http://www.dailytelegraph.com.au/sp...d/news-story/394a0ad0e4d1de16993d141799c4979d
NRL warns clubs on spending spree: contracts may not be registered
MICHAEL CARAYANNIS, The Daily Telegraph
13 minutes ago
BIG-SPENDING clubs have been warned they risk the contracts of their high prized recruits not being registered by the NRL if they exceed the game’s proposed new salary cap.
The NRL wrote to the 16 club chief executives on Thursday night sending a stern warning that the clubs must adhere to the proposed salary cap of $8.84 million for next year — or risk their contracts not being registered.
The proposed salary cap was about $1 million less than clubs had budgeted for next year, throwing recruitment drives into chaos.
Club bosses are expected to wage war against the NRL if the salary cap is not raised.
It is understood the NRL believes that while most clubs are compliant they have concerns some have spent more than the proposed salary cap.
Clubs such as Canterbury and the Roosters will be asked to front up to the NRL and explain their salary cap situation after landing representative stars Aaron Woods, Kieran Foran and James Tedesco on rich deals from next season.
The NRL’s warning also comes as St George Illawarra finalise a four-year deal to retain captain Gareth Widdop.
The Dragons had been forced to increase their offer to retain the 28-year-old five-eighth and are expected to make an announcement in the next two days.
There is widespread belief the salary cap will rise once the Rugby League Players Association puts in its counter offer which is due within weeks.
In the meantime however, the NRL has told clubs to tread carefully with their spending — telling them there is no excuse for exceeding the proposed salary cap in a letter obtained by the Daily Telegraph which was sent by the NRL’s salary cap auditor Richard Gardham.
The NRL’s offer of $9.14 million includes a host of non-player payments including $200,000 for insurance, $100,000 for funding the RLPA and $150,000 for welfare officers — which clubs do not want to include in their salary cap.
“As you are aware we have presented the 2018-2022 draft salary cap to club CEOs and the RLPA as part of the current CBA negotiations,” Gardham said.
“The offer presented to the RLPA provides for $9.14m in salary cap and allowances for the top 30 players in each club (plus six Development List players). On a like-for-like basis this is almost 20 per cent more than the equivalent 2017 figure.
“Clubs were provided with the indicative 2018 salary cap value on 30 March. At this time, it is the NRL’s expectation that this number is used by clubs for planning their 2018 rosters.
“Any club that contracts in excess of this number does so with knowledge of the proposed 2018 salary cap as it currently stands and risks contracts not being registered.
“Any club which believes it is likely to exceed the 2018 salary cap based on current agreements should notify the salary cap auditor immediately with a plan to ensure the club is salary cap compliant for the 2018 Season. Naturally, the NRL will provide support where appropriate.”
One club official said: “The line in the sand attitude has created a huge dilemma for the NRL.”
While the uncertainty surrounding the salary cap has halted some club’s recruitment bids, others have remained active in the player market. There have been threats of legal action if players are forced to move on with fears clubs may need to shed players after over-estimating the salary cap.
Warriors chief executive Jim Doyle said Wednesday’s letter was the first time the clubs had received “clarity” from the NRL.