Agents, Contracts, and the NRL Power Struggle

Something is rotten in the state of Denmark
— Marcellus, Hamlet

How many NRL articles do you see start with a Shakespeare quote? Unless there’s an entire subculture of hill-sitting, VB-drinking thespians I’m pretty sure this is a trailblazer.

Ok, maybe using an example of murder, treachery, political corruption and familial betrayal is a little heavy handed, but something is indeed not right when it comes to the NRL’s system of player transfers. It has become almost canon for a player to sign elsewhere a year in advance, and then immediately begin the rah-rah grandstanding until a release is granted to flee a year early.

Matt Burton is Bulldogs-bound in 2022. (Source: Getty)

Matt Burton is Bulldogs-bound in 2022. (Source: Getty)

The latest example, of course, is the situation the Penrith Panthers find themselves in currently. Matt Burton, talented five-eighth stuck behind surprise 2020 star Jarome Luai, has signed with the Bulldogs for 2022. The issue? According to agent David Riolo, Burton “100%” wants to make the switch now.

Agents are, by nature, demanding people. They have to be to survive. You don’t negotiate multi million dollar deals by being timid and affable. If there is a chance to cut yourself a nice check, then you’d be hard pressed to find a current agent who’s turning that opportunity down.

The problem is that agents, by virtue of the nature of modern rugby league, are being allowed to run the game with an unprecedented level of control. There is an increasing amount of players who have signed elsewhere for the following season, only to do a heel turn on their club and demand an immediate release.

One explanation for the rise in demand is agent fees. With every contract, the agent is entitled to a commission for brokering the deal. By securing a release early and adding an extra year to the deal, the agent fee increases, and presumably arrives sooner.

Isaac Moses is appealing his deregistration. (Source: Wolter Peeters)

Isaac Moses is appealing his deregistration. (Source: Wolter Peeters)

The most obvious example of agent influence in the modern game is Isaac Moses. While now facing deregistration for conspiring to mislead the NRL Integrity Unit, Moses was the most powerful agent in the game. With over 50 high profile NRL clients, his pull at clubs was immeasurable.

That is one phenomenon that the NRL should be trying to clamp down on. While there are over 100 accredited agents, 90% of them don’t have a single first grader in their portfolio. That means that the talent in the player pool is heavily concentrated to a core group of agents. Agents then use this to work their clients to preferred clubs.

Isaac Moses client John Bateman left Canberra early to return to Super League. (Source: Canberra Raiders)

Isaac Moses client John Bateman left Canberra early to return to Super League. (Source: Canberra Raiders)

This practice is why the NRL have moved to ban agents from representing both players and coaches. In the past, agents could push their coaching clients towards one of their players. Guess who gets a hefty little commission?

A lot of the argument for release vs. retain also comes down to the age old argument. Players are expected to show loyalty to club, but clubs treat players purely as numbers on a balance sheet. That in itself is a perfectly valid argument. No one is begrudging players going out to find the best situation for themselves.

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Penrith asked for Dylan Napa in return. (Source: Getty)

But legally, of course clubs are entitled to dig their heels in and demand compensation, especially with a signed contract. A lot of coverage has been devoted to the Matt Burton situation. Penrith asked for Dylan Napa in exchange and the Bulldogs, inexplicably, said no. I would’ve thought the chance to get your half of the future a year early in exchange for a dime a dozen prop was a no brainer but hey, I don’t work in sports administration.

With a signed contract for 2021, Penrith have the legal leverage. Burton is contracted, and provides depth at both halves slots as well as in the centres. Penrith are perfectly entitled to say “no, you’re staying here unless we get something back,” a position Greg Alexander has reiterated publicly.

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Penrith released Daine Laurie to the Wests Tigers. (Source: Penrith Panthers)

The situation was exactly the same with Daine Laurie and the Tigers. The Tigers wanted Laurie a year early, Penrith held firm until they received extra compensation, in this case utility back Paul Momirovski.

The Tigers will chip in for part of Paul Momirovski’s 2021 salary. (Source: Getty)

The Tigers will chip in for part of Paul Momirovski’s 2021 salary. (Source: Getty)

Unfortunately for the Panthers, Burton doesn’t look likely to stay long, regardless of whether additional compensation is received. The fact is, once the seeds are sewn, a situation doesn’t take too long to turn untenable. Image is a precious thing in the NRL, and the Panthers want to be seen as a club that does right by its players.

That’s why I don’t think the Panthers will be too vicious in their refusal to release Burton. In the end, other players around the league will see this and note how Penrith act. Rightly or wrongly, the Panthers will create a reputation for how they deal with players through their handling of the Burton situation.

There have been calls in the past for an investigation into the benefits of a formal transfer system. Currently, NRL clubs are at the mercy of agents and players. While player power is hardly a new concept, a formal transfer process seems like a good way to maintain cordiality and keep transactions amicable.

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Dom Solanke is a Chelsea junior who signed for Liverpool. As he was under the requisite age at the time of transfer, a tribunal agreed his fee between the clubs. (Source: Liverpool FC)

A transfer system would ensure clubs are fairly compensated for losing a contracted player early. In English soccer, tribunals are used to set fees for junior players. Perhaps some form of cash compensation structure could be implemented.

The benefits of this method would be struggling clubs receive needed financial relief. It might also deter clubs from chasing contracted players, if it knows there is going to be a definite extra cost of acquisition. The danger of this, of course, is devolving the game into a mere marketplace of talent, where the rich get richer. If there was a way to formalise that process and avoid a power gap like the one seen in a lot of European soccer leagues, that seems a beneficial approach to at least consider.

It seems a move to a more formalised transfer system in the NRL is inevitable. Clubs cannot continue to lose players mid contract for token compensation. The question is how many contracts will be broken before that system eventualises.

Ben Quagliata

Ben grew up on football fields and basketball courts in northern Sydney. When he isn’t writing about sports he’s getting very upset at one of his many sports teams, including the Penrith Panthers, Sydney Swans, Detroit Pistons, Detroit Lions and Chelsea FC, just to name a few. Follow him on Twitter @bensquag

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