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frank

2013Season.

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And yet Sheffield's chairman reported that, once again, they made a profit this season. Funny that don't you think?

I really don't know how though BSJ unless the GF really helped their income.But if they can compete and make profit why can't the rest of the lower league teams?

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I really don't know how though BSJ unless the GF really helped their income.

Sensible management and off the field activities.

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As far as I know it's 300k and you can't go over it at all. Leigh went over by 2% or Sumat like that a couple of seasons back and they got points deducted.So I doubt you can have special treatment for extra income etc.

Your right you cant go over the 300,000 , but say your turnovers about 250,000 , thats your salary cap set at 100,000 then you can maybe get the extra 5% , if its been covered by a sponsor or such Gaz

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Your right you cant go over the 300,000 , but say your turnovers about 250,000 , thats your salary cap set at 100,000 then you can maybe get the extra 5% , if its been covered by a sponsor or such Gaz

Yeah see what you mean bob and yeah you could be right dont know much about that though if im being honest.

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Yeah see what you mean bob and yeah you could be right dont know much about that though if im being honest.

is fev turning over more than 750,000 then , as your talking as tho the 300.000 is the norm for fev

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is fev turning over more than 750,000 then , as your talking as tho the 300.000 is the norm for fev

I very much doubt it but I don't know bob.I hope we do but I think I have got more chance of seeing santa

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It's more like 400k for salary cap,before Leigh were saved from relegation,they had millward,Robbie Paul and a few big earners and if not they would have been in trouble in champ one

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And yet Sheffield's chairman reported that, once again, they made a profit this season. Funny that don't you think?

I think that all Championship clubs (with the odd exception) need to look at how the Eagles manage to function on the gates they draw. There must be some lessons to be learned there surely?

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Right! Can you define the salary cap accurately? (I can't btw.)

I can but it is rather a long winded explanation :rolleyes: , I just can't seem to find the right words to make it more succinct :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

SALARY CAP LIMIT FOR 2012

The Salary Cap, finite upper limit, for 2012 is £300,000 for the Championship division and

£150,000 for Championship One (excluding payments to players detailed under Section 7 –

Non-Salary Cap Costs).

Notwithstanding the above, no club may ordinarily spend in excess of 40% of their Salary

Cap Relevant Income on Salary Cap Qualifying Costs, subject to the following provisions:

1. Clubs will submit to the RSCM, by 1 November 2011, their budget for 2012;

2. the RSCM will scrutinise this budget and agree a figure which represents 40% of

Salary Cap Relevant Income (to be known as the Club Agreed Salary Cap);

3. a club may exceptionally seek in writing a dispensation from the RFL to spend in

excess of 40% and/or the above finite upper limit (to be known as the Club Agreed

Salary Cap) subject to the following;

3(a) such a dispensation will not be granted unless the RSCM is in agreement that

the club can afford to spend in excess of the finite upper limit and/or 40% of

Salary Cap Relevant Income on player wages, having regard to the club’s

financial history, the level of debts at the club, a liquidity assessment of the club

and an assessment as to club’s overall club development strategy; and

3 (b ) an absolute upper limit of £400,000 (for a club in the Championship division) or

£200,000 (for a club in Championship One).

For further clarification of what constitutes a breach, please refer to Section 8.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 37130702000Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 2012

SALARY CAP REGULATIONS - CHAMPIONSHIPS

4.0 SALARY CAP RELEVANT INCOME

4.1 Where contra deals have been entered into with suppliers, the “income” may be included

within the return, provided that relevant VAT invoices have been raised.

4.2 Where the term “profit” is used in any heading falling within Salary Cap Relevant Income,

clubs are reminded that this is the gross profit relating to a particular commercial activity,

i.e. income less all direct costs. For clarity, the term “direct costs” should, in this instance,

include the purchase price of goods sold but excludes all overheads and salaries of staff

employed in a generally administrative capacity.

4.3 All amounts should be shown net of VAT.

4.4 Salary Cap Relevant Income shall be divided into 19 separate headings as detailed below:

4.4.1 Central Distributions – These distributions should be accounted for on an

actual basis taking into account the various distributions from the RFL.

