NRL 2011 Salary Cap Increases

National Rugby League Club Chief Executives have today given their support for a $100,000 lift in the Salary Cap, a $150,000 lift in the Marquee Player Allowance over and above the cap and a further range of concessions proposed for 2011. Clubs and players will also be given greater freedom in the use of their intellectual property. The proposals follow a review of game-wide submissions on the Salary Cap and discussions with the Collective Bargaining Agreement sub-committee. The proposals are subject to NRL Board approval and further talks with the RLPA. They include:

· A lift in the Salary Cap of $100,000 to $4.2m;

· An increase in the Marquee Player Allowance (from $150,000 to $300,000);

· An exemption from the Salary Cap for the use of three cars per Club;

· A commitment to develop further rewards under the cap for long serving players;

· Increased representative payments;

· Greater responsibility on player agents;

· Relaxation of injury allowances;

· The opportunity for players to maximise their income by maximising tax structures around image rights;

· A commitment to introduce a system of travel concessions for the family members of players attending milestone games.

“The key message through all of this has been the importance that Clubs place on the Salary Cap system,” NRL Chief Executive, Mr David Gallop, said today. “It has been important to the success the game has enjoyed and continues to enjoy. “What we have always looked for is ways to grow Rugby League’s revenue and to ensure that any growth is shared among the players. “There are still areas to be determined through the Board and with the RLPA and there are issues that we will need to fine-tune. “But the proposal for 2011 is that the Clubs will be receiving an extra $200,000 in 2011 and that the cap will increase by $100,000, the Marquee Player Allowance will increase beyond that and there will be an inevitable increase in representative payments.” The current Marquee Player Allowance of $150,000 will be lifted to $300,000 with restrictions on the amount any one player can earn (currently $50,000) removed. Whereas existing rules prevent Clubs from guaranteeing these payments in advance, the proposed changes would allow Clubs to guarantee Marquee Player Allowance agreements when signing a player and allow them to underwrite those agreements within the $300,000. Guarantees outside the $300,000, such as those reported at the Storm this year, will remain prohibited. The $300,000 Marquee Player Agreement will, as per the existing guidelines, be outside of the Salary Cap of $4.2million per club in 2011 (with a further $100,000 per club invested in the RLPA and player retirement account). Whereas the existing agreement requires the marquee player to be one of the top 10 highest paid players in the club, the changes would see the allowance open to one or more players in the top 15 (the total amount remains $300,000 whether allocated to one player or distributed across a number within the ‘15’). Clubs would also be given more flexibility in providing the use of motor vehicles as benefits for players with three marquee players eligible to receive use of cars outside of the Salary Cap. Player agents will also be required to sign declarations with every contract that attests to the fact that the contract includes all benefits, guarantees, payments, understandings or other remuneration to the player or his family. There was significant debate on the best ways to grow rewards for long-serving players, including a milestone scheme that would see money paid into a retirement fund that would provide lump sum payouts upon retirement. While there was commitment to supporting long-serving players, it was agreed that there should be further discussion with the Board, the Clubs and the RLPA on the most effective rewards beyond the existing $100,000 long-serving player allowance.