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NickWeaver

Catalans Salary Cap

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4 minutes ago, NickWeaver said:

Apparently they are able to spend 200k pounds more than other teams thanks to a loophole to do with exchange rates.

 

Interesting situation. What is the solution?

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I wouldn't worry about it. The rigours of regular travel make in more difficult than North England based sides, so a small advantage there offsets the distance issue. 

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Ah well I cant say it concerns me too much and I'm sure people didn't complain too much all of the times when the exchange rate would have meant Catalans got less. If anything I would allow Catalans a higher salary cap anyway to offset the disadvantages and higher costs that they have playing in an English competition.

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Its not a loophole. Thats nonsense.

Les Catalans are allowed to spend €2.34m. In 2016 this was worth £1.73m and Les Catalans were having to spend a bit less. Today its £2.09m and they can spend a bit more.

There is literally no cause for complaint because there is provision that the Les Catalans cap is €2.34m "or such amount as determined prior to the Salary Cap year in question by the board of Super League (europe) ltd whose decision and brief reasons will be circulated to all Super League clubs"

I.e its set by the clubs, they knew what it was, if they wanted to could change it and didnt.

There is also good reason for that, Les Catalans can't have there long term squad building at the whims of exchange rate fluctuations. Those fluctuations will sometimes be in their favour, sometimes against them, but having to adjust constantly to those changes will always work against them.

 

Edited by scotchy1
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It is also less of an issue now with marquee player rules and other exemptions.

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1 hour ago, Manfred Mann said:

Interesting situation. What is the solution?

Kick them out.

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As they're only here by invitation why would the rules apply?

They could be chucked out in the morning under almost any pretext.

It's often asked what they bring to SL anyone who's been to Brutus knows the answer to that,

And if the exchange rate had meant they could spend less would this even be a thread?

Exchange rates are for chancers to make money whether they go up or down and only affect people like us.

 

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As they're only here by invitation why would the rules apply?

They could be chucked out in the morning under almost any pretext.

It's often asked what they bring to SL anyone who's been to Brutus knows the answer to that,

And if the exchange rate had meant they could spend less would this even be a thread?

Exchange rates are for chancers to make money whether they go up or down and only affect people like us.

 

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2 hours ago, Oxford said:

As they're only here by invitation why would the rules apply?

They could be chucked out in the morning under almost any pretext.

It's often asked what they bring to SL anyone who's been to Brutus knows the answer to that,

And if the exchange rate had meant they could spend less would this even be a thread?

Exchange rates are for chancers to make money whether they go up or down and only affect people like us.

 

OK I heard yo the first time☺

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Why hadn't the issue been raised previously when the exchange rate was less favourable to the Dragons? Further to that why wasn't the high cost of living in London factored into the salary cap when the Broncos when they were in SL? 

Just seems like some SL chairmen operate under their own agenda or make it up as they go along......possibly both. 

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11 hours ago, scotchy1 said:

Its not a loophole. Thats nonsense.

Les Catalans are allowed to spend €2.34m. In 2016 this was worth £1.73m and Les Catalans were having to spend a bit less. Today its £2.09m and they can spend a bit more.

There is literally no cause for complaint because there is provision that the Les Catalans cap is €2.34m "or such amount as determined prior to the Salary Cap year in question by the board of Super League (europe) ltd whose decision and brief reasons will be circulated to all Super League clubs"

I.e its set by the clubs, they knew what it was, if they wanted to could change it and didnt.

There is also good reason for that, Les Catalans can't have there long term squad building at the whims of exchange rate fluctuations. Those fluctuations will sometimes be in their favour, sometimes against them, but having to adjust constantly to those changes will always work against them.

 

If they spend €2.34m and stay in the cap they are legal. What is the issue.  How else can it be done? Are players paid in Euros? Are their contracts in Euros? Do they have bank accounts in France?  Are they ... non French players ... paid differenly according to exchange rates from one month to the next?  Do they pay UK or French tax. Do they pay French Health Service insurance, do Cats pay their share of Employers Health Insurance?  If players get injured or ill where do they get treatment?  How is any of this an issue with the cap?

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12 hours ago, RayCee said:

I wouldn't worry about it. The rigours of regular travel make in more difficult than North England based sides, so a small advantage there offsets the distance issue. 

As an aside how do fluctuations with currency affect the NZ Warriors in the NRL. Are Aussie and NZ currenies tied?  And likewise are there any issues with tax between these countries?

