NRL's controversial third-party arrangement system could be headed for scrapheap
Next season could mark the last for third-party arrangements as league powerbrokers explore options that are more equitable and easier to police than the controversial revenue stream.
The NRL has already publicly conceded the third-party arrangement system in its present form is in need of a total overhaul, but there is now a growing feeling it is beyond repair and should be scrapped altogether. The issue will be one of the biggest discussion points between the governing body and the Rugby League Players' Association as the parties begin negotiations on a new collective bargaining agreement that will kick off in 2018.
Some NRL clubs are privately complaining head office is increasingly refusing to register potential TPA sponsors after Parramatta were busted for cheating the salary cap. The Eels were sanctioned for using a number of methods, including paying players in cash, to circumvent the salary cap. However, most of their dodgy deals were of the third-party variety, many of which were not properly declared or hidden from Rugby League Central altogether.
Some consideration is being given to placing a cap on TPAs to bridge the financial disparity between players at clubs attractive to sponsors and those that aren't. Before starting his role as head of football, former Titans official Brian Canavan indicated a cap on the number of players eligible or a limit on the TPA dollars each club receives is an option. However, that could result in sponsorship dollars being turned away from the game and there is a growing consensus that TPAs don't work for the club or player involved.
Many players complain they have been left out of pocket when a company doesn't fulfil its obligations, creating a shortfall in expected earnings that the club isn't permitted to make up.
Meanwhile, club officials estimate there is a seven-figure discrepancy between what the rich and poor franchises are able to bring in for their players, making a mockery of equalisation measures such as the salary cap. With a limit on football expenditure set to be introduced in 2018, there is a feeling there are enough caps on spending already and a ceiling on TPAs doesn't really address the issues.
The NRL recently engaged former Melbourne CEO Mark Evans to review the TPA structure and he concluded the present system – there are five types of third-party arrangements – is too complex and difficult to regulate. The governing body has begun consulting with stakeholders about potential alternatives.
One option could be a significant increase in the marquee player allowance, currently capped at $600,000 per club, as part of a salary-cap increase.
Potentially, clubs could fund the allowance in whatever way they saw fit, including from sponsorships that may or may not be at arm's length from the club. The key to placating the players' union is having a mechanism that allows players to earn commercial revenue based on their image or service, whether that opportunity sits inside or outside the salary cap.
One area being explored is the establishment of mechanisms that allow sponsors to back players and the club, rather than having to choose between the two. While a large salary cap increase is expected in the next CBA following the record broadcast deal, that alone won't provide a solution.
Questions: Anthony Watmough's third-party deal with the Eels was part of the NRL's case against the club. Photo: Getty Images
The NRL and the RLPA have created a committee to address player welfare issues and are hopeful of signing off on a range of initiatives for the coming pre-season. The main change is an extension of annual leave for senior players – those who have endured six pre-seasons or more – to eight weeks. Under the proposal, players who have done four or five summer slogs get six weeks off, but clubs can give them an additional fortnight if they achieve testing targets.
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