TPAs

Discussion in 'St George Illawarra Dragons' started by possm, Apr 18, 2017.

  1. possm

    possm First Grade

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    NRL salary cap investigation: Inside the shady world of third-party agreements

    In NRL circles, it's called the "shadow market", a secretive exchange of money between player and sponsor which is outside a club's salary cap. Officially, these payments are called "unregistered third-party agreements," an arrangement between a player manager, an NRL club and a benevolent supporter of the club.

    [​IMG]

    Prize catch: But because the Eels publicised the third-party component of Kieran Foran's contract, it will be counted under the salary cap. Photo: Getty Images

    They are distinct from registered third-party deals whereby a sponsor, with no direct association with a club, agrees to pay a player for promotions in a deal exclusive of the club but ultimately registered with the NRL.

    Third-party deals, either illicitly guaranteed by a club, or unregistered and existing in the shadows, are the major source of distrust and resentment in the NRL.

    They are fuelling the incessant rumours that swirl around the game about offers to players, an endless source of frustration to many coaches who suspect rich clubs are flouting the rules.

    The NRL admits it is very difficult to catch a club facilitating a TPA but has demonstrated it will act when it uncovers such behaviour.

    The contract of Parramatta signing Kieran Foran was widely publicised as $1.2m per year for four years, including a third-party agreement of $150,000 per year.

    The Eels obviously believed the third-party component would not be counted in their salary cap, yet the club's admission in the media of its existence means the NRL believe it was promised before it was independently secured. The NRL will now include all of Foran's $1.2m, or $4.8m over four years in Parramatta's player payments.

    NRL club chief executives were told at a recent meeting that the total of all registered third-party deals equals only 5 per cent of the salary cap. That is, with a cap of approximately $7m and 16 clubs, the official third-party market totals just $5.6m.

    Most club bosses expected it to be twice that, judging from the monies asked for by player managers. Agents will always exaggerate the offers from rival clubs to bid up their client's asking price but the size of the offers circulating indicate the TPA market is north of $5.6m. Clandestine TPAs may explain why the turnover at some of the rich clubs is so low.

    Club executives were also warned at the recent meeting that there has been an alarming escalation in registered TPAs in recent years, with their number and size increasing disproportionately to the salary cap. Furthermore, the growth has been uneven, with a small number of clubs dominating the registered TPA market.

    Does this mean poor clubs keep all sponsorships to pay their bills? Or is it that they have no access to independent sponsors? Or are they are not registering TPAs. Or is it that only a few clubs are playing by the rules?

    Clubs have been warned that, with the disproportionate rise in TPAs at a small number of clubs, the integrity of the salary cap is under siege and action will be taken against the club, player manager and player if proof is obtained.

    At one very successful club, the TPA arrangement works like this – the club CEO, the football manager and the player's agent sit down together and negotiate the amounts of money which will appear on the player's contract.

    These are the monies, such as club payments and marquee player allowance, which will be registered with the NRL.

    The club CEO then leaves the room and the player's agent and the football manager negotiate the TPA.

    If a TPA is likely to raise suspicions with the NRL salary cap officer, it will not be registered and the money will be paid as a separate arrangement with the player.

    For example, a prominent business sponsoring a player ranked last in a club's top 25 players would attract the attention of the NRL, who would reasonably ask: why is the company not sponsoring a high-profile player to promote its business?

    There is no limit to the monetary total of registered TPAs because the NRL quite reasonably does not want to restrict the flow of funds from outside its normal sources of revenue – broadcasting fees, naming rights sponsorships, gate takings and club memberships.

    However, salary cap space is very tight and a club may see promise in its 25th-ranked player but be unable to make a competitive payment to retain him. Far better to approach a benevolent supporter of the club who doesn't need business exposure and has a spare $50,000.

    However, because the "shadow market" is clandestine and its size moves with the amount of heat generated by the player managers, clubs are always in the dark, so to speak.\

    URL LINK: http://www.smh.com.au/rugby-league/...of-thirdparty-agreements-20150712-giaex4.html
     
    Last edited: Apr 18, 2017
  2. 2010

    2010 Juniors

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    Whatever rules are in place you know clubs will try and bend the rules
     
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  3. Crush

    Crush Juniors

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    TPA
    The Possm's Answer
     
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  4. SaintElroy

    SaintElroy Juniors

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    IMG_7768.JPG

    Had to do it again :grinning:
     
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  5. ALSGI

    ALSGI Juniors

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    Do it again mate, smartest thing on here atm, love it.
     
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  6. SaintElroy

    SaintElroy Juniors

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    IMG_7769.JPG
     
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  7. Lovemedragons

    Lovemedragons Juniors

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    TPA's make the salary cap system a complete pointless farce if indeed the salary cap was introduced to level the playing field between richer and poorer clubs as well as stop clubs over extending themselves. What is the point of them other than to pollute the whole system and favor Roosters and Broncos the most.
     
  8. muzby

    muzby Village Idiot Staff Member

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    I'd like to offer my own TPAs to the players.

