The Cumberland Throw

NRL TPA Solution – Replace Perception With Transparency

Salary Cap Cheating”
“Salary Sombreros”

Whether or not it’s appropriate to question or accuse “successful” clubs of cheating the cap or receiving favourable treatment from the NRL, the indisputable fact is that fans have this perception. It’s a perception which arises from particular clubs having little difficulty attracting and/or keeping elite talent, season upon season.

The Broncos, Roosters and Storm rarely experience poor seasons and rival supporters look enviously at their rosters. And why not? With squads fairly littered with representative stars, the “Premiership window” is open annually for these permanent residents of NRL finals series.

The success of such clubs becomes self-perpetuating. Their on-field performances attract sponsorships and more elite players, which in turn leads to further success. The rich stay rich.

But let’s clarify something. An organisation shouldn’t be criticised for being successful. Rivals should be looking to emulate such achievements shouldn’t they?

Of course, that’s if you compare apples with apples.

Is the Rooster apple of the same genus as a Tiger apple?

It’s unlikely that we’ll ever go down the path of publishing player salaries. It’s been suggested by luminaries such as Eels CEO Bernie Gurr or media commentator Jimmy Smith that it will make the salary cap more transparent and open up interesting discussions about value for money. However, the players’ right to privacy is likely to remain the stumbling block to this course.

Politis: “We run our salary cap better than most clubs.”

Furthermore, if it’s simply a matter of publishing a list of player salaries approved by the NRL, it will merely demonstrate that every club is compliant. And we’ve all listened to Nick Politis explain that the Roosters elite squad is the result of superior cap management. His club is cap compliant and the yearly tick they receive from the NRL is proof positive of this.

Therefore, listing the salaries of a club’s NRL squad will provide little evidence about the genuine differences between the clubs.

But there is something which could be published to expose the playing field.

Third Party Agreements.

I’m not advocating that the individual player TPAs are made public. That would attract opposition from players with regard to privacy – and rightly so.

Rather, I’d push for the publication of total TPAs paid to the roster of each club.

Here’s why.

Every club operates by the same salary cap. In theory it’s a level playing field.

Every club will have a different TPA total. In reality, it’s not a level playing field.

The rugby league public deserve an understanding of how there can be such differences between the rosters of clubs.

The NRL, and probably most of the clubs, are cognisant of the disparities. Probably most of us could hazard a guess. The true figures might even shock some of the most sceptical supporters.

The NRL shouldn’t be opposed to the code’s stakeholders being aware of the different TPA support enjoyed by particular clubs. After all, it’s a practice that they oversee and to hide the haves and the have nots from the public only leads to the wild conjecture currently pervading the game.

The clubs shouldn’t have a problem with this. After all, the TPAs aren’t sourced by them. (Not according to NRL regulations). They represent the fine work of the player managers and the marketability of the players.

Would any stakeholder have a valid reason for denying this knowledge? Logic dictates that they shouldn’t, not if everything is above board.

Let’s make this happen.

Publishing the total TPAs for the roster of each club will provide the truest form of transparency possible without impinging on players’ privacy. A strong code can stand up to the scrutiny, and if it ultimately is the catalyst which drives change for the betterment of the game, who would complain?

Eels forever!

Sixties

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28 thoughts on “NRL TPA Solution – Replace Perception With Transparency

  1. Kevin

    Transparency is not the answer to the problem. Most informed supporters would know that the Broncos and Roosters would have significantly higher TPA agreements than most. Whether the $$$ amount for Roosters is 2.5mil or 1.2 it isn’t going to make the system any fairer. The Nrl should stop pushing the company line about the salary cap being a fairer distribution of available playing talent if they continue with the farcical TPAs. If they want fair then they either scrap the TPAs or move to a player points system allowing teams to accumulate player values to a designated total. The Nrl has failed to catch any significant Cap breaches without the help of disgruntled ex employees.

