Question for Ian Schubert

[Guest]

I was going to post this in another thread, but thought it an interesting enough quesiton to have it's own.

The following quote was made on the Burgess signing.

Apparently the transfer fee is NOT included in the salary cap.

I'm quite interested to know if this is the case.

Say for instance this deal was undertaken in the following scenario (I do not know the details, so these numbers are for explanation only).

A young Burgess with limited first grade experience signs for a UK club say for 2008, 2009 and 2010. His package is say $450 k. He has a great season in 2008, so the club in order to keep him happy the club offers him an upgrade. The club has capacity in 2009 but not 2010. So in 2009 he receives and additional 200k representing an extra 100k for 2009 and 100k for 2010.

Now, despite his contract to 2010 Burgess wants to sign with Souths. His UK club have already paid him good money in 2009 ($150k base salary + $100k 2009 incentive, and $100k 2010 incentive) and say you can only go if we receive some money back for the transfer as we have effectively paid you part of your 2010 salary.

Hopefully you are all still with me.

Now if Souths comes along and agrees to pay a 'transfer' fee, effectively covering the costs of his advance payment for 2010, effectively his salary, should this not be covered under the salary cap for Souths?

Discuss.

[supermario]

The transfer fee is there as a sweetner to the english club to release the player, the player finds no part of that money.

If a player was paid $300k for 2009 season and was due to be paid $200k for 2010 season, it really doesn;t matter, he has already been paid the 2009 pay packed and the original club will not have to pay 2010. the transfer fee does not come into consideration, that is there as i said, to sweeten the deal to release the player from his last year of the contract.

BUT !!!!

if the english club were in some way to use that "transfer fee" that would actually benefit the player, eg travel and relocation to australia, new house, car ect....then it should be considered under the cap.

thats the way i see it

[Guest]

The transfer fee is there as a sweetner to the english club to release the player, the player finds no part of that money.

If a player was paid $300k for 2009 season and was due to be paid $200k for 2010 season, it really doesn;t matter, he has already been paid the 2009 pay packed and the original club will not have to pay 2010. the transfer fee does not come into consideration, that is there as i said, to sweeten the deal to release the player from his last year of the contract.

BUT !!!!

if the english club were in some way to use that "transfer fee" that would actually benefit the player, eg travel and relocation to australia, new house, car ect....then it should be considered under the cap.

thats the way i see it

I think you have perhaps missed my point. In 2009 he is paid an incentive for 2010, he is effectively paid in advance for 2010 (front loaded contract) but he never actually provides services for 2010. This is done to get around the salary cap for the respective years. According to the contract he is entitled to that money as it was technically his salary for 2009 however all parties knew $100k of his 2009 salary was in fact for the year 2010 (could not be paid in 2010 as they had no room under their cap but did in 2009).

Now since the club has already paid him for next year so to speak they would want to recover that from the transfer fee. Souths come along, pay the transfer fee. You are correct, this money does not go to the player, but it goes to the club which have already paid $100k of his 2010 contract basically on behalf of Souths.

Clear?

[Guest]

We should do the same and buy Peacock and James Grayham

If the transfer fee doesn't count throw the cheque book at them!

[The Brain]

My spies tell me that Asotaci is going to St George

[Vasco]

My spies tell me that Asotaci is going to St George

When will that be? In 2011?

[novice chook]

My spies tell me that Asotaci is going to St George

Hasn't he got another 5 years odd on this Vermin Contract. I thought he'd re-signed another long term deal this year.


NC