General Discussion NRL Salary Cap Thread

Discussion in 'NRL Discussion' started by Lord Gnome of Howick MBE, Jul 11, 2012.



  1. Lord Gnome of Howick MBE
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    Lord Gnome of Howick MBE Warriors 1st Grader

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    SOME of the NRL's biggest names are set to reap the rewards of a possible $6 million salary cap when they come off contract next season.
    With Luke Lewis and Brett Stewart the last of the big names still on the transfer market this year, clubs are already thinking ahead to 2013, when more than 180 players come off contract.
    Among them are some of the game's biggest stars, including Australian five-eighth Johnathan Thurston, NSW halves pairing of Mitchell Pearce and Todd Carney, South Sydney's Greg Inglis and Sam Burgess, Blues hooker Robbie Farah and Cowboys props Matt Scott and James Tamou.
    Rival clubs are free to begin negotiations with those players from November 1, but some will resolve their futures before then, with negotiations already underway.
    The key is the new broadcast deal, which is expected to be finalised either late August or September.
    If the ARL Commission can match the $1.2 billion deal the AFL secured last year for its television and internet rights, the salary cap is expected to rise to $6 million or more in 2014.
    Clubs are operating on a salary cap of $4.3 million for this year but have been told to sign players for the 2013 season on the basis the cap will increase to a minimum of $5 million.
    The rise has helped the likes of Manly to retain star five-eighth Keiran Foran, centre Steve Matai and hooker Matt Ballin, while upgrading the contract of halfback Daly Cherry-Evans. The additional money has also helped ease potential cap problems for a number of clubs caused by backended contracts.
    ''In previous years the salary cap has only really gone up by about $100,000 per year and I am sure a number of clubs would have been in trouble if that had been the case again,'' one NRL club chief executive told the Herald. ''The biggest problem now would be if someone takes a gamble on how much the salary cap will be and it doesn't go up by the amount they are hoping.'
    NRL clubs have been told to anticipate the 2013 salary cap will be at least $5 million but not to spend much more than that.
    ''It is a real juggling act at the moment because no-one can say how much the salary cap will be until the television deal is done,'' another club boss told the Herald.
    ''But the $500,000 player is going to become the $600,000 player. There is already a lot of talk going on in the background, we are well down the track with re-signing some players and it is actually trying to work out the finances of it all.
    ''You don't want to get to the stage of letting anyone else get involved and if the player doesn't want to sign before November 1, he is probably going to go elsewhere.''
    Clubs were given a projection of future salary cap rises at last year's conference of club chairmen and chief executives.
    Depending on the new television deal, the salary cap would be increased to:
    $5.1 million (under a $1 billion TV deal);
    $5.9 million ($1.2 billion), or;
    $6.6 million ($1.4 billion).
    Then NRL chief executive David Gallop said those figures were ''conservative'' and one club chief executive yesterday predicted the salary cap would rise to between $5.5 million and $6 million if the tv deal was worth $1 billion.
    ''If they can't get $1 billion for the TV rights they are kidding,'' he said. ''The ratings for the NRL are killing AFL - even the Toyota Cup. Some games outrate Super Rugby and the A-league, which is pretty good for a kids competition.
    ''I know the AFL always go on about their grand final and how it gets record ratings, which is fantastic, but we have got four games like that - three State of Origin games and our grand final.''
     

  2. ToiletDuck
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    ToiletDuck Dr Faggot Contributor

    Haha whao almost missed this Lord Gnome of Howick MBELord Gnome of Howick MBE - you had it in 'NRL news' which is just the automatic feed from NRL.com.

    For some reason I had the 7 mill figure in my mind, not sure why. Perhaps that was what was thrown around earlier with the TV rights being at the upper end of those figures. Either way I think it's a must if the NRL is going to have any hope of hanging on to their players.

    One question I do have, the cap rises sure, but does the amount of money granted to clubs by the NRL increase enough to make all (or most) clubs able to fill that cap? We're aware of the clubs that have struggled to even max out the current cap, similar or worse situation once it rises?
     
