New Brisbane football boss Ben Ikin has taken the axe to the club’s salary cap following revelations the Broncos were almost $1 million over the NRL’s payment ceiling this season.
The Sunday Mail can reveal the shambolic state of the Broncos’ spending which has prompted Ikin to become Brisbane’s salary-cap cop in a bid to haul the NRL’s ailing glamour club back into premiership contention.
With the support of new CEO Dave Donaghy, who played a hands-on role with Melbourne’s cap management as former Storm boss, Ikin has moved swiftly to address the loose spending that left Brisbane’s salary cap at crisis point.
Despite finishing last season with the wooden spoon, the Broncos entered this year with their salary-cap in such a parlous state that it crippled coach Kevin Walters’ attempt to keep rising stars Reece Walsh and Xavier Coates.
It is understood the Broncos had blown their salary-cap limit by around $800,000 before the arrival of Donaghy and Ikin, prompting an emergency overhaul to ensure Brisbane are cap compliant for 2022.
Much of the mess can be attributed to a spate of player-option clauses in Broncos contracts which triggered additional and lucrative payments for the likes of Jack Bird, Andrew McCullough, Jordan Kahu and Matt Lodge. Broncos hierarchy are so concerned about the financial ramifications of player-option clauses they are reluctant to use them in contract negotiations moving forward.
The state of Brisbane’s salary cap was a factor in the release of Warriors recruit Lodge and Panthers-bound Tevita Pangai Jr, who stood to earn almost $1.6 million between them if they remained at the Broncos next season. Ikin declined to discuss specific figures but confirmed Brisbane will be salary-cap compliant next season and have their financial affairs in order in their quest to hit back as a finals force in 2022.
“We remain in a fairly restricted position with the salary cap,” Ikin said. “That is based on decisions made in the past. That’s not the pointing the finger at anybody, that’s just the reality of the situation.
“There are any number of clubs across the game that have had to negotiate payouts for players (who have joined another club).
“You try to reduce the impact that any payout has on your cap in the years down the track. But, yes, certainly there would be multiple clubs that have payouts sitting in their salary cap beyond the current year and that includes us.”
Brisbane’s salary-cap headaches were underscored by unusually-constructed deals for Kahu and McCullough.
The duo left the Broncos — Kahu to the Cowboys in 2019 and McCullough to Newcastle last year — but were able to return to Red Hill because they had player options in their favour.
In the ultimate farce, Kahu was a virtual passenger for the 2020 season, playing just two games off the bench, but the Broncos were forced to carry his $400,000 contract on their salary cap.
Injury-ravaged utility Bird was released to the Dragons this season, but as part of his severance package, it is estimated Brisbane absorbed at least $400,000 of his $900,000 deal, which help fund his transfer to the Red V.
McCullough also followed Bird to the Dragons in February with the financial aid of the Broncos, who had already paid the hooker $200,000 this season. McCullough did not play a single minute of NRL for the Broncos this year. Lodge, meanwhile, received a payout in excess of $1 million to join the Warriors immediately.
Ikin defended the monstrous payout for Lodge. Under NRL salary-cap laws, the Broncos have the ability to extend their payout for Lodge across four seasons because his deal contained a two-year option in his favour that expired at the end of 2024.
By severing ties now with Lodge, who was on $800,000 this season, the Broncos stand to save around $400,000 annually for the next three years.
“Matt’s payout gets amortised over the length of the existing deal, the NRL will allow that,” Ikin said.
“We felt based on what we had coming through, we could use the salary-cap space from Matt’s departure to help develop some of the great young forwards coming through.
“We have plans around how much money we’ve got and accept that it will be less than we could have had.
“There are several factors that can impact on what you are getting out of your $9.5 million.
“If you get into a situation where you don’t value players correctly, then effectively that can be seen as having less money in your cap.”
Ikin scoffs at suggestions the Broncos should have a stack of cash to spend after $1 million playmaker Anthony Milford, unwanted for next year, signed with Souths on Friday.
The Broncos have six new faces arriving at Red Hill next season, including marquee recruits Adam Reynolds and Kurt Capewell, who will earn a combined $1.2 million in 2022.
“Managing the cap is not a perfect science,” Ikin said.
“When Anthony Milford goes, for example, all people see is the price tag attached to Milford (he was on $1 million at the Broncos), not realising we have Adam Reynolds coming in.
“Matt Lodge might have gone, but Kurt Capewell will come into our squad next year.
“If you have a good group of senior players in the right positions, then you can get more out of your emerging talent than you may have been hoping for under the salary cap.
“We are trying to do everything better here. What’s true for the success of a footy team is true for the management of our salary cap.
