Rugby League Third Party Agreements

The NRL`s crackdown on third-party agreements last year led to a drop in out-of-ceiling payments of nearly $2 million, with Premiers Sydney Roosters being one of the lowest and Melbourne the highest. The Salary Cap auditor monitors each club`s salary cap throughout the year based on information provided by the clubs. In addition, the Salary-Cap auditor can conduct investigations into player compensation in the event of anomalies. These investigations generally concern the club and its related entities and cover all payments and agreements that may result in benefits to players. All third-party contracts must be pre-registered and approved. The goal is to ensure that they do not become a way for clubs or players to use sponsors or third parties to undermine the salary cap, as well as for gambling, to ensure the protection of the intellectual property of clubs and games. Unlimited – Players may earn unlimited amounts of corporate sponsors who are not linked to the club and who do not use the intellectual property of the game (no logos, jerseys or club emblems) provided they have been previously approved by a players` club and the NRL. These contracts must not be negotiated by the club to induce a player to sign a contract, nor can they be guaranteed by the club. Third-party agreements and non-compliance or correct registration at the playing centre are contrary to NRL rules. Now we are all aware of Sydney Rooster`s infamous reference about sombrero`s salary. The thing is, I think, that TPAs are used to manipulate the system.

Obviously, some clubs have much better access to wealthy third parties than other clubs. The team with the lowest amount of tZudas in the private sector was the cowboys who, after Thurston`s departure, dropped by the third time in 2018 with $350,000 to just $16,000. “That is why we have taken tougher measures to ensure that these agreements are truly long-term agreements. We are confident that this level of transparency on third-party agreements will improve confidence in the effective operation of the salary cap and reduce the amount of speculation and speculation about this part of the game. Third-party agreements are payments from companies directly to players. There is no limit to the amount a player can earn through third-party agreements if he is paid for his own intellectual property, without the need to use logos or club names and if the company involved is not a sponsor of a club or does not act on behalf of a club to secure the player`s services. In 2019, the total TPA market represented 3.9% of the total salary cap (10% in 2016) and less than 2% for private sector arms duration agreements (5% in 2016).

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