Pretty clear that Benji read last weeks Deep Dive on attack; Galvin played a bit straighter and went much deeper into the line this week and Luai ran more - just what we was called for by the WTF. 🤣 🤣 🤣 🤣
Given the 'Impending" recruiting announcements due in 'touch wood" this week I thought it might be time to have a look at the Salary Cap as opposed to footy tactics. I have pulled together what I think the cap is about and a legal mechanism for us to build our own sombrero. This is definitely not an area of expertise that I have, so would be interested in your thoughts on how we can use allowable means to manage our roster to become a destination club.
Deep Dive 5. The Big Picture: Why Cap Strategy is key to Wests Tigers Success
The NRL’s
$11.45 million (2025) salary cap is designed to “ensure parity” across clubs, meaning, in theory, that you can't just "buy a premiership." Instead, the clubs that succeed long-term (e.g., Storm, Panthers, Roosters) do so by:
- Developing local juniors;
- Maximising player value vs cap hit;
- Building attractive ecosystems off the field; and
- Strategically using third-party agreements (TPAs).
Wests Tigers has struggled due to
cap mismanagement, poor retention, overpaying for underperforming players, and failing to build a "destination club" image. The challenge now is to
reset and
out-think the opposition rather than outspend.
Core Salary Cap Strategy Pillars for the Wests Tigers
1. Foundational Cap Principles
- Spend on spine & forwards first: Invest in 1, 6, 7, 9 and a dominant middle forward. Pay for impact positions.
- Don’t overpay for potential: Back-ended contracts for juniors must include strong performance triggers.
- Avoid cap killers: No long-term, high-value contracts for aging or injury-prone players.
2. Roster Tiering Strategy
Use a structured model:
- Tier 1: Marquee (Top 4-5 players) – Pay market or overs only if there's external value (fan draw, leadership, brand power).
- Tier 2: Core Starters (8-10 players) – Fair deals, multi-year for cohesion.
- Tier 3: Development (10+) – Minimum or performance-based contracts for juniors and fringe players.
Legal & Ethical Creative Cap Strategies
These strategies are all
technically legal, provided they’re structured transparently and disclosed correctly.
1. Third Party Agreements (TPAs)*
- Leverage Club Sponsors: Encourage sponsors to independently engage star players (media, ambassador roles).
- Attract External Business Backers: Use the Tigers’ link to Western Sydney and Macarthur regions – rich with private business.
* TPAs must not be guaranteed by the club or be performance-based. Clubs can’t orchestrate them, but they can **“facilitate introductions.”
2. High-Paying Jobs for Family Members
- Employ family members of players in corporate/sponsorship/marketing arms, provided the jobs are real.
- Use linked companies: A sponsor or affiliate business hires a player’s spouse or sibling as a brand ambassador, admin staff, or cultural liaison.
- Examples:
- A Polynesian player’s relative working as a cultural officer or community engagement lead.
- Partner runs a junior skills clinic funded through local council or corporate partner.
3. Interest-Free Loans
- Wealthy backers or sponsors provide interest-free loans to players for:
- Home deposits
- Business start-ups
- Education funds
These
must not be forgiven or linked to performance, or they risk being considered a cap benefit.
Example:
A $300k loan repayable over 10 years at $30k/year =
Not counted under the cap if arms-length and properly declared.
4. Discounted Property Deals
- Link players with developers or real estate firms who offer below-market rates or equity buy-in.
- The player becomes a silent partner or investor in a real estate syndicate (e.g., land development in the Campbelltown region).
- Example: A $1M home sold to a player for $800k with a $200k capital gain in future years = non-cap benefit if arranged independently.
5. Business Equity Offers
- Offer shares in sponsor-aligned businesses (e.g., gyms, apparel, construction).
- Use a “sweat equity” model: the player adds marketing value, social reach, and local branding.
- Example:
- A player owns 5% of a new F45-style gym co-branded with the Tigers.
- Over 3–5 years, this grows into a valuable passive income source post-career.
📈 Putting it Together: A Sample Strategy for 2025–2030
Year 1–2: Cap Recovery & Ecosystem Build (We are in this phase now)
- Exit bad contracts (e.g., offering early terminations or relegating to NSW Cup).
- Build “Tiger-owned” businesses that can eventually host TPAs.
- Invest in a strong TPA network – small business owners, real estate, car dealers.
Year 3–4: Rebuild with Juniors & Targeted Recruits
- Develop & retain a homegrown spine (e.g., TPS as Api’s successor, retention of Bula).
- Spend TPAs on marquee targets: e.g., luring a disgruntled player with significant off-field value.
- Offer lifestyle incentives: family housing, cultural links, local schooling.
Year 5: Cap Efficiency Championship Window
- 60% of roster on value deals (either homegrown or TPAs)
- TPAs cover up to 30% of total player value
- Success compounds: more wins = more fans = more TPAs
Final Thoughts
Every NRL team has to manage thier roster within the NRL cap, but we can, as Wests Tigers:
- Out-network our adversaries with TPAs and property deals
- Out-nurture other clubs through junior development
- Out-smart the player managers through layered contracts and providing strategic off-field value
This strategy needs a
cap-savvy and connected CEO, and a
clear long-term vision. We can become a
destination club, but only if we treat the salary cap like Chess, not Chinese Checkers.