Thanks Dragon, i was under the impression that if the club was involved in any way it has to come under the cap, my mistake
Basically the club cannot underwrite the TPA because if the do they are then guaranteeing money hence it would have to go on the cap.
In the recent past there have been instances of players having to chase money that was promised in a TPA that didn’t materialise. From memory Keiran Foran at Parramatta.
Spot on. A club has "people" that are willing to donate money as TPAs, money that can be a tax deduction for that company.
The club can point the player manager in those "peoples direction" but the nitty gritty of the payments is between player manager, player, and the "people".
If the club gaurentees to cover the payments if they fall through then yes, it will be added in the cap.
But as the club has no part in negotiations regarding payment structure then it has no impact on the cap.
Emu, thats why many fans get upset that the richer clubs can get away with murder.
They contract work out to companies, pay the companies $200k or $300k extra, as an example, but that extra money that company gets they return it as a TPA to help secure a player.
Shit hit the fan with the dogs and Fifita, if you recall?
Many with inside knowledge were claiming upto $400k was offered as TPA/Sponsorship for Fifita, its un-managable, TPAs will kill many teams before the problem can be fixed.