Transfers rumours

[Which Tyler]

Madigan was reported to be paid 1.5m over three years. I reckon they got most of that paid before the salary cap hit.

Doesn't work that way. However it's paid, £1.5M over 3 years counts as £0.5M inneach year for cap purposes, even if his tax return shows £1M, £0.25, £0.25

 

[Leonormous Boozer]

Doesn't work that way. However it's paid, £1.5M over 3 years counts as £0.5M inneach year for cap purposes, even if his tax return shows £1M, £0.25, £0.25

But he wasn't in the premiership for the first year and the cap doesn't apply there. Surely they can't enforce the cap on money paid prior to being subject to it? (I genuinely don't know it just seems to me like they couldn't enforce it that way)

 

[TRF_Olyy]

I imagine there's creative accountancy to get around it

 

[Which Tyler]

But he wasn't in the premiership for the first year and the cap doesn't apply there. Surely they can't enforce the cap on money paid prior to being subject to it? (I genuinely don't know it just seems to me like they couldn't enforce it that way)

They don't apply to money paid before being subject to the cap, but they do smooth contracts for cap purposes.
Had he signed a new contract on promotion, then it wouldn't smooth, but a 3 year deal is a 3 year deal, whichever competition is being played in.

 

[TRF_Olyy]

They don't apply to money paid before being subject to the cap, but they do smooth contracts for cap purposes.
Had he signed a new contract on promotion, then it wouldn't smooth, but a 3 year deal is a 3 year deal, whichever competition is being played in.

I wonder if they can put a break clause in,
So have it say "contract void upon promotion" but then have a handshake agreement with Madigan for it to be a 3 year deal and he signs a fresh two year in secret

There's always ways around the cap, like the old sponsors-employing-the-wife deal, and players getting 2nd jobs as guest speakers at sponsors events etc

 

[Which Tyler]

As far as I'm aware, they could do that (would require proof that it's not a clause from the existing contract though), but... why would Maligan agree to be paid less when he immediately becomes more important?

Far more likely to be the other way around "Whilst were at a lower level, with smaller crowds, smaller advertising revenue and no TV money, we can o ly afford to pay you £XXX; but if we gain promotion, you'll be kept on for £YYY with Y>X.
Which would almost certainly be a clause in the existing contract, and therefore smoothed for purposes of the cap.

Neither of your work-arounds for the cap are actual work-arounds for the cap BTW. ANY payment from ANYONE related to the club to ANYONE related to the player count as cap. That sort of thing was rice in the amateur era, but specifically regulated against for at least a decade now.
The only work-around I'm aware of is to keep that sort of payment outside of the country, as PRL have access to tax-records.

 

[TRF_Olyy]

As far as I'm aware, they could do that (would require proof that it's not a clause from the existing contract though), but... why would Maligan agree to be paid less when he immediately becomes more important?

Far more likely to be the other way around "Whilst were at a lower level, with smaller crowds, smaller advertising revenue and no TV money, we can o ly afford to pay you £XXX; but if we gain promotion, you'll be kept on for £YYY with Y>X.
Which would almost certainly be a clause in the existing contract, and therefore smoothed for purposes of the cap.

Because the championship is unregulated.
They say to him we'll give you a three year contract for 1.5m
1m in the first year then 250k in the 2nd and 3rd, but it'll technically be a 1yr contract then a 2yr

This is all hypothetical but I'm just thinking of ways around the cap


I didn't realise all payments from sponsors to spouses came under the cap

 

[Leonormous Boozer]

Yeah, that's exactly what I was thinking. Madigan is nowhere near good enough to warrant 500k a year but he's also too good for the championship so I would guess they emticed him by massively front loading the contract.

 

[Which Tyler]

Yes, but that front loaded contract would be smoothed over the duration of the contract.
You can sign a 1 year contract, and then a 2 year one after that at a different date - that any be smoothed. But there's also no guarantee that the second contract will ever be signed, and what happens if Bristol had failed to get promoted (for which there is lots and lots of precedent)

You can also sign a front-loaded 3 year contract, but for cap purposes, it's smoothed to be total/3 per year.

So either, the payment is smoothed, or you rely on a nod and a wink that a future contract will be paid AFTER you've just paid a player more than he's worth, and whilst he's a free agent to sign any contract he likes anywhere he likes...
If it's anything more than a nod and a wink, then it's a contract, and smoothed.

 

[LeinsterMan (NotTigsMan)]

You just have to look at Bristol team to see they are not being creative with the cap.

Take away Madigan,Piutau, Luatau and Afoa and it isn't exactly a world dominating side.

 

[TRF_Olyy]

I mean those first three names alone account for £2.1m

I suppose marquee players account for a lot of wiggle room (I imagine piutau is a marquee)

 

[TommiG88]

Did not expect that.

Hogg leaving Glasgow for the Exeter Chiefs.

 

[munstermuffin]

Did not expect that.

Hogg leaving Glasgow for the Exeter Chiefs.

He'd hardly be gettimg massive money in Exeter would he?

In comparison to say France or some other clubs in England

 

[Bruce_ma gooshvili]

It's a blow for Glasgow, the SRU and even the Pro14. He's not regained his award winning form post injury but he is a flagship player for Scottish rugby that already lost Finn Russell.

 

[TRF_Olyy]

>slags off England in the press every year
>signs for the most English club going

 

[munstermuffin]

But on top of that Olyy 15 is a spot a few clubs could do with and he will get a fraction of what he would get in France or some other Premiership clubs.
I don't get it. Of if he is going for rugby reasons I applaud it but its a bit strange

 

[TommiG88]

He'd hardly be gettimg massive money in Exeter would he?

In comparison to say France or some other clubs in England

I expect he'll be the best paid in the team.

 

[munstermuffin]

I expect he'll be the best paid in the team.

Oh I've no doubt on that. And will be paid very well but still ot will be not to extravagant compared to a wage at Sarries or Wasps etc

 

[TRF_Olyy]

Best paid at Exeter will still be significantly lower than high paid in France, I imagine. Plus it probably takes longer to get to Exeter, from Scotland, than it would to get to many French cities.
I know Chiefs need a 15 but it just seems like a strange choice - especially as he'll be missing during internationals (even longer next year as it's world cup year), and will be on mega wedge.

 

[ncurd]

You can almost certainly get a flight from Exeter airport to Glasgow or Edinburgh every day.