“If you aren’t improving in this game, you are going backwards.”
The Sunday Mail can reveal the shambolic state of the Broncos’ spending which has prompted Ikin to become Brisbane’s salary-cap cop in a bid to haul the NRL’s ailing glamour club back into premiership contention.
With the support of new CEO Dave Donaghy, who played a hands-on role with Melbourne’s cap management as former Storm boss, Ikin has moved swiftly to address the loose spending that left Brisbane’s salary cap at crisis point.
Despite finishing last season with the wooden spoon, the Broncos entered this year with their salary-cap in such a parlous state that it crippled coach Kevin Walters’ attempt to keep rising stars Reece Walsh and Xavier Coates.
It is understood the Broncos had blown their salary-cap limit by around $800,000 before the arrival of Donaghy and Ikin, prompting an emergency overhaul to ensure Brisbane are cap compliant for 2022.
Much of the mess can be attributed to a spate of player-option clauses in Broncos contracts which triggered additional and lucrative payments for the likes of Jack Bird, Andrew McCullough, Jordan Kahu and Matt Lodge. Broncos hierarchy are so concerned about the financial ramifications of player-option clauses they are reluctant to use them in contract negotiations moving forward.
The state of Brisbane’s salary cap was a factor in the release of Warriors recruit Lodge and Panthers-bound Tevita Pangai Jr, who stood to earn almost $1.6 million between them if they remained at the Broncos next season. Ikin declined to discuss specific figures but confirmed Brisbane will be salary-cap compliant next season and have their financial affairs in order in their quest to hit back as a finals force in 2022.
“We remain in a fairly restricted position with the salary cap,” Ikin said. “That is based on decisions made in the past. That’s not the pointing the finger at anybody, that’s just the reality of the situation.
“There are any number of clubs across the game that have had to negotiate payouts for players (who have joined another club).
“You try to reduce the impact that any payout has on your cap in the years down the track. But, yes, certainly there would be multiple clubs that have payouts sitting in their salary cap beyond the current year and that includes us.”
Brisbane’s salary-cap headaches were underscored by unusually-constructed deals for Kahu and McCullough.
The duo left the Broncos — Kahu to the Cowboys in 2019 and McCullough to Newcastle last year — but were able to return to Red Hill because they had player options in their favour.
In the ultimate farce, Kahu was a virtual passenger for the 2020 season, playing just two games off the bench, but the Broncos were forced to carry his $400,000 contract on their salary cap.
Injury-ravaged utility Bird was released to the Dragons this season, but as part of his severance package, it is estimated Brisbane absorbed at least $400,000 of his $900,000 deal, which help fund his transfer to the Red V.
McCullough also followed Bird to the Dragons in February with the financial aid of the Broncos, who had already paid the hooker $200,000 this season. McCullough did not play a single minute of NRL for the Broncos this year. Lodge, meanwhile, received a payout in excess of $1 million to join the Warriors immediately.
Ikin defended the monstrous payout for Lodge. Under NRL salary-cap laws, the Broncos have the ability to extend their payout for Lodge across four seasons because his deal contained a two-year option in his favour that expired at the end of 2024.
By severing ties now with Lodge, who was on $800,000 this season, the Broncos stand to save around $400,000 annually for the next three years.
“Matt’s payout gets amortised over the length of the existing deal, the NRL will allow that,” Ikin said.
“We felt based on what we had coming through, we could use the salary-cap space from Matt’s departure to help develop some of the great young forwards coming through.
“We have plans around how much money we’ve got and accept that it will be less than we could have had.
“There are several factors that can impact on what you are getting out of your $9.5 million.
“If you get into a situation where you don’t value players correctly, then effectively that can be seen as having less money in your cap.”
Ikin scoffs at suggestions the Broncos should have a stack of cash to spend after $1 million playmaker Anthony Milford, unwanted for next year, signed with Souths on Friday.
The Broncos have six new faces arriving at Red Hill next season, including marquee recruits Adam Reynolds and Kurt Capewell, who will earn a combined $1.2 million in 2022.
“Managing the cap is not a perfect science,” Ikin said.
“When Anthony Milford goes, for example, all people see is the price tag attached to Milford (he was on $1 million at the Broncos), not realising we have Adam Reynolds coming in.
“Matt Lodge might have gone, but Kurt Capewell will come into our squad next year.
“If you have a good group of senior players in the right positions, then you can get more out of your emerging talent than you may have been hoping for under the salary cap.
“We are trying to do everything better here. What’s true for the success of a footy team is true for the management of our salary cap.
“If you aren’t improving in this game, you are going backwards.”
