FORUMS FORUMS






RLFANS.COM
Celebrating
25 years service to
the Rugby League
Community!
  
FORUMS > The Virtual Terrace > Why isn't salary cap working?
90 posts in 7 pages 
<<   PREV  NEXT   >>
Subscribe | Moderators: Admin, Durham Giant , TimperleySaint
RankPostsTeam
Player Coach22777
JoinedServiceReputation
May 200618 years
OnlineLast PostLast Page
Jun 2020Feb 2018LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature

//www.pngnrlbid.com [quote="bUsTiNyAbALLs":9q9d2t35]Do not converse with me you filthy minded deviant.[/quote:9q9d2t35] [quote="vastman":9q9d2t35]My rage isn't impotent luv, I'm frothing at the mouth actually.[/quote:9q9d2t35]:



Quote: bren2k "If you over-value, you overspend; you're nit-picking on language. And no, I'm not changing the terminology or conclusions to suit - I'm summarising the findings of research specifically into SC's in sport, which is extensive, academic and credible.'"
But a club over-spending is different to my point which was regarding the value of players.

Quote: bren2k "Different kind of inflation - as you well know, so it really is logical; if certain teams can suddenly inflate the wages of players to attract them to their clubs, less wealthy clubs either have to gamble to keep up by paying more than they can afford, or fall behind - both resulting in financial difficulties. The more likely scenario is that certain teams have a roster of internationals and talent is aggregated at those clubs - damaging the competitiveness of the league and impacting negatively on spectator interest at all but the wealthiest teams.'"
in principle it is the same kind of inflation. My wage inflates not to keep pace which general inflation but (in simple terms) to keep me from leaving to a competitor.

There isnt a relationship (at the top level) between affordability and the cap. Part of the franchising criteria was a £4m turnover, so we can safely assume some clubs were below or at least around that amount. So we can see that some clubs will be spending towards 50% of their turnover on wages, whereas others would be spending closer to around 15-20%, this is important........


Quote: bren2k "I don't know.'"

because talent already aggregates at the big clubs and smaller clubs will always have to gamble on spending more (relative to both their own turnover, in relation to the big clubs, and absolutely) to keep up, but the salary cap reduces the chances of the smaller club being able to achieve success.

And again, the spread or movement of talent from big to smaller, and the limiting of talent being brought in by the big clubs can be achieved better in other ways.

Quote: bren2k "US anti-trust law was based on UK anti-competition law - and now the influence is strongly in the other direction; EU law applies in some cases (possibly SL, since the inclusion of a French team means it crosses borders) and again, that was heavily influenced by the US model; so whilst the terminology and laws are different, they will be closely aligned and I just can't see an agreement that has been subject to collective bargaining being ruled any differently here than it was in the US. And if the SL players union is toothless - perhaps that's something for Jon Wilkin and his comrades to sort out - not a judge.

In terms of it working in everyone's favour - you miss out a key stakeholder group - the supporters; and it would be fairly straightforward to argue that an unregulated bun fight for players signatures would not be in their favour. Unless they happen to be supporters of a club with unlimited funds of course, which is exactly what a SC seeks to avoid.'"
Even if we accept that the US anti-trust law is by and large identical to ours (im not saying it is) then Super league's application of it simply isnt anywhere close to US sports application of it.

And the best way for the SL players to assert their rights would be through legal judgement.

Im not forgetting the Supporters, because it can be strongly argued that the SC cap disadvantages supporters by excluding the best players in Rugby from SL, by the entrenchment of success, in our system by disadvantaging some clubs from promotion and all the arguments negative to the SC.

Quote: bren2k "In economic terms, there is no meaningful substitute; if Coca Cola put their fizzy spew up to £5 a tin, I can buy Pepsi's alternative spew - or a supermarket own brand. If Wakefield put their ticket price up to football levels or go out of business, I can't suddenly start supporting Leeds, or go to the pictures instead - sport doesn't work like that, nor should it, and economists understand that perfectly well - hence the significant amount of research into the subject.

I hope Derek Beaumont does take the RFL to court over the SC - I think he'd lose, and the concept of the SC would have a sound basis in law - then we can stop arguing about it.'"
Its not a fashionable statement, but it is undoubtedly true, but if Wakefield were to go out of business you can suddenly start supporting leeds, you could go to the pictures, you can go watch a different sport.

As for if Beaumont were to take the RFL to court (or a player were) i would question how far SL/The RFL would go to enforce a rule that actually has no benefit to them. I guess on the Marwan/Evalds thread we might be seeing an answer soon.

