DT
By Josh Massoud | June 07, 2008 12:00am
CANBERRA and Penrith are headed for court after lock forward Nathan Smith last night ignored the Raiders' legal threats to formally re-sign with the Panthers for a further three years. As revealed in The Daily Telegraph, Canberra's lawyers had warned Smith and Penrith they would sue for breach of contract if the 25-year-old reneged on his deal to head to the ACT next season.
Smith and the Raiders agreed to a three-year contract on 29 April, but the NRL's new transfer rules allowed Penrith to lodge a final bid to retain his services before the end of this round. Unable to find a replacement back rower, Penrith exploited that option late yesterday.
During a meeting with Panthers coach Matt Elliott, CEO Mick Leary and the club's lawyers, Smith was assured he would not be liable for damages if he backed-out of the Canberra deal. It is understood the Panthers even provided him with an indemnity against any court action before he agreed to put pen to paper.
Having recently purchased a house at the foot of the mountains, Smith and his girlfriend had settled into Sydney's west and never wanted to leave. But when Canberra weighed in with a offer $50,000-a-year greater than Penrith's, the big money proved too much to refuse.
After witnessing teammate Luke Lewis successfully wriggle out his deal with Souths to remain at Penrith last week, Smith started to have second thoughts. He approached Leary late last week and the Panthers indicated they would match Canberra's offer. "I just have to do what's best for me and my family,'' Smith told The Saturday Daily Telegraph. "Staying in Penrith is what's best for us.''
Livid Raiders officials beg to differ. Upon learning Smith had re-signed with Penrith, Canberra chairman John McIntyre said he was "even more confident'' they could now successfully sue for breach of contract. "It only strengthens our case because we've now got physical evidence of a breach of contract,'' he said. "Our advice is that a contract is a contract - no matter what the NRL rules say. I wish Penrith good luck.''
McIntyre slammed Penrith for sneaking Smith back into its roster, and lamented "the death of a contract'' in rugby league. "For all of my talking and walking life my passion has been for this game,'' he continued. "But I don't know any other sport that allows this type of thing to happen.''
Raiders lawyers fired a letter to Smith's agent Sam Ayoub last weekend, giving the player until Tuesday night to sign his deal with Canberra. In failing to inform them of his intention to stay a Panther, Canberra allege Smith has acted "unconscionably''. They are also confident damages should result from the fact Canberra stopped looking for back rowers under the belief they had Smith secured.
The NRL last night said Smith and Penrith had complied with its rules. For Canberra to enjoy a wholesale right over Smith's services, Penrith had to notify NRL salary cap auditor it had rescinded its option to re-sign the player. But the Panthers did not, and their lawyers believe that will ensure a successful defence should the matter end up in court.
NRL boss David Gallop was in Brisbane yesterday, but will speak with Penrith and Canberra officials over the weekend. Smith is also a member of the Rugby League Players' Association, whose president Matthew Rodwell is also understood to be part of the negotiations.
Ayoub said his client had been placed in an unfair dilemma. "As much as I'm not happy with the situation there are rules in place that allow people to renege on contracts and that's an issue the NRL need to take a long, hard look at.''
By Josh Massoud | June 07, 2008 12:00am
CANBERRA and Penrith are headed for court after lock forward Nathan Smith last night ignored the Raiders' legal threats to formally re-sign with the Panthers for a further three years. As revealed in The Daily Telegraph, Canberra's lawyers had warned Smith and Penrith they would sue for breach of contract if the 25-year-old reneged on his deal to head to the ACT next season.
Smith and the Raiders agreed to a three-year contract on 29 April, but the NRL's new transfer rules allowed Penrith to lodge a final bid to retain his services before the end of this round. Unable to find a replacement back rower, Penrith exploited that option late yesterday.
During a meeting with Panthers coach Matt Elliott, CEO Mick Leary and the club's lawyers, Smith was assured he would not be liable for damages if he backed-out of the Canberra deal. It is understood the Panthers even provided him with an indemnity against any court action before he agreed to put pen to paper.
Having recently purchased a house at the foot of the mountains, Smith and his girlfriend had settled into Sydney's west and never wanted to leave. But when Canberra weighed in with a offer $50,000-a-year greater than Penrith's, the big money proved too much to refuse.
After witnessing teammate Luke Lewis successfully wriggle out his deal with Souths to remain at Penrith last week, Smith started to have second thoughts. He approached Leary late last week and the Panthers indicated they would match Canberra's offer. "I just have to do what's best for me and my family,'' Smith told The Saturday Daily Telegraph. "Staying in Penrith is what's best for us.''
Livid Raiders officials beg to differ. Upon learning Smith had re-signed with Penrith, Canberra chairman John McIntyre said he was "even more confident'' they could now successfully sue for breach of contract. "It only strengthens our case because we've now got physical evidence of a breach of contract,'' he said. "Our advice is that a contract is a contract - no matter what the NRL rules say. I wish Penrith good luck.''
McIntyre slammed Penrith for sneaking Smith back into its roster, and lamented "the death of a contract'' in rugby league. "For all of my talking and walking life my passion has been for this game,'' he continued. "But I don't know any other sport that allows this type of thing to happen.''
Raiders lawyers fired a letter to Smith's agent Sam Ayoub last weekend, giving the player until Tuesday night to sign his deal with Canberra. In failing to inform them of his intention to stay a Panther, Canberra allege Smith has acted "unconscionably''. They are also confident damages should result from the fact Canberra stopped looking for back rowers under the belief they had Smith secured.
The NRL last night said Smith and Penrith had complied with its rules. For Canberra to enjoy a wholesale right over Smith's services, Penrith had to notify NRL salary cap auditor it had rescinded its option to re-sign the player. But the Panthers did not, and their lawyers believe that will ensure a successful defence should the matter end up in court.
NRL boss David Gallop was in Brisbane yesterday, but will speak with Penrith and Canberra officials over the weekend. Smith is also a member of the Rugby League Players' Association, whose president Matthew Rodwell is also understood to be part of the negotiations.
Ayoub said his client had been placed in an unfair dilemma. "As much as I'm not happy with the situation there are rules in place that allow people to renege on contracts and that's an issue the NRL need to take a long, hard look at.''
