steerlerbab
Juniors
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Private equity! Private equity! Private equity! NRL knows it! NRL knows it! NRL knows it! It is legal! It is legal! It is legal! That is how big clubs with business connections get around it. Buzz Rothfield revealed one case early in the year with Bulldogs and some hotel group. But the deal did not go through.The salary cap is a fantasy the NRL use to promote the idea that there is a level playing field.
Third party payments are recorded by the NRL, however certain clubs have managed to find ways to avoid detection.
The answer for me is scrap the cap.
It has never worked as intended.
In simplest form, so let's say a player is worth 1M. 800k is paid by the club, 200k is equity that player gets in some business. Don't forget that 200k earns interest and is compounding every year. Let's assume 10% interest. So if player made 5 year deal, he will get 5M. if player opted for 800k with 200k private equity, he will 4M from club but 1.5M at the end of his deal with private equity. So it is Win-Win for everybody.
1. Club takes 800k from Salary for that player instead 1M
2. Player makes 5.5M at the end of 5 year instead of 5M
3. Private equity firm get player's endorsement for their products.
4. The player has a shot at premiership.
That is why Sydney Roosters, Brisbane Broncos South Sydney or Melbourne Storm have a team internationals and Dragons have a team of Journey men and Ben Hunt.
Penrith has shown the way to beat this for regional clubs like us, tigers, knights, raiders and cowboys. Develop your juniors and keep them.