Anonymous
Years ago

What about NBL Salary Cap Breaches?

Tigers, NZ, Kings, NZ, Dragons, Bullets, Others???

Should these teams be worried? Is the only reason that we have not exposed them is that the NBL runs on a shoe string and cannot afford any salary cap policing?

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BMF  
Years ago

The reason most of the teams get away with it is the imports are paid in US$ and directly into their US banks.

Look at big Luke. Supposed $20k US per month.

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Bill  
Years ago

Considering most of these teams dont exist it is fair to assume they should not be worried. Stop rehashing old news.

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luke  
Years ago

good to hear 0$ spent by the kings so far is over the cap u dum fk....

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luke  
Years ago

also serious question how many months is this 20k a month over for schecher??....cos if its a year then its 240k...however if its over say 6 or 7 months (an NBL season) its aprox 140 pa. which is a bit more reasonable. makes a world of diff on the cap.

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Jack Toft  
Years ago

To breach the salary cap you need money to do it.

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Oden08  
Years ago

Forestville

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mystro  
Years ago

like the way you backed your anon post with proof of said breaches

Reply #275346 | Report this post


BMF  
Years ago

Ahh yeah I would suspect it would be 1 month prior to commencement of the season starting and then finishing post play-off's.

Right now getting paid in US$ isn't that big a deal, but back when the rorts were rampant, our $ was on $0.80 per US$1.00

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EC  
Years ago

The length of the NBL season is debatable unless there are strict guidelines laid down by the NBL. Each club seems to do their own thing in this matter. For example, the clubs that will not allow their players to take basketball jobs in the off season. If they can dictate what the players do in the off season, you would think that they are employed by their club for the whole year. One club in particular last season, I was advised that the players signed were only allowed 6 weeks leave and then had to be back for promotional work. For the clubs that allow their players freedom to do what they want in the off season, then you would assume they employ their players only for the 6 or 7 months of the season including pre season training. Only going on what I've heard but is a fact that I have not heard any hard and fast rules regarding the length of the NBL season. If any0one has any further information, you might like to share it. As for Schenscher, he is definitely not worth $240K when looked at as a percentage of the total cap.

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Anonymous  
Years ago

Here is just one example.....How do you get CJ, Penney, Rickert, Foreman, Bracwell/Storey, Ronaldson, Abercrombie, Henare, Pledger, Boucher, Webster, Rillie, Trueman under a cap of 1 mil?

Who would know if an NBL clubs ran two books? The NBL does not have the resources to have their own independant auditor, so until the day they do, we will just have to rely on the honesty and integrity of club administrators and owners....

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BMF  
Years ago

Again, the problem is players paid in US$ into US banks...

All Aust players go thru the ATO...

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Ushiro  
Years ago

You are assuming BMF that all the player's payments are through the official books and are not third party sponsor payments in brown paper bags, etc. One of the Storm's dodges was to list entertainment expenses of $x per game but actually use this money to pay players extra.

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Isaac  
Years ago

Some of those teams and supposed breaches were in the older NBL - no longer exists.

Listing a full Breakers list when a number of those players don't count or weren't paid in full is off track. Rillie shared that spot used by Braswell and Storey and two others are DPs. An incentive that helps them over there are the aggressive tax breaks they can get with players.

Don't know the numbers to say that they were over the cap, but blanket-listing all players means nothing. Rickert cheapish, Henare and Boucher cheapish, Trueman cheap, Abercrombie still young. Penney highest paid in the league, CJ not unreasonable and then maybe Bear next. Forman in the middle somewhere. Imports depended on how long they were there I guess - being paid out doesn't count toward the cap.

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Anonymous  
Years ago

What does 'in the middle some where mean', if in the middle is 120K then there is justification to suggest that all is not as it seems...I don't fully understand the aggressive tax breaks, but I will still bet that they are not under the cap....Ok fair call issac, I will move to the Tigers then...

Also the 'old NBL' that does not cut it, it is the same league as alsways and you know it.

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Bettyleadfoot  
Years ago

"Also the 'old NBL' that does not cut it, it is the same league as alsways and you know it."


The NBL has changed particularly with the ownership structures and one million dollar (deposited with the NBL I think) required to guarantee a club for the season.

Also the preference for ownership consortium's instead off single owners. Once again helping club viability.

Part of this is policing of the salary cap. Not saying salary cap breaches wont happen but that they have been made harder to achieve.

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Anonymous  
Years ago

As I said the NBL cannot afford salary cap policing

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Anonymous  
Years ago

If the income is earnt in aus it goes throught the ATO

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Anonymous  
Years ago

So the Kiwis lose $2million. On what business venture, if it wasnt on over payments on the salary cap.?

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Anonymous  
Years ago

BMF, if schenscher was an Aust resident for tax purposes he would be taxed on income earnt from Australian and International sources so the fact that it was paid into a US bank account would most likely not matter.

