RLPA warned that legal challenge to salary cap likely to fail
The players union has been warned that any challenge to the legality of the salary cap is doomed to fail as the focus of talks over the collective bargaining agreement yesterday switched from the courtroom to the negotiating room.
The Australian yesterday revealed that the Rugby League Players Association had written to the NRL late last week warning that they would be prepared to challenge the validity of the cap if the parties were unable to find some middle ground in CBA talks.
It is understood the RLPA and NRL were locked in talks again yesterday and the parties remain optimistic they can strike a deal in time for it to be taken to a meeting of club chairs and chief executives in Sydney next week.
However, the RLPA has significantly raised the stakes in CBA talks by threatening to challenge the legality of the salary cap in court, a move that would have repercussions for every major sport in the country — the AFL and the A-League also operate with salary caps.
They have also warned they are prepared to use players’ intellectual property as leverage, much like the Australian Cricketers Association did by setting up The Cricketers’ Brand when their pay war was in full flight.
There are essential differences between the two sports. While the bulk of cricketers were off contract, the majority of rugby league players have deals in place with their clubs for next season.
However, it is believed the RLPA could look to restrict the use of players’ intellectual property as they attempt to heap pressure on the NRL.
That will hinge largely on whether the parties can strike a deal over the next week.
Talks were held yesterday involving NRL chief executive Todd Greenberg and his RLPA counterpart Ian Prendergast but the threat of court action still looms while ever an agreement remains in limbo.
While the threat of legal action is real, the RLPA’s chances of success in challenging the salary cap would be slim according to former NRL player and sports lawyer Tim Fuller.
“Any legal challenge to the legality and enforceability of the salary cap is unlikely to succeed,” Fuller said.
“Courts have held that the cap is a valid and legitimate use of control in a sport.
“However, the courts have tended to adopt a position with competitive measures (such as caps and drafts) and require such systems to be fair and reasonable.
“By this, that players’ (employees) rights are protected and maintained ... and the balance of bargaining power is not slated overgenerously towards the governing body.
“If the NRL were to be overly unreasonable in the CBA negotiations and attempt to carve out necessary aspects of the CBA, the cap could be theoretically up for challenge along the above guidelines.
“Whilst this is unlikely and cooler heads are likely to prevail, it does emphasis the point that the NRL must be aware of the requirement to negotiate in good faith and work towards reasonable outcomes.”
The most significant pressing gulf between the parties is finances, with the players pursuing a guaranteed share of revenue and an increase in the salary cap beyond the $9.2 million that has been tabled by the NRL for next season.
The union is also opposed to the way the NRL’s proposed salary cap is structured, with both long service and motor vehicle allowances included in the figure of $9.2 million.
The RLPA wants both those amounts excluded from the cap, leaving clubs to use them at their own discretion.
The RLPA is also opposed to NRL plans to include a $400,000 integrity fund as part of each club’s cap, with that amount to be reduced any time a player transgresses off the field.
Meanwhile, Parramatta captain Tim Mannah has admitted his brother Jon will be at the forefront of his mind as he prepares to make his 200th first grade appearance for the Eels.
Jon Mannah, who also played first grade rugby league for Cronulla and the Eels, passed away four years ago after suffering Hodgkin’s lymphoma at the age of 23.
“I think about that all the time,” Tim Mannah said.
“He is a big part of my life. He takes up a lot of my thoughts. I like to think about him.
“Whenever you have a big milestone or big occasion in life you definitely think about him and what it would be like if he was here.
“I am sure he would be proud as well. The big moments in life you wish he was there. This is a big occasion to me in terms of my career and it would be nice to have him here.”