NRL 2021: Concessions for developing players floated as clubs work out overhaul of salary cap

Concessions for developing players will be the biggest change in a potential revamp of the salary cap. Find out how it would work and which players at your club would be eligible.

BRISBANE, AUSTRALIA - APRIL 15: Matt Burton of the Panthers scores a try during the round six NRL match between the Brisbane Broncos and the Penrith Panthers at Suncorp Stadium, on April 15, 2021, in Brisbane, Australia. (Photo by Bradley Kanaris/Getty Images)

A move to revamp the NRL’s contracting system could give some clubs six figures more to spend on their salary cap as a reward for developing players.

A committee has been set-up to explore the potential of giving clubs salary cap concessions for having players come through their junior systems.

Clubs could also be given dispensation if a local product switches to a rival club. But the move will face resistance from some clubs.

Watch The 2021 NRL Telstra Premiership Live & On-Demand with No Ad-Breaks During Play. New to Kayo? Try 14-Days Free Now >

Matt Burton’s case could bring about substantial salary cap change.

Club bosses Brian Fletcher, Don Furner, Blake Solly and Joe Kelly are part of the four-man committee which plans to meet with NRL boss Andrew Abdo to develop the concept. While planning is still in its infancy, the major changes would include;

– A tiered percentage given in cap reduction for a player’s first contract when they graduate from the under-21 Jersey Flegg competition – up to three seasons.

– The rough workings would be 10 per cent, 15 per cent or 25 per cent depending on how long that player was part of a club’s junior system.

– If your player opts to leave your club then that cap dispensation is still given to the developing club for a maximum of three seasons.

Canberra’s head of recruitment Peter Mulholland said the game needed to do more to support clubs who produced talent.

“Clubs that develop should be rewarded,” Mulholland said.

“It’s a mistaken opinion on who development clubs are and who aren’t. Development starts when you get kids on board at 18 and the Roosters have been very good at that.

“Developing our own players can create loyalty. You’re not bringing players in over the top, you’re pushing in from the bottom.”

The Broncos would get compensated if Tom Dearden left under the proposed plan.

The proposal would mean teams who have contracts with their current club from Harold Matthews level (under-17) could be given a 25 per cent salary cap concession. That number would be 15 per cent if they first arrive at the club at SG Ball level (under-19) or 10 per cent for Jersey Flegg players. That cut-off age would be about 24.

Basically, if a Matt Burton situation arose in the future, the Panthers would receive a cap dispensation of 15 per cent for the first three years of his deal which would be based on what the Bulldogs are paying him next year and beyond if this model was to eventuate.

The percentage would be capped but not the amount of players it would apply to each year.

This system would replace the $188,000 clubs are given to spend on one player as part of the veteran player allowance. Clubs are given a nominal development fee if a rival snatches their young talent.

Rival bosses have already torpedoed the move, concerned the changes would not value long-serving loyalty to those established first-graders who have stayed with a club for a decade playing in the top grade.

It would also do nothing to help an Adam Reynolds-like situation as the Rabbitohs would be unable to receive any cap dispensation at the back end of Reynolds’ career.

Clubs told the News Corp they would be in favour of expanding the veteran player allowance rather than removing it all together. They are also well down the track for their salary cap management having taken the long-serving allowance into their salary cap forecasting.

Fletcher said a change was needed.

The Adam Reynolds situation shows changes are needed.

“Everybody would agree it’s only fair if you develop a player for the previous five years to get him to NRL standard and then you’re out-bid for his first NRL contract by a club who have put no financials into him, there needs to be some sort of compensation,” Fletcher said.

“What that is, I’m not 100 per cent sure. We’ve done something good for the game by developing a player and we would like to keep developing kids like that, but there needs to be some sort of compensation for the hand work done.”

Raiders chief Furner first called for a revamp almost a decade ago but Fletcher has taken it up in recent weeks.

One club said it costs about $270,000 to produce a 50-game first grader from their Harold Matthews system.

Penrith could make significant cap savings given they have an abundance of local products.

The Dragons, Cronulla, Brisbane, Newcastle and Manly also have a stack of players who could be or would have been eligible for cap relief.

Originally published as NRL 2021: Concessions for developing players floated as clubs work out overhaul of salary cap