    Win, and:

    [​IMG]
     
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  9. possm

    possm First Grade

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    TPAs have been a way for the rich clubs to obtain an advantage. The only way to address the problem is for the remaining clubs to follow the same formular or for the NRL to manage the scheme directly.

    If the real reason for introducing TPAs is to help keep marquee players in the NRL without salary cap blowouts, then:

    Have all TPAs managed by the NRL.
    Have all TPAs negotiated between the NRL, player manager and sponsor.
    Have TPA sponsors introduced by the NRL or player managers.
    Have TPAs attached to a player for a period of time and remain in place even when players move to a different club.
    Identify national companies to sponsor TPAs.

    By adopting the above policy the TPA scheme would be fair and possibly more lucrative. It would better meet the aim of keeping marquee players in the NRL. It would not feature in the club recruitment process at all.
     
  10. Dorothy the Winowhore

    Dorothy the Winowhore Juniors

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    And the TPA provider and player manager will lodge a $100k TPA contract with the NRL, and give the player another $400k off the books. Will make no difference.
     
  11. possm

    possm First Grade

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    What would be the point in doing that! TPA are not part of the cap and as far as I understand do not have an upper limit. Like any contract the consideration must be reasonable for both sides. The player is involved in some way promoting the sponsor's product or business and the sponsor pays an agreed sum for the service over a term that is agreeable to both parties.
     
  12. MilanDragon

    MilanDragon Juniors

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    If you make it centralised and it goes with the player regardless of what club they're at you might find less TPA's being offered.

    Reason being those companies offering TPA's might only support one club and don't want to help a player at a club they don't like.

    could see issues where a TPA is a rival company of say the club sponsors and might create conflict of interests etc.

    They need to be more heavily regulated that's for sure
     
  13. Morotti

    Morotti Juniors

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    Regulating them will only mean we will have problems of a different nature in the future.

    Eventually you will have to open them up more and the richer clubs will simply be more dominant overall. Let us be honest it is what happens anyway. Broncos and Storm have been strong for a long time and they are the most financially viable. Storm only because of News Corp. The Sharks suddenly have plenty of cash and they become competitive?

    Perhaps we should be encouraging clubs to be better run and not catering to the lowest common denominator.
     
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  14. Slippery Morris

    Slippery Morris First Grade

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    Whilst the guy in charge of the NRL is there, no rules will be changed that will potentially even the playing field especially for Sydney clubs. The Dogs will continue to get 1st dibs and unlimited cap money. No club in Sydney can get away with a back line that contains 4 out of 7 Origin rep players and 2 NSW Origin back rowers without a question asked. Seriously, I can't believe how the Roosters get spoken about fudging the cap when 1 team clearly does it better.

    Dogs are now trying to get Tedesco and Woods. So that will make 2 more players that play origin.
     
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  15. possm

    possm First Grade

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    You'd be targeting different sponsorship - national brands e.g. Colgate, NRMA, Special K, Flight Centre etc.

    Not local sponsors, national sponsors and the TPA arranged between the NRL and the player manager - no clubs involved, not part of recruitment. Purely locking that player into staying in the NRL for a period of time.
     
  16. BennyV

    BennyV Coach

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    Would not happen. If companies were going to do that, they would simply purchase NRL sponsorship of some sort, not nearly as much benefit in sponsoring players.
     
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  17. possm

    possm First Grade

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    I'm not saying the NRL should sit back and wait for a TPA to appear. I'm saying be very pro-active and design a campaign around marquee players and national sponsors. Maybe there is a mixture of some funds to the NRL and some to the player. It's not that hard if the will is there.
     
  18. MilanDragon

    MilanDragon Juniors

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    The one way that would work is if players were contracted directly to the NRL, otherwise who decides who sponsors what players?

    And I don't think we will have a system where the nrl centralises all contracts because then who decides where the player goes?
     
  19. BennyV

    BennyV Coach

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    Exactly - why would a company in Brisbane want to sponsor someone who plays for Melbourne? Or a company on the South Coast want to sponsor a Newcastle player? Or a company built on morals and good ethics want to sponsor a Bulldogs player?

    Just wouldnt happen.
     
  20. possm

    possm First Grade

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    I suggested a system whereby all first grade squads - now 30 player per club - are to be contracted direct to the NRL. Under this system I suggested, players are contracted for 3 years by the NRL, Clubs have a rental cap and rent players from the NRL keeping within their cap.

    Players to be categorised into 3 tiers by the NRL for the term of their NRL contract - 3 years. Suggested categories are:

    Marquee Players.
    Established First Grade Players.
    Fringe First Grade Players.

    Players not picked up by any NRL clubs would drop down a category at a time until categorised as a Fringe First Grade Player and re-listed for rent during the transfer window. If at the end of the transfer window a player has not been picked up by any club, the player would be de-registered for NRL participation. Clubs would then be able to offer such a player non NRL contracts for participation in local or junior competitions.

    The NRL will arrange for TPA in an effort to promote the game and promote sponsor's businesses, products and services. No imput from Clubs or player's managers. The main purpose for offering TPA's to marquee players would be to retain them in the NRL and to promote the game of rugby league.
     

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