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Leagues and Governing Bodies

National Rugby League Begins Review Of Third-Party Contract System

The National Rugby League is "finally ready to confront one of the most contentious issues in the game after revealing an external consultant had been hired to begin a review of the third-party contract system," according to Brent Read of THE AUSTRALIAN. The review "comes amid concerns the salary cap is being undermined by lopsided payments across the clubs." Initial research by the NRL into the area has reportedly revealed "significant growth in third-party deals over the past three years." The concern is that if the growth continues, "the ability of the salary cap to provide an even competition will be negated" because of the "wide discrepancy" between clubs with players who receive third-party payments. While clubs such as Brisbane have "several players with third-party agreements -- deals reached with sponsors at arm's length of the club and outside the salary cap -- other clubs have none." Any proposal to change the system "shapes as a balancing act for the NRL." The game's governing body has "no desire" to restrict the ability of its elite players to maximize their incomes, "particularly with the threat of rival codes ever-present." The players union is "also likely to rail against any attempt to restrict their members' ability to earn as much as they can during their careers." The issue was among "the most contentious discussed at the CEOs meeting, where officials received updates on the broadcasting negotiations and talks with the NSW government over the future of Sydney's stadiums" (THE AUSTRALIAN, 9/3). In Sydney, Michael Carayannis reported while the NRL has "trumpeted the salary cap for keeping the competition close, the roster value of some clubs would dwarf that of others." Battling clubs such as the Wests Tigers and St. George Illawarra "struggle to attract third party sponsors while some of the top teams are easily equipped with top-up payments." The meeting also informed clubs of a financial incentive should they help promote finals fixtures. Traditionally, clubs have been "reluctant to put too much energy into getting extra attention for finals games because the NRL has kept the profits from attendances." However, the NRL is offering clubs "a share in the gate revenue." The NRL has worked out likely crowds for each finals game -- based on the past five years -- with clubs "splitting any money gained when attendances break the projected crowd figure" (SYDNEY MORNING HERALD, 9/2).

SHOT CLOCK TRIAL: Carayannis reported in a separate piece the NRL will "trial the shot clock for the first time in the top grade" with time limits to be placed on the Parramatta and Canberra game on Sunday. While time restrictions have been featured in some U20 games in the past two weeks, the match at Pirtek Stadium will be "the first for an NRL game, before it is implemented permanently next year." With the Eels and Raiders out of finals contention both clubs "agreed to allow the trial to take place." While a shot clock will be introduced into all NRL matches next year, it is yet to be determined "what the time limits will be" (SMH, 9/2).

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