‘It’s a restraint of trade’: Lawyer raises concerns about NRL’s 10-year ban for defecting players

A high-profile Sydney lawyer believes the NRL’s proposed 10-year bans for players who negotiate with or sign with Rugby 360 will face hurdles if challenged in court, labelling the game’s new measures a restraint of trade.

The NRL announced on Wednesday afternoon that players and accredited agents faced 10-year bans if they entered into negotiations with rebel rugby competition R360.

The sports lawyer, who has acted on behalf of several sportspeople for many years, said the NRL’s actions could be seen as anticompetitive, may be in breach of Australian competition laws and were a restraint of trade.

“I think the NRL will have some hurdles should they be challenged,” the lawyer said, speaking on the condition of anonymity due to legal reasons.

“It would be open to the players to challenge the NRL and the ban, but that would come with a hefty price tag. It will be hard to take them on.”

After receiving legal advice, the ARL Commission met on Wednesday and decided to impose heavy sanctions on players and agents if they looked at defecting to the breakaway competition.

The NRL has deep pockets and has previously shown it is willing to invest in defending its position, most recently when it introduced the no-fault stand-down policy for players that had been charged with serious offences.

Jack de Belin appeared in Federal Court to try to have his ban lifted following the introduction of the policy. The court dismissed the claim that the new rule constituted an unlawful restraint of trade.

The NRL announced on Wednesday that: “Any NRL player who negotiates, signs or enters into a letter of intent, playing contract or any other form of agreement – whether verbal or written – with a football competition, league or organisation not recognised by the Australian Rugby League Commission as a national sporting federation, will be banned from participation in the NRL and any ARLC-sanctioned competitions for a period of 10 years”.

The agents representing the player also face 10-year bans. The ARLC would have the discretion to review or lift any ban imposed.

While several players and agents have been in discussions with R360 for months, the rule applies to any new correspondence or contracts signed after the NRL statement that was released on Wednesday.

As reported by this masthead a few months ago, Warriors star Roger Tuivasa-Sheck is likely to join R360 on a deal worth close to $1 million a season.

Payne Haas’ agent postponed a meeting with R360 last week and contacted the NRL for clarity on the rules before deciding whether to speak to the competition’s representatives.

Zac Lomax has an offer on the table and is considering requesting a release from Parramatta to join R360, while Ryan Papenhuyzen has also met with competition organisers and is weighing up his future.

“The commission has a clear duty to act in the best interests of rugby league and its fans – and we will take all necessary steps to protect the future of the game,” ARLC chairman Peter V’landys said.

“Unfortunately, there will always be organisations that seek to pirate our game for potential financial gain. They don’t invest in pathways or the development of players – they simply exploit the hard work of others, putting players at risk of financial loss while profiting themselves. They are, in reality, counterfeiting a code.

“Accordingly, if it all goes wrong it’s the players who suffer most. Every stakeholder must be accountable to the standards our fans expect. We’ve listened to our clubs and we’ve acted decisively.”

The Rugby League Players Association is opposed to the NRL’s stance.

“No one wants to see players leaving the NRL or NRLW,” RLPA chief executive Clint Newton told AAP. “But the RLPA is uncertain about the legal basis or enforceability of the proposed bans. We are concerned this is destined to be tested and decided in an Australian courtroom.”

R360 chief executive Mark Spoors said: “Recent announcements, sadly, have been anticipated. History shows that when athletes are offered free choice and given fresh opportunities for them and their families then threats to those sportsmen and women follow.

“R360 is about empowering players, giving them, rugby lovers and the next generation of fans opportunities and new platforms to enjoy the sport we love.”