RankPostsTeam
International Star578No
Team
Selected
JoinedServiceReputation
Oct 201212 years
OnlineLast PostLast Page
Jan 2019Jan 2019LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature

:



Why isn't it working?

Well read it ... rlhttp://www.therfl.co.uk/the-rfl/rules/interactive_operational_rules?section

Interesting (E1:3:1) that it would only take a vote of 6 clubs (say Salford, Wakefield, Widnes, Hull, Hull KR & Castleford) to increase the cap from the current £1.825 million a year to say £5 million. Those clubs could stick to paying what they can afford as most do now & see what happens at the 'big' clubs.

RankPostsTeam
International Chairman14845No
Team
Selected
JoinedServiceReputation
Dec 200123 years
OnlineLast PostLast Page
Oct 2021Jul 2021LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
143_1357419061.jpg
:d7dc4b20b2c2dd7b76ac6eac29d5604e_143.jpg



See Union clubs have been given a £1million pa increase in salary caps. Should we expect a major raid on top RL players as their idea of a quick fix for their ineptitude at international level? Also Gatland and Edwards look likely to be approached for England RU coaching jobs.

RankPostsTeam
International Board Member16601No
Team
Selected
JoinedServiceReputation
Aug 200222 years
OnlineLast PostLast Page
Mar 2024Nov 2023LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
cartoons/WB181.gif
:cartoons/WB181.gif



Rugby Union levels will be £6.5m in 2016/17 and £7m in 2017/18, plus exclusions for 2 players etc

This is why we are getting left behind and why we must ditch the cap or at worst double it to £4m or so

RankPostsTeam
Player Coach3134
JoinedServiceReputation
Oct 200519 years
OnlineLast PostLast Page
Jul 2024Jul 2024LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature

Pollsters doing Excellent job - say recent polls.:



Quote: maurice "Rugby Union levels will be £6.5m in 2016/17 and £7m in 2017/18, plus exclusions for 2 players etc

This is why we are getting left behind and why we must ditch the cap or at worst double it to £4m or so'"


Whilst we are getting left behind financially, the RU cap covers a first team squad of about 40 players on average.

RankPostsTeam
International Board Member16250
JoinedServiceReputation
Feb 200222 years
OnlineLast PostLast Page
Feb 2020Feb 2020LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
953.jpg
2015 - major missed opportunity, 2016 - stronger teams = harder task (no problem there then), 2017 - OMG What now!!!:953.jpg



What is the funding from the RFU to the clubs Mo

RankPostsTeam
Player Coach3134
JoinedServiceReputation
Oct 200519 years
OnlineLast PostLast Page
Jul 2024Jul 2024LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature

Pollsters doing Excellent job - say recent polls.:



Quote: SmokeyTA "
What the salary cap does is stops an ambitious lower club paying out enough to tempt a Stevie Ward to sign for them instead of Leeds because the opportunity cost of doing so is too large. So it keeps the value of Stevie Ward lower than it otherwise would have been. So Leeds can offer Stevie Ward or Josh Walters, or Jimmy Keinhorst a relatively low wage because an ambitious lower club would need to offer substantially more to overcome the other things leeds offer meaning they cant spend as much elsewhere and the clubs who can offer the same 'other' things as Leeds cannot offer a meaningful amount more than Leeds because of the cap.

This is why we see such a relatively small amount of movement of star players. We dont even see them moving between the big clubs. When a star player moves he will go to Union or the NRL. Who was the last star player to move between SL clubs? Stuart Fielden? thats nearly a decade ago.

The reality of the salary cap is it has destroyed the market for top quality players, they simply dont move from the top clubs. So an ambitious lower club is at a disadvantage in signing young players, have to pay more to attract fringe players and simply cannot sign top players. Its all very well arguing that good youth development allows a club to get more value from the cap, but it is impossible under the cap for a lesser club to create a fair playing field in attracting those players. The SC entrenches the big clubs at the top and the bottom clubs at the bottom.'"


Also need to remember that a testimonial year will be of much more value to a player who can stay at (for example) Leeds or Wigan for 10years than at other clubs as the majority of testimonial money comes from the corporate side. This will have a bearing on young players contract negotiations.

RankPostsTeam
International Star1704
JoinedServiceReputation
Aug 201113 years
OnlineLast PostLast Page
Oct 2023Dec 2020LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
61641_1313077623.png
[color=#FF0000:18ol665r]A Pie is for life, not just a Wembley Final[/color:18ol665r]:d7dc4b20b2c2dd7b76ac6eac29d5604e_61641.png



Quote: Highlander "Whilst we are getting left behind financially, the RU cap covers a first team squad of about 40 players on average.'"

£6.5m / 40 = £162.5k avg.