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Anonymous  
Years ago

What if Schenscher does a Lleyton Hewitt and moves to the Carribean? Not much tax if any out there.

Reply #275410 | Report this post


Anonymous  
Years ago

Basketball Australia, different company completely from the old NBL, audits the top 4 teams through the ATO. Any breach would lead to a $1 million fine and likely the club falling over.

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Anonymous  
Years ago

One of the most common ways to breach the salary cap is for a sponsor to "employ" the players wife.

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Ushiro  
Years ago

Roberts Walls on 5AA during the week discussed several ways in which additional payments were made during the 70's to 90s in VFL/AFL clubs. Besides the brown paper bag, there were the houses built and paid for by the player on a very low interest loan, and then an over the top sale amount paid by a club supporter a year or two later. Didn't even have to pay capital gains tax.

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Anonymous  
Years ago

Yeah, check out some of the Tigers players houses over the years, my mail is that some of them have had extensions built for them.
Also the top 4 teams who make the playoffs do not get audited....a myth sold to you by BA

Reply #275423 | Report this post


BMF  
Years ago

if a team pays a player cash, then there is no way to chase it...

I'm not sure with Schenscher as he played over there and would have been taxed and could possibly still be taxed over there so he would get away with extra payments as the NBL definitely have no ties with the US Tax dept.

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Anonymous  
Years ago

Cash payments can be chased, but it takes a more covert type of investigation/operation. So I guess it will be who ever has the most money will win...the unfortunate thing is that all the punters out there during the season seem to forget that...you all get consumed with win/loss records and the inability of player x being able to shut down player y down the stretch....but realistically player x should never have been there!

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Camel 31  
Years ago

Sometimes I wonder the merit of player points rating cap, but could be good for other leagues, in particular now 3rd party payments are allowed.
And/or a luxury tax.

Reply #275433 | Report this post


Anonymous  
Years ago

Should only exist if the play in question has spent their entire career at the one club or if the player came through the junior ranks and is a local

Reply #275436 | Report this post


paul  
Years ago

Whether cash can be audited depends on where the cash comes from. One of the Storm's big mistakes was paying cash from their own income.

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Camel 31  
Years ago

I gather that in the AFL a sponsor of Geelong can pay Gary Ablett an additional million dollars (outside of the salary cap) to stay and this is allowed.
Where NRL/NBL it is not allowed.

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Isaac  
Years ago

Also the 'old NBL' that does not cut it, it is the same league as alsways and you know it.
Different entity and thus legally different.

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Isaac  
Years ago

Camel, in the NBL that might be allowed if it was a reasonable payment for valid work done.

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Jack Toft  
Years ago

Pardon my ignorance, but if this was industry, then remuneration is based on market expectations in line with recognised industry salary midpoints.

Now, for the dummies, there is a company called Hays who generate salary midpoint graphs based on a "Hay Point" ranking per job. Each job can be measured across a number of areas and a "Hays Point" generated for the position. For example, a receptionist position may attract 100 Hay points, where as a Group General Manager position in charge of several manufacturing sites in an organisation may attract 1,500 points.

Hays then generate a formula graph and companies determine where there salaries will be. For example, Santos may decide to pay on the 90th percentile, whereas a small business may pay on the 25th percentile.

OK, so if you have any questions, just ask your HR Officer at work, they will understand and if they don't, they are either playing dumb, or just are dumb! Not too many companies like to let the cat out the bag on this one.

So, back to the NBL. A similar formula could be generated and adopted by the agents, if not already in place!

The NBL rank all players between 1 and 10. Now, knowing the salary cap is $X/yr and the max player points in Y, then the contract midpoint per ranking could be determined. From there, players are paid +/- 30% around that midpoint based on a number of factors, including skills and experience, value to the club, etc.

This would eliminate all this who haw of salary cap breaches as the agents, players, club and NBL then have a clear expectation of expected contract levels and so clubs/players/agent would not have to think about dodgy under the table payments.

Is that too logical??

Reply #275524 | Report this post


kcgone  
Years ago

Not just logical but simple.
Especially as the way of setting the expected rate of renumeration is not the problem its the amount above paid that can be in many forms as said above.
Spouse employment
Fictitious job at a third party
payment to third party and cash to the player, especialy overseas spotters fees.
Sale of asset at low cost or interest
expense accounts etc etc, its all probably been tried.
If all players were signed by the league and then split out to each team after there payments are set, may be one way to avoid cap rorts but this would take over the control of the clubs.

Reply #275545 | Report this post


Isaac  
Years ago

Jack, that data already exists in a basic sense with the NBL (based on lodged contracts) and (at least at some point in the past) the NBL did look for contracts to be around a mark relevant to the respective points value.

Reply #275560 | Report this post


Anonymous  
Years ago

Still, the clubs send the NBL false amounts on the registered contracts! The NBL has to take them on their word. No means to prove otherwise....

Reply #275663 | Report this post




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