Salary Cap..

[~Wild Child~]

Revealed: salary cap to rise by $100,000

April 1, 2007

EXCLUSIVE: Following Willie Mason's explosive Sun-Herald column about the salary cap last week, NRL boss David Gallop has opened the books to Phil Gould. These are the highlights of a wide-ranging two-hour conversation.

Phil Gould: I've looked at these figures and unless you're hiding a secret stash, you've got no money left!

David Gallop: There's no secret stash. The most frustrating thing about Willie's column was the fact I believed we'd covered this with the [Rugby League Professionals Association]. All last year we were totally transparent with [RLPA chief executive] Matthew Rodwell on the game's revenue and expenditures. I relied on him to keep his members informed.

Gould: But surely Willie's column represents an underlying frustration among players.

Gallop: We keep Matthew Rodwell informed. It's his responsibility to keep the players informed. It's frustrating to me that the players don't seem to have all the facts.

Gould: But you've signed new deals since last year.

Gallop: Yes, but estimates for new contract amounts were in our budgets. The RLPA had all that information. We did better than most estimates, but not by much.

Gould: Hang on, a month ago I saw press releases trumpeting record deals and a $90 million Telstra sponsorship. Now, when the players ask for more money, you say there's no pot of gold. You can't have it both ways.

I'm sure some players think you're getting $90 million a year. In fact, the Telstra deal is only worth $10 million cash a year for six years. That's $60 million.

First, I don't think that's enough money. Second, pumping up publicity for the "record deal" has confused the players.

Gallop: I admit the $90 million figure does include contra deals, production costs and other investment in our website etc. I guess to the players the cash amount is more indicative of what's available to them. For naming rights and mobile rights I think it's a good deal and I know Telstra is a great fit for our game. This is all new technology. No one really knows what it's worth - but it's a revenue stream we hope to develop further in coming years. In hindsight, though, I take your point. I'm going to have to deal with that when I meet the players.

Gould: The players think Origin generates $30 million profit a year. They want a bigger cut.

Gallop: There's the Origin revenue and expenditure ? [After costs, the profit is less than $10 million. The television rights are part of one free-to-air package, and not a separate Origin deal.]

Gould: Who gets this money? The NRL or the ARL?

Gallop: All revenue is pooled. All money comes into the NRL and we pay out all expenses, club grants, finance and admin costs, marketing, communications and special projects. We allocate $8 million to the ARL and $8 million to News Ltd as per the partnership agreement.

We cover ARL expenses for rep football, which includes player payments, plus development grants and funding to the ARL on application ? [pointing to the document] ? There's the total revenue - there's the total expenditure - there's little surplus.

Look, I want the players' salary cap to keep increasing. But we've worked hard to try to reduce the gap between the club grants and the salary cap figure. I want our elite players to earn enough so they feel comparable to star players in other football codes. And I certainly don't want players at the other end of the scale to be struggling. We've worked with the RLPA on these issues.

Gould: What about relaxing restrictions on third-party agreements for elite players?

Gallop: Third-party sponsorships are harder to come by than you think. Some of our elite players have individual sponsorship deals which are not included in the salary cap. But we have to be careful with third-party agreements because some clubs are in a better position to attract corporate support and we're mindful of keeping a level playing field for all clubs in the NRL.

Gould: When can the players expect another salary cap increase?

Gallop: We've budgeted for a $100,000 increase to the cap in 2009. [Pauses] Look, I want to talk to the clubs first, but I'm prepared to bring this increase forward to 2008.

Gould: So you're saying you're prepared to increase the salary cap right now?

Gallop: For the 2008 season - yes. With scope for another $100,000 increase in 2009. That will bring the cap up to $4.2 million. But I need to talk to the clubs. We're meeting next week to discuss new drug policies and other matters. I'll table this salary cap proposal for discussion.

Gould: So Willie Mason did get a reaction?

