It's time for more salary cap transparency

By the outsider / Roar Rookie

The NRL is a billion-dollar industry entertaining millions of us. The players have become well-paid celebrities who generate as much interest from their off-field exploits as they do for their playing ability.

If I was starting a NRL-focused reality TV show, I’d probably call it “Keeping up with the Roosters” or something clever like that.

A show that focuses on the negotiations of player contracts and shines a light on the behind-the-scenes hard work of player agents as they make magic happen.

Unconfirmed reports suggest that there are now more NRL players in Bondi than there are UK backpackers. While the Roosters are one of the best run clubs of the last 30 years it’s time for transparency in the way player contracts are valued and negotiated.

NRL contracts should be independently valued and recorded to promote fairness and transparency. Currently, negotiations are conducted behind closed doors, with little information available to the public about how contracts are being valued.

This lack of transparency can lead to suspicions of favouritism and bias, which damages the reputation of the NRL as a whole.

There are two goals of the salary cap; to stop clubs going broke and to spread talent. The cap could be improved as far as spreading talent goes by stopping players signing contracts for less than their market value.

This needs to stop so the less attractive clubs don’t have to pay ‘overs’ to attract players. If a club is forced to pay overs to attract players the club will have a shallower playing roster as a result because no one’s going to the Tigers for less than market value.

For the successful and attractive clubs, like the Roosters and the Storm, they will not be able to keep players, even if they want to. If the proposed playing roster doesn’t fit in the cap, then players have to be shed.

Nathan Brown can’t go to the Roosters for less than market value. This creates wider player movement, and these players will sign elsewhere, thereby better distributing the talent.

How do you do it?

Easy, the NRL has a small panel of accredited player agents and is chaired by the Salary Cap Auditor. The panel is reformed each season with different agents and their job is to ensure that each registered contract is within 15 percent of its market value.

Once the contract is registered that worth is locked in for the term of the contract, for better or for worse. It’s a bit like having a fixed rate mortgage.

Independent valuation can help to ensure that players are being paid what they are worth. By having contracts independently valued, players and clubs can have a better understanding of the fair market value for their services, and negotiations can be conducted with more transparency and fairness.

Of course, there are also arguments against independent valuation and public disclosure of NRL contracts. Some argue that players and clubs should have the right to keep their financial information private, and that disclosing contract details could lead to tension and conflict between players and clubs.

However, these arguments can be countered by the fact that other sports leagues, such as the National Basketball Association (NBA) and Major League Baseball (MLB) in the United States, have implemented independent valuation and public disclosure of contracts.

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These leagues have shown that transparency and fairness can coexist with a competitive and successful competition.

I think even the RLPA would get behind independent valuations. When contracts are shrouded in secrecy, it’s easy for clubs to manipulate the system and take advantage of players.

By making contracts public, fans and players alike would have access to information about salaries, bonuses, and other incentives.

This would create a more level playing field and prevent clubs from playing favourites or engaging in shady backroom deals.

The Crowd Says:

2023-03-30T05:10:59+00:00

Panthers

Roar Rookie


I’d argue that other clubs are already going to the Panthers junior areas to gain junior players. Not talking about the Dolphins either. Teams such as Manly, South’s are already there . That’s one reason why Penrith has to run Panthers junior sides in local competitions, in the central west . They also have made a connection with an area of NZ. Not sure they’ve gotten to be too choosy with local area junior players of late either. Lost so many halves lately, that they had to buy one from the Queensland competition. Also, Penrith had no choice but to try & produce their own players. As what top name players are lining or were lining up to play for Penrith? Answer: None! Wasn’t only talking about Penrith either. You’ll notice that the vast majority of buys for Parramatta, West’s & Penrith. Are from Parramatta, West’s & Penrith. That pretty much says it all.

2023-03-29T20:51:43+00:00

The Barry

Roar Guru


If managed well, there’s a MASSIVE financial advantage in having a junior area 5+ times the size of any of your rivals The whole point of the huge junior catchment is that you don’t have to pay overs for mid tier talent. Penrith can be picky and choosy to select the players that fit with the constant stream of talented juniors - that they get first pick of and can be signed for unders Your club is evidence of all that… more dominant over the past three years than any club in a long, long time. If the Panthers want allowances for living in the west and allowances for developing juniors to ensure it’s a level playing field, hand over some of the junior catchment area to level that playing field too…

2023-03-29T11:07:29+00:00

Panthers

Roar Rookie


Clubs in Sydney’s west also don’t get virtually any top players wanting to join their club. As they’re in Sydney’s West. Then if they get any decent players, they are forced to pay overs to get them. Where’s any cap allowance for that? Nor is their any financial advantage long term in developing your own players. Surely there should be some cap allowance , when you’ve developed players, from when they are young kids ? Gaining a financial advantage from developing your own clubs junior players , would assist in getting all clubs to put in a bigger effort to do just that.

