Legally all the NRL has done is say they will guarantee his money, which they do for every player, so there is nothing wrong there unfortunately.
Ethically it stinks but so does a lot of what the NRL does.
As for trading while insolvent and that whole argument, dunno...
Ethics it appears may not be foremost in many people's minds and that may be reflected in organisations and organisational behaviour.
I take a great pride in being ethical myself. The CPA's quite often quote Kohlberg as a chart of ethical development. Please see below.
LEVEL STAGE SOCIAL ORIENTATION
Pre-conventional
1 Obedience and Punishment
2 Individualism, Instrumentalism, and Exchange
(In other words, do it because you'll be punished if you don't do the right thing. But only if you get caught.)
The first level of moral thinking is that generally found at the elementary school level. In the first stage of this level, people behave according to socially acceptable norms because they are told to do so by some authority figure (e.g., parent or teacher).
This obedience is compelled by the threat or application of punishment. The second stage of this level is characterized by a view that right behaviour means acting in one's own best interests.
Conventional
3 "Good boy/girl"
4 Law and Order
(In other words, do it because others should treat you the same.)
The second level of moral thinking is that generally found in society, hence the name "conventional." The first stage of this level (stage 3) is characterized by
an attitude which seeks to do what will gain the approval of others. The second stage is one oriented to abiding by the law and responding to the obligations of duty.
Post-conventional
5 Social Contract
6 Principled Conscience
(Finally, do it because it is the right thing to do regardless of the negative consequences to all including self.)
The third level of moral thinking is one that Kohlberg felt is not reached by the majority of adults. Its first stage (stage 5) is an understanding of social mutuality and a genuine interest in the welfare of others. The last stage (stage 6) is based on respect for universal principle and the demands of individual conscience. While Kohlberg always believed in the existence of Stage 6 and had some nominees for it, he could never get enough subjects to define it, much less observe their longitudinal movement to it.
So based on this knowledge has the NRL acted ethically?
I will not judge the NRL but leave it up to you dear reader to form your own opinion.
(By the way, I am sorry about this being a little too deep for this forum but feel it expresses a point of view.)