Bombshell theory as Kalyn Ponga salary cap storm explodes

New details have emerged in the NRL’s investigation into Newcastle’s potential salary cap breach with an explosive Kalyn Ponga claim made.

Kalyn Ponga of the Knights. Photo by Brendon Thorne/Getty Images.

Kalyn Ponga’s future with the Newcastle Knights has been questioned after it emerged on Monday the NRL is looking into a potential salary cap breach.

The league has confirmed it is aware of the issue after the SMH reported the NRL Integrity Unit has launched a probe into a third-party deal involving the star fullback.

Watch every game of every round this NRL Telstra Premiership Season LIVE with no ad-breaks during play on Kayo. New to Kayo? Start your free trial today >

According to News Corp, Ponga’s father and agent Andre Ponga raised his concerns with league officials over a third-party sponsorship deal from 2020 that had not been paid.

Andre is reported to have met with NRL officials last week.

“The NRL is aware of the matter and is reviewing it,” an NRL spokesman said.

The third-party sponsorship under the microscope is reported to have been worth “six figures”.

The deal was signed off by NRL auditors at the time, despite news emerging on Monday the contract was between Ponga and a business associate of one of the Knights’ most powerful figures.

Under NRL cap rules, all third party payment agreements must be made without any involvement of the football club.

The situation took an explosive turn on Monday night with a suggestion Ponga may even consider looking for a new club.

Kalyn Ponga of the Knights. Photo by Ian Hitchcock/Getty Images.

Leading NRL journalist Michael Chammas told Channel 9’s 100% Footy there was “unrest” in Ponga’s camp with the Knights having a hot and cold start to the season.

“With Kalyn and this situation, I think there’s going to be a little bit more to it,” he said.

“Obviously information is still coming to light, but I wouldn’t be surprised if this is the beginning of an agitation for Kalyn Ponga to potentially re-negotiate or explore other options.

“I think there’s unrest there. I don’t think Andre Ponga would have done this lightly, to go to the NRL, and as I said, there’s some details that we can’t say at the moment that will come to light over the next 24-48 hours that are quite significant.”

Bulldogs head of football Phil Gould responded to the report by saying the Knights would feel protected because the NRL previously ruled that the agreement was at arms length from the football club.

“If he hasn’t been paid by that sponsor, that’s really between Kalyn and that sponsor and as to whether or not he performed that work for them or not get paid,” he said.

“I don’t know if it’s really got a lot to do with the Knights or the NRL if that’s the way it’s been described, but if they go back retrospectively and perhaps this fella didn’t pay for whatever reason, and he was associated with the club, that’s a different story.

“But at the moment it sounds like the Knights are pretty well protected and I wouldn’t be jumping to conclusions too much about what may come.”

It is not suggested Andre Ponga’s allegation is true, just that it has been made.

The Knights said in a statement: “All third parties are registered with the NRL. There’s no issue with Kalyn Ponga’s contract and anything to do with third parties remain between the player and his agent to resolve.”

A third-party deal for Kalyn Ponga is being investigated by the NRL. NRL PHOTOS

The club could opt to pay Ponga the alleged missing funds but those funds would then be added onto the Knights’ cap.

Ponga is already paid around $1.4 million a year, on an extension signed two years ago and running until the end of 2027.

Under NRL rules, the league’s salary cap auditor can retrospectively include deals under a club’s cap if new information emerges, as seen in 2018 when Manly was fined $750,000 for breaches over the 2013-17 period.

In that scenario the Sea Eagles were given a $660,000 penalty on their cap over 2018-19 for breaches involving 15 players, for a total of $1.5 million in undisclosed third-party deals.

Ponga is currently sidelined long-term due to a Lisfranc foot injury.

Since Ponga’s injury the Knights have been on a three-match winning streak.

Ponga was previously chased by Wayne Bennett’s Dolphins with what was reported to be one of the richest offers in the history of the league.

Originally published as Bombshell theory as Kalyn Ponga salary cap storm explodes