Salary Cap FAQ

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GeoffN
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Joined: Sun Jun 20, 2004 1:40 pm

Re: Salary Cap FAQ

Post by GeoffN »

DaveO posted:
I have had a reply from Steve Williams regarding how the wages of junior players affect the salary cap.

A direct quote from Steve's email:
My previous email was in fact misleading quoting an intention rather than what was actually agreed.

Maurice is correct in that an allowance of £3k is being given against junior players. Anything paid above £3k counts.
We have 30 senior and junior academy players to that saves us £90K on the cap assuming we pay all of 'em at least £3000.

But that is all it does really as it is just a net figure and does not strike me as encouraging junior player development anything like a complete exemption.

For comparison purposes if a 2.5% inflation increase on this years cap of £1.75m was applied that would increase the available spend by £43,750.

So while removing junior players entirely has not happened the net effect is an increase of up to £90K on the cap which is more than the inflation increase that has been given up for this.

Dave
Cheers, Dave!
A very small step in the right direction. At least it shows they're thinking along the right lines, even if their proposed solution is typically weak and ineffective.
DaveO
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Re: Salary Cap FAQ

Post by DaveO »

TWO EYED WARRIOR posted:
Couple of Questions about the cap,

1.The clubs obviously as employers have to conform to the national min wage what if any affect does this have on the cap?
They have to pay players the minimum wage but for how many hours is the interesting thing. I think someone saif a regular working week on monimum wage is over £8500 . The wage will count against the salary cap allowance and the actual wage varies with age...
2.Now the anti ageism laws are coming in any ideas how this might affect the clubs on the way in which they pay and employ young players?
I am not sure if varying the minimum wage due to age is illegal or not under the new laws. I suspect the government have this one covered.

Other than that I can't see how it affects the clubs employment of young players. The fact up to U21 £3K of their wages does not count on the cap does not prevent the club from paying a 19 year old £100K if they want.

Dave
ian.birchall
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Joined: Sun Jun 01, 2003 9:42 pm

Re: Salary Cap FAQ

Post by ian.birchall »

DaveO posted:
The fact up to U21 £3K of their wages does not count on the cap does not prevent the club from paying a 19 year old £100K if they want.

Dave
So thats what Ashton is on then Dave. :lol:
Regarder une fille en bikini, c'est comme avoir un revolver chargé sur sa table:
Il n'y a rien de mal a ça mais il est difficile de penser à autre chose.


Now Europe is just for holidays.
DaveO
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Joined: Mon Sep 30, 2002 5:32 pm

Re: Salary Cap FAQ

Post by DaveO »

More from Steve Williams at the RFL. This was in response to my question about a £150K limit on exemption from the salary cap for the portion of junior players wages that don't count.

"Dave – The intention is to increase the allowance per player to £3750 and increase the number of players covered, with £150k being the maximum allowance. It’s not in the rules yet though."

So it has not been agreed yet, is for 2008 and I have no idea what he means by "increase the number of players covered".

It is a bit of a moot point anyway because with a finite ceiling of £150K on this it will still limit the number of player who get a £3750 "discount" against the cap to 40 which is basically the U18, and U21 squads if we assume 20 players in each.

Dave
GeoffN
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Re: Salary Cap FAQ

Post by GeoffN »

DaveO posted:
More from Steve Williams at the RFL. This was in response to my question about a £150K limit on exemption from the salary cap for the portion of junior players wages that don't count.

"Dave – The intention is to increase the allowance per player to £3750 and increase the number of players covered, with £150k being the maximum allowance. It’s not in the rules yet though."

So it has not been agreed yet, is for 2008 and I have no idea what he means by "increase the number of players covered".

It is a bit of a moot point anyway because with a finite ceiling of £150K on this it will still limit the number of player who get a £3750 "discount" against the cap to 40 which is basically the U18, and U21 squads if we assume 20 players in each.

Dave
I'd say it was more aimed at those clubs who don't run full Academy setups, though - to try and encourage them to have 40 or so youngsters on the books...which for most would be a massive improvement. I wonder if the £150k would be the only limit, though, or if there would also be a "percentage of income" proviso (as there is with the salary cap).

DaveO
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Re: Salary Cap FAQ

Post by DaveO »

GeoffN posted:
I'd say it was more aimed at those clubs who don't run full Academy setups, though - to try and encourage them to have 40 or so youngsters on the books...which for most would be a massive improvement. I wonder if the £150k would be the only limit, though, or if there would also be a "percentage of income" proviso (as there is with the salary cap).
I think the way only way it can work is if the £150K is in addition to any salary cap budget the club has.

So if a club has a cap budget of 50% of their income of say £2.6m then they get to spend £1.3m on senior players and a further £150K on juniors.

The trouble is they will have to spend that more than £150K on youngsters because £3750 isn't exactly what a 20 year old pro sportsman is wanting to earn.

So they will have to eat into their £1.3m somewhat to give the U18 and U21 players anything remotely like a wage and I am sure some clubs would rather spend the whole £1.3m on senior players. You are probably talking the wage of at least one or two Kolpak players being taken out of their £1.3m to add enough to the £150K to give some U18 & U21 players a decent wage. Depends if they run the whole 40 or go for say just an U21 side.

There is no compulsion to have 40 junior players.

Dave
DaveO
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Re: Salary Cap FAQ

Post by DaveO »

An interesting new development from the RFL. Here is a quote from the press release:

RFL and engage Super League clubs work together to reduce overseas players

The RFL and the 12 engage Super League clubs are working up radical new proposals to limit the number of overseas players in the engage Super League and to actively promote the production of young Great Britain qualified players.

At a meeting on Wednesday, the clubs received proposals that would gradually reduce the number of overseas players over the next three years while requiring each club to produce a minimum of 20% of its first team squad from within its own Academy.

The new regulations would extend the provision of the existing overseas quota to include 'Kolpak' players and EU passport holders. They are based upon similar provisions in UEFA’s 'home federation' produced rules.

Commenting, the RFL’s Chief Operating Officer Nigel Wood said “There has been a long standing objective to encourage the production of more players qualified to play for Great Britain, and as these proposals are similar to those being pursued by UEFA.”

He added: “All the Super League clubs were absolutely supportive of the principles to the point where adoption of the rules may take place at the next meeting in March rather than wait for the annual regulatory meeting this June.”

At the same meeting last Wednesday, revised Salary Cap proposals were tabled which would remove from the cap all players not in a club’s first team squad and mean that all clubs are required to stay within the Salary Cap spending limits at all stages throughout the year.

Nigel Wood further explained: “We still have some work to do in this area but we hope to have a Salary Cap system in 2008 that is preventative rather than retrospective and which substantially gives all clubs the ability to invest in the production of junior talent.”
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Nine
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Re: Salary Cap FAQ

Post by Nine »

I looked the current rules up to check something, so here's the link to the latest ones as this thread started off with the 2005 ones:

http://www.therfl.co.uk/assets/docs/Ope ... les_07.pdf
Squad number 18!
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Nine
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Joined: Wed Sep 21, 2005 12:42 pm

Re: Salary Cap FAQ

Post by Nine »

The 2007 salatry cap regulations can be found at:

http://www.therfl.co.uk/clientdocs/Oper ... les_07.pdf
Squad number 18!
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