Is a transfer window the solution to the NRL’s player contract fiasco?

By Mitchell Farrugia / Roar Rookie

The lack of understanding of the operation and workings of player negotiations is fast becoming one of the major issues in the NRL.

Perhaps modelling and adapting a transfer window system similar to the football world could decrease the rising number of players breaking their contracts early.

Here’s how it may work.

The first thing to consider is when the transfer window open and close?

Currently negotiations with players who have one year remaining on their contracts begins on the first of November. This could be the day the transfer window opens, which would then last until the 23rd of February, allowing clubs 12 weeks to make moves on rival players who would join their side immediately.

A second window would lead to mid-season swaps, therefore to avoid this the only other negotiations that would be allowed to occur would be pre-contract agreements for the following season, with players who have less than a year to run on their deal the only one’s clubs could target.

To put this into an example, Latrell Mitchell – who has one year remaining at the Sydney Roosters – would be able to be signed by another club for 2020 if the deal is completed before the 23rd of February.

After the 23rd, Mitchell would only be allowed to be signed on a pre-contract agreement meaning he would move clubs at the end of the 2020 season.

Clubs would be able to negotiate with their current players freely throughout the season, therefore being permitted to offer contract extensions at any time.

The next aspect to think about is club compensation for losing a player. If a player was signed in the transfer window, a transfer fee or player swap would need to be agreed upon by the two clubs involved.

To model this aspect off of a football model would not be feasible due to the high transfer fees paid.

However, a transfer fee could be close to the players market value. For example, this off-season we witnessed the messy departure of Ryan Matterson who still had two years on his deal at the Wests Tigers.

The Parramatta Eels didn’t have to pay compensation to the Tigers, who wanted to remove Matterson sooner rather than later from the squad. In the transfer model, the Wests Tigers could have received an offer around $500k, leaving them in a position to find a replacement for a similar transfer fee.

Ryan Matterson playing for the Tigers (AAP Image/Steve Christo)

It’s also important to look at the amount of money club receive outside of the salary cap as to how much extra they would be given to use for transfers.

In the below table, the current salary cap allocations are listed, potentially $3 million per club could be separated from the club grants the year a transfer window is implemented, to be used strictly for transfers.

Reported salary cap allocation per club

Year Salary Cap Minimum Wage Club Grant
2022 $10M $120,000 $13M
2021 $9.9M $115,000 $13M
2020 $9.8M $110,000 $13M
2019 $9.6M $105,000 $13M
2018 $9.4M $100,000 $13M
2017 $7.0M $80,000 $7.2M
2016 $6.8M $80,000 $7.1M
2015 $6.55M $80,000 $7.1M
2014 $6.3M $80,000 $7.1M
2013 $5.85M $80,000 $7.1M

This would be the only time clubs are strictly given money for transfers. Clubs would need to make smart deals in which they could maintain their salary cap.

This would eliminate clubs spending big and seeing massive overhauls to rosters during the off-season.

This could be a solid base which could be adapted into the NRL, minimising messy player movements, player agents ruling contracts and allowing for clubs to be compensated for players who are poached before their contracts end.

The Crowd Says:

AUTHOR

2019-12-24T06:48:46+00:00

Mitchell Farrugia

Roar Rookie


The transfer fees would be agreed apon by the clubs not a governing body, I was just stating in the article that the nrl would need to give each team a starting balance which is only allowed for transfer fees.

2019-12-17T01:52:58+00:00

Train Without A Station

Roar Guru


They weren't forced. They could have required Matterson to stay. He could then either sit out, or put in an average year which would affect his market value and rep honours.

2019-12-17T01:51:59+00:00

Train Without A Station

Roar Guru


Why? Has the player agent not provided their service? They're an advocate for the player, not the club. They are paid by the player, not the club.

2019-12-16T06:42:14+00:00

Andrew

Guest


And then Jamie Lyon back in 04.

2019-12-15T23:17:03+00:00

Train Without A Station

Roar Guru


I don't see how a transfer fee is something a governing body should be determining. There is nothing stopping transfers fees now. Except in cases like the Tigers and Matterson, they just wanted to get rid of a player that didn't want to be there, that's why they let him go for nothing. The Tigers could have said they'd only release Matterson for a transfer fee. They just chose not to.

