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New Zealand Rugby and the Players Association are planning the worst while maintaining flexibility.
They have struck a deal that could save the union $ 25 million in the worst-case scenario of not playing professional rugby this year as a result of the coronavirus pandemic.
The parties agreed to freeze 50 percent of what is forecast to be spent on player payments in the last eight months of 2020.
Nearly 300 players are affected by the deal, which includes freezes of 15 percent of the base salary for players making more than $ 50,000 a year, in team building and tournament fees for men’s national teams, and in promotional payments. and performance incentives.
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Rugby Players Association chief Rob Nichol said he was pleased that they could have taken “a more strategic approach” by freezing payments rather than cutting immediately.
STU FORSTER / GETTY IMAGES
All Black Beauden Barrett and their teammates have agreed to a wage freeze when NZ Rugby responds to the coronavirus pandemic.
“[We said] Okay, let’s look at a scenario where we can’t play at all and what that means for the game, because from the players’ perspective, we were really motivated to make sure we moved forward in terms of the long-term future. from sports and to help the game manage the financial implications of Covid-19.
“We wanted to see what that looked like and once we knew what it looked like, we were able to see how that affects the players, because we have a revenue sharing agreement with New Zealand Rugby and we know what our stake in that association is, that is, when we know that those revenues fall, what we have to save. “
Nichol said the agreement they reached would allow players to plan the rest of the year, even though they remain in the dark as to when they will be able to hit the field again.
“We will continue to work very hard … to do everything we can to make sure we make the most of the opportunity to return to the field, should that opportunity arise.”
“If we have a chance to do that this year, it is incredible, and that can generate some income, and that can mean that some of these frozen payments can be released, but if we cannot do it, now we know how it will affect the players” .
The deal affects players signed with the All Blacks and the five Super Rugby teams, the Men’s and Women’s Sevens National Teams and the Black Ferns XVs team.
HAGEN HOPKINS / GETTY IMAGES
Rugby Players Association chief Rob Nichol is pleased that they were able to take a “strategic approach”.
The Players Association is still working with NZ Rugby and provincial unions on what will happen to the player contracts for the Miter 10 Cup and the Farah Palmer Cup.
NZ Rugby’s professional rugby chief Chris Lendrum said tiered cuts had been talked about, and those who won the most lost a larger percentage, but revealed that All Blacks was looking at “six-figure” reductions in revenue and that He was satisfied that the agreement was fair.
“Of course, there are some on the high end who win handsomely by anyone’s standards, but there are plenty of players in our Sevens programs and on the less experienced end of Super Rugby, whose salaries are nowhere near that level,” Lendrum said. .
“Part of the time we have taken to do this well in conjunction with the NZRPA has been ensuring an equitable outcome for all players.”
“It was really important, for example, that we protect the monthly salary of the players at the lower end of the spectrum.”
“Players with an annual retention of $ 50,000 or less are isolated from the cuts.”
With no Super Rugby games to introduce him to Sky broadcaster, NZ Rugby has seen his revenue drop dramatically and had no choice but to ask his leading players to make sacrifices.
NZ Rugby is looking at the barrel of a loss of more than $ 100 million due to the Covid-19 pandemic, which has forced Super Rugby to stop. The All Blacks’ national tests against Wales and Scotland, as well as Rugby Championship matches that were scheduled for later in the season are also in doubt.
NZ Rugby staff had previously accepted a pay cut of up to 20 percent over the next three months.
Key points of the salary agreement between NZ Rugby and the Players Association
* Frozen team setup and tournament fees for all national teams except Black Ferns
* Freezing contributions to player savings scheme, but withholding of KiwiSaver contributions
* Frozen promotional payments and the vast majority of player performance incentives
* Starting May 1, freeze 15 percent of players’ 2020 base retainers for those who paid more than $ 50,000 per year, up 30 percent in September
* Reductions in funding for other player initiatives that are funded by the Player Payout Fund while maintaining insurance coverage and the well-being of key players, development initiatives and support.