£1.8m / 25 = £72k avg.

any young player coming through can see you are paid twice as much for doing half as much work in union

Him
RankPostsTeam
International Board Member14970No
Team
Selected
JoinedServiceReputation
Jun 200222 years
OnlineLast PostLast Page
Nov 2021Nov 2021LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
2244_1299706258.jpg
:d7dc4b20b2c2dd7b76ac6eac29d5604e_2244.jpg



Quote: pie.warrior "£6.5m / 40
Or they could earn massively more working in the City. It doesn't mean it's a route available to the vast majority of young lads. Union is still very much built upon the public school system and young lads don't look at things like this and say "oh I'll go and play Union instead".
The only time an issue arises is when they are made an offer by a Union club. But they are relatively few and far between.

RankPostsTeam
Player Coach4934
JoinedServiceReputation
Aug 200816 years
OnlineLast PostLast Page
Oct 2022Dec 2020LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
40515_1330766741.jpg
Don't worry about avoiding temptation. As you grow older, it will avoid you! - Winston Churchill:d7dc4b20b2c2dd7b76ac6eac29d5604e_40515.jpg



Quote: Him "Or they could earn massively more working in the City. It doesn't mean it's a route available to the vast majority of young lads. Union is still very much built upon the public school system and young lads don't look at things like this and say "oh I'll go and play Union instead".
The only time an issue arises is when they are made an offer by a Union club. But they are relatively few and far between.'"


It is not the vast majority that is of concern. It is the danger of losing more of our best players which would lower the standard of SL further that is the worry

RankPostsTeam
Player Coach361No
Team
Selected
JoinedServiceReputation
Jan 200915 years
OnlineLast PostLast Page
May 2018May 2018LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature

:



More chance of good british rl players going to the nrl then union as our players dont seem to popular with unions "old boys". The salary cap will only work if all teams can spend to full cap and if the less successful clubs can keep hold of their better players to build a squad capable of challenging the top 4, rather then lose their better players to top 4 sides. Maybe the rl could sponsor the clubs who are struggling or offer incentives for good young players to stay at the said clubs and give them a chance to build a team capable of challenging for honours. Tbh i dont think the top clubs would agree with lower rated clubs getting much help as it could help stop them monopolising the honours each season. Werent Storm given a lot of help in their infancy to ensure their team was capable of challenging and make them an attractive team to encourage people from an aussie rules stronghold to support.
The salary cap does need increasing but so does the money coming in to rl. The marketing in rl is pants and has been for years. We like to call it the greatest game amongst ourselves but it needs shouting out in areas that arent rl strongholds with a truly competative league to prove it.

RankPostsTeam
Moderator12614
JoinedServiceReputation
Jun 200717 years
OnlineLast PostLast Page
Jul 2024Jun 2024LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
33809_1522680904.png
'Thus I am tormented by my curiosity and humbled by my ignorance.' from History of an Old Bramin, The New York Mirror (A Weekly Journal Devoted to Literature and the Fine Arts), February 16th 1833.:d7dc4b20b2c2dd7b76ac6eac29d5604e_33809.png

Moderator


My belief is that the salary cap is working. The lack of competition for silverware reflects the small number of clubs with sufficient resource to compete at the top end of SL. Why does it work better in Australia? Well, they had mergers. We resisted them - no Humberside, Calder or Cheshire. Choosing tradition is entirely legitimate, but wanting competitive balance as well is probably a bit 'cake and eat it'.
There are all sorts of loopholes in the cap, so I expect that wage bills vary significantly, even between teams notionally spending up to the limit. The higher rate of tax means that an extra £10k spent is only about an extra £6k received. Plus you're going to get more job satisfaction playing for the perennial winners. When you look at things in the round I don't think any of it is very surprising.
at least supporters of 'opponent' teams can expect to beat the wealthier clubs every now and then. We all know how the season will end, but at least the results of individual games remain somewhat uncertain, and for that I'm grateful to the cap. If they happened to agree with this analysis, then fans of Leeds/Wigan/Saints might say 'well just merge then', but they have the consolation of supporting teams who win stuff, so surely can't complain too much. Success fatigue will elicit limited sympathy I'm afraid!
The youth development thing is a factor, but only one of several. By itself it wouldn't make all that much difference, to clubs 7-12. No more than putting formula 1 tyres on my Ford Fiesta would allow it to do 180 mph.

