You increase your sponsorship you increase your salary cap.
Contract payments can now be defered to overcome Salary cap overpayment. Not a new contract just agreement to pay next year. (Basically the same old scam)
From
http://www.smh.com.au/articles/2004/09/16/1095320901267.html
Fallout from scandals hits Dogs in pocket
By Steve Mascord
September 17, 2004
Four Bulldogs players have been asked to forgo payments totalling about $100,000 until next year as the club continues to feel the pinch of its last two controversies.
Chief executive Malcolm Noad last night admitted the possibility of deferring incentive payments and wages for salary cap reasons had been discussed in contract talks with the players, whom he declined to name. National Rugby League salary cap auditor Ian Schubert said there was no problem with the arrangement.
Gross salary cap abuses in 2002 and a loss of sponsors caused by sexual assault allegations in Coffs Harbour this year had subjected the Dogs' cap to pressure, which should be resolved in 2005 if the players agree to the restructured contracts.
"We are still doing some juggling," said Noad. "It's very tight this year.
"There's [some] players we are talking to about deferring some payments but there's nothing in that that other clubs don't do. It's nothing untoward and it's certainly nothing we haven't spoken to the salary cap auditor about."
The situation has emerged as the Dogs bid to bounce back from last Saturday's shock loss to North Queensland and stay in the premiership race by beating Melbourne in Sunday's second semi-final at Aussie Stadium.
To avoid the club imploding in the wake of the salary cap scandal two years ago, the League allowed the Dogs to include some payments from that year in their cap for 2003 and 2004.
"You're continually trying to juggle forward," said Noad. "It's something that's been inherited this year but next year we've got quite a bit of clear air.
"Steve Price is going, Dennis Scott's going, Jamie Feeney's going, Johnathan Thurston's going, Hutch Maiava's going. That gives us the opportunity to catch up."
Also NRL clubs can earn up to $200,000 in salary cap concessions if they increase the value of sponsorship from one year to the next.
But the police investigations into the Coffs Harbour incident that scared off backers despite no charges being laid slashed that anticipated allowance.
"We were budgeting in our player payments for a $200,000 benefit in the salary cap and because of what happened earlier this year and the sponsorship dollars we lost, we will only generate about $100,000," said Noad.
"A large amount of what we are trying to make up is that shortfall in marketing."
Schubert said: "It's not unusual for clubs to do this, particularly in relation to the sponsorship servicing allowance.
"If a club has a shortfall, it's permissible when extending a contract to organise the cash-flow situation that suits the club and the player."
Contract payments can now be defered to overcome Salary cap overpayment. Not a new contract just agreement to pay next year. (Basically the same old scam)
From
http://www.smh.com.au/articles/2004/09/16/1095320901267.html
Fallout from scandals hits Dogs in pocket
By Steve Mascord
September 17, 2004
Four Bulldogs players have been asked to forgo payments totalling about $100,000 until next year as the club continues to feel the pinch of its last two controversies.
Chief executive Malcolm Noad last night admitted the possibility of deferring incentive payments and wages for salary cap reasons had been discussed in contract talks with the players, whom he declined to name. National Rugby League salary cap auditor Ian Schubert said there was no problem with the arrangement.
Gross salary cap abuses in 2002 and a loss of sponsors caused by sexual assault allegations in Coffs Harbour this year had subjected the Dogs' cap to pressure, which should be resolved in 2005 if the players agree to the restructured contracts.
"We are still doing some juggling," said Noad. "It's very tight this year.
"There's [some] players we are talking to about deferring some payments but there's nothing in that that other clubs don't do. It's nothing untoward and it's certainly nothing we haven't spoken to the salary cap auditor about."
The situation has emerged as the Dogs bid to bounce back from last Saturday's shock loss to North Queensland and stay in the premiership race by beating Melbourne in Sunday's second semi-final at Aussie Stadium.
To avoid the club imploding in the wake of the salary cap scandal two years ago, the League allowed the Dogs to include some payments from that year in their cap for 2003 and 2004.
"You're continually trying to juggle forward," said Noad. "It's something that's been inherited this year but next year we've got quite a bit of clear air.
"Steve Price is going, Dennis Scott's going, Jamie Feeney's going, Johnathan Thurston's going, Hutch Maiava's going. That gives us the opportunity to catch up."
Also NRL clubs can earn up to $200,000 in salary cap concessions if they increase the value of sponsorship from one year to the next.
But the police investigations into the Coffs Harbour incident that scared off backers despite no charges being laid slashed that anticipated allowance.
"We were budgeting in our player payments for a $200,000 benefit in the salary cap and because of what happened earlier this year and the sponsorship dollars we lost, we will only generate about $100,000," said Noad.
"A large amount of what we are trying to make up is that shortfall in marketing."
Schubert said: "It's not unusual for clubs to do this, particularly in relation to the sponsorship servicing allowance.
"If a club has a shortfall, it's permissible when extending a contract to organise the cash-flow situation that suits the club and the player."
