Okay, now I will pass you on to
@smithy .(see post #83) Please let me know when you reach an agreement because I got nothing.
Haha.
I think this article which details parramatta's cap issues (couldnt resist) shows how it works in practice.
http://www.smh.com.au/rugby-league/...0000-for-departed-players-20140717-zu4q4.html
They got rid of 8 players.
"As a result of bogus recruitment and retention decisions and back-ending of contracts, the Eels have only 21 players in their top-25 NRL roster and have no room to move under the $6.3 million salary cap.
The depth of the problem is outlined by the fact they are paying upwards of $750,000 this season to eight players – Reni Maitua (Canterbury), Jacob Loko (Canterbury) Daniel Harrison (Manly), Jordan Latham (Manly), Cheyse Blair (Manly), Jake Mullaney (Salford), Matt Ryan (Wakefield Trinity) and Brayden Wiliame (Newcastle) – who have left Parramatta."
Four were over the base rate in 2014 which was 77.5k hence they took 4 of the top 25 spots leaving them with only a top 21 and the cost being subtracted from the cap.
The other 4 would have had payouts below 77.5k and therefore effected the second tier as documented below.
"Parramatta's troubles extend to the $440,000 second-tier cap, under which they are still paying Blair and Wiliame and which counts registration termination payments for England-based Mullaney and Ryan."
So they got hit in both caps in 2014 depending on it be over or under the top 25 minimum payment threshold.
If it all came under the second tier it could easily be exploited the tigers for one would now have no second tier cap left with Farahs payout and could payout whoever they wanted however much they wanted to shift them without affecting any caps.