What's new
The Front Row Forums

Register a free account today to become a member of the world's largest Rugby League discussion forum! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Folau turns back on Eels to play rugby union

Gary Gutful

Post Whore
Messages
52,404
I also agree with Pou Pou's logic on this one. Supply and demand will dictate who the money goes to.

Next argument - Do you think Sparky would win a 'battle of the mascots' against the other 15 NRL clubs? :sarcasm:
 

Maroubra Eel

Coach
Messages
19,044
They will, because the rules now say you have to pay a $30k player at least $55k. If the minimum increases clubs will then have to pay them even more. Over time there will be an adjustment, but a player worth $65k isn't going to get any more straight up just because he is now earning the league minimum.

Yes the $65K player is going to get a bit more straight up because he's going to be more desirable than a $30K player. As a few guys have already mentioned, it's supply and demand.
 

oldmancraigy

Coach
Messages
11,781
Yes the $65K player is going to get a bit more straight up because he's going to be more desirable than a $30K player. As a few guys have already mentioned, it's supply and demand.

Nobody wants him! That's why he's on $65k.

Mind you, the $30k guy isn't actually on minimum contract, so he might not get an increase unless the 2nd tier cap also increases...

But if the minimum wage goes up from $55k to something like $75k, then you'll most likely see an increase from 3-4 guys earning minimum wage to 6-7 guys earning minimum wage!
 

Maroubra Eel

Coach
Messages
19,044
Nobody wants him! That's why he's on $65k.

Mind you, the $30k guy isn't actually on minimum contract, so he might not get an increase unless the 2nd tier cap also increases...

But if the minimum wage goes up from $55k to something like $75k, then you'll most likely see an increase from 3-4 guys earning minimum wage to 6-7 guys earning minimum wage!

If nobody wants him he'd be on $55K. Anyway he's more wanted than the $30K player.

Btw, we are talking about $30K players who are on the minimum $55K.
 

Poupou Escobar

Post Whore
Messages
88,786
It's true a player on $65k is in higher demand than players earning minimum salary (who might be worth anything less than $55k) but not high enough demand for any club to be offering them more than they're currently on. Especially when every club will be having to spend extra upgrading all of their minimum salary players.
 

Poupou Escobar

Post Whore
Messages
88,786
Not even just a little Poupou?

On average, no.

Sure some will get upgrades (like Paulo, Ryan and Sio last year) and others will find themselves shuffled out of a club's top 25 by better (but still ordinary) players. Some will retire, but most will find themselves earning about the same amount. Some might not be offered new contracts by their current clubs but manage to jag a top 25 spot (and therefore a minimum contract of $55k) at another club. Others might be offered a reduced contract of $30k (and a move to the second tier) at their current clubs.

Obviously they will stay on $65k for the duration of their current contracts, but contracts at the bottom end of the salary spectrum are rarely for longer than one or two years.

A player on $65k is already so close to the minimum that he was likely on $55k for his last contract and wanted a token upgrade for re-signing. With clubs now having to spend an extra $10k on each of their minimum salary players, there is less wiggle room for token upgrades until player values readjust to the new salary cap. This readjustment would last about as long as the duration of the typical contract (approximately three years) except even when next year's salary cap is finalised, the cap for 2014 and beyond is still up in the air.

I can see a few clubs getting into salary cap trouble (either spending too much or too little) over the duration of the current tv deal unless the cap for future years is locked in soon. But with the NRL and the RLPA in dispute that is unlikely to happen.

Or possibly clubs will budget too little in the coming years, and then as the cap for each year is finalised they will negotiate upgrades with those players in most demand, in order to fill out the cap. Players that are easily replaced - dozens of players as good as Sio and Ryan (who should both be on $100k+) come off contract every year - have less bargaining power so are less likely to have their contracts topped up with extra cash. Obviously they were in higher demand when they were on minimum salary (like the Bulldogs chasing Sio this year) because they would have had lower salary expectations. Now they're on first grade salaries they will be expecting more next time around. Whether they get it depends on how many clubs are interested.

