Sonny Bill's Legal bombshell for Australian football

[loyalist]

Sonny Bill's legal bombshell for Australian football

    * Roy Masters, Andrew Stevenson and Geesche Jacobsen
    * July 30, 2008 - 8:07AM

The rugby league defector Sonny Bill Williams will return fire against the NRL's legal threats by challenging its salary cap, a move that could destroy the financial foundations of Australia's four football codes.

The 22-year-old NRL star fled the Bulldogs last week, intent on quitting his existing NRL contract to sign a much more lucrative agreement with French rugby union club Toulon.

The NRL and Williams' club, the Bulldogs, launched court action against the player yesterday for what they say is breach of a "watertight" contract. But Williams's lawyers will argue that the salary cap is an unreasonable restraint of trade - and some legal experts suggest he could succeed.

Williams was stuck in London last night, with visa difficulties delaying his move to France, but before he fled the Bulldogs last Saturday a leading Sydney barrister prepared a legal strategy to challenge the salary cap, which sets a ceiling of the total amount clubs can pay their players.

If Williams was successful it would represent the worst nightmare for Australia's four football codes, which all rely on caps to restrain player payments.

The Bulldogs star has been summonsed to appear next Tuesday at a hearing of the NRL's and Bulldogs' application for an injunction to prevent Williams playing or training with a rugby club in France - provided lawyers can find and serve papers on him in person before 6pm on Sunday, Sydney time. Williams's lawyers will say the Bulldogs can pay more than his existing $450,000-a-year contract but are prevented from doing so by NRL rules that create salary parity across its 16 clubs. Williams is expected to earn the equivalent of $3 million for two years with the French club Toulon.

Should an Australian court find in favour of the New Zealand international, it would entitle the AFL Players' Association to challenge the Australian rules salary cap, dismantling a club structure that has preserved a competitive balance for 30 years and prevented billionaires such as the Carlton patron Dick Pratt spending whatever they wanted to plunder the talent of rivals.

The Australian Rugby Union also imposes "contracting protocols" which set maximums on what its four Super 14 clubs pay players, an arrangement even more vulnerable because it was reached without the input of its players' association. Soccer's A-League has a salary cap in place, with a single marquee player allowed to earn full market value.

The player manager Steve Gillis warned that several more NRL stars are on the verge of leaving the game. "They're looking for our very best players," he said. "They'll knock them off one by by one. I think you'll find if there's four or five this year. There'll be 10 next year, probably 20 or 30 the next year. If Sonny Bill Williams is allowed to walk out on his contract and there's no rearguard action, I would expect that other players would want to follow suit."

The NRL chief executive David Gallop and the Bulldogs chief executive Todd Greenberg launched a legal campaign they warned may result in Williams's assets being seized and the player himself arrested or even jailed.

"Ultimately, if these proceedings were to reach the end conclusion and he was to ignore them, then he's facing criminal charges," Mr Gallop said. "He's liable to criminal charges which can involve arrest, can involve seizure of his assets in Australia."

But their first challenge is to find him, with the Supreme Court rejecting their bid for "substituted service" and forcing lawyers to serve the documents to Williams in person. The club had asked the court to allow it to serve Khoder Nasser, who it had believed was Williams's manager, or the Toulon club with the documents for Williams. But Justice Robert Austin, who said he had not heard Williams's side of the story, rejected the application, arguing that informing the French club of the allegations could do "irreparable harm" to Williams.

Mr Gallop said: "The sanctity of his contract is one of the reasons why he has conducted himself in such a secretive and deceitful way. If his contract was not watertight, he could have gone to the Bulldogs and said, 'I want out.' The clear assumption is that he has received advice that his best chance is to secretly and furtively leave the country and avoid service of a summons."

He admitted: "Of course the prospect of lucrative contracts being on offer overseas is a concern for us ... It's far more difficult to come up with a foolproof solution."

The Supreme Court heard that Mr Nasser, who on Sunday told Channel Nine he was no longer Williams's agent, had been involved in discussions with the club as late as Saturday. Even on the day Williams was leaving the country, Mr Nasser had assured the club that Williams would continue to play for the Bulldogs.

