Quote ="Rogues Gallery"Jukesays was using the figures for illustration purposes. I had heard a similar story in that we had to pay Barrett a "completion" payment at the end of his contract.
All we are saying is that this "payment" would have to be included in the salary cap.'"
Compensation payments made to players who leave early are spread pro-rata over the duration of his contract period. So in Barrett's case any payment made would count on this years cap since he left at the end of the second year of the three year deal.
Now if we paid off Riddell for example, a portion of the compensation would count this season and two larger amounts for the next two.
So its not impossible to pay players off and incur less cap liability if you can convince the player a pay off from us plus the wages they earn at their new club is the same or better then what they would get if they stayed here but not playing. For example:
Lets say Riddell is on £100K and we fix him up with a deal to move to Wire now for £70K a season and agree to pay him £90K compensation.
That would be £15K this year, and £37.5K for the next two seasons due to him in compensation.
He would earn in 2009 £50K from us for the first half of the season already paid, £35K from Wire for the second half plus the £15K compensation for 2009, total £100K, his expected wage from us.
For the last two years of his deal he would get £70K from Wire plus £37.5K from us, total £107.5K per year. So he'd be better off.
The important thing to remember is the compensation we paid would be his ONLY liability on the cap to us each season (£15K this year, £37.5K for 2010 and 2011). His wages are wiped off the cap completely included money already paid to him. Those are the rules which mean we would free up £62.5K in 2010,11 and £85K this year (that is we could sign a player who's [isalary cap value [/iwas judged to be £85K this year and £62.5K for the next two).
Taxi for Riddell?
Quote Remember Luke Davico.
He never played a Suerleage game for Wigan, but we had his wages count on the cap for that season. Slightly different scenario I agree.'"
Assuming there has been no change in the regulations since then on this point, no we didn't. If a players contract is terminated before he plays a "salary cap relevant match" anything paid to him does not count on the cap.
A salary cap relevant match is:
"Any first team rugby football league fixture played between two Clubs in either: (a) the Super League competition (including play-offs); (b) the World Club Challenge competition; (c) the Challenge Cup competition (quarter-final, semi-final and final only); or (d) such other fixture as the RFL may prospectively determine to be a Salary Cap Relevant Match from time to time."
Davico got injured in a pre-season friendly so it was simply a matter of terminating his contract and paying whatever the two parties agreed or were contracted to. No cost to us on the cap. That is probably why he was out the door as quick as he was. If he was a cost to us we may as well have hung onto him to see if he recovered.
Dave