One of the problems that this whole situation causes (and everyone said it at the time), is that if you’ve got the money and ain’t bothered about value, you could sign let’s say Cameron Smith for 700k for 5 years, starting in 2021 (beating other competitors to his signature who were legitimately offering him $1m for the 1 year based on his age) - at the end of 2021, he just decides ‘He can’t live up to his standards’ and retires, but steps into an office job with the club (or a sponsor) that happens to pay him the rest of the contract money owed over the 5 years.
It’s a bona fida rort.
Except you can't.
The nrl decided that anything over the market value for the role will count on the cap for the remaining years of the contract.
So GI was on $1million in 19-20.
He was paid $500k for half a year as an nrl player. He then went in to his new role which had been reported as $350k per year. The entirety of that $350k was counted on souths cap for 2019.
He made the same $350k this year. The nrl determined that was $100k over market value (and considering a lot of players take these kind of role that would have been easy to do). So Souths were slugged with $100k over the cap for that.
So if Smith signed for storm for 2021-2024 for $750k and retired midway through 2022, it only unfolds in these ways.
1. He does what GI did and breaks the contract. He then moves into an off-field role for $350k. That means in 2022 storm pay $750k on the cap for half a season out of smith and pay $100k in 2023-24-25. This also assumes Smith would take a pay cut of $350k over 23-24-25 to the tune of $1.05m all up. Unlikely from Cam.
2. The same thing happens and Smith moves into a $750k off season role with the storm. That means in 2022 storm pay $750k for half a year out of smith, then in 2023-24-25 they are paying $500k ($750k being $500 over the $250k over the market value).
3. Smith just plays on. His obviously over the hill by year 3, his body breaks down. Storm can't get rid of him though because all Smith does is turn up to training does his requirements and collects his pay cheque which he is well within his rights. This kind of thing was made infamous by Soccer player William Bogarde for Chelsea. They overpaid for a long contract, realised he wasn't the player they thought he was. Tried everything to get him to quit. Bogarde realising that he'd never get this contract again, just kept turning up to Chelsea training. Kept turning up for reserve games. Did everything that was required of him and saw out his 4 year, £50k a week contract. Another example is Greg Eastwood. He was on the last year of a Des Hasler backed special. He was on $900k a year. Bulldogs tried a few things to get rid of him including dropping him to reserves, eastwood happily played out the year in nsw cup and collected his pay cheque.
