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Leagues and Governing Bodies

NRL Seeks Advice From AFL As It Prepares To Implement Spending Cap

The National Rugby League has "sought the counsel of its greatest competitor," the Australian Football League, as it "prepares to adopt the biggest equalisation measure since the introduction of the salary cap," according to Adrian Proszenko of the SYDNEY MORNING HERALD. Rugby League Central is "preparing to implement a cap on football department spending" in '18, marking "the first time the code has introduced restrictions on the off-field operations of its clubs." The move follows that of the AFL, which has introduced a "soft cap" on expenditure. The AFL introduced its cap on non-player expenditure in '15, with a figure arrived at following a projected industry average spend, plus an additional A$500,000 ($373,000). A luxury tax of 37.5% was applied to spending above that -- capped at A$1M ($746,000) -- with the figure rising to 75% for the '16 season. The NRL will have "the benefit of seeing how the AFL cap works in practice as the governing body, the clubs and the players' association attempt to settle on a model for rugby league." The AFL remains the NRL's "greatest adversary as the codes battle for hearts, minds and memberships." However, the collaboration is proof there is "a willingness to exchange ideas as they confront common challenges." The "biggest blowout" in costs for the clubs is not player wages but off-field spending, with clubs increasing their investments in staff, sports science and facilities in "the quest for premiership success" (SMH, 12/8).

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