OMEN
03-29-2006, 08:47 PM
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Concern ... Gallop is against a huge cap rise
THE National Rugby League last night warned some clubs would go broke if the players' union persisted with its claim to raise the salary cap to $5 million.
NRL chief executive David Gallop painted the grim picture in response to comments from the Rugby League Professionals Association that the two bodies were miles apart after the latest round of talks over the collective bargaining agreement.
RLPA president Matthew Rodwell said players would laugh at him if he took back the NRL's first tabled offer to raise the $3.36million cap by $110,000 in 2007 and an estimated $70,000 a year after that every year until 2012.
The league has also offered a $110,000 increase in allowances for 2007, which will also increase incrementally over the next five years.
It is understood RLPA wants the cap to be set at $4.5million next year and jump to $5million after that.
"Some clubs would go broke," Gallop said.
"Unfortunately expectations have been set prior to Matt's involvement which were totally unrealistic and the clubs gave us the clear message yesterday that a $5m salary cap is not achievable.
"I agree it's early days and we have provided a very clear picture of the game's financial realities which we encourage Matt to examine carefully."
Gallop's offer already has the backing of NRL clubs who are concerned over the gap between the salary cap and the NRL's annual grant ($2.75m to $3.15m next year) and the ongoing impact of the NSW Government's poker machine tax rise.
Only one NRL club, Brisbane, recorded a profit in 2005.
The players' association believes the NRL can support a more substantial pay rise for players given it signed lucrative television contracts last year with commercial broadcaster the Nine Network and pay-TV broadcaster Fox Sports, which are worth a combined $500m over the next six years.
"The bottom line is we're disappointed with what we were presented by the NRL," Rodwell said. "If the game is in such a good position we'll expect a much more substantial increase.
"We're miles apart and the negotiation process has to continue."
Rodwell said the negotiation process was still going well but he did not expect that players would accept the offer on the table when he spoke to them again.
Gallop warned a $5m salary cap could hurt junior development, saying any further expenditure at the elite level would lead to a shortfall in other areas.
The NRL spends $18.5m a year in junior development and employs 88 officers to promote and develop the game. This compares with $30m and 235 development officers in the AFL.
"We are in a competitive environment and we must aggressively increase our investment in grass-roots development if we are going to continue to produce first grade players and provide an exciting sport for thousands of kids," Gallop said.
"It's inevitable that, if you increase expenditure on one level, you can't spend what you want to in another area."
The Australian
Concern ... Gallop is against a huge cap rise
THE National Rugby League last night warned some clubs would go broke if the players' union persisted with its claim to raise the salary cap to $5 million.
NRL chief executive David Gallop painted the grim picture in response to comments from the Rugby League Professionals Association that the two bodies were miles apart after the latest round of talks over the collective bargaining agreement.
RLPA president Matthew Rodwell said players would laugh at him if he took back the NRL's first tabled offer to raise the $3.36million cap by $110,000 in 2007 and an estimated $70,000 a year after that every year until 2012.
The league has also offered a $110,000 increase in allowances for 2007, which will also increase incrementally over the next five years.
It is understood RLPA wants the cap to be set at $4.5million next year and jump to $5million after that.
"Some clubs would go broke," Gallop said.
"Unfortunately expectations have been set prior to Matt's involvement which were totally unrealistic and the clubs gave us the clear message yesterday that a $5m salary cap is not achievable.
"I agree it's early days and we have provided a very clear picture of the game's financial realities which we encourage Matt to examine carefully."
Gallop's offer already has the backing of NRL clubs who are concerned over the gap between the salary cap and the NRL's annual grant ($2.75m to $3.15m next year) and the ongoing impact of the NSW Government's poker machine tax rise.
Only one NRL club, Brisbane, recorded a profit in 2005.
The players' association believes the NRL can support a more substantial pay rise for players given it signed lucrative television contracts last year with commercial broadcaster the Nine Network and pay-TV broadcaster Fox Sports, which are worth a combined $500m over the next six years.
"The bottom line is we're disappointed with what we were presented by the NRL," Rodwell said. "If the game is in such a good position we'll expect a much more substantial increase.
"We're miles apart and the negotiation process has to continue."
Rodwell said the negotiation process was still going well but he did not expect that players would accept the offer on the table when he spoke to them again.
Gallop warned a $5m salary cap could hurt junior development, saying any further expenditure at the elite level would lead to a shortfall in other areas.
The NRL spends $18.5m a year in junior development and employs 88 officers to promote and develop the game. This compares with $30m and 235 development officers in the AFL.
"We are in a competitive environment and we must aggressively increase our investment in grass-roots development if we are going to continue to produce first grade players and provide an exciting sport for thousands of kids," Gallop said.
"It's inevitable that, if you increase expenditure on one level, you can't spend what you want to in another area."
The Australian