But the higher earners in the game (which includes second or third tier 'stars' like Mannah and Creagh) are always in demand. That's why they get a lot more money than everyone else. Because they are not easily replaced.

As always this is just my opinion. But I am very very smart.
 

lingard

Coach
Messages
11,363
Does anybody get the feeling that NOBODY has a clue how it will all work until after it actually happens? It`s a bit like fourth class in primary school around here.
 

Poupou Escobar

Post Whore
Messages
88,786
Aww thanks ME you smartarse merkin. Why do I feel like you're taking the piss?

Does anybody get the feeling that NOBODY has a clue how it will all work until after it actually happens? It`s a bit like fourth class in primary school around here.

No, I get the feeling that plenty of us have a pretty good idea how contract upgrades will go as the salary cap increases.

Don't be disheartened by the idiots weighing in with their two bob's worth. Some of us are well read, well informed, and have experience in analysis.
 

Joshuatheeel

Moderator
Staff member
Messages
19,910
Maybe a rise in the cap will work like the housing market when a price rise towards the top normally filters to the bottom, as buyers unable to afford at one level will look at the next level thus pushing up the prices.
 

Poupou Escobar

Post Whore
Messages
88,786
Maybe a rise in the cap will work like the housing market when a price rise towards the top normally filters to the bottom, as buyers unable to afford at one level will look at the next level thus pushing up the prices.

Eventually it will. But it will take at least an entire contract cycle.
 

Maroubra Eel

Coach
Messages
19,044
Aww thanks ME you smartarse merkin. Why do I feel like you're taking the piss?



No, I get the feeling that plenty of us have a pretty good idea how contract upgrades will go as the salary cap increases.

Don't be disheartened by the idiots weighing in with their two bob's worth. Some of us are well read, well informed, and have experience in analysis.

I think you're much smarter than what you let on.
 
Messages
19,263
Maybe a rise in the cap will work like the housing market when a price rise towards the top normally filters to the bottom, as buyers unable to afford at one level will look at the next level thus pushing up the prices.

This is true to an extent, but it's a little bit different here (even if we allow for a 'full contract cycle' to pass through). In any given year a team's salary cap allocation is a 'zero sum game'. So, unlike the housing market, an extra $ spent on J Hayne is an extra $ not spent on an another player (ok, not always strictly true given long-term player discounts etc).

As the salary cap rises clubs will have an incentive to spend a disproportionate amount of the increase on the players who cannot be easily replaced. In 4 years time the lower priced players will earn a bit more, but their increase relative to today will be smaller than that of the superstars. The minimum players salary is (economically at least) related to wages/costs in the rest of the economy (there are presently uncontracted players just waiting for a chance to replace them as well). The salary of RL superstars is not so strongly related to the average (median) wage of Joe Citizen, and they are a truly scarce resource (there aren't any people currently playing park football who are likely to go pro and become J Hayne Mk2).
 

Delboy

First Grade
Messages
7,347
It was reported in todays Tele, that Schubert wants Izzy in the cap at $400k. WTF, he hasnt played NRL for 2 years, and this merkin had Lockyer in the cap as Aussie Capt for $250k, because its Brisbane and they have single citystatus, good excuse ( did News Ltd come into it?).

No wonder there is a lack of confidence in the pelican, they shud be doing everything to use Izzy in Western Sydney, sometimes you just wonder,

I guess people like Nick/David/Mark at the Rorters have more influence , what a missed opportunity
 

Parra Pride

Referee
Messages
20,366
It was reported in todays Tele, that Schubert wants Izzy in the cap at $400k. WTF, he hasnt played NRL for 2 years, and this merkin had Lockyer in the cap as Aussie Capt for $250k, because its Brisbane and they have single citystatus, good excuse ( did News Ltd come into it?).

No wonder there is a lack of confidence in the pelican, they shud be doing everything to use Izzy in Western Sydney, sometimes you just wonder,

I guess people like Nick/David/Mark at the Rorters have more influence , what a missed opportunity

Also Gasnier at $55,000.

#DoubleStandards
 

Latest posts

Top