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NRL clubs have agreed to a landmark proposal to introduce a cap on football club spending from next year.
A football department cap of $5.7 million will be introduced from next year after a meeting of club chief executives and NRL boss Todd Greenberg.
It was agreed that the figure will be lifted by four per cent in the next three years to enable staff to be given CPI salary rises.
Clubs will have until 2020 to get under the salary cap, and if they do not they will be taxed 37 per cent tax on whatever they overspend by.
Head coach and assistant coach salaries are included, as are training camps. Operational costs will also come out of the cap but not capital costs of centre of excellence.
NRL head of strategy David Silverton said it was an important move to curtail the rising costs of running club football departments.
“By putting the cap in place it will help ensure that our competition remains competitive and even,” Silverton said.
“It will also help ensure that NRL clubs do not overspend simply to keep up with other clubs.
“And that should help our clubs remain financially sustainable.”
The move will save the game about $10 million per season.
The Raiders, Canterbury and Parramatta were among the biggest spenders last year forking out about $8 million each to run their football programs.
While the likes of Brisbane, the Roosters, South Sydney, Melbourne, Penrith and Manly spent above the proposed $5.7 million.
Premiers Cronulla only spent about $4.5 million last year, while the Titans, the Tigers, St George Illawarra, the Warriors and Newcastle spent less than $5.7 million.
The football department cap will be reviewed in 2020.
NRL clubs have agreed to a landmark proposal to introduce a cap on football club spending from next year.
A football department cap of $5.7 million will be introduced from next year after a meeting of club chief executives and NRL boss Todd Greenberg.
It was agreed that the figure will be lifted by four per cent in the next three years to enable staff to be given CPI salary rises.
Clubs will have until 2020 to get under the salary cap, and if they do not they will be taxed 37 per cent tax on whatever they overspend by.
Head coach and assistant coach salaries are included, as are training camps. Operational costs will also come out of the cap but not capital costs of centre of excellence.
NRL head of strategy David Silverton said it was an important move to curtail the rising costs of running club football departments.
“By putting the cap in place it will help ensure that our competition remains competitive and even,” Silverton said.
“It will also help ensure that NRL clubs do not overspend simply to keep up with other clubs.
“And that should help our clubs remain financially sustainable.”
The move will save the game about $10 million per season.
The Raiders, Canterbury and Parramatta were among the biggest spenders last year forking out about $8 million each to run their football programs.
While the likes of Brisbane, the Roosters, South Sydney, Melbourne, Penrith and Manly spent above the proposed $5.7 million.
Premiers Cronulla only spent about $4.5 million last year, while the Titans, the Tigers, St George Illawarra, the Warriors and Newcastle spent less than $5.7 million.
The football department cap will be reviewed in 2020.