Arthur Moses, barrister for the Bulldogs, said Mr Nasser's brother was travelling with Williams, and the boxer Anthony Mundine had taken him to the airport on Saturday. Mr Moses said the club had been deceived and hoodwinked by Mr Nasser.

 

[Bex]

Bloody NRL and NRL players, they're so arrogant and self centred they're risking stuffing it up for everyone. 

 

[Paolo]

Bloody NRL and NRL players, they're so arrogant and self centred they're risking stuffing it up for everyone. 

agreed, because no football player has ever left a club looking for more money

 

[Bex]

Signs a FIVE YEAR contract and leaves before the FIRST YEAR is complete. Totally different thing compared with simply leaving for more money.

Sure, we're getting used to contracts not being honoured these days, but it is essentially an illegal thing to do. This guy is not only thumbing his nose at the NRL, but also showing contempt for the law - especially in the way that he has done it.

I don't see too many football players in Australia doing that. And, if other players did it, it would also be arrogant and self centred.

 

[Jesus]

If he gets forced to pay out his contract, which would mean oz law is consistant with euro law, then SBW would get his 3 mil, but have to pay the bulldogs at least 2 mil. So he would be on less money yes?

It will be interesting to see how the court decides it, to see if players here, from any code have different rights to the euro rights.

I dont see how his testing the salary cap would help at all with him getting out of his contract. That part i have not figured out. If he does it will still be interesting to see the decision anyways

 

[Ted]

His actions are disgusting. He has had plans to do this for a while now and kept it all hush hush. He has let the club, his supporters, sponsors and team mates down in a big way. His 'I'm unfit to play' routine the last few games displays that he is dishonest, a hypocrit and his recent departure for more money shows his greed.
He has played for the Doggies since he was 16 (now 22) and from what i can tell only played 70 to 80 games during this time. Piss poor effort.

 

[Paolo]

If he gets forced to pay out his contract, which would mean oz law is consistant with euro law, then SBW would get his 3 mil, but have to pay the bulldogs at least 2 mil. So he would be on less money yes?

Even then he would still be earning more. A difference of 1million earnt over two years = $500k compared to his current $450k

 

[clarence]

*Salary Cap challenge.
Not a restraint of trade as he clearly can get what he wants overseas and it can be argued that a professional RL player can go OS and get better terms and conditions if they don't like salary cap. Hell it has now been proven that many RL players can get better deals OS by playing Rugby Union! The old 'restraint of trade' argument was applied in 1969 in the days that the NSW RL had transfers and drafts in mind - by club to club negotiation, and players stayed in their home state for all of their career and even stayed at the one club. Different situation nowadays and the global RL and RU player market is proof of that. Also, players signing up for the NRL would probably agree to the salary cap principles in their contract by mutual consent.

* Existing contract.
If he had escape clauses or the like then the Bulldogs and the NRL would have had to listen to his arguments and probably end up letting him go. The fact they are getting proceedings underway in the Supreme Court is probably proof they believe they have more substantial claims to hold him to his contract. He may have to drop some serious money if he wants to play RU, and I suspect he's aiming for the All Blacks in a couple of years time, which will mean more $$.

* Rugby union poaching NRL players.
Makes me laugh, this scenario. More so when Gallop and the likes cry fowl! What did Rugby League do in 1908,mmmmm? What did Rugby League do for many years when the Rugby Union code was shamateur?
And now, finally, when Rugby Union sets itself up with good strong major clubs in UK and Europe, and even the Super 14 teams here, and start looking further afield for the talent, Gallop and co. have the freaking audacity to try and tell the French RU how they should control their clubs??!! Why should any RU comp. or association have any agreement NOT to poach players, with the NRL or any Rugby League comp.?
In other times, Rugby Union players used to 'retire' from RU and then pop up next season in a Rugby League club. Nothing could be done about it.
Why Sonny Bill didn't retire from RL and then wait a discreet time to pop up in France playing RU, citing a French girlfriend & the need to be with her, bullshit story, bullshit story etc. is beyond me.