RankPostsTeam
Club Coach14082No
Team
Selected
JoinedServiceReputation
Apr 200420 years
OnlineLast PostLast Page
Feb 2017Feb 2017LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
9857_1341488583.jpg
WEST COAST PIRATES NRL expansion? Sometime soon, maybe......:d7dc4b20b2c2dd7b76ac6eac29d5604e_9857.jpg



Mergers has nothing to do with the competitiveness of the comp. in nrl, clubs being legit in spending the cap and players moving clubs to earn a bit more are. You often see a player break through, get some rep honours and be able to command a top tier salary that the current club can't match. If there are 4-5 players per club who can command top tier salary then the next tier down are the ones targeting by the struggling clubs. Still can't figure out why this isn't happening in SL IF all clubs are paying same salary cap. I don't buy the staying at a successful club, it's a short career and if a player can earn 50k more somewhere else then I doubt he'd not be tempted.
Next season we'll have a struggling warriors strengrpthend by RTS and Luke moving from gf winning clubs and Foran moving from a successful manly club to a wooden spoon eels.

RankPostsTeam
Player Coach22777
JoinedServiceReputation
May 200618 years
OnlineLast PostLast Page
Jun 2020Feb 2018LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature

//www.pngnrlbid.com [quote="bUsTiNyAbALLs":9q9d2t35]Do not converse with me you filthy minded deviant.[/quote:9q9d2t35] [quote="vastman":9q9d2t35]My rage isn't impotent luv, I'm frothing at the mouth actually.[/quote:9q9d2t35]:



Quote: JB Down Under "Mergers has nothing to do with the competitiveness of the comp. in nrl, clubs being legit in spending the cap and players moving clubs to earn a bit more are. You often see a player break through, get some rep honours and be able to command a top tier salary that the current club can't match. If there are 4-5 players per club who can command top tier salary then the next tier down are the ones targeting by the struggling clubs. Still can't figure out why this isn't happening in SL IF all clubs are paying same salary cap. I don't buy the staying at a successful club, it's a short career and if a player can earn 50k more somewhere else then I doubt he'd not be tempted.
Next season we'll have a struggling warriors strengrpthend by RTS and Luke moving from gf winning clubs and Foran moving from a successful manly club to a wooden spoon eels.'"

because players can't earn 50k more.

a 1.8m cap is 72k a player for a 25man squad. Even a wage of 150-200k has a huge effect on that.

The big clubs all have the same exemptions and discounts, there wont be a significant difference between the 4-5 stars at each club, there wont be a significant difference between the 10 first teamers, there wont be a significant difference between the 10-15 fringe players and prospects. Wigan can't afford to offer 50k more than Leeds or Saints or Wire because the cap makes the opportunity cost of doing so too high. Spending an extra 50k on a star player for them means losing a first teamer and replace them with a fringe player.

For the lesser clubs they perhaps can afford to offer an extra 50k for a star player, but they can't offer the opportunity for prize money, trophies, have the barrier of inertia, can't offer the security of a big side, the off-field and sports science stuff and still need to deal with the fact they have spent 50k more and need to build a squad.


The very best players in SL are on 150-200k, a 50k difference in salary is a huge jump. Its a decent player. We just arent going to see 1 team offer 50k more than the rest in a league where the average salary equals 72k. The NRL salary cap is much higher, the effective spend is about £3.5m with a hell of a lot more 'marginal talent'. So for the same percentage the NRL can offer a 100k increase as an SL club offering 50k. Added to the increased marginal talent the NZW can offer TVS a big increase without it costing so much of the cap, and 'make up' that increased spend with a bigger, better selection of cheaper players stepping up.

RankPostsTeam
Moderator12614
JoinedServiceReputation
Jun 200717 years
OnlineLast PostLast Page
Jul 2024Jun 2024LINK
Milestone Posts
0
100
Milestone Years
0510 1520 2530
Location
Signature
33809_1522680904.png
'Thus I am tormented by my curiosity and humbled by my ignorance.' from History of an Old Bramin, The New York Mirror (A Weekly Journal Devoted to Literature and the Fine Arts), February 16th 1833.:d7dc4b20b2c2dd7b76ac6eac29d5604e_33809.png

Moderator


Quote: JB Down Under "Still can't figure out why this isn't happening in SL IF all clubs are paying same salary cap. I don't buy the staying at a successful club, it's a short career and if a player can earn 50k more somewhere else then I doubt he'd not be tempted.
'"


The cap is full of holes, so I very much doubt we (Hull KR) spend what Leeds or Wigan do on player wages.

Plus they have the option of paying fees, instead of competing for ooc players in an open market. And then bigger support staffs and so on.

Basically there are enough big clubs in Australia to support a highly competitive league of a sensible size. In the UK there aren't. The cap means that when Rovers or Widnes play Wigan or Leeds, the outcome usually ranges from narrow victory to heavy defeat for the underdog. Without the cap that'd probably be defeat to very heavy defeat. The cap levels things a bit, expecting to level things much more is not realistic IMO.