4.4.2 BBC TV fees – Income should be accounted for as actually received.

4.4.3 Gate Receipts – Income should be accounted for as actually received.

4.4.4 Gate Receipts – Shared – Income relates to cup and friendly games. For home

clubs, income should be shown net of the away club’s share of receipts but

before deducting match day expenses. For away clubs, income should be the

actual share of receipts.

4.4.5 Season ticket sales – Although the majority of season ticket sales will be made

during October to February, the total income from all season ticket sales should

be apportioned evenly over the number of home league games during the

season. The proportion equivalent to the total number of home games played to

the end of the quarter should be shown in the return.

4.4.6 Sponsorship Income – Where sponsorships relate to the main club sponsor(s),

kit and player sponsors then the associated income for the year should be

spread equally over the playing season. For other sponsorships - such as match

and ball sponsors - the associated income should be shown in the period in

which the matches were played.

Please note that income deriving from the owners/directors of the club for this

purpose will be deemed to be classed as an Owners’ Contribution.

4.4.7 Distributions via the RFL – excluding Challenge Cup prize money which is

dealt with under Section 5. Other income should be accounted for when

received.

4.4.8 Advertising Revenue – Advertising revenue should include all forms of

advertising including pitch branding, hoardings, scoreboard and programme.

Where advertising relates to individual matches, the associated income should

be shown in the period in which the matches were played. Otherwise, the

associated income for the year should be spread equally over the playing

season.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 372Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 201200307030

SALARY CAP REGULATIONS - CHAMPIONSHIPS

4.4.9 Profit on programme sales – Profit/ (loss) on programme sales relates solely to

the sale less the cost of producing programmes. Programme advertising income

should be included in “Advertising Revenue”.

4.4.10 Profit on hospitality sales – The associated income should be shown in the

period in which the matches were played. (See Section 14 ‘Definitions’).

4.4.11 Profit on merchandise sales – Profit on merchandise sales should also take

into account stock movements, damaged and obsolete stock as well as sales

and production costs. (See Section 14 ‘Definitions’).

4.4.12 Profit on lotteries and similar activities – Profit on lotteries and similar

activities relate to income, less prizes, from activities run by the club such as

raffles, golden gamble, guess the score and club lotteries. Agents’ fees should

be included within “Other Overheads” and not netted off against income. It

should be noted that lotteries, which are run independently from the club, should

not be included in this category. Any receipts from independently run lotteries

should be shown under “Donations”.

4.4.13 Profit on other commercial activities – Clubs should identify the individual

income streams that are not included in other categories.

4.4.14 Donations – Donations from other sources should be included as and when

received.

4.4.15 Investment income – Investment income relates mainly to interest receivable

on deposits held at banks or other financial institutions and should be included

as and when received.

4.4.16 Other Salary Cap Relevant Income – Clubs must provide an analysis of all

items of income and expenditure included under this heading.

4.4.17 Bad debts – Any debts relating to income for the year, which will not be

recovered by the club, must be netted against income for that period, as soon as

the debt becomes irrecoverable. (See Section 14 ‘Definitions’)

4.4.18 Owners/Directors Contributions – Where a club director or owner (which maybe a corporate or charitable entity) has decided to write off or capitalise all or

part of his loan with the club, a signed personal letter to that effect must

accompany the Salary Cap Return - otherwise, no income shall be deemed to

arise from such an event. Clubs are reminded that, in the interests of equity,

retrospective arrangements will not be allowed.

4.4.19 Management Charges – Any management charges raised by associated group

companies must be netted against income.

5.0 NON-SALARY CAP RELEVANT INCOME

5.1 Sale proceeds from the sale of assets.

5.2 Transfer fee income received.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 37330704000Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 2012

SALARY CAP REGULATIONS - CHAMPIONSHIPS

5.3 Any Challenge Cup prize money as per the schedule issued from time to time should be

excluded from income providing the following is observed:

5.3.1 The prize money is paid to the players within 60 days of receipt by the club.

5.3.2 Any excess of bonus over prize money received and paid out by the club is

classed as Salary Cap Qualifying Cost.

