SALARY CAP

[Nine]

DaveO posted:

I will be very disappointed if we have gone over "by the rules" so to speak and it isn't down to a difference of opinion as to what can be counted and what can't. I can live with the latter but a blatant and big breach is not acceptable.

Dave

Hear, hear. :eusa2:

[MrAlex]

Completely agree Dave....if our only defense is to question which season's regulations we're being fined by, we're up the creek with a bookie.

Best way the players can deal with all this crap is to knock seven bells our of the sheep on Thursday night.

[fred_flintstone]

I really really dont like the sound of that report in the WEP. If we're trying to clarify which rules we will be punished under then I fear we are getting ready to limit the punishment. I'm beginning to think Mo has tried to pull a fast-one which hasn't come off, brace yourself.

[Matthew]

Got to say that it doesn't look good if we are asking which punishment we are likely to face - that sounds like we are guilty and deciding whether to change our plea or not.

I suspect that any breach will be to do with the retirement of Seuseu and the offloading of moran - we are probably disputing the amount of money that we paid them in order for them to leave. As they both left mid way through the season, it could be a decent amount of money.

Can't we get individual players sponsorship deals with JJB? Surely that wouldn't count on the cap? Or if we employ their families? If they are not employed by the club, then surely it can't count on the cap?

[weststand-rich]

When players retire on medical grounds they'll usually have some sort of pay-off clause in their contract and I think it's usually around 6 months. Given Jerry Seuseu retired mid season, he was probably paid up in full until the end of the rugby league financial year (November). Kris Radlinski retired much earlier than that so probably freed up some cash that was promptly swallowed up by Millwards panic signing James, Wilkes and Jonkers on loan.

Morans leaving is much more problematic. His contractual terms were never made public and god know what Widnes paid for him. I would suspect that Wigan at the time were just relieved to be shut of him.

All of these cap avoidance strategies you mention count on the cap. So benefits, payments in kind (houses, cars, travel allowance), payments to relatives or part payments for coaching / publicity/ sponsorship / consultancy are all included on the cap.

[Matthew]

Surely that only counts if they actually work for the club? If they work for a 3rd party then it is surely nothing to do with the club - or do the RFL analyze any paper-rounds done by players kids?

[OJ]

Been trying to remain fairly optimistic about this and think all DaveO's comments are spot on in that the club did their best to keep us afloat last year but any flagrant breach of the rules is way out of order. That report in the WEP has the hollow sound of desperation about it to me and I just hope that I am wrong.

[weststand-rich]

Matthew posted:
Surely that only counts if they actually work for the club?

Yep. Sorry I should have been more specific.

If you check the salary cap regulations on the RFL website, all of the obvious ways round the cap are blocked. In the art of capmanship it leaves you with discretionary Employee Benefit Trusts to add value (but risk hefty tax bills), ingenious loophole exploitation wherever the regulation phrasing isn't 100% explicit or outright cheating with undeclared cash payments.

[Nine]

Matthew posted:
Surely that only counts if they actually work for the club? If they work for a 3rd party then it is surely nothing to do with the club - or do the RFL analyze any paper-rounds done by players kids?

Thjey're well ahead fo all that. here's some of things that count of the salary cap costs:

6.3 Player benefits

6.3.1 All accommodation costs paid by the club including rent, council tax bills, telephone bills, heating and any other relevant costs. Where a club owns a house then the “rent” shall be deemed to be the “rating value”;

6.3.2 All payments made to players’ agents by the club;

6.3.3 All payments for private medical cover of player’s families or other persons connected with the player (premiums for players are to be excluded);

6.3.4 Provision of cars for players, amount to be based on taxable benefit to the player, which will also include car fuel benefits where applicable;

6.3.5 Cost of all travelling expenses paid to, or on behalf of, the player. Such expenses will include all airfares and relocations costs of non-British players, irrespective of whether they may be subject to income tax

6.5 Employee Benefit Trust Charges/Image Rights

6.5.1 For the avoidance of doubt all payments into the trust relating to the Salary Cap year in question or liabilities/obligations/expectations to the trust/Image Rights Company for that year should be recorded in the year as Salary Cap costs. In the absence of information regarding obligations to the trust, the Salary Cap Auditor reserves the right to estimate such an obligation & enter a notional amount in the return. For the avoidance of doubt, this provision does imply that the RFL confirms the legality or tax benefit of such payments to players.


6.7.1 Where an employee of the club is employed in a capacity other than as a player, and plays one or more first team games (excluding friendlies) in a season then he will be considered a player and as such remuneration payable by the club for the other duties shall also be included as Salary Cap Costs.

6.8.1 Any payment made to any relative or associate of a player or any other person, which, in the opinion of the Salary Cap Auditor, relates to the player’s services (past, present or future) to the club;

6.9.1 Payments to corporations in which the player has a direct or indirect beneficial interest, payments to partnerships in which the player is a member and payments to trusts from which the player may have any kind of beneficial interest;

6.11.1 Any payments to players made by organisations or individuals who are connected with the club by issue of shareholding, mutuality of directors or sponsorship agreements;

6.12.1 Where a player has a Rugby League contract and a further contract(s) with another sporting club under connected or common ownership, the qualifying cost shall be the higher of the rugby league contract or the pro rata value of each of the contracts based on games played

6.14.1 Any other forms of expenditure incurred by a club, which the Salary Cap Auditor, in his absolute discretion, may deem to constitute Salary Cap Costs, having regard to the spirit of the Salary Cap resolutions passed by the RFL and SLE Limited.

That last para is a killer - they can count practically anything they want as spending towards the salary cap.

[Matthew]

Is there any other sport where the governing body tries so hard to limit the amount of quality players in it's sport?

It's no wonder RU is cleaning up in the recruitment stakes - and the more quality players they import; the less the draw of RL to the neutral - so the less money/media interest in the game - and so the circle continues.

I understand that clubs need protection from bankruptcy; however there has to be a better way than this. Do you think that the people in charge of football would be happy to handicap Manchester United so that Sheffield united have a better chance of winning the league? Of course not.

For all of the RFL's efforts; only 4 teams have ever won SL. RL clubs are still struggling - Doncaster, Halifax etc etc and London have been kept afloat by the RFL more than once.

If there is an ounce of brain cells at RFL headquarters (and that seems unlikely) then the cap will be radically reformed in regards to income/expenditure once the franchise system is introduced