Monday, August 5, 2013

Do we really have an even competition? - By Mary

I must truly say a big thank you to my friends at @TheRoarSports and in particular, @Vic_Arious who inspired me to write this post this morning. What started me thinking was @Vic_Arious's post on whether it is ever acceptable for an NRL team to lose by 50. Check it out here.

When we look back at Season 2013, there have been some absolutely sensational shallackings and it began in Round 1 with the Eels beating the Warriors 40-10 and the Knights beating the Tigers 42-10. Such victories have not been isolated. In particular, the Roosters have managed to destroy 5 opposition teams with margins of 36 and above. The Rabbitohs had a massive win over the Tigers in Round 10, winning 54-10 and most recently, last round the Storm bulldozed the Raiders, 68-4.

In @Vic_Arious's piece, he considers whether it is ever appropriate for a team to lose by 50 and he argues that excuses like 'we didn't show up' and 'they just got a roll-on early' will not cut it. I agree. Professional sportsman are paid well and while I do not expect my team to win every week, I expect them to come out and do the basics right. A 68-4 wallapoing suggests that a team really isn't doing the basics right.

However, I'm going to come at the question from a different angle and look at it from a salary cap perspective (as you all know by know, the salary cap is one of my favourite topice).

As you all know, the NRL salary cap is a hard cap and for 2012 was $4.4 million for the 25 highest paid players at each club. Each club can exercise its discretion in determining how much each player is paid as long as total payments are below $4.4 million. As well as this $4.4 million, each club can spend an additional $350 000 on players outside the top 25 who play in the NRL competition.

The salary cap aims to spread playing talent so the wealthier clubs cannot outbid the poorer ones to acquire all the best players and to prevent clubs needing to overspend dramatically to attract quality talent. It basically seeks to even the playing field. For me, the question then becomes is the salary cap achieving its aim of creating an even competition in the face of victories by teams like the Roosters, Rabbitohs and Storm by significant margins?


We can look at this from a number of perspectives. Let's take a look at the Finals series over the last few years.

A ‘level playing field’ is a fundamental aim of the salary cap. However, when considering the results of the regular season and the Final Series it is debatable as to whether the salary cap has achieved this goal. The results illustrate that from 1979-89, ten years prior to the salary cap’s introduction, the Premiership was shared amongst five clubs. In the ten years following the salary cap’s introduction, this increased to seven teams. This is only a superficial analysis and fails to take into account the increase in teams during this period, which might account for the higher pool of clubs experiencing Premiership success.

However, the biggest issue I think and the one which is undermining the salary cap's ability to even the playing field is the increasing trend of private ownership and its impact on third party deals which are directly made to players by companies. This is because the salary cap does not impose any restrictions on the amount a player can earn through such means as long as he is not using club logos or names but being used as themselves. With owners commanding significant financial standing emerging, like Nathan Tinkler at the Newcastle Knights, their ability to exercise corporate clout toward their playing group, increases significantly. A prime example is the Thoroughbreds, a group of businessmen in Brisbane who assist the Broncos to be competitive. Brisbane has been reported as paying its players $5.15 million in total in 2011, well above the salary cap, largely through third party deals. It is arguable as to whether a Sydney club could generate such support as they are competing amongst each other for the corporate dollar, whereas Brisbane is a one-team town. These trends raise questions about the ability of the salary cap to achieve its goals.
 
This all suggests that there are some clubs, particularly those that are privately owned, that have greater capacity to use the salary cap and its exclusions to their advantage.

There has been much talk about salary cap reform this year. I think the NRL really needs to consider its justification for the cap. If it really is to 'create an even playing field', I would suggest that results are increasingly showing that this is not the case. If however, it is simply to ensure the financial survival of clubs, then the NRL needs to be up front about this.

I would love your thoughts.

Love,

@LadiesWhoLeague

3 comments:

  1. Ahh - the old chestnut of the "salary cap".

    How about the alternative argument, ie. that the players are in fact overpaid? Before you scream the house down consider the following:

