Report: Players Want Cut Of TV Deal

[League Freak™]

Greed.....

Players want cut of TV deal
By Brent Read and Stuart Honeysett
May 20, 2005

THE players' union will push for the salary cap to be increased to $4.5million if the NRL accepts a reported $40m a year offer from Channel Nine for the game's commercial television rights.

Rugby League Professionals Association (RLPA) president Tony Butterfield yesterday revealed his body would call for a significant increase to the existing $3.3m limit if estimates of the game's television worth are right.

The Australian Financial Review reported on Wednesday that Channel Nine had offered the NRL $40m for the commercial rights to the game, a significant increase on the existing $13m a season deal.

The current contract with Nine comes to a close at the end of the 2007 season.

The pay-TV rights, now worth $35m a season, are up at the end of next season and it is believed they could be worth as much as $50m. The two deals combined could provide the game with a $90m windfall - and the players want their cut.

"The bare bones cap at the moment is $3.3 (million)," Butterfield said. "You would argue it is easily justifiable the cap should move up to somewhere between $4.3 and $4.5 (million).



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"But you can't just have all the money go to the players. The most important thing in my mind is that the junior development programs receive a fairly substantial increase in their funding." The RLPA has commissioned an independent body to investigate what the television rights are worth and Butterfield confirmed the $40m figure was on the mark.

Clubs bosses had mixed reactions yesterday when told of the latest developments in the television rights.

South Sydney CEO Shane Richardson mooted that figure for free-to-air rights in February but was happy to stay out of the latest development.

"The actual deal itself will be done a level above the clubs, but (NRL chief executive David Gallop) certainly knows the mandate from the club about what we require," Richardson said.

Cronulla general manager Steve Rogers warned NRL officials against accepting the Channel Nine offer.

"Why would you accept that?" Rogers said. "I would want to go into the marketplace. I certainly wouldn't be taking the first offer to come across the table."

In other news, Canberra lock Jason Croker suffered a knock to the throat against Cronulla last round and is in doubt for Sunday's match against Wests Tigers at Campbelltown Stadium.

Warriors second-rower Awen Guttenbeil is battling a calf injury and could miss tomorrow night's match against Souths at Aussie Stadium. Evarn Tuimavave is on stand-by.

The Australian

 

[skeepe]

Why is it greed? The players are under-payed at the moment, and I'm all for an increase in the salary cap of $1m, on the proviso of course that the NRL's grant to the clubs also increase by $1m.

 

[Baron Vo Mandor]

But you've gotta make sure that its spread equally among players bring up the minimum payments of a 1st grade player from 50k to 75k - FFS they're a proffessional athlete 50k's pretty poor.

So that it doesnt go towards your Joey's and Locky's because we know if newcastle had of had a 4.5k salary cap then it probably would've been spent on him!!!!

 

[League Freak™]

Why is it greed? The players are under-payed at the moment, and I'm all for an increase in the salary cap of $1m, on the proviso of course that the NRL's grant to the clubs also increase by $1m.

because the players signed off on a CBA not to long ago that basically set alot of things in the game in stone.

The players were catered for with increases in that cap already....and the cap rises every year to keep pace with inflation.


The players need to understand that of the money that will go to the clubs....for the most part its needed to get the Rugby League business on a stable footing that it hasnt had since 1994.


Now isnt the time to push for massive increases....it would be the nest TV deal where that should happen.



Also, can I just ass that at this point, any major chnages to the salary cap would benifit the top 5% of players in the game. This move would just see the likes of Andrew Johns getting even more money.



Im not saying that dont deserve that money....Im just saying that considering we are just getting over a period where players salaires went through the roof and almost sent the game broke....maybe they can hold off a few years to protect the very game they make a living off before they go for increases and start to try and change rules they signed off on not to long ago.

 

[skeepe]

No, I don't think there should be any obligation for that at all. It's up to the clubs good management (or lack thereof) to spend the money as they see fit. If they want to spend $1m a season on 1 player, good luck to them, the rest of the squad will surely suffer.

The minimum contract for someone on the fringe of first grade is $50K - that's a hell of a lot of money for not all that much work.

 

[League Freak™]

No, I don't think there should be any obligation for that at all. It's up to the clubs good management (or lack thereof) to spend the money as they see fit. If they want to spend $1m a season on 1 player, good luck to them, the rest of the squad will surely suffer.

The minimum contract for someone on the fringe of first grade is $50K - that's a hell of a lot of money for not all that much work.

$16,000,000.


The RLPA who just signed off on the CBA that giverns things like players salaries and salary cap increases wants to tear $16,000,000 out of the game?

Why?

Because its there....so why should it be spent on them?


Im sorry but I believe that money is VITAL to puytting in place some of the things the game has gone without now for years.

Simple things like marketing and junior development. Competietions that have barely been able to get enough teams togeather to form a comp....

This money should be spread through the game as much as possible. It shouldnt be greedily snatched by the top 0.01%.

 

[Dogs Of War]

I don't mind the cap increasing due to a new TV deal, but it shouldn't be increased in just one year by $1million, do it as say $200K a year over 5 years. At least the clubs can get some extra money to fix things up. Also the last thing league needs is clubs throwing money around so a Super league style bidding war erupts.

 

[DJ1]

The priority should be on the NRL to fully fund the clubs salary cap liability.

i.e.

Currently there are 15 clubs who receive a $2.5M NRL grant = $37.5M

The Salary cap is in reality $3.5M per club including allowances = $52.5M

The shortfall is currently $15M

If you bring in a 16th team and increase the cap to $4.5M per club you have

16 clubs sharing $37.5M = $2.34M per club

16 teams @ $4.5M = $72M

Thus new shortfall = $34.5M

Proposed additional FTA revenue = $27M per year ($40M minus current $13M)

The result will be a further drain on all other expenditure.


A more responsible approach would be to institute a 16th team and fully fund the cap with modest CPI increases each year.

A $3.5M grant to each club will fully fund their current teir 1 salary cap components.

A $4M grant to each club will fully fund all primary and secondary cap components for the cost of an additional $27M which co-incidently is the difference between the current $13M deal and the proposed $40M deal.

 

[AlexM]

$4.5million is just too much and I think the RLPA are jumping to conclusions here with the increase in $1million in salary.

But I can see players getting peanuts from the salary cap so its best if the NRL can balance this thing up or it will get worse.

 

[griff]

The RLPA are ridiculously shortsighted, they are just seeing the dollar signs and trying to grab all the money they can.

If all the money ended up just going to the players, clubs would be going broke left right and centre. Then guess what, no more jobs for the players.

What other occupation had average wages rise 300% in a single year? We now have wages under control, and some sensible CPI based increases are what is needed, not pumping millions of dollars into player's pockets so they can party like its 1995.

 

[MitchEel]

I'm for the increase

 

[flamin]

Players can get a pay increase but I would like to see most of the money go to the development of the game in Australia and also into the international game.

 

[Cowboy Fan]

The NRL has taken a few ideas from the NFL in the past and im surprised they havent changed the salary cap idea to the one the NFL has introduced because it seems to work well. The NFL from what i understand increase the salary cap each year due to TV and sponsorship deals devided among the clubs.