Is their a limit on the amount a player can be paid in Third Party Agreements

[Sunshine Coast Tiger]

Can't find the answer to this anywhere but a mate told me he thought Third Party Agreements were capped at $150,000 per player. I thought as long as the Third Party wasn't involved with the club (and don't some clubs rort this system) their was no limit to what an individual player could make by way of Third Party Agreements.

Again I am not against players getting paid what they are worth, was just wondering how much can be by way of Third Party Agreements.

One thing I was thinking about if you have a current player on your books and you tell the NRL you offered him for example $600,000 under the Salary Cap per season, the NRL should insist any other club that buys him must have him in the Salary Cap at a minimum of $600,000. This would stop clubs paying players $700,000 to get a player from another club but put him in the Salary Cap at $400,00 and have the remaining $300,000 as Third Party Agreements (in reality this is just helping some clubs legally cheat the salary cap and disadvantages clubs that produce good players but without the same Third Party money available).

 

[Pete Cash]

There is no limit. Your friend is confusing two different things.

Club sponsors can chip in to a maximum of 150k but groups outside of that are unlimited

 

[El Diablo]

https://www.nrl.com/nrlhq/referencecentre/salarycap/tabid/10434/default.aspx

it's also amusing how the NRL leaves out TPA's in the part bolded "How can some clubs have so many elite players and still be under the Salary Cap while other clubs at the bottom of the table seem to be just under the Salary Cap?"

 

[Sunshine Coast Tiger]

https://www.nrl.com/nrlhq/referencecentre/salarycap/tabid/10434/default.aspx

it's also amusing how the NRL leaves out TPA's in the part bolded "How can some clubs have so many elite players and still be under the Salary Cap while other clubs at the bottom of the table seem to be just under the Salary Cap?"

Thanks for the link.

Noticed Third Party Agreements were at $15 million last year. Still think that the whole system needs an overhaul. For mine the only legitimate Third Party Agreements I can think of is the TV ads Billy Slatter does for Bananas and Powerade (although if they are a sponsor of the storm that may be a bit dodgy as well)

 

[League Unlimited News]

NRL crackdown leads to dramatic drop in third-party deals
Michael Chammas Chief Reporter
Fri 13 Dec 2019, 06:00 PM

The NRL's crackdown on third-party agreements has led to a drop of almost $2 million over the past year in outside-the-cap payments, with premiers Sydney Roosters one of the lowest and Melbourne the highest.

In a bid to provide clarity around one of the game's taboo topics, the NRL last year decided to make third-party agreements public and followed through again on Friday to highlight the improvement in transparency and integrity of the code's contract process.

It is deemed to be a contributing factor that led to a reduction from $7.8 million of totals TPAs in 2018 to just $6m this year.

While there are a range of contributing factors, including the retirements of some of the game's superstars like Johnathan Thurston and Billy Slater, the NRL believes clubs are beginning to understand the repercussions of breaking the rules.

There are a range of different TPAs – which include motor vehicles, whole of game sponsorship and community and contra deals – however the private sector arm's length agreements are what have traditionally been most questioned by fans.

Of the $6m of TPAs in 2019, only $2.7m came from private sector arm's length agreements, significantly less than the $4.7m 12 months earlier.

The club with the highest amount of private sector TPAs in 2019 was once again the Melbourne Storm, however the retirement of Slater is understood to have contributed heavily to the drop from just over $1m last year to $810,000 this year.

The next highest clubs included the Broncos (down from $780,000 to $350,000), Panthers ($233,000), Sharks ($212,000) and Rabbitohs ($199,000).

The Roosters had just $69,000 worth of private sector TPAs, however the likes of Cooper Cronk and James Tedesco benefited from additional whole of game sponsorship which wasn't included in the team-by-team breakdown.

The team with the lowest amount of private sector TPAs was the Cowboys, dropping from the third most in 2018 with $350,000 to just $16,000 following the retirement of Thurston.

Other teams with a small amount of TPAs included the Titans ($18,000) and the Warriors ($28,000).

Twelve clubs experienced a decrease in private sector TPAs from 2018 to 2019, with only the Bulldogs, Eels, Knights and Tigers registering minimal growth.

