I don't believe for a second the knights are set up to lose from the outset with TPA's. The Knights have a huge area they can canvas for TPA's and if they can't find anything, well that is either a sign of the clubs ineptitude at arranging them, or the region not feeling linked to the club enough to want to offer them or spend the money to see the Knights successful.
What I see, is that we have a salary cap. It is meant to represent what each team can spend on their squad. Yet, it does not due to various third party agreements outside the cap. If an NRL team were to include all third party agreements in their cap amount, what would we see is the true team value?
I just read a transcript of a discussion from back when the Storm were caught. I found it interesting:
http://www.sbs.com.au/news/sites/sb.../363421_insight_cheatingtowin_transcript.html
One of the comments was from a player agent who was negotiating Thurstons contract at the time. He made the comment that he gets asked a lot why hasn't the Thurston contract been finished yet. The reason was, that they were busily sourcing TPA's in the background to keep him there. Now that is money outside the cap. The purpose of the cap is to spread the talent around by enforcing teams spend equally. This isn't working. If the cap was working properly, Thurston would have had to move to another club, or leave the game to play union etc.
Another comment from a player manager stated he had a player agree to terms with a CEO of a club for $250,000 per season, the contract arrives and it is for $200k per season with a TPA contract for 50k with it. Again, this is against the very idea of a salary cap. It isn't working in it's current form.
The cap can only function fairly, when all aspects of player payments are capped. Even then, you will have teams who will pay players outside the cap, but you always will. And you will lose some players to other sports, that has to be the cost of running the league fairly, keeping the playing field level. I'm not against TPA's, but I am against the wild west that TPA's are now.