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47 minutes ago, Rupert Prince said:

As an aside how do fluctuations with currency affect the NZ Warriors in the NRL. Are Aussie and NZ currenies tied?  And likewise are there any issues with tax between these countries?

Generally the two currencies are fairly close and stable in value but are separate. With Australia being the much larger economy, it is affected by AUD movements and seems to follow it. I’m not one to watch such things too closely and maybe others could offer more insight.

I never heard about any questions about the Warriors salary cap and the NZD. 

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Meanwhile, the M62 teams have been playing games with the match ball seemingly over-inflated, due to the different atmospheric pressure above sea-level being greater than that in coastal Perpignan. Throw them all out. 

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Just now, Northern Eel said:

Meanwhile, the M62 teams have been playing games with the match ball seemingly over-inflated, due to the different atmospheric pressure above sea-level being greater than that in coastal Perpignan. Throw them all out. 

Wait 'til we get to Denver again!!

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I don't really understand where this story has come from or why. 

This isn't a loophole, it is clearly written in the operational rules, is very transparent and is there in the open for anybody to see.

Why, this week of all weeks, as Catalans are preparing for one of their biggest games in their history are negative stories like this being focused on? 

Absolutely pathetic.

http://www.rugby-league.com/operational-rules-2018/#p=268

 

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13 hours ago, Damien said:

Ah well I cant say it concerns me too much and I'm sure people didn't complain too much all of the times when the exchange rate would have meant Catalans got less. If anything I would allow Catalans a higher salary cap anyway to offset the disadvantages and higher costs that they have playing in an English competition.

This, I am not a fan of Catalans by any yardstick but they need a dispensation over Travel costs and accomodation

 

13 hours ago, corvusxiii said:

There aren't too many positives to Brexit and this doesn't nearly cut it.

Nothing to do with the setting of the salary cap for a Foreign Club in a UK based competition.

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I think we should have a toll booth on the M62 border,as well as a disinfectant spray, for those traveling from the west then let's see the squealing from Lenigan, McManus & Moran (sounds like a firm of dodgy solicitors) about funding!

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15 hours ago, scotchy1 said:

Its not a loophole. Thats nonsense.

Les Catalans are allowed to spend €2.34m. In 2016 this was worth £1.73m and Les Catalans were having to spend a bit less. Today its £2.09m and they can spend a bit more.

There is literally no cause for complaint because there is provision that the Les Catalans cap is €2.34m "or such amount as determined prior to the Salary Cap year in question by the board of Super League (europe) ltd whose decision and brief reasons will be circulated to all Super League clubs"

I.e its set by the clubs, they knew what it was, if they wanted to could change it and didnt.

There is also good reason for that, Les Catalans can't have there long term squad building at the whims of exchange rate fluctuations. Those fluctuations will sometimes be in their favour, sometimes against them, but having to adjust constantly to those changes will always work against them.

 

And for the French players it makes no difference at all.

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What a load of guff. Had the exchange rate swung the other way Catalans would have had 200k less to spend. It is hardly a loophole is it? It is just exchange rates and that fact the UK is trying to self destruct.

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What a pathetic load of nonsense.

What matters is the cost in local currency, since that is the currency the players will incur a large part of their costs in.  And nothing has changed there.  If Catalans sign a UK-based player, then it may APPEAR they have more to spend and offer. But that is only because that player will end up incurring much of his costs (and most or all of his taxes) in Euros not Sterling.

The amount only SEEMS higher because of the significant deprecation in Sterling since the Brexit vote.  After some rcovery, Sterling is being hit again because of the uncertainty over Brexit. Every time Sterling falls, someone can raise this issue.  Should (say) Brexit get sorted favourably (I'll not speculate how, on a RL Forum) and Sterling was to appreciate sharply (as is likely) then would those same folk be bemoaning how Catalans have seen their cap shrink significantly?

Thought not.

Where there is a BIT of an issue is if, say, a UK-based player moves to Les Cats for a period, and manages to save a reasonable amount of his earnings (or spend it on things denominated in GBP, like a UK mortgage on a house left while he is away). Then, the fact that Les Cats can pay him in Euros might give them a bit of an advantage.  At least while Sterling is on the ropes.  But said player could be up Sheet Creek should Sterling appreciate significantly, as he is carrying the exchange rate risk.

 

 

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