AUTHOR

2019-12-14T21:11:18+00:00

Mitchell Farrugia

Roar Rookie


:laughing: :laughing: :laughing:

2019-12-14T20:12:23+00:00

Tom G

Roar Rookie


A better solution would be for every club to hire the Roosters bookkeeper..The guy must be a fiscal gymnast of Comaneci standard. If reports in the media this week are to be believed they are not only compliant but the most compliant club in the NRL on TPAs. It’s just a pity that their sombrero can be spotted from outer space

AUTHOR

2019-12-14T07:23:25+00:00

Mitchell Farrugia

Roar Rookie


Yes the same thing does happen in football but teams are compensated for losing players. Meaning they can bring in someone of the same quality rather than receive nothing and potentially for struggling clubs fail to attract other players, creating further disparity in squad quality across the NRL. I feel like the system if negotiated with the players, teams and NRL it could work well.

2019-12-14T06:41:19+00:00

mushi

Roar Guru


But what is the proposal? Given that clubs could already do this if they wanted it feels like the only thing changing here is players losing some control in the final year of their contracts. What are the NRL giving up for that?

2019-12-14T06:29:57+00:00

mushi

Roar Guru


And the same thing happens in football. Players force their way out of teams and force clubs hands generally 2 years in advance. It's just that it happens in a market where the market convention is to pay each other in a clumsy luxury tax equivalent. Speculation on player movement is a daily news cycle in the main leagues. I can't see how the system achieves anything other than forcing players to be more active in seeking early exits and creates value leakage for the playing group.

AUTHOR

2019-12-14T04:09:47+00:00

Mitchell Farrugia

Roar Rookie


I don’t see it as restrictions as it wouldn’t work that way, it’s a more organised system which would work for the players and teams as it does in the Football world.

2019-12-13T21:40:13+00:00

elvis

Roar Rookie


Number of contracts. Number number number. It's a free world. Stop trying to make up more nanny rules that only get enforced when someone in head office wants to get someone else. No one not playing would entertain any kind of restrictions on them getting a job, why are people so keen to come up with rules for other people?

2019-12-13T21:36:22+00:00

elvis

Roar Rookie


As long as you aren't allowed to look at job ads until you quit your current job, I'm all for it :-)

AUTHOR

2019-12-13T20:41:18+00:00

Mitchell Farrugia

Roar Rookie


Ok, It was the Tigers only option to release him otherwise he’s at the club not wanting to play for them. They were forced to do something. I don’t see it as mutual but if you do fair enough. Also the transfer window would restructure what is now a messy contract system.

2019-12-13T19:10:12+00:00

Adam Bagnall

Roar Guru


He wanted to go, and the Tigers let him go as it was obvious he no longer wanted to be there. Mutual consent. SBW broke his contract way back in 2008 but that's about it. You're looking for a solution to a problem that doesn't exist

AUTHOR

2019-12-13T09:58:26+00:00

Mitchell Farrugia

Roar Rookie


Depends on each scenario and contract. It’s not black and white however there are and have been cases where players have forced a move as I stated through the example of what happened with Ryan Matterson. In a transfer system the club approaching the player would agree to a fee with the club the player is contracted with first, then the club would be free to negotiate a deal. Once the player signs the contract then the fee would be paid to the club who the player was previously with.

AUTHOR

2019-12-13T09:47:35+00:00

Mitchell Farrugia

Roar Rookie


I did specifically mention Ryan Matterson in the article, who broke his contract because he wanted to leave. The reason the Tigers let him go was so they could get a replacement and didn't want it to affect the team. So its not really mutual consent.

2019-12-13T08:05:38+00:00

Adam Bagnall

Roar Guru


Interesting you complain about broken contracts but can't give a single example. It isn't happening. It's by mutual consent that players leave early not broken contracts where a player simply walks out on a club. I like the idea of a mod season window where players who have played less than 10 games by the halfway mark of a season, and providing they are in the final year of their contract, can make an immediate switch.

2019-12-13T07:55:17+00:00

Paul

Roar Guru


Again though I'm not sure there's a problem that warrants the sort of action you're suggesting. I'm happy to be corrected but I think the overwhelming majority of "broken" contracts are by mutual consent. As for compensation, surely that would be agreed as part of the actual release?

AUTHOR

2019-12-13T05:48:36+00:00

Mitchell Farrugia

Roar Rookie


Could be a good idea but it would be very hard to implement that across every contract and I don’t think the managers would agree to it too.

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