i agree with your source, the cap is a farce. it doesn't work. i'm pretty amazed by the amount of people who "trust" the cap, to the point of getting outraged when a team like Melbourne gets pinged for massive breaches.I have been told by a very well connected source at a NRL club (not Newcastle) that providing a club actually has the money available, signing a player with respect to the cap isnt an issue. There are enough legal and other means to ensure the player is adequately compensated without an issue.
I suspect that a number of clubs are backending contracts assuming a substantial cap increase for the next few years, if there isnt, I suspect some clubs will be in the sh*t.
The key point is how effective some clubs are at managing their caps and getting quality into the team and how sh*tty some clubs are at stocking their teams.
Our fundamental issue for too long has been our inability to produce and retain quality juniors.
one course of action that might help things is having all player payments, including 3rd party, be registered with and paid by the NRL themselves, rather than letting the clubs handle the finance. most of the money that pays the players under the cap comes from the NRL grant anyway. make all players register their endorsements with the NRL, too - even have the endorsements paid to the NRL - and then to the player from the NRL. there needs to be an independent body looking after the money exchanging hands. it wouldn't eradicate the problem, but it would be better than what we have.But whats the alternative though?
We need a cap to maintain at least a semblance of balance across the comp. The richer clubs will always have an advantage over the poorer ones but at least the enforcement, all be it flawed enforcement, of a cap reigns that advantage in some what.
one course of action that might help things is having all player payments, including 3rd party, be registered with and paid by the NRL themselves, rather than letting the clubs handle the finance. most of the money that pays the players under the cap comes from the NRL grant anyway. make all players register their endorsements with the NRL, too - even have the endorsements paid to the NRL - and then to the player from the NRL. there needs to be an independent body looking after the money exchanging hands. it wouldn't eradicate the problem, but it would be better than what we have.
there are issues with this system, too... and i can think of a couple of ways to circumvent it easily enough, but it may well be easier to catch people in the act.
honestly, i don't really have the answers. i have some ideas, but ultimately I just know that the current system does not function as well as we are led to believe. not even close.
If the cap is to work effectively then it needs to be a overall football talent outlay cap. So the actual cap may be 5M for the FG team, 1M for 2nd tier and 1M for all other contracts.
Otherwise you get a situation like Melbourne or Brisbane who spend enormous amounts of money tieing up juniors. I think that a few years ago Melbourne signed something like 8 or 9 of the junior Kangaroos from one year.
Rich clubs can lock up vast amounts of emerging talent and then cherry pick the best.
Perhaps they should also limit the amount spent on Sports science and conditioning, to try and level the playing field. You have instances where Melbourne are poring enormous amounts of money into this area of their club and reaping the benefits, a club like the Sharks or Newcastle of old couldn't afford to, whereas Melbourne never have had to live within their means, it was always News or now the NRL writing checks each year to fund their excesses.
That's th beauty of capitalism. Now we're at the forefront of all that and now (hopefully) we'll be the benchmark club for the next 10 maybe 15 years.