5.3.3 Any excess of prize money over bonus paid out may be included as Salary Cap

Relevant Income.

For the avoidance of doubt, any payments paid out by clubs prior to receipt of prize money, cannot be

retrospectively or notionally set off against prize money.

6.0 SALARY CAP QUALIFYING COSTS

Salary Cap Qualifying Costs shall be divided into five separate headings as detailed below:

6.1 Player contract payments:

6.1.1 All guaranteed payments as stated in the player’s contract;

6.1.2 Any termination payments and payments in lieu of notice;

6.1.3 All signing on fees.

6.2 Player match payments:

6.2.1 Any remuneration based on appearances;

6.2.2 Any remuneration based on match results;

6.2.3 Any bonuses.

6.3 Player benefits

6.3.1 All accommodation costs paid by the club including rent, council tax bills,

telephone bills, heating and any other relevant costs. Where a club owns a house

then the “rent” shall be deemed to be the “rating value”;

6.3.2 All payments made to players’ agents by the club;

6.3.3 All payments for private medical cover of a player’s family or other persons

connected with the player (premiums for players are to be excluded);

6.3.4 Provision of cars for players, amount to be based on taxable benefit to the player,

which will also include car fuel benefits where applicable;

6.3.5 Cost of all travelling expenses paid to, or on behalf of, the player. Such expenses

will include all airfares and relocation costs of non-British players, irrespective of

whether they may be subject to income tax.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 374Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 201200307050

SALARY CAP REGULATIONS - CHAMPIONSHIPS

6.4 Payments/(receipts) for players on loan

6.4.1 Loanee club – Cost should include any payments for the use of the player’s

services to the loaning club. Any match payments payable to the player should be

included within “Player match payments” above;

6.4.2 Loaning club – The club loaning the player should record the player’s usual

contract within “Player contract payments” above and record any associated

income from the loanee club as a negative cost within “Payments/(receipts) for

players on loan”. Not withstanding the above, in the case a club loaning any

players who are under 21 (see 7.3 below) it is not permissible to record any

associated income as a negative cost as the play’s contract payments do not

count towards the club’s Salary Cap costs.

6.5 Employee Benefit Trust Charges

6.5.1 For the avoidance of doubt, all payments into the trust relating to the Salary Cap

Year in question or liabilities/obligations/expectations to the trust for that year

should be recorded in the year as Salary Cap Qualifying Costs. In the absence of

information regarding obligations to the trust, the RSCM reserves the right to

estimate such an obligation and enter a notional amount in the club’s Salary

Cap Return.

Note also the following relevant provisions:

6.6 Dual Roles

6.6.1 Where an employee of the club is employed in a capacity other than as a player,

and plays one or more first team games (excluding friendlies) in a season then he

will be considered a player and as such remuneration payable by the club for the

other duties shall also be included as Salary Cap Costs.

6.6.2 Each club may have an allowance of up to £20,000 for each player who acts as a

Community Development Officer in a project or role approved by the RFL

Community Development department. Such approval must be sought and

registered at the beginning of the competitive season and must be counter signed

by the Community Development department again at the end of the relevant

season.

6.7 Payments to relations/associates

6.7.1 Any payment made to any relative or associate of a player or any other person,

which, in the opinion of the RSCM, relates to the player’s services (past, present

or future) to the club.

6.8 Payments to corporations in which the player has an interest

6.8.1 Payments to corporations in which the player has a direct or indirect benefic

.............does anyone fancy having a go at fathoming this out?

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I thought the rent was covered by Sheffield city council?

:lol: :lol: :lol: :lol: :lol: :lol: :lol:

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Your right you cant go over the 300,000 , but say your turnovers about 250,000 , thats your salary cap set at 100,000 then you can maybe get the extra 5% , if its been covered by a sponsor or such Gaz

No, you could only get 40% of the sponsor's contribution. You can't "ring-fence" bits and pieces of income and say all that's salary cap income.