90 posts in 7 pages 
<<   PREV  NEXT   >>
Subscribe | Moderators: Admin, Durham Giant , TimperleySaint
90 posts in 7 pages 
<<   PREV  NEXT   >>
Subscribe | Moderators: Admin, Durham Giant , TimperleySaint



All views expressed are those of the author and not necessarily those of the RLFANS.COM or its subsites.

Whilst every effort is made to ensure that news stories, articles and images are correct, we cannot be held responsible for errors. However, if you feel any material on this website is copyrighted or incorrect in any way please contact us using the link at the top of the page so we can remove it or negotiate copyright permission.

RLFANS.COM, the owners of this website, is not responsible for the content of its sub-sites or posts, please email the author of this sub-site or post if you feel you find an article offensive or of a choice nature that you disagree with.

Copyright 1999 - 2024 RLFANS.COM

You must be 18+ to gamble, for more information and for help with gambling issues see https://www.begambleaware.org/.



Please Support RLFANS.COM


6.123046875:5
RLFANS Recent Posts
FORUM
LAST
POST
TOPIC
POSTER
POSTS
0m
Game - Song Titles
Wanderer
37896
1m
Toulouse A
Bully_Boxer
18
1m
Leeds
orangeman
32
2m
BORED The Band Name Game
Wanderer
60083
3m
Round 16 London Home
chapylad
76
6m
Other Championship Clubs
Trojan Horse
222
15m
This site is crap
Smithout
1
20m
Rumours thread
Trojan Horse
1652
21m
TV games not Wire
karetaker
3135
51m
Reserves
BigTime
2
FORUM
LAST
VIEW
TOPIC
POSTER
POSTS
13s
Transfer Talk / Rumour thread V4
KaeruJim
9282
17s
BORED The Band Name Game
Wanderer
60083
37s
Free parking
Philth
8
43s
Wigan v Sts discussion - THIS THREAD ONLY PLEASE
MattyB
2353
44s
TV games not Wire
karetaker
3135
52s
Tonights game v Giants
karetaker
32
1m
Surely its all over now for Watson
Jo Jumbuck
9
1m
Batley Bulldogs H
Dr Dreadnoug
14
1m
Vegas Baby
Jason65
2
1m
Prettys Girls in your city for night
jackmac452
1
FORUM
NEW
TOPICS
TOPIC
POSTER
POSTS
TODAY
This site is crap
Smithout
1
TODAY
Lucky Leeds Golden Point Win Over the Broncos
RLFANS News
1
TODAY
Prettys Girls in your city for night
jackmac452
1
TODAY
Vegas Baby
Jason65
2
TODAY
Wigan Beat Leigh in Derby Thriller
RLFANS News
1
TODAY
Reserves
BigTime
2
TODAY
Tonights game v Giants
karetaker
32
TODAY
Free parking
Philth
8
TODAY
Salford Away Travel Information
LancashireRe
1
TODAY
Batley next
Kettykat
2
TODAY
Round 16 London Home
chapylad
76
TODAY
Leeds
orangeman
32
TODAY
Injuries and available cover
walter wall
12
TODAY
Problems with this Site continued
karetaker
12
TODAY
3 clubs apply to join League 1
Huddersfield
1
TODAY
Sadly one less Bronco
nkpom
2
TODAY
Fan Village
[Gareth]
4
TODAY
The Seagulls v The Panthers
terry silver
20
TODAY
Las Vegas 2025 English ladies involved
Huddersfield
1
TODAY
New halfback signing
Pyrah123
11
TODAY
Batley Bulldogs H
Dr Dreadnoug
14
TODAY
Squads - Leopards v Warriors
Cokey
1
TODAY
Best Wigan Tour Team
MattyB
10
TODAY
Josh Bowden
Dr Dreadnoug
1
NEWS ITEMS
VIEWS
Lucky Leeds Golden Point Win O..
96
Wigan Beat Leigh in Derby Thri..
273
Wakefield Trinity Register Thi..
1407
Englands Youngsters Beat Franc..
1105
Big Win for England Women Over..
849
2024 State of Origin - Game 2 ..
1090
New Structure for 2025 Challen..
1193
Super League form rewarded as ..
1521
Superb Salford Complete Histor..
1513
Catalans Dragons Survive Secon..
1510
Warrington Wolves Snatch Late ..
1305
Spirit of Rob Burrow Inspires ..
1519
Hull KR Drop Goal Secures Win ..
1863
St Helens Break Fifty As They ..
1789
Leigh Leopards Resurgence Clai..
1952