National Rugby League salary cap

In 1990, the NSWRL introduced a salary cap system to even the playing field of teams in the Winfield Cup.[1] The National Rugby League has adopted the salary cap system from its predecessor. A special team headed by former Australian representative Ian Schubert deals with salary cap issues and monitors teams on a yearly basis.[2]

As of 2013 the club grant is $7.1 million which covers the salary cap of $5.85 million for the top twenty-five players at each club. The salary cap will increase to $6.3 million in 2014, $6.55 million in 2015, $6.8 million by 2016 and $7 million in 2017.[3]The minimum wage from 2013 onwards is $80,000 for the top twenty-five players.[4]

In 2010, following the Melbourne Storm salary cap scandal, the NRL introduced requirements for players and their agents to sign statutory declarations pledging their contracts comply with salary cap regulations, where previously only club chairmen and chief executives did so for biannual salary cap audits.[5]

Salary cap by season

Season Salary cap Minimum wage Club grant
2017 $7M $80,000 $7.1M
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
2012 $4.4M $55,000 ?
2011 $4.3M $55,000 ?
2010 $4.1M $55,000 ?
2009 $4.1M $55,000 ?
2008 $4M $55,000 ?
2007 $3.9M $55,000 ?
2006 $3.6M $55,000 ?
2005 $3.366M $55,000 ?
2004 $3.3M $55,000 ?
2003 $3.55M $55,000 ?
2002 $3.45M $55,000 ?
2001 $3.347M $55,000 ?
2000 $3.325M $55,000 ?
1999 $3.25M $55,000 ?
1998 $3.25M $55,000 ?

Discussion over the salary cap limit

The NRL is one of the few major leagues to implement a salary cap in a sport that has competing leagues in other countries where there is either no salary cap or a much higher cap per club. As a result, there has developed a tradition of players from Australia moving to Europe where salaries for the elite, and even for average players, were considerably higher. The NRL chooses to continue with the cap, believing that any reduction in quality of the sporting product due to the loss of these players is less than allowing richer clubs to dominate. In practice, the goal of parity has been quite successful, with eleven different clubs winning the premiership in the 15 seasons between 1998 and 2015.

In 2008, the departure of Mark Gasnier and Sonny Bill Williams, two elite stars, to play French rugby union prompted calls for the cap to be raised. Australian rugby league players had suffered a 27% decline in their wages since 1999, whereas other Australian sportsmen had experienced steady, and in some cases explosive growth. Some of the blame has been apportioned to the fact that the media company News Limited was a 50% owner of the NRL, and would normally be expected to be a bidder for rugby league rights in Australia. Being an owner of the game meant News Limited could apportion rights to itself at a discount, reducing the overall income the league could make for itself through the sale of media rights. This had a flow-on effect reducing available income for players.[6] Following the 2009–10 northern rugby union season, global exchange rate changes meant that payments in European currencies were not as attractive, and Gasnier returned to the NRL. Williams returned to his homeland of New Zealand in what proved a successful attempt to play rugby union with the All Blacks, and in 2013 returned to the NRL to play for the Sydney Roosters.

The new Australian Rugby League Commission secured a billion dollar television rights deal in August 2012, and both clubs and players expected a significant increase in the salary cap. Announcements that the cap for 2013 would increase from $4.4 million to only $5 million has resulted in the Rugby League Players Association agitating for an increase to $6.5 million. The RLPA is also expecting increased retirement funds, income protection and a boost for representative payments.[7]

In July 2013, NRL CEO Dave Smith floated the proposal of a marquee player allowance which could be paid outside the traditional salary cap to help retain the game's biggest stars such as Sydney Roosters Sonny Bill Williams - and help lure back the likes of ex-league player and Wallabies star Israel Folau.[8]

Breaches

The breaches of the salary cap and salary floor regulations outlined by the NRL are exceeding the salary cap, falling below the salary floor, not informing the NRL of payments, late or incorrect lodgement or loss of documents relating to player financial and contract details or engaging in contract tampering. Trading cash for players is also prohibited to prevent wealthier clubs from evading the salary cap and salary floor regulations.

