterial/inadvertent and issued with warnings/small fines); 2. Daily Tele knew what I describe in 1. above and didn't bother running with it (as I said these types of minor salary cap indiscretions occur every year). 3. Daily Tele changed their mind on not running story once Rothfield was disparaged by Fifita/Dugan and have come down ferociously on them like a firestorm (today's DT has 5 or 6 articles on this - none of it with facts mind you, all speculation). All seems a bit co-incidental.

2018-08-30T04:38:13+00:00

Chris Meister

Roar Guru


Absolutely nothing will happen. If they cheated and won a premiership a precedent has been set

2018-08-30T04:33:32+00:00

The Barry

Roar Guru


Shoulda known...

2018-08-30T03:35:09+00:00

RoryStorm

Guest


I couldn't have said it any better myself Chris.

2018-08-30T03:19:20+00:00

Chris.P.Bacon

Guest


Haaa! (????) <--smiley face

2018-08-30T03:00:48+00:00

Joe

Roar Rookie


Yes but Melbourne 2007 are 4th with 24% and also 10th with 12% so adding both those scores together Melbourne 2007 should be top of the table at 36%!!. And no idea why Melbourne 2007 is listed twice...someone must really hate that side!

2018-08-30T02:58:23+00:00

Forty Twenty

Roar Rookie


That list possibly indicates that the Chooks are the smartest club around in one way or another. Without any evidence I would have to assume that the cleverness at the Roasters is legitimate. One quote on the issue that has always stuck in my mind from a supporters forum wondered how the Roosters seemed to be able to sign the best players form other clubs ........ 'at will'. Surely they can't get Munster as well........ can they?

2018-08-30T02:20:16+00:00

The Barry

Roar Guru


I’d agree with that for systemic breaches - there’s no doubt the penalties are in no way harsh enough or enough of a disincentive but not necessarily for small scale accounting errors.

2018-08-30T02:16:56+00:00

The Barry

Roar Guru


Good to see the Dogs back at the top of the table...it’s been a long season !

2018-08-30T02:16:47+00:00

Ron Norton

Roar Rookie


Melbourne must be wondering if they were robbed!

2018-08-30T01:56:38+00:00

Scott Pryde

Expert


All teething issues guys... The team are working to get everything running as it should be.

2018-08-30T01:45:26+00:00

shane

Guest


The salary cap is just a tool to create competitive balance, and to prevent teams going broke by overspending. It obviously works as intended as the NRL is one of the most balanced major sporting competitions in the world, and no clubs have gone broke for several months at least. The fact that it is occasionally breaches hardly makes it a joke. Stop getting your panties in a bunch.

2018-08-30T01:44:52+00:00

Chris Meister

Roar Guru


Let's see how they handle this one. I bet with a feather duster, after all Cronulla are a Sydney club and not an easy target club out of the way in a non RL saturated market

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