Gallop: Not exactly. I've spoken to Willie. His comments were not the way I want players to handle their dealings with the NRL. My door is always open. The truth is, I was never comfortable with the cap remaining still next year anyway. I'll meet the clubs and then talk to the players.


Gould: Wow. OK. What about your costs? Surely they could be reduced significantly if you streamlined the game's administration?

Gallop: In many ways there's been progress. We're probably no closer to having one governing body but I have to say the communication lines between the ARL and NRL have improved immensely. I can't deny there's a duplication of positions and roles. I would love us to at least operate under one roof.

Gould: But when will we have one governing body?

Gallop: To be honest, that's not part of my job. I run the NRL, which is a 16-team competition.

Gould: Who is going to make it happen? I'm sick of having a media company own our game. It's not right and I believe it's costing us money in broadcasting rights.

I look at your figures and you don't make enough money. The clubs should be getting bigger grants to at least cover the entire salary cap figure. And I'm growing tired of the ARL doing nothing about it. Surely they have to get off their ****s and show some initiative?

The ARL as a brand is almost dead. In some ways I don't blame News Ltd for thinking it wouldn't dare leave the ARL to run the game the way it's structured. Look at how efficient and effective the AFL management structure is - the expertise and business experience in its personnel - and look at all the money it has.

Gallop: Was there a question in there somewhere? [Laughs] I think there's a lot we can learn from the AFL model - on many levels. But don't forget while our game was in the midst of the Super League war for several years, it was slowly building its administration and financial strength and a truly national position without that kind of distraction.

Our administration was formed with the coming together of two competitions. If anything, we had to rebuild our game. I think we've done a great job.

Our revenue from broadcasting rights has increased significantly since that time. Importantly, all our contracts will come up for renewal at the same time, improving our bargaining power. Next time we negotiate I'm confident we'll be more valuable again.

Gould: I hope so. Looking at this, you need the money.

http://www.leaguehq.com.au/news/news...05.html?page=2

[Titanium_BD1103]

Well there won't be an increase, seems the CEO's once again are living in lala land while the rest of us see the issue with keeping talent... I know clubs have less revenue, but it still should have happened...

From: www.foxsports.com.au

Clubs reject NRL cap increase
April 04, 2007

National Rugby League boss David Gallop says a $100,000 increase to the salary cap remains on the agenda despite club chief executives today rejecting the proposal claiming they could not afford to foot the bill.

On a landmark day of discussions involving club bosses, the Rugby League Professionals Association and the governing body, it was agreed that a two strikes policy would be adopted in relation to illicit drugs.

But the clubs and the NRL couldn't come to an agreement on an increase to the cap, club bosses still concerned with the gap between the club grants and the salary cap.

Under the proposal set out in the new Collective Bargaining Agreement, which is yet to be voted on by players, the salary cap for the 2008 season will be $4 million, with the grants to clubs set at $3.25 million.

The issue will be aired at a meeting between the NRL, the clubs, the RLPA and players within the next fortnight where the NRL will open its books to the players.

"It is not surprising that one of the biggest concerns remains the shortfall between the cap and the club grant," Gallop said.

"It is important that the players gain an understanding of the attitude of the clubs, who are their employers, to a salary cap increase."

Gallop had proposed a $100,000 increase to the cap in light of claims, most notably from Bulldogs prop Willie Mason, that there was growing discontent amongst players about the amount of money filtering down to the players.

Mason said players would consider taking strike action if players were not better compensated.

The new drugs policy refers only to substance use that falls outside existing World Anti-Doping Agency guidelines.

The "one chance only" policy will see a minimum of 1,000 tests across all clubs with players committing a first offence facing a suspended fine of five per cent of their net income and be obliged to undergo confidential counselling.

A second offence will see players receive an automatic 12 match NRL ban and will forfeit all confidentiality.

AAP

[Super Cronk]

I seriously doubt that if clubs were given a heap of cash that they would be spending it on junior players. When the big names come off contract they will be asking for more, they know the clubs got it so why not? Im not saying all clubs would but alot would.