I don't have a problem with that rule. Every club front loads or back loads contracts to suit their salary cap needs. That way if the clubs want to re-sign a player but are struggling salary cap wise for the following season they can offer them a 600k 3 year deal, but pay 100k, then 200k, then 300k. The Dogs in this case have a gone a step further and due to Williams and Mason being released pre and mid season they changed the contract structure for the others so their contracts were frontloaded their entire salary last year. It's a smart move really, and given they had to player walkouts they had no time to replace last season, a fair outcome.
So let's push the crummy logic of the system:
Penrith decide that they're crap enough as it is, and need some new blood. So they dont' sign anyone good for next year, and have the minimum cap expenditure of $3.15 million (leaving them 1.05 million spare). They then front load the best 3 players from that squad for 3 year deals at a total of $1mill per player. 330k for each deal gets paid next up this season, meaning their final season is off the books.
So they've got these 3 talented guys, they suck again the following year because they only spend $3.15mill - and they recruit wisely by front paying 3 other guys the same way (but to 2 year deals).
Suddenly some of their ordinary players come off the cap - they sign their best youngsters from the U21s, and with their 5 established "good" players, they have a core of say 20 - some journeymen, some useful players.
Because they've paid $1.5mill up front, their bill for the big 3rd year (let's call it the contending year) is only around $1.8mill - meaning they've got a good $2.4 mill to buy whomever they damn well please.
You could buy the best 4 players in the league at 600k each - or 6 SoO players at 400k.
Suddenly you've got an outfit on the park worth $5.5million when the cap is $4.2 million AND you're within the silly legislation.
It's not 'fair enough' because of the walkouts last season - that's poor personnel management on the part of the Dogs. They shouldn't be rewarded for it - it's their issue. And they certainly shouldn't be gifted a $4.8million dollar cap for this season when every other club is on $4.2.
The point of the cap is a level playing field. You don't get a bonus for junior development, you get a bonus for peeing off your players so that they go overseas/ elsewhere?
There's a bug in the system if you ask me.