2023-03-24T01:41:19+00:00

criag

Roar Rookie


There are good reasons to be paid less. For major sports in the US though, not too many are going to go poor if they do. Brady earned $15 million and $23 million in his last two years at the Buccaneers...I'd take those unders too.

2023-03-23T01:42:08+00:00

Kent Dorfman

Roar Rookie


only a Beemer? I'd be pushing for a Merc E350 coupe, because me mum doesn't like to drive so I'd be her chauffeur & the car'd have to stay at my joint

2023-03-22T22:15:46+00:00

Christo A

Roar Rookie


Income and talent are loosely correlated in the NRL and in many areas of life Some organisations offer a better total package of financial and non financial return that’s how life is

2023-03-22T20:54:02+00:00

Maxtruck

Roar Rookie


I would think Spencer Lenu's contract will not put Easts over the cap. Politis is not a fool. But his Mum or sister might be driving a new BMW not registered in her name ?

2023-03-22T11:21:03+00:00

Tony

Roar Guru


Free beers, dinner in the bistro and reserved parking space.... :happy:

2023-03-22T10:52:00+00:00

Big Daddy

Roar Rookie


I would have thought player/ managers are the greedy go betweens as they get a percentage of every dollar.

2023-03-22T10:49:51+00:00

Big Daddy

Roar Rookie


That's the clincher , the Embroidered Directors jacket with the winning premiership year even though they didn't play . And you get a directors allowance as well .

2023-03-22T10:44:29+00:00

Big Daddy

Roar Rookie


Been thinking about this for a couple of days and since salary cap has gone from $9.3 million? to $12.2 ? Which is between 20-25% is that money spent on topping up the existing high market value players or is going to the lower profile players. If it went up by 10% the guy on $800k will get an extra $80k but the poor old bloke on the minimum $120k will only get $12k so this is where the transparency needs to be not only from the NRL but the clubs as well . It's OK giving them an extra $3 million but where is it going .

2023-03-22T10:20:03+00:00

Gus O

Roar Rookie


My understanding was that the senior playing group at Manly made a pact before 2008, that they would all take a bit under their individual market value to stay together and play together in a quest for premiership success? But the difference now in what a player like Spencer Lenu can earn as annual salary at Penrith to come off the bench and play 30 minutes vs starting prop for Easts will be huge.

2023-03-22T09:43:18+00:00

Gus O

Roar Rookie


What can you mean, are you suggesting that player agents and media exaggerate or just make up stories? Or that the grubby NRL media regularly fabricate controversy? IMO the changes proposed in this article would provide the NRL media with an arsenal of additional ammunition for fermenting additional conflict and fabricating additional controversy. Fixes nothing. The general public has nothing to do with recruitment contracts and surely the clubs are not fooled by planted articles in the media. Under the current system we are not obliged to believe the exaggerations from self important media talking heads whose opinions are worth no more than any other sports fan at the local pub or club.

2023-03-22T04:20:50+00:00

Gibbo

Roar Pro


Two examples from US sport that bear consideration. Tom Brady, in the last few years of his tenure with the Patriots, stayed with them for unders, and he even restructured his contract, twice, to help the Patriots sign other players and still remain under the salary cap. Tim Wakefield, the former Boston Red Sox knuckleballer, took a minimum salary for about the last 5 years that he played because he loved the Red Sox so much and wanted to be a part of their roster. If I were a pro player and I'm that connected to a club and a fanbase and just want to stay so much, I'd take unders as well if my family was happy.

2023-03-21T16:17:15+00:00

mushi

Roar Guru


No club makes a meaningful contribution to junior football according to their reports. But hey they've also stripped 18m in direct funding post covid. But the clubs are great custodians of the game.

2023-03-21T16:06:33+00:00

mushi

Roar Guru


I'm not sure that's a deterrent. And the nrl is starting to realise it (though not completely because its You can't take away a premiership, you can scrub it from record's but a premiership is 99% the feeling when that full time siren sounds. Backward looking penalties are ineffective

2023-03-21T03:37:13+00:00

Kent Dorfman

Roar Rookie


is this article implying that the Chooks salary sombrero's still dodgy?

2023-03-21T03:18:57+00:00

Albo

Roar Rookie


Yeah Rob, get some Roy Buchanan burning up the strings of his Tele ! :stoked:

2023-03-21T03:08:16+00:00

Train Without A Station

Roar Guru


And it's pretty simple. They are agreement with a third party. The player and clubs are parties one and two. The rules around it are simple. They have to be independent from the club.

2023-03-21T03:07:43+00:00

Red Rob

Roar Rookie


Totes, Albo. I’ve never bonded with Strats for some reason. If you only have one guitar ( :shocked:) make it a Tele.

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