Salary cap shenanigans

[Hugh Jarse]

^^^^^

A shrewd and strategic marketing initiative then.

 

[waratahjesus]

Bruce - the Tahs posted a 50k profit last year, there being unfairly punished for reinvesting in grass roots rugby. No other team can hope to sign up and coming nsw players that can contribute to successful teams unless the Tahs continue to keep the ones that can't under contract.

It's just tall poppy syndrome that all those that were so adamant that a salary cap was an unfair restriction of trade are up in arms about NSW taking a stand against this tyranny on their behalf.

 

[Hugh Jarse]

$50k profit last year. Hmmm. Just enough to cover the alleged salary cap issue from this year.

 

[Braveheart81]

I'm going to send the Tahs an invoice for ground hire and see if they pay it.

 

[wamberal]

Why do we have a salary cap?

 

[Richo]

Why do we have a salary cap?

To stop salary arms races that lead to the ARU funding the resurrection of bankrupt state unions.

 

[Karl]

So what is the situation with salary caps on South African and NZ teams<

 

[Slim 293]

Bruce - the Tahs posted a 50k profit last year, there being unfairly punished for reinvesting in grass roots rugby. No other team can hope to sign up and coming nsw players that can contribute to successful teams unless the Tahs continue to keep the ones that can't under contract.

It's just tall poppy syndrome that all those that were so adamant that a salary cap was an unfair restriction of trade are up in arms about NSW taking a stand against this tyranny on their behalf.

When it comes to this years Gagger awards, there doesn't need to be a nomination process for the cyclops award.......

WJ, let me be the first to congratulate you.

As last years winner, I am honored to hand over the trophy to such a worthy recipient.

 

[Richo]

As Bruce Ross would say, the dark arts of satire are all too often missed.

 

[Richo]

So what is the situation with salary caps on South African and NZ teams<

Saffers don't have them. I believe NZ has some kind of cap system, but it works differently... I recall someone on here explaining it last year, but don't remember where.

 

[Slim 293]

As Bruce Ross would say, the dark arts of satire are all too often missed.

Oh no, it's definitely been picked up.......

You really do have to admire WJ's work though....... He could've given the holocaust a positive spin.......

 

[Karl]

Its ridiculous that we compete in the same comp with teams that have different systems for their financial incentives t players.

Everyone probably read this, but I found much of interest in it ; http://www.theroar.com.au/2012/03/09/a-salary-cap-and-trade-system-for-super-rugby/

 

[Braveheart81]

I'm pretty sure the Australian Super Rugby teams have higher overall wage costs than the New Zealand teams.

I don't think our teams are necessarily hamstrung by the salary cap we have in place here.

 

[waratahjesus]

Karl - we only compete for talent with other Aus teams. The Saffa and kiwi models are really of no concern.

 

[Karl]

I disagree. Any imbalance in player remuneration systems advantages one team over another, or one conference over another. Its proven that players are mobile internationally and within Australia we compete heavily for talent against the NRL, which is not an issue for the Saffas or New Zealand.

 

[Linebacker_41]

So what is the situation with salary caps on South African and NZ teams<

One would think that it would be to spread the talent across Australia and have 5 strong teams in the Super Rugby comp.

If this is the case from the ARU, then they have failed to recognise the value of winning or the perception that one program can lead to higher honours. Thereby ensuring that they get one of the few top ups from the ARU.

These top-ups counteract the salary cap desire to spread the talent. From the limited knowledge I have of cricket it is similar to their model. The difference is that the national cricketers very rarely play for their state. Therefore the state programs are relatively similar in terms of talent base for the various forms of the game.

Back to rugby - NZ is on a similar system to Australia (one would think that Nuci stole this from NZ without remembering that the kiwis have the ITM cup) and SA has no cap and more importantly have no restrictions on their academy programs. The Academy programs will ensure that the top 3 sides from SA will remain strong. Again players like to win and they will naturally migrate to the big 3 to ensure that they maximise the chances of winning a title.

 

[Braveheart81]

The ARU hands out the money though.

They implement a salary cap so that there is some parity between the sides that can more easily generate additional revenue (Qld and NSW) and the franchises in non-traditional rugby cities like the Force and Rebels.

It is also to stop teams going broke which has happened before.

We will never have the money to be able to remove the financial incentives of going to play in Europe or Japan. The carrot to keep people here is the desire to live in Australia and have the chance of playing for the Wallabies.

 

[SteveMerrick]

How could NSW even possibly approach breaching the salary cap, surely the players should be on an incentive results based contracts with some portion of their cash at risk for non-performance.....perhaps some of the Tahs players are actually earnings negative for the year!

What happens to the players concerned if they haven't declared the folding green stuff as income, they may be looking at some ATO penalities on top of any tax outstanding and interest - avoidance penalites normally start at the 25 - 50% of the total amount not just the tax that has been saved... could be an expensive little rort for the players themselves....

 

[Braveheart81]

That is incorrect.

Shortfall penalties are based on the shortfall of tax, not the total tax owed for the year.

Penalties range from 25% for failure to take reasonable care, 50% for recklessness to 75% for intentional disregard.

 

[Richo]

One would think that it would be to spread the talent across Australia and have 5 strong teams in the Super Rugby comp.

A secondary concern, but not as important as having 5 solvent teams.