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FORUMS > Wigan Warriors > Salary Cap - Ian Lenegan's Views
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I was under the impression that image rights are also covered by the cap.

If so, why? I'd have thought this would be a great way to increase the players salary whilst raising the profile of RL in the media.

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Quote: Deano G "But in any case, your argument doesn't work, because if profit making were enough of an incentive then clubs would have grown their revenue and we wouldn't be having this debate! '"


Well I know that both Saints and Leeds have definitely grown their revenue so my argument works with the two teams with whose revenue totals I am familiar. How are the others doing do you know? I'm guessing the two Hull teams might well have increased their revenue and possibly Huddersfield and Warrington as well. That wouldn't be bad going and would match with the fact that they are also the teams who are consistently in the top eight. If that isn't an incentive for growing your revenue then what is?

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Quote: XBrettKennyX "I would have thought it was obvious. If you are capping certain expenditure such as direct payment through the club (ultimately by IL), then setting up a "dummy" company and "sponsoring" a player is an easy way around it.

From the players perspective, there is no difference from earning £1 a week from the club and £999 a week from the "sponsorship" to earning £1000 from the club.'"



I understand what you're saying BK, what I don't understand is why you see it as a problem. What does it matter where the sponsorship (or any other monies) come from as long as they are not from the club. The point is, clubs can't just set up 'dummy companies', as you call them, to pay players as they would have to be shown in the accounts. It's no more open to abuse than is an envelope stuffed with money. It simply wouldn't happen. Trust me when I say the Tax Man is way too smart for that! If IL wants to sponser a player through one of his other companies then fair enough. He's as entitled to do so as any other business...or at least, should be. I can't see any reasonable argument against it if I'm being honest! It's little or no different in principle than JJB sponsoring the Wigan team when DW was in charge...

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Quote: Deano G "Not sure I follow the second sentence of the second paragraph. Are you suggesting that the cap is too high at present and that 12 clubs are spending money they don't have? If this is true then things are even worse than I thought.
'"



From the last financial year that clubs have issued their accounts for only three clubs turned a profit: Leeds, Hull and Warrington (and Leeds only because of a big one off "windfall" against an option on the stadium) whilst the year before only Hull and Leeds showed a profit. So yes that means each year 12 clubs are spending money they don't have eg expenditure exceeds income = they make a loss.

Considering how veherently you seem to be supporting an increase in the cap the fact you didn't even realise this is astounding. So again where is the additional revenue going to come from to pay increased salaries in a sustainable manner?

Intertesting about sponsors paying players salaries. Where are theses sponsors going to come from? It was only the other season Wigan struggled to find a main shirt sponsor.

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Quote: Paul Youane "From the last financial year that clubs have issued their accounts for only three clubs turned a profit: Leeds, Hull and Warrington (and Leeds only because of a big one off "windfall" against an option on the stadium) whilst the year before only Hull and Leeds showed a profit. So yes that means each year 12 clubs are spending money they don't have eg expenditure exceeds income

I do realise what state clubs' finances are in. They can't afford to pay wages at the level in real terms that they could at the outset of the SC.

Additional revenue will come from increased crowds, merchandising sales and increased sponsorship revenue.

The RFL and the clubs need to bring in some proper business planning and financial controls.

If what you and the other pro-SC people are saying is true, that we can't even aspire in the long term to pay rises in line with wage inflation then we might as well call it a day now and start planning for a semi-professional future for the sport. That's where we'll be in 10-20 years time if we don't change things, so it would be sensible to start talking about that now.

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Quote: Deano G "If what you and the other pro-SC people are saying is true, that we can't even aspire in the long term to pay rises in line with wage inflation then we might as well call it a day now and start planning for a semi-professional future for the sport. That's where we'll be in 10-20 years time if we don't change things, so it would be sensible to start talking about that now.'"


That is the truth of the matter.

Also the argument against individual sponsorship of players not being feasible that is not strictly true. The Wigan first team squad is sponsored already but the money goes to the club as income not the players as salary. This kind of sponsorship comes from local businesses or supporters so the question is, if the incentive was there for players to get sponsored by bigger companies would their agents be able to secure them such a deal? I reckon they might be able to do so and it would be in their interests to promote their clients and get them noticed nationally far more than they are now.

When at Wigan Andy Farrell was a well known sportsman nationally and he would have easily attracted attention from sponsors in my opinion. Martin Offiah was another, Jonathan Davies would have done and Paul Sculthore as well. These days it looks like Chris Ashton is heading towards being the most well known rugby player and I can't say any current RL star has a national profile like him or those past players I mention but the crux of the matter is they aren't going to get one if there is no incentive for anyone to push for it.

The fact we don't have nationally known players at the moment or that most clubs are not pushing the boundaries of the salary cap are not a justification for anything but signal there is a problem within the sport that needs sorting out. It should be taken as a given that the salary cap should rise with inflation as it was originally intended to do and the fact the inflation increase in the cap has never happened should set the alarm bells ringing.

91 posts in 7 pages 
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Subscribe | Moderators: Admin, DaveO , Wigan6/Leeds1 Andy , Pemps
91 posts in 7 pages 
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Subscribe | Moderators: Admin, DaveO , Wigan6/Leeds1 Andy , Pemps



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