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2021 Cap Space

Discussion in 'Bulldogs Discussion' started by btrainben, Mar 28, 2020.

  1. btrainben

    btrainben Kennel Immortal

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    I know none of us nor anyone at the club or NRL could give a definitive answer about how all of this affects the salary cap or our 2021 cap space.

    But theoretically if the cap is greatly reduced, do you think they would have to cut players salaries down by a certain percentage across the board?

    If so, would clubs like ours maintain their potential cap space relative to the new cap amount or do you think they'll just start over and essentially make everyone a free agent?

    It would be a shame if we couldn't capitalise on the massive cap space we've waited six long and frustrating years for after Des and Dib destroyed the club. Or should we just be happy if our club can even survive this economic crisis across the world?
     
  2. Spoonman84

    Spoonman84 Super Moderator Staff Member

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    I can’t imagine they will be reducing contracts on a contract by contract basis it would be a percentage across the board so I’d say we will still have just as much cap space available as a percentage as we do now it will just be a smaller physical amount of money.
     
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  3. Prison Mike

    Prison Mike Kennel Immortal

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    If the NRL survives and the cap is reduce I'd say we'd be in a far better position to restructure our roster compared to any other club... Well with the exclusion of Roosters, Broncos and Storm who will be given all they need
     
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  4. btrainben

    btrainben Kennel Immortal

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    You would think that would be the case. But it honestly wouldn't surprise me if they changed the nature of the cap itself or if they just made all contracts null and void. Or any future signings (Arrow to Souths, Frizell to Saints etc) be voided considering the circumstances.

    Surely TPA's will be scrapped from next season. I can't imagine too many businesses having spare money to pay a portion of players salaries. No doubt the Roosters and Brisbane will find other ways to cheat the system.
     
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  5. Heckler

    Heckler Kennel Enthusiast Gilded Premium Member

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    I reckon everything will be null and void in 2021 with the way things are going. Everything will be restructured.
     
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  6. bradyk

    bradyk Kennel Addict

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    I think it'll either be the same % across all the players or the higher end players will take more of a hit. At this stage I don't see anything changing besides players being on less $ due to the reduced salary cap.
     
  7. TwinTurbo

    TwinTurbo Kennel Enthusiast Gilded

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    There won’t be any reduction in the Cap in 2021. The competition will be as usual and the money will flow even more than currently contracted because businesses need to recover from this year. So more advertising, more promotion, more sponsors, more coverage to get people out and spending/buying. This is totally different to the WEC, the bounce back will be rapid and huge. People are going to release their pent up frustration in any way they can, which means attendances at game will be through the roof. Businesses just have to be ready for the bounce back, when the shackles are removed.

    Go Dogs
     
  8. Spoonman84

    Spoonman84 Super Moderator Staff Member

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    You’re extremely optimistic if you think that’s going to happen especially when there is no time frame on when the worst is going to be over let alone when the recovery can begin.
     
  9. TwinTurbo

    TwinTurbo Kennel Enthusiast Gilded

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    There will be recovery medication in place by September/October and a vaccine shortly after Xmas. By the start of NRL season it will be included with the 2021 flu shots. There’s billions, probably trillions, of dollars to be made and as a result every drug company in the world has every available employee working on it 24/7. Covid-19 is just another strain of corona virus of which much is already know. The worldwide competition to be first with a vaccine is intense, there are 43 known drug companies with vaccines in development, some started human trials 2 weeks ago.

    Go Dogs
     
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  10. silva

    silva Utility

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    I dont buy into this reduces cap rubbish. Whats corona got to do with the cap. It's a one off impacting all industries. The cap is competitive with other rugby leagues in the world and there's no reason to cut it
     
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  11. Spoonman84

    Spoonman84 Super Moderator Staff Member

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    That’s too late for the NRL so that means no competition for this year. It’s clear now they were living pay cheque to pay cheque so you’re kidding if you think missing out on a whole season of revenue isn’t going to have an effect. The cap will come down for sure if they don’t play again this year.
     
  12. Spoonman84

    Spoonman84 Super Moderator Staff Member

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    I think they will just shrink the cap amount and if they do make all contracts null and void I can’t see them allowing clubs to go nuts and completely blowing up their rosters. Shrinking the cap will be the simplest way because they can even allow the new signings. It’s the NRL though so they will find the most convoluted and confusing way of managing it.
     
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  13. Alan79

    Alan79 Kennel Immortal

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    It could go many ways.

