Under NRL rules, the salary cap auditor will consider the following three points before making a cap exemption ruling:
“The Player, at the time of termination, was diagnosed as medically unfit to currently continue to train and play elite level contact sport and was medically unable to ever return to play elite level contact sport due to the current level of disability or the significant risk of further disabling injury as a result of playing elite level contract sport"
This should be as straight forward as reviewing the medical advice the club has received from several doctors. The key part of this is "significant risk or further disabling injury" in the future.
The NRL may wish to seek their own advice on this, but you would have thought that the club got opinions from the best doctors in the world.
If his insurance pays out, the NRL should take this as third party verification which ticks this box.
"The Player, had no similar injury or medical condition to that area of the body that either has or could reasonably be predicted medically to lead to a degenerative condition of that area of the body prior to signing his last NRL contract or if the players contract was signed more than 24 months previous within the last 24 months unless an unrelated single event has resulted in rapid deterioration of this condition" and
Last shoulder injury was in 2011, 8 years ago as reported by Fox Sports. Condition met.
"A single event that caused the injury could be identified.”
The event is being reported as an infection from the surgery mid-season.
It looks pretty clear cut to me if the first condition is met.
The only element of his contract that I believe should remain in the cap is if the club decides to pay Sammy the shortfall between an insurance pay out and his contracted salary if he walks away from the club.
If they decide to put him in a non-administrative role his salary should count towards the Football Operations Cap.
Interesting that the decision is being made by a guy who has zero background in anything close to the field of medicine.