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I can but it is rather a long winded explanation :rolleyes: , I just can't seem to find the right words to make it more succinct :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

SALARY CAP LIMIT FOR 2012

The Salary Cap, finite upper limit, for 2012 is £300,000 for the Championship division and

£150,000 for Championship One (excluding payments to players detailed under Section 7 –

Non-Salary Cap Costs).

Notwithstanding the above, no club may ordinarily spend in excess of 40% of their Salary

Cap Relevant Income on Salary Cap Qualifying Costs, subject to the following provisions:

1. Clubs will submit to the RSCM, by 1 November 2011, their budget for 2012;

2. the RSCM will scrutinise this budget and agree a figure which represents 40% of

Salary Cap Relevant Income (to be known as the Club Agreed Salary Cap);

3. a club may exceptionally seek in writing a dispensation from the RFL to spend in

excess of 40% and/or the above finite upper limit (to be known as the Club Agreed

Salary Cap) subject to the following;

3(a) such a dispensation will not be granted unless the RSCM is in agreement that

the club can afford to spend in excess of the finite upper limit and/or 40% of

Salary Cap Relevant Income on player wages, having regard to the club’s

financial history, the level of debts at the club, a liquidity assessment of the club

and an assessment as to club’s overall club development strategy; and

3 (b ) an absolute upper limit of £400,000 (for a club in the Championship division) or

£200,000 (for a club in Championship One).

For further clarification of what constitutes a breach, please refer to Section 8.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 37130702000Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 2012

SALARY CAP REGULATIONS - CHAMPIONSHIPS

4.0 SALARY CAP RELEVANT INCOME

4.1 Where contra deals have been entered into with suppliers, the “income” may be included

within the return, provided that relevant VAT invoices have been raised.

4.2 Where the term “profit” is used in any heading falling within Salary Cap Relevant Income,

clubs are reminded that this is the gross profit relating to a particular commercial activity,

i.e. income less all direct costs. For clarity, the term “direct costs” should, in this instance,

include the purchase price of goods sold but excludes all overheads and salaries of staff

employed in a generally administrative capacity.

4.3 All amounts should be shown net of VAT.

4.4 Salary Cap Relevant Income shall be divided into 19 separate headings as detailed below:

4.4.1 Central Distributions – These distributions should be accounted for on an

actual basis taking into account the various distributions from the RFL.

4.4.2 BBC TV fees – Income should be accounted for as actually received.

4.4.3 Gate Receipts – Income should be accounted for as actually received.

4.4.4 Gate Receipts – Shared – Income relates to cup and friendly games. For home

clubs, income should be shown net of the away club’s share of receipts but

before deducting match day expenses. For away clubs, income should be the

actual share of receipts.

4.4.5 Season ticket sales – Although the majority of season ticket sales will be made

during October to February, the total income from all season ticket sales should

be apportioned evenly over the number of home league games during the

season. The proportion equivalent to the total number of home games played to

the end of the quarter should be shown in the return.

4.4.6 Sponsorship Income – Where sponsorships relate to the main club sponsor(s),

kit and player sponsors then the associated income for the year should be

spread equally over the playing season. For other sponsorships - such as match

and ball sponsors - the associated income should be shown in the period in

which the matches were played.

Please note that income deriving from the owners/directors of the club for this

purpose will be deemed to be classed as an Owners’ Contribution.

4.4.7 Distributions via the RFL – excluding Challenge Cup prize money which is

dealt with under Section 5. Other income should be accounted for when

received.

4.4.8 Advertising Revenue – Advertising revenue should include all forms of

advertising including pitch branding, hoardings, scoreboard and programme.

Where advertising relates to individual matches, the associated income should

be shown in the period in which the matches were played. Otherwise, the

associated income for the year should be spread equally over the playing

season.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 372Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 201200307030

SALARY CAP REGULATIONS - CHAMPIONSHIPS

4.4.9 Profit on programme sales – Profit/ (loss) on programme sales relates solely to

the sale less the cost of producing programmes. Programme advertising income

should be included in “Advertising Revenue”.