    1) Cap is reduced
    - Assuming that players fight clubs to honour the contract values which I expect they will. I don't expect player managers to accept pay cuts in good grace. Many clubs might have to pay players to move elsewhere. In this situation any club under the cap for next year will be in a position to benefit.

    2) Cap stays the same with two options
    (a) Some clubs go bankrupt.
    - Once again, the clubs remaining that have cap space will have more options to recruit the players left in limbo.
    (b) All clubs remain financially viable.
    - Business as usual in terms of players off contract being the ones that are on the market. The usual process of recruiting will carry on.
    - Perhaps with a few clubs that have come close to folding they'll need to offload expensive coaching and recruitment staff.

    3) NRL folds
    - It's anyone's guess what scenario will play out. I could envision a potential scenario where an Australian tv network or a wealthy subscription network would attempt to take over the competition. TV networks won't want to lose the potential advertising revenue and someone like Murdoch will know that a large portion of subscriptions are directly related to specific sporting codes. In either case I imagine that the players would be short changed by the entity trying to take over as they try to do it as cheaply as they can.


    As long as the league's club keeps supporting the football club I don't think we are going to be in trouble. The leagues club might be in a weaker position for a while, but it seems like they're asset rich enough to ride out the bad times.


    Whatever the outcome is, I really think that this highlights that the governing body of the NRL are either the worst financial managers in existence, or they're overpaying themselves in a massive way. The amount of money being injected into the game by sponsorship and broadcast rights should have ensured that the league didn't need to be begging for bailout money right now. It's embarrassing seeing them squawk for money like baby birds.
     
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  14. btrainben

    btrainben Kennel Immortal

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    You're completely ignoring the financial impact this will have on the sponsors who combine to add millions to clubs coffers. These businesses will have to cut costs and staff when they're fully operational. Sponsorships will be the first expense to cut.

    Not to mention the many fans who may not be able to find work for months after the worst of this crisis is over and therefore won't have as much money to spend on memberships, merchandise or tickets etc.

    There will be a huge appetite for people to live their lives as they did before this changed everything, but people and businesses will have to budget more than ever.
     
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  15. Alan79

    Alan79 Kennel Immortal

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    Couldn't agree more with what you are saying. Some large business entities will ride this out quite well. Mostly essential businesses like energy supply, phone services, supermarkets, etc. Many of these will just rationalise staffing numbers. But this will be crippling for small business and the general population financially if shutdowns continue for a long time. The government at present doesn't seem to have much idea on how they're going to manage this. The most obvious response to this would be to begin taxing the large corporations who typically pay their campaign bills. Implementing higher taxes on mining exports etc would be a start. But I don't think they'll bite the hands that feed them.

    It's tough to imagine how the economic landscape will look if lockdowns continue for an extended period of time.
     
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  16. NPC83

    NPC83 Kennel Regular

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    I get your point mate historically when the economy recovers from a down turn or recession all asset classes bounce back aggressively and there will be a lot of cash out there if the government keeps printing $$$. But who knows how soon we reach the peak of the epidemic.. we aren’t even close yet. Might even have a Chinese company sponsor us next year... :o
     
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  17. Chris Harding

    Chris Harding Steam Powered Dog Premium Member

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    Although I won't be surprised if the Roosters are able to keep their players on the same money.
     
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  18. Chris Harding

    Chris Harding Steam Powered Dog Premium Member

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    This will be different from previous downturns. Many small businesses, and people who lost their jobs, won't have the money to just bounce back, and this will slow the recovery. Money will only be spent on essentials while people wait for things to recover, and look for jobs that will be harder to find with fewer companies surviving.

    Much depends on what money the government will give to welfare to get things up and running quickly - otherwise, we are looking at a dreary economy for a long time.
     
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  19. wendog33

    wendog33 Kennel Addict

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    Add to that the rationalisation and changes to working conditions, cuts, etc that many businesses have wanted to implement, and couldn't previously, and there will be less fulltime jobs, more casualisation, you would foresee.

    Workers will not be in any kind of position to strongly negotiate and will possibly just be happy to have that job.
     
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  20. Nasheed

    Nasheed Kennel Enthusiast

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    Nasheed here,
    What I am personally wondering is if all contracts end up null and void. Would be very interesting.

    youd keep Lewis, Jackson, Holland, Napa, Thompson and CHN, but everyone else is fair game!
     

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