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Leagues and Governing Bodies

National Rugby League Introducing Salary Cap On Football Department Spending

The National Rugby League will "introduce a limit on football club spending next year in the biggest club equalisation measure since the establishment of a salary cap," according to Adrian Proszenko of the SYDNEY MORNING HERALD. The governing body and its clubs "are in the process of signing off on a whole-of-game funding agreement that effectively extinguishes any threat of a Super League-style breakaway competition." Rugby League Central has sent all clubs a copy of the memorandum of understanding which, when signed, "will become a binding agreement that secures their financial future and holds them to a perpetual license to play in the NRL competition." It is understood the document has been "signed off by a number of clubs." Others are "expected to do likewise to qualify for the promised up-front payment" of A$1.13M ($860,000) each in early July, made possible by the record broadcast deal. The clubs stand to earn an additional A$100M ($75.8M) from '18 to '22, with additional grants totaling 130% "of player payments over that period." Head office is "keen to ensure its franchises don't squander those funds, while also seeking to create an even playing field by controlling off-field expenditure." To that end, for the first time "there will be a ceiling on the amount of money spent on football departments" from '17. The cap will "likely apply to the dollars spent on the head coach and his staff, sports science, high-performance units, study trips and other means of achieving an off-field edge" (SMH, 4/27).

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