4.4.10 Profit on hospitality sales – The associated income should be shown in the

period in which the matches were played. (See Section 14 ‘Definitions’).

4.4.11 Profit on merchandise sales – Profit on merchandise sales should also take

into account stock movements, damaged and obsolete stock as well as sales

and production costs. (See Section 14 ‘Definitions’).

4.4.12 Profit on lotteries and similar activities – Profit on lotteries and similar

activities relate to income, less prizes, from activities run by the club such as

raffles, golden gamble, guess the score and club lotteries. Agents’ fees should

be included within “Other Overheads” and not netted off against income. It

should be noted that lotteries, which are run independently from the club, should

not be included in this category. Any receipts from independently run lotteries

should be shown under “Donations”.

4.4.13 Profit on other commercial activities – Clubs should identify the individual

income streams that are not included in other categories.

4.4.14 Donations – Donations from other sources should be included as and when

received.

4.4.15 Investment income – Investment income relates mainly to interest receivable

on deposits held at banks or other financial institutions and should be included

as and when received.

4.4.16 Other Salary Cap Relevant Income – Clubs must provide an analysis of all

items of income and expenditure included under this heading.

4.4.17 Bad debts – Any debts relating to income for the year, which will not be

recovered by the club, must be netted against income for that period, as soon as

the debt becomes irrecoverable. (See Section 14 ‘Definitions’)

4.4.18 Owners/Directors Contributions – Where a club director or owner (which maybe a corporate or charitable entity) has decided to write off or capitalise all or

part of his loan with the club, a signed personal letter to that effect must

accompany the Salary Cap Return - otherwise, no income shall be deemed to

arise from such an event. Clubs are reminded that, in the interests of equity,

retrospective arrangements will not be allowed.

4.4.19 Management Charges – Any management charges raised by associated group

companies must be netted against income.

5.0 NON-SALARY CAP RELEVANT INCOME

5.1 Sale proceeds from the sale of assets.

5.2 Transfer fee income received.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 37330704000Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 2012

SALARY CAP REGULATIONS - CHAMPIONSHIPS

5.3 Any Challenge Cup prize money as per the schedule issued from time to time should be

excluded from income providing the following is observed:

5.3.1 The prize money is paid to the players within 60 days of receipt by the club.

5.3.2 Any excess of bonus over prize money received and paid out by the club is

classed as Salary Cap Qualifying Cost.

5.3.3 Any excess of prize money over bonus paid out may be included as Salary Cap

Relevant Income.

For the avoidance of doubt, any payments paid out by clubs prior to receipt of prize money, cannot be

retrospectively or notionally set off against prize money.

6.0 SALARY CAP QUALIFYING COSTS

Salary Cap Qualifying Costs shall be divided into five separate headings as detailed below:

6.1 Player contract payments:

6.1.1 All guaranteed payments as stated in the player’s contract;

6.1.2 Any termination payments and payments in lieu of notice;

6.1.3 All signing on fees.

6.2 Player match payments:

6.2.1 Any remuneration based on appearances;

6.2.2 Any remuneration based on match results;

6.2.3 Any bonuses.

6.3 Player benefits

6.3.1 All accommodation costs paid by the club including rent, council tax bills,

telephone bills, heating and any other relevant costs. Where a club owns a house

then the “rent” shall be deemed to be the “rating value”;

6.3.2 All payments made to players’ agents by the club;

6.3.3 All payments for private medical cover of a player’s family or other persons

connected with the player (premiums for players are to be excluded);

6.3.4 Provision of cars for players, amount to be based on taxable benefit to the player,

which will also include car fuel benefits where applicable;

6.3.5 Cost of all travelling expenses paid to, or on behalf of, the player. Such expenses

will include all airfares and relocation costs of non-British players, irrespective of

whether they may be subject to income tax.

rfl official guide 2012 working.e$S:RL GUIDE 2006 FRIDAY PM 17/1/12 14:42 Page 374Operational Rules – Section E2 – Salary Cap Regulations – Championships – Issue 10 – February 201200307050

