The NRL is investigating whether Cronulla breached the salary cap after self-reporting potential third-party breaches to head office.
Sharks chief executive Barry Russell made the NRL aware of potential “discrepancies” relating to historical third-party player payments discovered during a club-instigated governance review.
The Sharks have made the NRL aware of potential “discrepancies” relating to historical third-party player payments.
It’s believed the period in question covers the Sharks maiden premiership victory of 2016, although at this stage it is unlikely the title will be stripped.
The undisclosed player payments are believed to total about $250,000 and go back as far as three years.
The Sharks, just a week out from another finals campaign, are currently salary cap compliant. It’s understood they have spent the requisite 95 per cent of their cap for the current season, leaving them with about $500,000 to play with.
A spokesman for the NRL confirmed that the Sharks had asked the integrity unit to make inquiries into salary cap matters at the club.
“Those inquiries are ongoing so we are not in a position to comment further at this stage,” the spokesman said. “However, based on the information available, the Sharks and all other clubs are salary cap compliant for 2018.”
The NRL is only in the early stages of its investigation and it’s too soon to determine whether other anomalies will arise. On the information currently on hand, a fine would be the most likely outcome, while the club could also be penalised by a reduction in their salary cap for one or more years.
Earlier this year, Manly were fined and had $660,000 taken off their salary cap for the next two years. The Sea Eagles have appealed the sanction, with a final determination imminent.
The Sharks released a statement on Tuesday night confirming they had alerted Rugby League Central to suspected anomalies.
“The Cronulla Sharks informed the NRL integrity unit earlier in the year of salary cap discrepancies relating to historical third-party player payments, discovered during a club-instigated governance review,” the statement said. “The Sharks self-reported to the NRL and asked for their assistance in investigating this matter. The club is fully cooperating with the NRL integrity unit, allowing them access to any information they require to complete their investigation.
"The discrepancies occurred under previous club management. This is a historical issue. We are currently salary cap compliant for the 2018 season having passed our mid-season salary cap review. Due to the ensuing investigation by the NRL Integrity Unit, we will be making no further comment until the outcome of the investigation is known.”
The Sharks have had a happy knack of picking up star players on the outer with, or subsidised by, rival clubs. They are considered one of the biggest threats for this year’s premiership after hitting form just before the finals.
NRL CEO Todd Greenberg has publicly said he believes the salary cap system needed to be reviewed.
The latest drama again throws the spotlight on the controversial TPA system. Third parties have been the common denominator in recent salary cap rorts, although it remains to be seen whether the Cronulla matter was an oversight or something more sinister.
NRL CEO Todd Greenberg is on record as saying the system needs review and former Melbourne CEO Mark Evans conducted one for head office several years ago. As yet, there haven’t been any major changes to a system that most clubs feel is open to manipulation.
Under the NRL rules, TPAs must be disclosed to the NRL and negotiated at arm’s length from the club. These rules were not adhered to by Parramatta, who were busted for cap rorting in 2016. The result was a $1 million fine (reduced to $750,00), the stripping of 12 competition points and the loss of their Auckland Nines title. The board was also effectively removed by the NSW Government.
While the sanctions were heavy, they did not deter the Sea Eagles from allegedly engaging in similar conduct.
The NRL is attempting to make player managers more answerable should future salary cap rorts arise. In Parramatta’s case, only one agent was handed a show-cause notice, a result of the NRL only partly indemnifying the agent accreditation committee in the case of a lawsuit.
The NRL is looking to regulate agents under a new scheme from November 1, meaning they will be bound by the same protocols as players and club officials.
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