Inside the shady world of third-party agreements

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greeneyed
Don Furner
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Inside the shady world of third-party agreements

Post by greeneyed » July 13, 2015, 6:03 am

NRL salary cap investigation: Inside the shady world of third-party agreements

In NRL circles, it's called the "shadow market", a secretive exchange of money between player and sponsor which is outside a club's salary cap. Officially, these payments are called "unregistered third-party agreements," an arrangement between a player manager, an NRL club and a benevolent supporter of the club.

NRL club chief executives were told at a recent meeting that the total of all registered third-party deals equals only 5 per cent of the salary cap. That is, with a cap of approximately $7m and 16 clubs, the official third-party market totals just $5.6m.

Most club bosses expected it to be twice that, judging from the monies asked for by player managers. Agents will always exaggerate the offers from rival clubs to bid up their client's asking price but the size of the offers circulating indicate the TPA market is north of $5.6m. Clandestine TPAs may explain why the turnover at some of the rich clubs is so low.

Club executives were also warned at the recent meeting that there has been an alarming escalation in registered TPAs in recent years, with their number and size increasing disproportionately to the salary cap. Furthermore, the growth has been uneven, with a small number of clubs dominating the registered TPA market.

Read more: http://www.smh.com.au/rugby-league/leag ... z3fi2GfbnU" onclick="window.open(this.href);return false;
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edwahu
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Re: Inside the shady world of third-party agreements

Post by edwahu » July 13, 2015, 6:52 am

Many players have third party agreements that are outside the salary cap. Individual players registered third party agreements totalling in excess of $10 million in 2013.
From: http://www.nrl.com/nrlhq/referencecentr ... fault.aspx" onclick="window.open(this.href);return false;

So the NRLs own website says that registered third party deals were over 10 million in 2013. They are hopeless or straight up liars. I suspect the 5.6 million excludes the marquee allowance and the true number is more like 12 to 15 million.

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T_R
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Re: Inside the shady world of third-party agreements

Post by T_R » July 13, 2015, 8:20 am

In summary;

The salary cap is a joke
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Re: Inside the shady world of third-party agreements

Post by -PJ- » July 13, 2015, 2:47 pm

T_R wrote:In summary;

The salary cap is a joke
This.
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Raidersrawesome
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Re: Inside the shady world of third-party agreements

Post by Raidersrawesome » July 13, 2015, 4:03 pm

Long-term contracts for veterans another threat to integrity of salary cap

Another contract rort which threatens the salary cap as a means of spreading talent around the league is the practice of attracting veteran players to a club with rich, long-term contracts.

A four-year deal to an ageing player with a recent history of injury is a guaranteed means of wooing a top player from a successful club to a struggling one, especially when the club believes he has leadership skills and will lure others to join him.

Read more: http://www.smh.com.au/rugby-league/leag ... z3fkTNNOn6" onclick="window.open(this.href);return false;
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edwahu
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Re: Inside the shady world of third-party agreements

Post by edwahu » July 13, 2015, 4:52 pm

I dont know if they have the cash and even if Union has TPAs but I wonder if we could do a tit for tat deal with the Brumbies to be third party sponsors for our players and we can return the favour for exactly the same amount. Hypothetically you could even do it with another NRL club.

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Re: Inside the shady world of third-party agreements

Post by pickles » July 17, 2015, 4:04 pm

Everyone knows what is happening here. Rich clubs are paying players more outside of the salary cap through TPAs that are used to attract them to the club. There is no way any player, regardless of family situation takes a 50% pay cut to move, especially when that would be to the tune of $500k.

From my perspective if a payment to a player is contingent on that player being with a particular club it should come under the cap. Regardless of where it comes from.

There is no point in having a salary cap if there is a mandated loophole to rort the absolute piss out of it!

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Re: Inside the shady world of third-party agreements

Post by Stuat » July 17, 2015, 4:19 pm

pickles wrote:Everyone knows what is happening here. Rich clubs are paying players more outside of the salary cap through TPAs that are used to attract them to the club. There is no way any player, regardless of family situation takes a 50% pay cut to move, especially when that would be to the tune of $500k.

From my perspective if a payment to a player is contingent on that player being with a particular club it should come under the cap. Regardless of where it comes from.

There is no point in having a salary cap if there is a mandated loophole to rort the absolute piss out of it!
Yep

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Seiffert82
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Re: Inside the shady world of third-party agreements

Post by Seiffert82 » July 17, 2015, 9:08 pm

Absolutely. That's the rules. It obviously can't be policed though.

I think all TPA's should be published - even just a list of what organisations are paying which players (without the $$'s), so it's at least obvious what clubs are rorting the system.

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