SALARY CAP REGULATIONS - CHAMPIONSHIPS

6.4 Payments/(receipts) for players on loan

6.4.1 Loanee club – Cost should include any payments for the use of the player’s

services to the loaning club. Any match payments payable to the player should be

included within “Player match payments” above;

6.4.2 Loaning club – The club loaning the player should record the player’s usual

contract within “Player contract payments” above and record any associated

income from the loanee club as a negative cost within “Payments/(receipts) for

players on loan”. Not withstanding the above, in the case a club loaning any

players who are under 21 (see 7.3 below) it is not permissible to record any

associated income as a negative cost as the play’s contract payments do not

count towards the club’s Salary Cap costs.

6.5 Employee Benefit Trust Charges

6.5.1 For the avoidance of doubt, all payments into the trust relating to the Salary Cap

Year in question or liabilities/obligations/expectations to the trust for that year

should be recorded in the year as Salary Cap Qualifying Costs. In the absence of

information regarding obligations to the trust, the RSCM reserves the right to

estimate such an obligation and enter a notional amount in the club’s Salary

Cap Return.

Note also the following relevant provisions:

6.6 Dual Roles

6.6.1 Where an employee of the club is employed in a capacity other than as a player,

and plays one or more first team games (excluding friendlies) in a season then he

will be considered a player and as such remuneration payable by the club for the

other duties shall also be included as Salary Cap Costs.

6.6.2 Each club may have an allowance of up to £20,000 for each player who acts as a

Community Development Officer in a project or role approved by the RFL

Community Development department. Such approval must be sought and

registered at the beginning of the competitive season and must be counter signed

by the Community Development department again at the end of the relevant

season.

6.7 Payments to relations/associates

6.7.1 Any payment made to any relative or associate of a player or any other person,

which, in the opinion of the RSCM, relates to the player’s services (past, present

or future) to the club.

6.8 Payments to corporations in which the player has an interest

6.8.1 Payments to corporations in which the player has a direct or indirect benefic

.............does anyone fancy having a go at fathoming this out?

yes, that's it in a nutshell.

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I think that all Championship clubs (with the odd exception) need to look at how the Eagles manage to function on the gates they draw. There must be some lessons to be learned there surely?

Yep you're right. I won't knock Sheffield as everything they've done since they reformed has been spot on in my eyes. It's easy to criticise their relatively poor support but that's no reason to criticise those supporters who have followed them for so many years.

I suspect that some of the lessons to be learned might be a little unpalatable to some other clubs mind!

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I thought the rent was covered by Sheffield city council?

Yes it is, and it is classified as sponsorship, hence income.

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The difficulty in the CC is that all players are, technically, semi-professional. This means that all other "earnings" unrelated to the club or their role are not included as salaries. There have in the past been some imaginative treatments of alternative employment, particularly for imports, although none have yet been earmarked as "billiard hall markers".

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Yes it is, and it is classified as sponsorship, hence income.

We must ask them for our money back then.

Who should we ask, BSJ ?

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Is that a yes or no?

It's a no.

But they don't rip us off as much as they did when we were in $uperleague.

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The difficulty in the CC is that all players are, technically, semi-professional. This means that all other "earnings" unrelated to the club or their role are not included as salaries. There have in the past been some imaginative treatments of alternative employment, particularly for imports, although none have yet been earmarked as "billiard hall markers".

I spoke to a bloke from Newcastle earlier this week about their contract and salary cap process.

Most illuminating. They are supervised much more deeply.

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I spoke to a bloke from Newcastle earlier this week about their contract and salary cap process.

Most illuminating. They are supervised much more deeply.

Which Newcastle - NRL, RU, AFC?

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I spoke to a bloke from Newcastle earlier this week about their contract and salary cap process.

Most illuminating. They are supervised much more deeply.

No doubt this stems from the Melbourne scandal.

The salary cap in Oz does seem to even up the competition though, whereas here it has had no such effect.

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The salary cap in Oz does seem to even up the competition though, whereas here it has had no such effect.

Because in Australia, pretty much everyone is paying up to the cap, which means that the squad strengths are more even.

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