Penalties for players, club officials and agents include fines of the lesser of 10% of the amount involved or $100,000 and/or suspension. Penalties for clubs include fines of the lesser of half the amount involved or $500,000 ($2,500 for each document that is late or incorrectly lodged or lost) and/or deduction of premiership points.

The following breaches of the salary cap and salary floor have occurred:[9]

Notable breaches

Canterbury season 2002

In 2002, the Canterbury-Bankstown Bulldogs were fined the maximum of $500,000 and deducted all 37 premiership points received during the season after it was found that they had committed serious and systematic breaches of the salary cap totaling $2.13 million over the past three years, including $750,000 in 2001 and $920,000 in 2002; these were described by NRL Chief Executive David Gallop as "exceptional in both its size and its deliberate and ongoing nature". The points penalty meant that the club won the 2002 wooden spoon (South Sydney would have finished last if not for the breaches), and as the club had been leading the competition table prior to the imposition of the penalties, this was a shattering outcome for the club and its fans. Two senior club officials were jailed for fraud as a result of these breaches.

New Zealand Warriors season 2005

In 2005, the New Zealand Warriors were fined $430,000 and were ordered to start the 2006 season with a four premiership point deficit and cut their payroll by $450,000 after club officials revealed that their former management had exceeded the salary cap by $1.1 million over the last two years. The points penalty meant that the Warriors missed a finals berth in 2006.

Melbourne season 2010

The Melbourne Storm salary cap breach was a major breach over a period of five years. The discovery of these breaches in 2010 resulted in it stripping the Storm of all honours achieved as a team since 2006 (including the 2007 and 2009 premierships, the 2006, 2007 and 2009 minor premierships and the 2010 World Club Challenge), sentencing them to finish the 2010 NRL season last (of which 75% was still to be played) and fining the club a record $1.689 million.

External links

References

  1. Middleton, David (2008). League of Legends: 100 Years of Rugby League in Australia (PDF). National Museum of Australia. p. 27. ISBN 978-1-876944-64-3.
  2. Budge, Dale (22 February 2006). "NRL salary cap guide". tvnz.co.nz (Television New Zealand Limited). Retrieved 17 December 2009.
  3. "NRL clubs in line for windfall". The Sydney Morning Herald.
  4. http://www.couriermail.com.au/news/queensland/nrl-season-has-billions-reasons-to-boast/story-e6freoof-1226591078282
  5. "Players To Be Held Accountable For Salary's - Rugby League News - Dream Team". dreamteam.nzherald.co.nz. Retrieved 2016-03-16.
  6. Roy Masters (May 16, 2009). "Double or Nothing: Why the NRL TV rights are worth 1 billion". Sydney Morning Herald.
  7. Christian Nicolussi and Phil Rothfield (November 30, 2012). "Crunch meeting over NRL salary cap as ARL refuses to budge". Daily Telegraph, Sydney. http://www.news.com.au/sport/nrl/crunch-meeting-over-nrl-salary-cap-as-arl-refuses-to-budge/story-fndujljl-1226527029967
  8. The NRL is set to undergo a major salary cap review which chief executive Dave Smith hopes will keep the likes of Sonny Bill Williams in rugby league.
  9. Salary cap breaches 2000-2010
  10. AAP (22 April 2010). "Melbourne Storm salary cap quotes". The Roar (Australia: The Roar Sports Opinion). Retrieved 22 April 2010.
  11. AAP (2008-04-28). "Six NRL clubs cop salary cap fines". The Age (Melbourne). Retrieved 2008-09-20.
  12. Storm salary cap rort report handed to police
  13. Five clubs fined for cap breaches
  14. Five more clubs fined for exceeding cap in 2010
  15. ARLC: Four clubs fined for breaches
  16. http://www.abc.net.au/news/2015-07-07/nrl-fines-parramatta-eels-for-salary-cap-breaches/6601720
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