Sevens looks to be the big winner as New Zealand’s professional rugby players are set to receive a significant pay increase through the new collective employment agreement.
The New Zealand Rugby Union and the New Zealand Rugby Players’ Association said today they had signed an agreement covering the professional game through to 2015.
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The revenue-sharing model has been maintained at 36.56 per cent of all player-generated income, equating to $121.2 million being poured into player payments at all levels of the professional game over the next three years.
That is broken down between retainer payments for players at $86.9m, assembly payments of $14.4m and other player-specific payments of about $19.2m.
Sevens players will receive a major cash injection as the sport moves towards its Olympic debut in 2016, with the women’s game in particular being given a leg up into the professional era.
Payments for the New Zealand men’s sevens team will increase from $1.6m to $3.5m as the NZRU looks to increase its pool of specialised players.
The women’s sevens programme will receive $1.9m to contract “at least” 16 players as the women’s game features in the player payment pool for the first time. There is also $200,000 allocated to Black Ferns assembly fees.
The new agreement continues the process of boosting the Super Rugby game, while continuing to tighten the purse strings at provincial level.
Super Rugby teams can now contract up to 32 players (up from 28), with maximum payments remaining at $180,000 for 2013 and rising by $5000 in each of the following two years.
But the maximum provincial union retainer has been reduced by $5000 to $55,000, with the “veteran exception” allowed for two players at each union lowered by $5000 to $85,000.
The minimum provincial retainer has been raised from $15,000 to $18,000, with teams required to have a minimum of 26 players (excluding All Blacks) on contract.
Significantly, unions will receive $50,000 for Rugby Championship All Blacks (up from $35,000), with that amount reduced pro rata if test players are released to play for their provinces.
The agreement has introduced a centralised ITM Cup incentive payment of $5000 for all Super Rugby players contracted in the provincial game (with an additional $10,000 for those with five years or more experience). This offsets the reduction in the retainers paid by unions and is covered by the player payment pool.
The salary cap for the provincial championship drops from $1.35m to $1.1m for this year, and $1.02m for 2014 and 2015.
NZRU chief executive Steve Tew said the agreement achieved a result that was “affordable” and “improves our ability to keep our top players in this country”.
“The professional game is in great heart,” he said.
“We are currently in the unique position of holding all four World Cups in 15s and sevens, the Chiefs have gone back to back in Investec Super Rugby and the Black Ferns have just enjoyed a clean sweep against England as they build to next year’s World Cup.
“Our successes owe much to the strong partnership we have with players. However, we take nothing for granted and believe the new collective employment agreement provides a firm foundation to keep producing the best players in the world and the most successful teams and competitions.”
Tew said the new agreement underlined New Zealand rugby’s stronger financial position.
“Our revenue-share model with players means they can expect to share in our improved position over the term of the collective,” he said.
“Significantly, the agreement also reduces the financial burden on ITM Cup unions through a combination of changes, including a reduction in the salary cap, altered minimum and maximum player payment levels, and greater compensation for All Blacks who are unavailable due to their Rugby Championship commitments.”
Players’ association chief executive Rob Nichol welcomed the agreement.
“The agreement provides a level of certainty around the competitions and the overall contracting model,” he said.
“It sets the parameters that all those involved in professional rugby in New Zealand operate within from a player contracting, development and welfare perspective. It creates a strong professional rugby partnership and aligns the interests of the parties involved.”
There is also a major increase in World Cup winning bonus payments, with All Blacks collecting a potential $150,000 each if they defend their crown. This is up from the $100,000 maximum bonus from 2011.
All players selected for the tournament are entitled to “team performance” payments of $35,000 each if they reach the final, with a further $115,000 each for lifting the silverware.