    1. sixties Post author

      Kevin, I can’t argue that a fairer system needs to be found. But could it not be that the catalyst could be seeing the enormity of the disparity between clubs and their TPAs?

      1. Mark

        Correct me if I’m wrong but didn’t Nick Politis say that the Roosters don’t rely on TPA deals to sign players nor do they backend contracts. If so what do they do differently to attract and keep big name players?

  2. Colin Hussey

    Sixties, until the NRL can make some legal and therein will be the problem Legal extra payments for every club and player it will never happen. That is the sad and sorrowful truth of the matter.

    Some time back I made a suggestion that allowed the clubs to be middle contact points for businesses who wanted to provide TPA’s to players. The club could list players that could be worthy or something for such extra contract payments. If a company wanted to sponsor a player then there would be need to have a registered agreement made out and registered with the NRL.

    The only area or part that the club would and could be involved in would be to provide a link to reputable businesses/companies, outside of that it becomes an agreement between them, player, NRL with the player agents also to act for the player.

    Somehow there needs to be a limit on how much each player could earn and that value would be something that the NRL/Club and would need to place on each normal contracted player, there would need to be a sensible limit placed on what individual players are worth to the company and what they would need to do for that company, to me they could wear the sponsors name on their jersey or shorts, providing it did not infringe on the clubs sponsors. The player could also act as a publicity agent for the business as well.

    There are ways that these TPA’s could be better and more fairly made so that all the clubs can compete with some degree of confidence rather the snigger approach we see now.

    1. sixties Post author

      Colin, as I replied to Kevin, the system is flawed. Smarter people than I can come up with solutions. I believe that shining a light on the enormity of the flaws can lead to change.

  3. Dave

    Tough one. No matter what approach is taken there will be individual/s who will find a way to rort it.

    Transparency unfortunately doesn’t address accountability.

    Limiting player payments send to be disadvantaging the individual not applying the rules to the club.

    Unless TPA’s can be associated with the cap there is not going to be a solution for the big 3 vs the rest.

    1. sixties Post author

      Every suggested solution I’ve seen has counter points Dave. The simplest solution of eliminating or restricting TPAs becomes a restriction of trade. An equitable solution to create an even playing field needs to be found. But first, just how uneven is that field?

  4. Manginina

    TPA’s basically came about when the salary cap was much lower and the elite players were not rewarded sufficiently well. That situation has changed in recent years with much bigger caps and now we have million dollar plus players. Agree with Sixties that publishing just the total TPA for each club may at least put wheels in motion to get a fairer system for all clubs. Let’s face reality, there are the same 4 clubs who can win it every season and if they don’t, another club will basically jag the premiership (and the premiership window for that team most likely closes almost immediately), while that window for the “4” remains open year after year. No wonder many fans get turned off.

    1. sixties Post author

      Well said mate.
      If I supported the Wests Tigers and saw that my club only attracted 500K in TPAs, whereas the Roosters squad attracted $3M, I would be less critical of my own club’s inability to retain players. Perhaps exposing such disparities might then be the catalyst for change.

      1. John Eel

        Sixties I think that you have just about nailed the order of magnitude of the difference between those two clubs.

  5. AB

    At the moment there is a cap on what the clubs can spend, why not have a total cap on TPA’s that a clubs players can access. For example, if two players attract the majority of TPA’s it will make it harder for a club to attract another marquee player.
    This would at least make it a little bit more transparent for what a clubs roster is earning. Hopefully evening out the talent pool

    1. sixties Post author

      A reasonable call AB, and maybe the need for such a system could come from these figures being known. We all suspect that these differences exist. So let’s see to what extent. As you suggest, with limitless TPAs, is there really a cap on certain clubs?

    2. Watson

      AB is right on the money.
      The only way to hold the line with privacy and continue to maintain a level playing field along with financial fairness to players is to cap the TPA’s.
      Players who receive high TPA’s should be recognised for these payments via their marketing contribution. It should not be money for nothing.
      This then provides the player with certain skills for life after football. (Communications/ marketing/ public speaking/ business skills etc).
      By capping the TPA’s it will remove the perception of rorting and restore confidence the system is working.

