Since it is now 8 years, Manly would have Brett Stewart, Glenn Stewart, Watmough, King as well as Kite, Rose and Matai from 2013 all qualifying. Effectively an extra $700k to the cap.
No, it's 200k all up, and it comes under the broad umbrella of the $4.4 million a year.
2002 Clubs which could increase overall sponsorships were provided with an extension of the Sponsor Servicing Allowance bringing the total available allowance to $200,000 and an effective Salary Cap of $3.45m.
2003 Long Serving Player Allowance introduced to encourage Clubs to retain players who have served a continuous period of 10 years in first grade.This $100,000 allowance lifted the effective cap to $3.55m.
Emphasis on effective. Up from the $3.45m the year before, so to utilise the entire cap you would have to have at least one player at your club for 8 years, and also have him on 200k.
Imagine how easy it would be for someone who had a lot of players like Manly who have been there for extended periods. We'll give you all 400k (200k to their cap) and then they could still splash the cash on the best juniors. It would be a never ending cycle without a draft.
http://www.nrl.com/nrlhq/referencecentre/salarycap/tabid/10434/default.aspx
Edit
"Of those I listed above, all but Kite and Rose are 1 club men. Why are they any different to Gallen or Hindmarsh?"
I think I'm wrong about this and you can spread it out, I couldn't fin the article anywhere, so you would be able to spread it out (20k to 10 long serving players).