  3. Inruin
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    Inruin Walk Them Out

    is our cap calculated in aus$? do we pay them in aus$? in aus the higher tax bracket means they pay more as a percentage in tax than the equivalant here? true?
     
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  4. fizurg
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    fizurg 1st Grade Fringe

    interesting point
     
  5. Lord Gnome of Howick MBE
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    Lord Gnome of Howick MBE Warriors 1st Grader

    My understanding is as follows;
    1) Our cap is set in NZ$s each year and equates to the AUD equivalent (i.e., currently we have a cap of cNZ$5.6m, which equals AUD4.3m)
    2) Our players are oaid in NZ$s and taxed in New Zealand (I remember Steve Price talking about the lower tax rates here being an added incentive to come over)

    At work, we work on a salary reduction of apx NZ$100k to relocate from either Sydney or Melbourne to Auckland (to reflect the lower cost of housing and general living, and the lower tax rates.)
     
  6. fanrrior
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    fanrrior 1st Grade Fringe

    Next year is going to be interesting, SBW will probably be on the market too
     
  7. Nekminit
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    Nekminit Waterboy

    I remember reading a column in the League week a few years ago that said anyone earning more than 120k a year was being taxed at the highest rate of 43 or 45% and the equivalent in NZ was 36%. I have no Idea what the figures are like now
     
  8. Lord Gnome of Howick MBE
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    Lord Gnome of Howick MBE Warriors 1st Grader

    I think it is now 43% plus 9% employee super contribution.
     

  9. tajhay
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    tajhay On Titanic.

    It's 45% plus 9% super... ontop of the Medicare levy
     
  10. natedogg
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    natedogg NSW Cup Player

    They are paid in Australian dollars. Otherwise it would be complicated when it comes to the currency exchange rates and making sure you stay under the cap.
     
  11. tajhay
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    tajhay On Titanic.

    I remember reading that currency exchange rate is fixed ie they use exchange rate at a certain date. Players are paid in NZD
     
  12. natedogg
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    natedogg NSW Cup Player

    Im sure the players get paid NZD into an NZ account. However there contracts are paid in Australian dollars.
     
  13. Lord Gnome of Howick MBE
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    Lord Gnome of Howick MBE Warriors 1st Grader

    Eh?
     
  14. warriors8
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    warriors8 Warriors Bench Player

    Contracts in AUD and money paid is AUD into there NZ or AUS Account. This way the club pays the difference in exchange rates not the player. For example Manu gets lets say $10k AUD a week that goes into his NZ Account and he has $12800 NZD available in his account. Thats how it works
     
  15. ¿N. ig-mah¿
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    ¿N. ig-mah¿ Warriors 1st Grader

    Isn't the cap fully funded by the NRL? Some clubs choose to hold some cap back and use it for club administration and expenses. I assume this is why the Warriors have stayed so far under the cap for so long.

    I personally believe that the clubs should not get any access to the salary cap funds and that the NRL should pay the players directly. The money should not be allowed to get channeled to other areas of the club, but kept specifically for wages of players.

    I thought the $7 mill figure was $NZ and this would mean that the cap will go up more than what was originally stated.
     
  16. OMG
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    OMG Warriors 1st Grader

    The cap isn't fully funded, I think the clubs get something like 3.9mill of the 4.4miil cap this year from the NRL apart from the storm who get something like 6mill to keep them afloat,
    Watson was reported to spend a million a year to keep the Warriors a float at one stage.
     
  17. tajhay
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  18. ¿N. ig-mah¿
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    ¿N. ig-mah¿ Warriors 1st Grader

    My bad. Its pretty close to totally funded though. If the Warriors have been spending $1 mill under the cap, as has been reported, then they have been retaining half a mill for other expenses, as will any club under the cap.
     
  19. Lord Gnome of Howick MBE
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    Lord Gnome of Howick MBE Warriors 1st Grader

    I have heard that the clubs are asking for a NZ$9m grant each season and a NZ$8m salary cap for 2013.
     
  20. mt.wellington
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    mt.wellington ABOVE THE LINE

    Imagine what a marquee could command now.