      Teams with a high number of internationals or origin players will never appear to be playing by the rules and the paying supporters of teams who don’t have this luxury cannot but think those teams rich in talent are rorting the system.

      The only others way is for all TPA’s to be registered with the NRL and the clubs that fall short of the mean average with TPA’s to be compensated with subsidiary salary cap adjustments. This will allow poorer clubs to better negotiate with quality players.

      1. sixties Post author

        Watson, I’m liking this capping of TPAs – for a club, not a player – more and more. But for the average NRL fan to get some concept of what’s on offer, we need totals published.

  6. Mitchy

    Like it Sixties i like it a lot; a shame the NRL wouldn’t have the toughness to do this. It’s a shame the game is run by the influential figures of a few clubs. Our NRL IMO are weak as most of the politicians…….what you have put forward is simple and fair. The point about clubs not being involved in TPA’s should be easy for them to agree to.

    1. sixties Post author

      Thanks mate. There is already meant to be no connection between the club and a TPA. If a connection is found, it doesn’t stop the player from receiving it, but it will be counted as part of the cap.
      As AB suggests, perhaps the final solution would be a TPA cap for a club. Given that player managers are meant to source TPAs, not clubs, then knowing that a particular club can’t recruit any more players receiving TPAs would ensure a spread of talent.
      There’s always been devious ways around the system.
      Cash in hand, WAGS being employed or paid, players thrashing wealthy benefactors on the golf course hole after hole.
      But let’s make it harder by exposing the differences and creating a climate for change.

  7. Trouser Eel

    Perception and reality are key points in this discussion.
    It’d be wrong for the NRL to try to cap TPA income, just as it would be wrong for my employer to forbid me making some extra income by working at the RSL on the weekend. What’s easily forgotten is that TPA’s apply for the lesser players too – remember some players have to think beyond their “flash in the pan” couple of years snatching a few games of first grade on the way through. They have real jobs, with real relationships with third parties.

    The reality is that for 90% of the NRL players, they won’t make a career of any sort playing rugby league. Nor will they set themselves up for a secure future by playing a “bit part” in the squad. They need to have those relationships and can’t afford for them to be jeopardised.
    A sensible, transparent, arrangement is for the NRL to publish the cumulative TPA income for the squad, list the companies that contribute the greatest amounts (ie those that contribute the largest sums consisting of no less than 50% of the aggregate amount) and a list of all companies that contribute. E.g:

    Roosters – TPA total – $2.3M. Top contributors (in descending order) – Newscorp, NGP Investments (No.2), St Ioannis Greek Orthodox Church,
    Other contributors (in descending order) – jjautoparts, Chris Politis Accounting, Jim Politis Real Estate, Constatine’s fish mongers, etc..

    Newcastle – TPA total – $12.80. Top contributors (in descending order) – Maitland Newsagency
    Other contributors (in descending order)- nil

    1. Mitchy

      Trouser while i agree in part i think we need to think why the cap was introduced in the first place. If players agree to be a part of the NRL then they and the clubs should be abiding by the rules, and if that means spreading the spending etc or supposedly so then that’s the rules.
      Your argument about working a second job is good, but we are talking about a sport where rules are applied for a variety of reasons. I think to keep things simple the nrl should be publishing the TPA as put forward; and limiting the amount clubs can have. Why should 1 city teams be allowed the monopoly? I am also a little sceptical when i read (not here) that Sydney has too many teams, as we seem to have the fans in total but its bums on seats that shows. TV has a bit to answer anyway.
      Anyway back to TPA’s and they seem to be a v grey area with player managers / clubs etc not being arms length. They should be published imo.
      I have lost a lot of interest in the game itself over the last 10 yrs and only watch my club now; and reasons are various but the cap etc is one reason i am not as keen on the game.
      Our officials do not seem to be worried about some of these issues and i think this is partly due to who is running it.

