Rumoured & Confirmed Signings - Part 5

[BossleyPanther]

That is the risk they are taking, As it turns out depending on what the car was Crichton might even of gone for less money

The car would be under the salary cap surely? So why offer the car and not the money it is worth? Doesn't make sense?

 

[Iamback]

The car would be under the salary cap surely? So why offer the car and not the money it is worth? Doesn't make sense?

No the car is outside the cap.
Given it came as a story leaked by Crichton's manager then there is no reason to doubt it.

Very likely the club got caught out by the amount the cap rose by as it was in May

 

[Murraymob1]

His

The car would be under the salary cap surely? So why offer the car and not the money it is worth? Doesn't make sense?

His brother getting a contract would have weighed more into it than a car

 

[Crashtest]

No the car is outside the cap.
Given it came as a story leaked by Crichton's manager then there is no reason to doubt it.

Cars are outside the salary cap, but they have their own cap. So a club can’t get a player a Ferrari as an extra enticement.

Each club can spend up to $94,000 a year. A maximum of 5 cars can be provided to top 30 players, valued at $18,800 each.

 

[Iamback]

Cars are outside the salary cap, but they have their own cap. So a club can’t get a player a Ferrari as an extra enticement.

Each club can spend up to $94,000 a year. A maximum of 5 cars can be provided to top 30 players, valued at $18,800 each.

Very hard to get new cars for $18k unless it is a little hatchback, Which isn't practical for the players often a lease is done up and the player gets a brand new car and the car is onsold as ex fleet.

 

[Crashtest]

That is the risk they are taking, As it turns out depending on what the car was Crichton might even of gone for less money

Crichton didn’t leave for less money though. It was reported that the offer with the ratchet clause that the Panthers made to him in May had been withdrawn.

They obviously did the ratchet clause calculation once the new cap amount had been confirmed, realised the mistake they had made by offering it with that size percentage, and withdrew the offer.

So we are lucky his agent advised him not to sign it!

 

[Munky]

That would be 18k a year in lease payments not buying the car out right.

Pretty common scenario for any business.

 

[Crashtest]

Very hard to get new cars for $18k unless it is a little hatchback, Which isn't practical for the players often a lease is done up and the player gets a brand new car and the car is onsold as ex fleet.

The $18,800 would be the annual car package amount, not the purchase price amount. So it would cover the lease payment, rego, insurance, repairs, etc.

 

[Crashtest]

That would be 18k a year in lease payments not buying the car out right.

Pretty common scenario for any business.

Sorry Munky, I answered before reading your reply

 

[Munky]

Sorry Munky, I answered before reading your reply

No worries, the interesting thing is the Fringe Benefits Tax on the car.

Whether the NRL considers the lease payments/running costs rather than the full cost which would double after applying the FBT in the cap.

 

[Crashtest]

No worries, the interesting thing is the Fringe Benefits Tax on the car.

Whether the NRL considers the lease payments/running costs rather than the full cost which would double after applying the FBT in the cap.

Good question. The NRL should hire you as a salary cap auditor!

 

[Abacus]

No worries, the interesting thing is the Fringe Benefits Tax on the car.

Whether the NRL considers the lease payments/running costs rather than the full cost which would double after applying the FBT in the cap.

Sporting clubs and the like (not for profits) generally have concessional FBT allowances, so FBT will be assessed at a lower rate than typical businesses. Any FBT will be included in the cap assessed amount.

 

[Munky]

Sporting clubs and the like (not for profits) generally have concessional FBT allowances, so FBT will be assessed at a lower rate than typical businesses. Any FBT will be included in the cap assessed amount.

I was aware not for profits have some FBT exemptions (used heavily by hospitals and schools).

I don't know the exact structure or employing entity of the players. I'd assume it would be not for profit for Panthers but a club like the Broncos listed on the ASX I'd imagine gets no exemptions since by definition they're for profit.

 

[Abacus]

I was aware not for profits have some FBT exemptions (used heavily by hospitals and schools).

I don't know the exact structure or employing entity of the players. I'd assume it would be not for profit for Panthers but a club like the Broncos listed on the ASX I'd imagine gets no exemptions since by definition they're for profit.

I can't speak for the Broncos, but for Panthers the leagues club entity (which hires most of the panthers group staff) is for profit, the football club which contracts the players is NFP.

In respect of salary cap value, likely the NRL just state this is the cap value for a MV to be applied across the comp and leaves the clubs to manage their own tax affairs. This may result in a small disconnect (either way) in FBT included in the cap and the actual amount payable by the club.

 

[BxTom]

Very hard to get new cars for $18k unless it is a little hatchback, Which isn't practical for the players often a lease is done up and the player gets a brand new car and the car is onsold as ex fleet.

Not an outright purchase, but a yearly lease for $18,800 obviously.

 

[Smartman]

Has big Spencer Leinu made up his mind yet? Will he join Critta at the doggies

 

[Whino]

Has big Spencer Leinu made up his mind yet? Will he join Critta at the doggies

Still TBD. But Christian Crichton will be joining his brother at the Doggies!

 

[Iamback]

Crichton didn’t leave for less money though. It was reported that the offer with the ratchet clause that the Panthers made to him in May had been withdrawn.

They obviously did the ratchet clause calculation once the new cap amount had been confirmed, realised the mistake they had made by offering it with that size percentage, and withdrew the offer.

So we are lucky his agent advised him not to sign it!

This is from the article posted

The deal with Tago was done quickly. Both parties then agreed to hold off on negotiations through the Origin period.
Ayoub says that on July 29 he sent two separate emails to Panthers rugby league chief executive Matt Cameron.

One detailed his expectations around what it would take to extend To’o, a deal that was finalised in December.
The other was a proposal for an extension, believed to be worth in excess of $800,000, of just one year for Crichton. The request also included a car and a ratchet clause.

Crichton made Origin, Then his side wanted an extra $100k and a shorter deal. Then the deal was pulled, ( Which goes with @Blade23 post on it earlier too )

 

[Iamback]

iNot an outright purchase, but a yearly lease for $18,800 obviously.

Hence this part of my post.

players often a lease is done up and the player gets a brand new car and the car is onsold as ex fleet.

As we know with car leases they come with the option to buy at the end. 3 years on a $18k lease most cars will leave the player with a small payment to keep it, Hence my original post about depending on the car make to see the true cost

 

[The yak]

Has big Spencer Leinu made up his mind yet? Will he join Critta at the doggies

Go develop your own players.