Cut salary cap or we'll perish: Denis Fitzgerald
By Dean Ritchie | May 28, 2008 12:00am
PARRAMATTA boss Denis Fitzgerald last night claimed overpaid NRL players must take dramatic pay cuts to ensure all clubs survive.
Amid talk that NSW-based clubs, particularly Souths, are facing extinction, Fitzgerald told The Daily Telegraph the NRL should reduce the salary cap from $4 million back to $3.5 million.
Fitzgerald said the cap should be decreased by $100,000 a season over five years to ensure reduced player payments and boosting each club's coffers.
But Fitzgerald's plan was met with opposition from rival CEOs, NRL boss David Gallop, RPLA chief Matthew Rodwell and leading player manager Steve Gillis. They claim such a move would lead to more stars turning to rugby or joining the English Super League.
Rodwell said the paycuts would also lead to a "player revolt".
But Fitzgerald, aware how licensed clubs are battling to overcome the State Government poker machine tax, said: "The salary cap can't go up - it should, in fact, come down. NSW clubs simply don't have as much money available as they used to in the past. Something has to give and one thing that should be cut back are player payments.
"It's better to have a reduced cap and pay the players in full rather than leave them in the lurch if clubs have to default on payments like what happened at the Northern Eagles, North Sydney and Auckland Warriors."
Fitzgerald said the reduction should start after the 2010 season.
"Obviously clubs would have to be given plenty of notice," he said.
"Most clubs would have their salary cap spent for 2009 and half of it for 2010.
"There will be arguments around rugby union and English Super League.
"But by 2010, it could drop by $100,000 and keep dropping by that amount for the next five years."
Manly chief executive Grant Mayer, though, said too many star players would leave rugby league if offered reduced contracts.
"We have made a rod for our own back," Mayer said. "What it may do is force our elite players overseas prematurely to either England or rugby union.
"Once you have given someone something, it's hard to take it back." Gallop said any cut in salary cap would be an "extreme measure".
"We need to be paying our players a salary that makes our sport attractive for the elite athlete," he said.
"But it's certainly a reminder that cap increases have to be considered carefully before they are introduced."
Rodwell added: "We wouldn't tolerate that. He (Fitzgerald) could have a revolt within his own playing group."
Player Managers Executive president Gillis said the players were entitled to healthy contracts.
"The players would be horrified (at cutbacks)," he said. "They earn every cent and are only in the game a short time."