 

[FFC Mariner]

I love the way they include the HAL as a "code under threat" if the salary cap is declared a restraint of trade.

Firstly, irrelevant to Football as the club holds the players registration and if a player just walked out, the club thats owns the registration can just apply to FIFA to have the guy banned. (As per the Iraqi U23 players who legged it last year). This only matters if the player changes codes.

Secondly, the salary cap is not a restraint of trade (or is allowed to exist as a restraint) if the code can show that to remove it would harm the viability of the entire comp. This is the arguement that has always been used and one imagines it would work again.

Thirdly, we have a Marquee system whereby someone with SBW profile would be exempt from the cap. NRL wont/cant do this as most of their clubs dont have any $$ anyway

The NRL are going to get f**ked over here, their arrogance and belief that their sport actually matters outside parts of NSW and Qld and a few isolated parts of Europe is farcical.

Looking forward to seeing SBW in an All Blacks shirt at the next RWC

 

[clarence]

I love the way they include the HAL as a "code under threat" if the salary cap is declared a restraint of trade.

Firstly, irrelevant to Football as the club holds the players registration and if a player just walked out, the club thats owns the registration can just apply to FIFA to have the guy banned. (As per the Iraqi U23 players who legged it last year). This only matters if the player changes codes.

Secondly, the salary cap is not a restraint of trade (or is allowed to exist as a restraint) if the code can show that to remove it would harm the viability of the entire comp. This is the arguement that has always been used and one imagines it would work again.

Those two points are very relevant (good points too  )and go against what was offered by the journo for saying the A-League could come under threat.

The players signing for the A-League (and the NRL for that matter), know that there is a salary cap system in place and the reasons why. They agree to terms with the club under that basis and by mutual consent. If you agree to do something by mutual consent in a contract - it's binding, all other factors being fair and reasonable.

Football players probably have better career opportunities than RL players. Football is genuinely global, played in all seasons. To suggest that players in the A-League are being harshly held back by poor wages is hard to accept. Most only sign a one year deal, they can (often) get permission to trial overseas if they bother to ask (hello Mr. Milligan), and I've seen a few players go off overseas with the A-League club's blessing and released.

The other issues, unique for A-League clubs is this:

We've long had the view that there are better comps overseas and that Football in Australia can only hold a good player to an Australian club for so long, and then they go.

We don't hold ourselves up as the premier comp of the world for Football, as the NRL tries to say about it's comp in the RL world.

And our clubs do get the benefits of transfer fees and ongoing royalties from juniors if they have been smart enough to construct some good contracts for younger players before bringing them into the national spotlight of the A-League. ( I believe Mark Viduka's first OS gig paid handsomely for the Melbourne club he was playing for)

And, yes, the A-League clubs can get international sanctions against a player if the player is totally unreasonable or reckless, and just walks. And a player who has a good physique for Football is not going to be able to just 'walk across the road' to RU or RL are they?

 

[FFC Mariner]

NRL disappears up its own arsehole if it cant promote itself as "the greatest game of all" to be relegated to part of a pyramid with other codes/countries on top will spell the end of their arrogant belief in their supremacy.

Football on the other hand is well aware that it is part of a global (repeat global) pyramid and we iwll never be on top. That gives our players a pathway back and forward.

 

[dibo]

the thing about the salary cap within licence based competitions (like the AFL, NRL Super 14 and A-League) is that you can write into the conditions of the clubs' licences and players' contracts that by accepting the licence or agreeing to the contact they also accept the validity of the regulations of the competition including the salary cap.

the argument to do with restraint of trade has to show that there is no way that the player can access the market under the terms of the cap and that the cap is unreasonable.

the defence of the cap is that it's essential to the maintenance of the competition, without which the player wouldn't have had the opportunity to come as far as he has.

 

[FFC Mariner]

Looking forward to Gallop trying to sell the fact that they can enforce a subpoena or injunction in France if it is granted in an Australian court.

