The last few days has, as usual, has brought a range of news
through the rugby league community. There have been players signing with new
teams and old, club activity days with school children and aspiring footballers
and quite obviously, the 100th game of State of Origin opener, where
the underdogs, New South Wales, had a gutsy, gritty, valiant win over
Queensland. The other piece of news from the world of rugby was the news that
the Brisbane Broncos were being investigated over a possible breach of the
salary cap.
Over the years, the salary cap has reared its ugly numerical
head multiple times. All 16 teams have faced investigations by the National
Rugby League over the last 14 years, with the largest incidences coming from the
Bulldogs, the Warriors and most recently, the Melbourne Storm; where a group of
senior managers at the Storm engaged in an elaborate scheme to purposely
conceal payments and therefore scandalously breach the system. From 2006 until
the end of 2010, the Storm managed to tally an astonishing $3.17 million and as
an unforgiving punishment, the club had their hard-fought 2007 and 2009 premiership
titles stripped, as well as the humiliating struggle of playing for no
competition points throughout the 2010 season, regardless of wins or byes-
leaving them the wooden spooners for the season.
The issue with the Brisbane Broncos is no-where near as
severe as the Melbourne Storm. In fact, the breach is most like the New Zealand
Warriors situation, as the Broncos themselves also alerted the NRL of a
possible breach of the Cap by previous management at the club. The breach is in
regards to the third-party deals with players, which are reported to be up to
$500,000, over three years. It is thought the club may have breached the cap
after guaranteeing the third-party deals. Fairfax Media, however, has been told
that no money has been paid to any Broncos player and has suggested that the
issue was brought up after complaints from at least one player about deals not
being fulfilled.
According to the Salary Cap Breakdown in the Rugby League
Reference Centre on nrl.com, the payments that players can earn outside of the
salary sap from corporate sponsors who are not associated with the club are
unlimited. This stands as long as the sponsor does not use the game’s
intellectual property, which includes club logos and jerseys and also provided
the sponsorship is pre-approved. It additionally states that the club, as an
incentive of the player to sign a contract, cannot negotiate the agreements,
nor can the club guarantee them. This is where the Brisbane Broncos have found
irregularities.
The club’s immediate reaction to contact the NRL over the
discovery and agree to work with them throughout the ongoing investigation is
notable. As the investigation is pending, it can only be assumed that the
Broncos will not lose any competition points, however as it is still a breach,
it is likely there will be a fine. Even though the Warriors voluntarily came
forward after a breach by previous management in 2006, the club still had 4
competition points docked and a fine of $430,000.
The salary cap changes considerably every year. Ten years
ago the salary cap for every club was $3.3 million; this year the salary cap
for every club is $5.5million. In 2013 the salary cap was $5.150million, up
from $4.4million in the 2012 season. With a competitive market and an abundance
of talent new and old, the cap will need to grow substantially, catering for
all players of the National Rugby League and the Holden Cup, marquee players,
representative players and allowance. It’s highly unlikely there will be no
more breaches of the cap, but as to whom and why, the rugby league community
will just have to wait.
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