"These figures show a significant decline in the amount of third-party agreements across the game," NRL chief operating officer Nick Weeks said.

"The reduction reflects the retirement of some of the game's elite players and the effectiveness of additional checks and balances we have put in place to identify noncompliance with the rules are working. We recognised the genuine concerns our clubs and fans had about third-party agreements.

"That's why we introduced more strenuous measures to ensure these arrangements are genuine arms-length deals. We are confident that this level of transparency about third-party agreements will improve confidence in the effective operation of the salary cap and reduce the amount of speculation and guess work about this part of the game."

The top five players who benefit from TPAs make up 48% of the total amount, with the number of players with agreements dropping from 94 to 81 in the past 12 months.

The number of total agreements has also dropped from 205 to 172.

In 2019, total TPA market was the equivalent of 3.9% of the total salary cap (10 per cent in 2016) and less than 2% for private sector arms-length agreements (five per cent in 2016).


https://www.nrl.com/news/2019/12/13/nrl-crackdown-leads-to-dramatic-drop-in-third-party-deals/

 

[gerg]

So what exactly are 'whole of game sponsorships'?

 

[The Mad Hatter]

And whatever happened to El Diablo? ?

 

[Bandwagon]

So what exactly are 'whole of game sponsorships'?

I'd imagine thee are deals between the NRL and individual players, like "face of the game" type deals.

 

[Bandwagon]

And whatever happened to El Diablo? ?

Dropped at birth?

 

[I Bleed Maroon]

Amazing that the Storm and Roosters are seemingly on opposite ends of the spectrum, yet the Roosters are the ones with back2back premierships. What an absolute gee up. Politis and Bellyache are running this competition.

 

[siv]

Clearly there are other uncapped significant sources of income

Premiers only $68k TPAs ???

 

[kdalymc]

Me trying to read this thread

 

[AlwaysGreen]

Yet Brown paper bag sales in the Bondi region are up 7000000%

 

[Knight76]

Of the $6m of TPAs in 2019, only $2.7m came from private sector arm's length agreements, significantly less than the $4.7m 12 months earlier.

I'm sorry come again?

Aren't all TPA's at arms length and nothing to do with the clubs, supposedly?

That's why we introduced more strenuous measures to ensure these arrangements are genuine arms-length deals

Like when Maloney said on TV that his contract was waiting on some TPA's being arranged. Yet the NRL did nothing.

 

[butchmcdick]

There is no limit. Your friend is confusing two different things.

Club sponsors can chip in to a maximum of 150k but groups outside of that are unlimited

Banger

 

[Babyface O'reilly]

Amazing that the Storm and Roosters are seemingly on opposite ends of the spectrum, yet the Roosters are the ones with back2back premierships. What an absolute gee up. Politis and Bellyache are running this competition.

Time for Broncos to start their own comp again.

 

[siv]

Interesting that deals that Cronk and Tedesco have with sponsors of the NRL such as Holden, Nine and KFC are not considered TPAs

 

[Perth Red]

The figures are a sad reflection on how we don’t sell our stars very well and how they are not household names attractive to majors companies for promotion. Maybe players will one day learn that if they behave like dckheads they are hurting each other’s earning power?

surprised storms is still so high after the loss of slater and cronk who would have been major recipients. Roosters doing a terrible job promoting their star players if this tiny figure is true.

 

[Perth Red]

So what exactly are 'whole of game sponsorships'?

nrl payments for promotion, nrl sponsors who use players and the tv companies who pay players to be on their shows and commentary teams. Uncapped amounts.
Be interesting to know why the nrl refuses to publish this data alongside third party tpa’s.

 

[Babyface O'reilly]

Like when Maloney said on TV that his contract was waiting on some TPA's being arranged. Yet the NRL did nothing.

I assume a player agent is the mediator between player and TPA. Club Is 50k short of what Maloney asked for due to cap pressures. Maloney agrees to Club’s offer only when it’s confirmed that TPA can make up that shortfall. As long as club takes no part in finding/arranging TPA, it’s all above board.