THE Newcastle Knights are likely to have $200,000 to spend outside the salary cap next season on a long-serving player, but whether they invest it on club stalwart Steve Simpson remains to be seen.
An NRL chief executives meeting in Sydney has endorsed a plan for the veteran-player allowance, which currently stands at $100,000 per club, to be doubled from next year.
Clubs become eligible for the exemption if they have had a player, or players, in their ranks for eight years or more.
They can use the $200,000 towards paying one nominated player and will receive a salary-cap discount for the same amount, allowing them to spend that money on other players.
The spending capacity of clubs next season will be further bolstered by an increase in the salary cap, from $4.2 million to $4.3 million, and an expansion in the marquee-player exemption from $150,000 to $300,000.
Newcastle have only two players who qualify for the long-service allowance - Simpson and skipper Kurt Gidley.
Simpson, whose NRL career with the Knights kicked off in 1999, is off contract at the end of the season and facing an uncertain future.
The former Test forward has not played since Newcastle's loss to Wests Tigers on May 21, after which he underwent extensive knee surgery.
Knights officials have reserved a decision on his future until he returns to the field and they are able to assess his form.
Simpson's hopes of securing a new deal could hinge on whether St George Illawarra back-rower Jeremy Smith accepts the three-year deal Newcastle have offered him.
The 25-year-old Kiwi international has a year to run with the Dragons but they have reportedly agreed to grant him an early release if he can sign a long-term deal elsewhere.
Smith has been been linked to Cronulla but the Knights are quietly confident he will agree to their terms, possibly by early next week.
"I would suggest we're getting there, but it's still yet to be confirmed," Knights coach Rick Stone said.
"The next couple of days will tell."
Knights coach Rick Stone confirmed they were still in the running for Smith but had other "irons in the fire" in case the versatile hard man knocked them back.
Also in the market for an outside back, the Knights made inquiries last month about Dragons and former Broncos centre Nick Emmett, who is managed by Costigan's agent Col Davis.
Davis did not want to comment but the Newcastle Herald understands the Knights have not pursued Emmett, a 28-year-old Grafton junior in his second season at the Dragons after three years under Wayne Bennett at the Broncos.
The Knights have dismissed speculation linking them to former Newcastle prop Matt White and Broncos and former Dragons utility forward Ashton Sims.
An Inverell Hawks junior, 26-year-old White left the Knights at the end of 2008 and has played 38 games for the Titans in the past two seasons.
Sims, 25, played 81 games for the Dragons from 2003 to 2007 before joining Brisbane. He played 47 games for the Broncos in 2008 and 2009 but has struggled to secure a regular place in their NRL squad this year and has been restricted to just nine appearances.
It is understood the Knights inquired about Sims before they secured Antonio Kaufusi from the Cowboys before the June 30 player transfer deadline.
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