    1. how many other occupations that pay as well as even the regular club first grader gets (let alone the amount earned by the highest paid players) would condone so many mistakes in the workplace? Add to that the number of "stupid penalties" given away by players and ask yourself if they were in any other occupation "would you employ them?" [That provocative enough to get the debate going?]
    2. Does the shortage of really talented players mean that quite average performers can earn top dollars? Australia is a somewhat unique country in that in a population of a bit over 20 million we try to run the following male sports at supposedly "elite/world class" level - ie. NRL, Rugby Union (including 4 teams in the Super Rugby), Australian Rules and of course soccer/football. Drawing from a male population of say 11 million, the chances of getting enough top level performers to fill every team is remote in the extreme. Don't forget that with the way the competitions run now it is impossible for an elite sportsperson like say a Ray Lindwall (who played 2 grannies for the Dragons before concentrating on cricket) have to choose between a winter or summer professional career - so yet more loss of talent to winter codes. In essence, top dollars are being played to FAQ players as the demand for "athletes" is so high across the various codes in Australia.
    3. The recent media stories about teams not being able to play youngsters "because of the cap" shows you that the clubs are clearly paying too much for their listed players under the cap as when they need to select a player from outside their listed players they then cry poor and blame the cap.
    4. The fact that some of the clubs are in financial difficulties (eg Sharks) tells you that maybe the cap is too high. Presumably the clubs are like most businesses in that wages costs are the highest cost input into the business - and if so, then maybe the cap should be lower. Should the cap be lowered to the level of what the poorest club can pay?

    Ultimately though, no system will really ensure a level playing field. Look at AFL - they have a draft as well as caps and favourable provisions for start up teams (eg. GWS) and yet still teams like Melbourne couldn't even beat Parramatta at a game of Aussie Rules - well maybe I'm exaggerating there a little bit :-)

    As we all discovered with Melbourne Storm, no system is able to be sidestepped by anyone with a mind to do so. The recent stats from the NRL showed many clubs are in the same boat, albeit to a lesser extent.

    Let the debate/discussion begin ...

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  2. Hi anonymous,

    Thanks for your comment.

    I have in fact already written a blog on whether players are overpaid, you can check it out here: http://ladieswholeague.blogspot.com.au/2013/06/are-our-nrl-players-earning-too-much.html

    Your point in 1. is an interesting one, however I would argue that there is a tremendous difference between an error made on an NRL field and an error made in any other workplace. Comparing sport to a standard work place is like comparing apples and oranges, it needs to be accepted that sport is ultimately different and arguably, mistakes are a part of the game.

    In regard to point 2, I disagree with the idea that our players are paid too much - I also don't think average performers can really be classed as earing 'top dollar'.

    Your point 3 is what I see as the problem - players are demanding top dollar and if Clubs are unable/unwilling to pay it - they move to another code or overseas.

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  3. Thanks - have read your blog referred to above. I think that $120k per year is not a bad return for the average player. Don't forget, they don't work 48 weeks per year. I know they have pre season training etc etc, but I would suggest that the average player in fact works less than the average worker over the course of a full year. The average wage of $120k is about twice the average weekly wage in Australia so yes, they are doing ok.

    Regarding the "workplace" issue. I agree, there is a difference, but compare it to other high pressure workplaces. Take for example occupations like a doctor in an accident/emergency unit, pilots, engineers or a lawyer working under heavy pressure in a top tier law firm - people often paid similar coin for their skills. Even cutting footballers a bit of slack, the amount of errors made in the 80 minutes of "work" per week is I would argue on the high side. And to be honest, the consequences of their errors are not often that serious compared to the occupations above, ie. no one dies, gets sent to prison, loses maybe millions if not billions of dollars etc. Of course, the question that needs to be considered of the "entertainment value" - not sure what value you put on that side of the equation.

    I also agree that mistakes are part of the game, but some of the "mistakes" are what the commentators kindly refer to as "schoolboy errors", ie. stupid mistakes that should not be made. Add onto this the stupid penalties given away week in week out by all teams and the number of "genuine mistakes" are genuinely few and far between. For example, not finding touch with a penalty kick, kicking the ball dead from the kickoff, not passing in a 2 on 1 situation and dying with the ball in a tackle. These are not "mistakes" - but either stupidity or carelessness. These actions in other similar paid occupations are not tolerated. Let's say twice a year a pilot stuffed up a landing ... or an engineer got their calculations wrong and a bridge collapsed. Think of the number of times a commentator (or the crowd for that matter) wonder "why did they do that?" A true professional doesn't make such errors (or if they do, it is an aberration).

    How about this for an option. The cap is divided into several pay scales - and the club has to pay say 3 players in the top tier, 10 in the second, 15 in the third and so on. The top tier could be $400k plus, the second $200-400K and so on. That way, teams would be forced to look hard at what contracts they offered and there would be a base salary for players of various skill levels. There would also be a requirement for a contingency to accommodate players promoted from outside the listed players during the season. Anything not spent by the end of the year could be spent by the club on other football related activities - although obviously "sports science" in the manner of the Sharks and Essendon is not ok.

    PS - Now for a bit of a cryptic teaser - I am going to out myself using the initials GGG, which stands for Grumpy Greenleigh Guy - [who is sick to death of prima donna sportspeople of many codes carrying on like they are god's gift to the world]. Can you work out who I am? I have given you another oblique clue in the second paragraph above. You can probably pick my other comments as well ...

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