League: Clubs set to clash over cap increase

The Warriors are in favour of an increase to the salary cap, despite the fact nearly half the NRL clubs think it's unaffordable.

All 15 club chief executives will meet on Tuesday to discuss the issue when it's likely there will be a large spectrum of opinions.

A poll conducted by The Australian last week suggested the Warriors, Cronulla, Brisbane, North Queensland, Newcastle, Penrith and the Sydney Roosters were in favour of a small increase. In contrast, Manly, Canberra, Souths, Parramatta, Wests Tigers and the Bulldogs were ardently opposed to any increase, while Melbourne and St George were against a significant rise.

Scurrah suggested an initial increase of up to five per cent should be introduced, followed by an annual increase based on inflation.

"I think there has to be some sort of annual adjustment, even if it's just to bring it in line with the cost of living," Scurrah said. "It's difficult to have employment in any country when the amount you can pay people stays the same year after year."

At present, the cap stands at A$3.36 million, although this is closer to A$3.7 million when exemptions for long-serving players and third-party agreements are taken into account. The Warriors were recently docked four competition points and fined A$430,000 for salary cap breaches but it's generally accepted most clubs rort the cap to some degree.

The level of the cap is currently being negotiated between the NRL and Rugby League Players' Association (RLPA) with the RLPA pushing for an increase to A$4.2 million next year and A$5 million in 2008 when the full value of a new $400 million TV deal kicks in. An increase closer to A$3.5 million is more likely.

Despite concerns from some clubs and despite the fact an increase touted by the RLPA isn't likely, NRL chief executive David Gallop has said an increase is certain.

"I think it's inevitable but it's a matter of what the game can afford," he said. "Affordability is a major issue and the reason why we are keen to meet the clubs," Gallop said.

Souths chief executive Shane Richardson represented concerned clubs when he told The Australian: "I don't want it to go up because we can't afford it. We're all losing money. It started too high in the first place."

Australian clubs in particular are struggling to hang on to high-profile players who are being lured by more money and the chance of greater international competition in rugby or the UK Super League.

For the Warriors, rugby is less of a concern but they have often lost players to the Super League where there is no salary cap. The Auckland-based club lost seven players last year and cited, perhaps ironically, the pressure of fitting everyone under the salary cap as a reason why they had to let players go.

Although a decision is unlikely this week, there is some pressure on making a decision soon so clubs know where they stand on retention and recruitment when the anti-tampering clause is lifted on June 30.

A ruling is also expected this week on the accreditation of player agents Jim Banaghan, who represents seven Warriors including Ruben Wiki, and George Mimis, who acts for Steve Price. The pair are being investigated for their role in the Warriors' salary cap breach.

- HERALD ON SUNDAY