    2. John Eel

      Trouser Eel I disagree with your view that players or employees cant be stopped from having a second employer. In my working career as a manager I did just that. I did so by means that each employee working for me had to abide by fatigue rules. Working for other people took away my ability as an employer to police the fatigue

      The other issue that I have is that the only people benefiting from the TPA’s are the elite players. I have heard this argument before but I disagree. Lesser players may benefit from brown paper bag payments but not TPA’s

  8. Rowdy

    Sixties, I like the simplicity of your arguments and agree something needs to be done regarding disclosure of TPA’s, even if only in the aggregate being published so that the continued unfairness is at least displayed to comfort the destitute or inept clubs’ fans.

    Trouser Eel. Your start was commercially sound. Your finish was cruel and lacking any compassion. I applaud you for that also! Who cares if Newcastle never beat anyone again in a GF. I will barrack for them though, when they play against the Roosters and Manly.

    The commercial reality is Newcastle are a one team town and given their supporter base has remained quite staunch through some recent hard times? It would not be unreasonable to imagine great TPA opportunities in the near future.

    Merry Christmas to all at TCT, contributors, readers and their families.

  9. sixties Post author

    Interesting discussion Trouser, Mitchy and Rowdy.
    I agree that we cannot or shouldn’t prevent a player from earning additional income – and yes the majority of players won’t make a career out of the game.
    But I am interested in the idea of a total cap. That way, an elite player wanting to increase his income can’t align himself with a club which has reached a total TPA cap.
    Forget about talk of a cap on football department spending. If a club, like Penrith, can afford a world class facility and staff, good on them.
    That money is going into players pockets, but it does contribute to maximising potential – I’m all for that.
    Would a one city club like Newcastle be attracting TPAs? Maybe Pearce has changed that landscape. Maybe Ponga will too.

    1. Colin Hussey

      Its a very interesting conundrum really, and one question I have is. If a club cannot be involved in TPA’s in any form, then how is that some clubs have nil issues in signing top line players constantly at minimum effort?

      It would appear to me that when certain clubs set their sights on a player the actual sign on fee which becomes generally available for all to see, and often a bit above what others are prepared/able to pay, said club has no problems in getting their man. According to the rules the club cannot even hint at a TPA, yet to get their man they are there on a desk, maybe in a different corridor and the agent/player only has to go to a different door and its opened to them, and likely without the need to knock.

  10. Glenn

    The stark reality is that clubs ARE involved in TPAs and imo probably nearly 100% of the time. Its only logical that a fan who wants to sponsor a player would first contact the club and then be directed to his agent. Under NRL rules that is illegal but how else can a fan find out who the player’s agent is?

    Logically there is no reason the NRL can’t publish TPAs for every club and secondly the rules need to be changed to reflect the reality of what happens in real life.

    On the Roosters I’m willing to believe that they are cap compliant as their elite squad is limited to around 17 players. However some of their elite players seem to be signed for a lesser value than most would think would be their market value. If injuries occur their replacements are usually little known names as evidenced in their final match they had 2 forwards playing in the centres.

    1. John Eel

      The fact that they had 2 forwards playing in the centres, cant remember this, could be poor recruiting.

      They had Nikorima on $370,000 (aprox) so that is not prudent recruiting conducive to good cap management.

      Given that the minimum salary is $100,000 or $120,000 it is impossible to believe that the Roosters can be cap compliant this year and sign Crichton for next year. Bearing in mind that the sqad is now 30 not 25.

      They would have to have major TPA,s at least in the order of that which sixties mentioned

        1. Colin Hussey

          Interesting read for me that article, as the players they have on board and now with Cordner signing for another 5 years, there must be a trail that has heavy footprints somewhere, but no decent tracker to follow them.

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