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They'll run out of cap space: V'landys' warning on PNG

PNG's paused pursuit of Hudson Young has shone a light on the NRL's market-value rule. (Joel Carrett/AAP PHOTOS)

Peter V'landys has defended the NRL's handling of the Hudson Young affair, adamant it was not a course correction and that PNG's tax-free concessions won't allow them to build a supercharged roster.

The Chiefs were last week forced to hold off on an offer of $950,000 for Young, when the NRL made clear that figure would not be accepted under the salary cap.

It came after Canberra had tabled a $1.1 million per season deal to keep their NSW State of Origin second-rower, before granting him permission to visit Port Moresby.

PNG signings
PNG have already assembled a number of stars before being able to hit the open market. (Susie Dodds/AAP PHOTOS)

NRL rules state a player cannot be signed for below market value, with that figure set by the salary cap auditor based on a number of factors.

The Chiefs had privately been confident their offer would meet market value requirements, based on Young's age and current Achilles rupture.

But the NRL has now set the figure for Young at $1 million, meaning the Chiefs are $50,000 short of his market value. As things stand, PNG do not want to budge.

Young has since had talks with the Rugby League Players Association, and is expected to wait until after November 1 to decide his future.

V'landys' message to club bosses last week that the Chiefs must meet market value on contracts was viewed by many as a response to concerns over PNG's signing power.

Few in the game expected PNG to pull off what they already have before officially being allowed to enter the free market, with Jarome Luai, Zac Lomax, Brian To'o and Joey Manu headlining a list of seven players signed.

Jarome Luai, Brian To'o
Jarome Luai and Brian To'o have both won four premierships at Penrith. (Susie Dodds/AAP PHOTOS)

But V'landys insisted this was not a course correction, and that the NRL was simply enforcing salary-cap rules.

"This has been the case from day one, so we've just highlighted it. Whatever the Chiefs offer has to be at market value," V'landys said.

"They can't offer $300,000 or $400,000 less because the player gets a tax advantage. 

"The whole idea and the fabric of our game is around the salary cap, and everyone gets the same salary cap. 

"When the Chiefs exhaust their salary cap, they should exhaust it like they do at any other team, not by paying unders or paying under the market value. 

"The Chiefs should be treated no different than any other club. If Hudson Young's worth $1 million and they're paying $900,000, $1 million will go on the salary cap."

Jarome Luai, Nathan Cleary
Jarome Luai is heading to PNG. Could his old teammate Nathan Cleary join him? (Mark Evans/AAP PHOTOS)

The NRL can allow players to sign below market value, if factors such as family reasons come into play.

It is also not uncommon for players not to sign with the highest bidder, with RLPA surveys showing the main motivation for most players moving clubs is not money.

The Chiefs' situation is unique, considering what players can take home on a lower wage, with PNG given the NRL and government's agreement for tax-free contracts.

V'landys did make clear that the NRL was comfortable the Chiefs had offered market value to every other player signed so far.

But he also moved to allay concerns that the tax-free exemption had given them the power to assemble a roster beyond what other clubs can attain.

Peter V'landys.
Peter V'landys says salary-cap rules mean the PNG Chiefs won't have an unfair advantage. (Robbie Stephenson/AAP PHOTOS)

"They're going to extinguish their salary cap pretty quick. Eventually, they can't buy any more players," V'landys said.

"And that's the beauty of the salary cap, and that's why it's got to be at market value."

PNG have not given up hope of signing Young after November 1, when a field of elite back-rowers will become available.

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