I have placed some thought into this and believe we need a type of draft to suit the NRL structure. I actually sent a similar proposal to David Gallop a few years back. I did get a response. More of a thanks for your input we will consider it.
The National Draft system for the NRL is conducted a week after the NRL grand final. It is based on a Dutch Auction where the initial asking price is high and is continually reduced until a buyer is found. Each club in reverse finishing order are able to purchase the player at the nominated price before dropping in value to the next increment.
The draft is completed in four stages and takes into consideration the different Tiers of the club. These include:
Stage 1 - Tier 1 is for the top 25 players (October)
Stage 2 - Tier 2 is for the National Youth Championship (NYC). (October)
Stage 3 Players not selected in Stage 1 or 2 (January)
Stage 4 Free Agents Players not selected in Stage 3 (January)
General Rules
Players in the last year of the contracts who wish to change clubs must register for the national draft prior to the 31st August of each year.
After close of registration all players listed for the national draft go into a ballot to determine the order in which they will be auctioned.
Players are auctioned in bundles of five players. This is to ensure that as key players are lost the club can alter its priorities and possibly increase the ante for players of choice.
The auction will commence at a nominal figure for Stage 1 and 3 (Eg $1M) and Stage 2 (Eg $100K) with the club in reverse finishing order (NRL) given first option to purchase the player at the current price.
Teams in breech of the salary cap can be moved in the queue depending on the extent of the breech. Assuming that the Melbourne Storms breech of the salary cap placed them last in the bidding order it would be Cronulla Sharks first followed by Canberra Raiders etc.
Stage 1 Top 25 Players
Players and their agents publish sign-on criteria that must be met by the successful bidder. These include things such as length of the contract, conditions of contract, reserve price and other items to be included (eg car) or excluded (Eg Tertiary Education Fees) from the salary cap. Clubs will be provided with all this information with the exception of reserve price.
Players and their agents must not list items that are mutually exclusive to one or two clubs, exclude third-party agreements and benefits contrary to the salary cap rules. Players and their agents found to have listed items or conditions (Eg Must be Queensland Team) breached the auction rules will be excluded from Stages 1 and 2 and will enter Stage 3 after conditions in breach are removed.
The auction starts in reverse finishing order with a nominal asking price of $1.2 million and reduces in the following increments.
- $1,200,000 to $500,000 at $50,000 increments
- $500,000 to $200,000 in $10,000 increments
- $200,000 to minimum wage in $5,000 increments
The winning bid is contract price only and does not include other benefits payable and reported in the salary cap.
Clubs have a maximum time limit (say 2min) to accept or reject the current offer before it expires and moves to the club ranked next in the queue. Variations to this may include:
- Clubs not represented for the auction will automatically forfeit the option to purchase the player.
- If clubs are not interested in a player or a price they may enter the auction at a nominated level.
If the players reserve priced (or increment above) is reached and they remain unsigned at the conclusion of the round. They will be passed in at auction and can be included in future drafts in Stages 2 (if eligible) and Stage 3. It is important for the players and their agents not to overvalue themselves. Failure to secure a contract in Stage 1 and 2 could delay preseason training with a future club until the middle of January.
After all registered players have been auctioned Stage 1 concludes and Stage 2 commences immediately.
Stage 2 - NYC
The Stage 2 process follows the same principles adopted in Stage 1 and is only open to players eligible for the NYC.
The auction starts in reverse finishing order (NRL) with a nominal asking price of $100,000 and reduces in the following rates.
- $100,000 to minimum wage in $5,000 increments
After all registered players have been auctioned and accepted or passed in Stage 2 concludes.
Stage 3 Preseason Draft
In early preseason (January) the third and final stage of the draft system commences. This is applicable to any player not selected during Stages 1 and 2. Plus any additional players wishing to nominate for the draft.
This draft is conducted in the same manner as Stage 1 with the remaining registered players auctioned in the original Stage 1 balloted order. Any players registering after 31st August each year will be placed on the end of the queue in a first-come, first served basis.
Players and their agents are able to readjust the sign-on criteria to ensure they are more acceptable to proposed clubs.
The other main difference between Stage 1 and Stage 3 is the reserve price. For Stage 3 the reserve price is reduced to the minimum wage.
(NB - Reducing the price to the minimum wage in Stage 3 means that players cannot price themselves out of the market and become a free agent in Stage 4.)
Stage 4 Free Agent
Only players who have gone through Stages 1, 2 and / or 3 can be consider Free Agents and are able to speak to any club to secure a playing contract.
Transfers
Players with contracts in excess of 12 months are unable to be transferred between rival clubs on mutual agreement. This could include the payout for the players contract, transfer players or compensation as some examples.
Failure to reach agreement before the 12 months: deadline will result in the player having to enter the national draft unless they are cut by their club and full payment is made for the player. This player will then become a free agent leading into the national draft
Other
The draft is not applicable to external codes including AFL and rugby union.
This system although not perfect provides numerous benefits to administrators, clubs, players and fans. Some of which include:
- Administrators can easily audit original contracts
- Clubs can access every player in the draft at the right price.
- Clubs are not disrupted by mid season contract speculation
- Players can be paid over or at market price
- Players can request longer deals with clubs
- Players futures secured before preseason training begins
- Players can access approved Third Party Deals once at the club
- Fans will enjoy more club loyalty from players
