What Is A Third Party Agreement, What Are The Advantages?


To put things very basically, a third party agreement, or TPA, is an agreement that is made in an effort to have someone play a part in a deal to ensure that all parties involved are happy.

In Rugby League, they are legal, but it's an absolute minefield when getting them approved and successfully accepted. The current NRL system states that "all third party agreements must be player driven" this means, if a club goes out of it's way to obtain extra funds in order to complete a deal, that is illegal by the laws of the system.

The third party is usually someone who can say, as part of the deal we will give you X amount to sign with this team, which is absolutely fine. The current problems around TPA's are related to salary and supposed salary cap cheating.

To put it quite simply, it's alleged that a team has registered, in more than one players contract, that they will be earning a certain amount. Failing to disclose that a TPA was in place, and aforementioned player's were actually on more than first thought. Leading to an investigation of supposed "cap rorting".

TPA's are a way of helping players generate more income, without them, it's likely that many players could be tempted to cross codes, due to the substantial cash sum waiting on the other side.

Unfortunately, where money is involved, dishonesty is not far behind, while the club is challenging the findings, they are not the first to be caught up in a scandal of this nature and certainly not the last.

Pom

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