@urulion .. sorry to ask you a question without notice ... and I know without specific knowledge of the Players contracts you can only generalise ... but ..
From my understanding a players contract is with the club ... and that the NRL then registers those contracts, and guarantees the clubs the salary cap money to pay those contracts ... so if there are no games, and the NRL defaults on the payments to the clubs ... the clubs in turn will default in the payments to players ... and the players are then in a position to either negotiate some other solution ... or sue the clubs for their money ... Can't see them doing that because that would simply send the clubs bankrupt ... and without the clubs they would stand no chance of getting a contract for next year or the years to come ...
So ... if the clubs are in default ... does this or will this lead to a situation of those contracts no longer being valid ... and the possibility of ALL players becoming free agents ???
I am not certain that the players are going to be as passive in the aftermath as some at league headquarters believe they will be ...
Soorry mate if all that is a bit difficult ... just ignore me ..
I am certain that there are clubs that would like to use any excuse to get out of some contracts .. eg Ash Taylor .... and some players equally keen to get out of current contracts eg Ado Carr ...
Hi Woodsie, I hope you are travelling well my friend.
As you have stated (without being privy to contractual specifics), a players contract is with the club and then those contracts are registered with the NRL. The NRL then, as you correctly state, guarantees the salary cap monies to clubs so they pay the contracts.
However, this is a very convoluted situation because there will be several different parties that will feel that a breach of contract has occurred. Some of the parties, but not limited to these parties Broadcasters v NRL, Clubs v NRL, Players/Staff v Clubs.
The reality is that "an act of god" clause would undoubtedly be in the players contract somewhere, hence why there have been talks of payment reductions and negotiations due to the corona catastrophe. In my opinion, arguing over a breach of contract may not assist a club or a player, taking on the NRL with an "Act of god" clause. The major focus should be on the Fiduciary Duty of the NRL for the greater good of the clubs and the players.
The NRL has a Fiduciary Duty to the clubs and players. Just like it apparently had a duty to stand down players for bringing the game into disrepute, in the eyes of the general public. It also has a duty to administer the game coherently (and paying themselves $250,000 bonuses is not one of them) to ensure financial stability.
If the clubs are in default this generally does not lead to invalidity of a contract. The contract is still valid until both parties agree to rescind. The player/staff can seek from the club to remedy the breach and/or specific performance of the contract (pay the outstanding sum). New terms could be negotiated, and last case would be to seek damages/loss. If a club has gone under, there may be hundreds of creditors with a better interest to be paid before a players wages. There may also be a situation that if a club is about to fold the NRL may take over the licence and players may be paid by the NRL (all speculation of course as we haven't seen the contract).
I am looking at this in a very similar way as you are
@Woodsie I don't believe the players will be very passive as time goes on, especially if payments are reduced or stopped. It would be interesting if clubs sort to see the NRL books as they were apparently making great profits every year. In light of the clubs being unable to fulfil their contractual obligations and the NRL being unable to take over the club, one can only assume that the player is a free agent.
I hope all this ends passively and the game goes on at a later stage, otherwise, I believe the NRL may have a lot to answer for.
Never ignore you mate, have had great conversations with you here on this forum. I hope this disaster still has you in high spirits
Best regards