Footy show viewers will believe him though lol

 

[northernspirit]

yeah it will work in australia but france is outside australian jurisdiction and rugby wont do the nrl any favours, its tough talking trying to make it appear the NRL is taking a tough stance but nothing will come of it

 

[FFC Mariner]

They would have to petition a French court - his contract will be over by the time it gets sorted.

DF'sD

 

[northernspirit]

yeah - and imagine how much it would cost in legal fees

 

[clarence]

yeah - and imagine how much it would cost in legal fees

Good PR exercise by the NRL though. We'll go broke chasing deserting players, but we always get our man!

 

[kepo]

SONNY IS A TOOL
NRL IS shit
end it

 

[fedelta]

don't be so abrupt

 

[dibo]

Sonny Bill of rights won't hit A-League
Michael Cockerill
August 1, 2008

A-LEAGUE players may not be the best-paid footballers in the world but they do have world-class conditions, and, according to players' union boss Brendan Schwab, the likelihood of a disaffected player taking the lead of Sonny Bill Williams and threatening to challenge the the salary cap is remote.

Three months ago, the union, the Professional Footballers' Association (PFA), signed the competition's inaugural collective bargaining agreement, a deal that preserves the central role of the salary cap through 2013 and is tied to a percentage of "game" revenue.

While Australia and the US remain the only FIFA members to operate a salary cap, Schwab, a qualified lawyer, believes the chances of a player wanting to rock the boat are remote, at least in the foreseeable future.

"The players know how far we've come in the last few years, and I sense they're pretty satisfied with where we are at the moment," he said.

"What we're about is creating a stable employment environment across Australia. The salary cap is a centrepiece of that. The players support it, and the chances of an individual wanting to challenge it is highly unlikely. Obviously, if Sonny Bill Williams did challenge the cap it would be an interesting case, but it's not a given that any decision would flow on to other sports. In fact, the cap is probably more vulnerable to a challenge from a club than a player, and that's even more unlikely."

Certainly the average A-League player now enjoys a huge improvement not only in wages, but more significantly in terms and conditions, compared to the old NSL, which closed down in 2003.

In the A-League collective bargaining agreement:

* This season, the average player will earn - taking service agreements and under-23 marquee status into account - $114,773;

* A marquee player or guest player can earn an unlimited amount;

* And other benefits include relocation costs [up to $25,000]; bonus for finals series and Asian Champions League; two years' wages for a career-ending injury; hardship fund, education grants; and transition program.

While a handful of current players were paid more in the old competition, they were effectively living in a fool's paradise. Big-spending clubs such as Northern Spirit, Collingwood Warriors, Auckland Kingz, Parramatta Power and Carlton all went bust in a competition that churned through 40 clubs in 27 years, and never achieved the commercial appeal of the A-League.

"The PFA was one of the driving forces of setting up a new league, and one of our principal recommendations was for a salary cap," Schwab said.

"Some players might have got more in the NSL, but very few of them had security. In terms of wages, we don't ever pretend we'll be able to compete with the big overseas leagues, especially Europe. But as it stands, the cap doesn't seem to be restraining wages; in fact, it's just ahead of what some clubs can pay. Probably only two clubs are currently operating at the maximum [$2.52m], two are closer to the minimum [85 per cent of the cap], and the rest are somewhere in between.

"Of course, the cap not only helps protect the financial viability of the clubs, but just as importantly it equalises the talent, which means we keep a competitive balance in the A-League. In Europe all the big players end up in a few clubs, and it distorts the competition. I don't think Australia can afford to have a league dominated by the two or three clubs in the big markets.

"Players here understand the big picture, that this is a growing league. Money is important, but it's not the only thing. I believe the conditions they have now in the A-League are as good, if not better, as anywhere in the world. And they appreciate that."

* Perth Glory's Brazilian recruit, Amaral, has finally been granted visa approval and is expected to arrive in WA as early as this weekend - almost a month after signing for the A-League club.

Amaral received the green light to make his way to Australia yesterday but the 35-year-old is facing a race against time to be fit for Perth's season-opening clash with Adelaide United on August 17.

"Amaral is the ultimate professional. He looks after himself very well and has been training with a few local clubs in Brazil since we saw him late last month," Glory coach Dave Mitchell said.