@Needaname,
@Rock Hopper Steve you asked for it, you got it. This weeks Deep dive is on TPA's. Doing the research was quite interesting - I didn't realise how much players like Ponga and Cleary make outside of the game. The salary cap and TPAs are pretty much enforcing inequality and the only way to work your way out of it is slowly but surely. This is what I found from the Deep Dive and my conclusions. Would love to hear others thoughts.
Deep Dive 7. Third Party Agreements in the NRL. Do they promote Parity or Inequality?
The NRL has a strict but nuanced policy regarding Third Party Agreements (TPAs), designed to ensure salary cap integrity while allowing elite players to earn additional income from endorsements and personal sponsorships. Here's a deep dive into the rules, rationale, and real-world applications — including breaches.
What Are Third Party Agreements (TPAs)?
TPAs are commercial arrangements between players and companies or individuals that are not directly connected to the player's NRL club. These payments are not counted under the salary cap, provided they meet specific criteria.
NRL's Official Policy on TPAs
For a TPA to be excluded from the salary cap, it must:
- Be genuinely independentof the club.
- The third party cannot be a club sponsor, owner, director, or staff member.
- The club cannot negotiate, facilitate, or influence the deal.
- Be a bona fide commercial arrangement.
- The player must provide services or value to the third party (e.g. appearances, endorsements).
- Be registered with and approved by the NRL.
- Clubs must disclose known TPAs.
- Players must declare them and submit contracts for review.
- Not be used to induce or retain a player at a club.
Aims of TPA Regulation
- Level playing field: Prevent rich clubs from stockpiling talent through off-cap deals.
- Transparency: Ensures fairness and trust among clubs and fans.
- Player development: Prevents over-reliance on external money for retention.
Challenges
- Star players and high performing teams attract more TPAs: Clubs in Sydney or major markets have access to more sponsors. The better preforming clubs attract more TPA’s which enable players to go to clubs on “unders” while also seeking premiership glory. This undermines the level playing field aim that the salary cap and TPA regulations set out to achieve.
- Player managers blur lines: TPAs appear independent but are club-driven in practice. Where proven these breaches are punished. However, there is a significant imposition to enforcement as the NRL relies on voluntary disclosure and whistleblowers to commence an investigation.
Types of Player Payments and their Effect on the Salary Cap
Type |
Description |
Cap Impact |
Club Contract |
Salary, match payments, bonuses from the club. |
Inside Cap |
Club-Sourced TPA |
Commercial deal brokered or facilitated by the club. |
Inside Cap |
Independent TPA |
Sponsorship deal made by the player without club involvement. |
Outside Cap |
Real World Examples of Legitimate TPAs
1. Johnathan Thurston – Toyota
- Thurston had a personal endorsement deal with Toyota, independent of the Cowboys.
- Toyota was not a major club sponsor at the time.
- He featured in commercials and made appearances.
- Approved by the NRL as a legitimate independent TPA.
2. Cameron Smith – Multiple Endorsements
- Smith had multiple endorsements e.g. Powerade and Gillette).
- These deals were personal brand-driven, negotiated through his management.
- Counted as independent.
3. Nathan Cleary – Multiple Endorsements. Cleary has multiple endorsements and reportedly earns more from his TPAs than his NRL salary. A breakdown of his known TPAs follows:
- Under Armour – $96 Million Brand Ambassador Deal. In August 2024, Cleary signed a landmark $96 million contract with global sportswear giant Under Armour, positioning him as their latest brand ambassador.
- EA Sports – Multimillion-Dollar Video Game Endorsement. In March 2025, Cleary secured a multimillion-dollar endorsement deal with EA Sports, becoming the face of the upcoming NRL 2026 video game.
- $66 Million Endorsement Deal with $10 Million Donation. In May 2025, Cleary finalised a $66 million endorsement contract with a prominent global brand. While specific details about the brand remain undisclosed, the deal is structured to span multiple years, encompassing various promotional activities and brand ambassador roles. This is one of the most significant TPAs in Australian rugby league history. Cleary has pledged $10 million of this sum to support a youth development initiative aimed at nurturing underprivileged athletes in Western Sydney.
- Adidas – NSW State of Origin Sponsorship Alignment. Cleary is associated with Adidas, which became the official apparel and footwear partner for the New South Wales State of Origin teams in late 2024. This partnership aligns with his role in the team and his personal brand.
- Drink West Brewery – Co-Ownership. Beyond endorsements, Cleary is a co-owner of Drink West Brewery, alongside UFC fighters Tai Tuivasa and Tyson Pedro.
Notable Breaches of the NRL’s TPA Policy
1. Melbourne Storm (2010) – Dual Contracts & Secret TPAs
- Created two sets of books to hide over $3 million in payments.
- Paid players via undisclosed TPAs and side letters.
- Gross breach of cap and TPA rules.
- Result: Stripped of 2007 & 2009 premierships, fined $1.6 million, no points for season.
2. Parramatta Eels (2016) – Systemic TPA rorting
- Club officials arranged under-the-table TPA deals to retain players.
- They disguised club involvement and used connected parties to fund players.
- Violated transparency, independence, and inducement rules.
- Result: $1 million fine, 12-point deduction, and officials were deregistered.
3. Manly Sea Eagles (2018) – Improper Disclosures
- Investigated for undisclosed TPAs arranged by club figures.
- 13 breaches found involving $1.5 million over five years.
- Result: $750k fine, officials suspended.
4. Cronulla Sharks (2019) – Improper TPA Structures
- A former Cronulla director allegedly established a company to provide third-party agreements for players, which breached NRL rules due to its direct connection to the club.
- Outcome: $750k fine, with $500,000 suspended due to self-reporting.
⚠️ Common Red Flags and Breach Risks
Red Flag |
Reason |
TPA sponsor is also a club sponsor |
Creates conflict of interest |
No service provided by the player |
Looks like disguised salary |
Negotiation done via club management |
Club involvement taints independence |
Undeclared agreements |
Breach of disclosure requirements |
Summary
Despite the NRL’s intention to maintain a level playing field through its TPA regulations, the system disproportionately disadvantages struggling or lower-profile clubs. While TPAs are meant to operate independently of clubs and reward players for their marketability, the reality is that elite players at high-performing or high-visibility teams—like Nathan Cleary at the Penrith Panthers—are far more likely to attract lucrative deals.
This creates a cycle where successful clubs with star players attract more TPAs, allowing them to sign top talent for less and remain “under the cap”. As players can supplement their income through endorsements underperforming clubs struggle to secure or retain marquee players because they lack the commercial ecosystem to support comparable TPAs.
As a result, the very mechanism designed to preserve parity is entrenching inequality: rewarding success and marketability while concurrently punishing clubs with fewer resources or less on-field success.
