Why Ardie Savea and Jordie Barrett's one-year deals are smart decisions
This week the NZR announced the re-signing of two key All Blacks and Hurricanes players Ardie Savea and Jordie Barrett.
The surprise was both deals were short-term commitments, extending just one more season to re-enter the market post-Rugby World Cup. On the face of it looks like a worrying sign the two might up and leave, but when you look at the bigger picture it is really the only option.
“It was my choice [to take a one-year deal],” Savea said.
“Obviously rugby’s a business and, with the World Cup next year, I want to make that and then weigh up my options after that.
His options don’t seem to be elsewhere in New Zealand either, with Savea confirming he would not play against the Hurricanes, much like his older brother.
“It may come across that way. But we’ve done a lot over here and, like Jordie said, we wouldn’t go anywhere else other than the Hurricanes in New Zealand, so we just want to focus on this year, and I guess next year as well, and see what happens after that.
The one-year commitment is a smart move from both players from a financial standpoint, even if Ardie Savea decides to stay in New Zealand long-term. Jordie at just 21-years of age is short odds to be here long-term.
The current three-year players’ collective agreement expires at the end of 2018, with new player payment pools on the horizon. The current revenue streams for NZRU, the largest being broadcast revenue, will be renegotiated for 2020 and beyond. The flow-on effect from an increase in broadcast rights will see more money in the player payment pool, currently around $60 million annually.
With a fast-changing landscape in streaming live sport, big tech players like Amazon and Facebook, flush with billions, are starting to make moves in sports rights. Amazon recently shot a docu-series with the All Blacks and Facebook streams one game of Major League Baseball live a week on its platform. Amazon also snapped up the rights to stream live Thursday night NFL games. If any of these players dip their toes in the bidding process, the market will reset much higher.
Across the ditch, the NRL’s recent rights deal went for $1.8 billion over five years in a monster jump, 70 percent higher than the previous deal. Every NRL player already contracted during those seasons will have to wait painfully to hit the market, and the older ones might play out their remaining best years before that happens.
It is not inconceivable that the player pool will approach or exceed $100 million from 2020 onward, and most of the increase will probably be used to retain the elite players. As has happened in the NFL, most of the salary cap increases over the last five years have flowed into the pockets of quarterbacks – the most important player.
To sign a long-term commitment without knowing what the new rights deal brings is foolish at best and plain stupid at worst. The top All Blacks that have been starting to crack the $1 million dollar annual salary mark in the last few years, will soon be signing $2 or $3 million per year deals. If Jordie Barrett was to sign a long-term deal in the range of four years now he would risk missing out on literally millions.
On the flip-side, the long-term commitment made this year by Damian McKenzie to the end of 2021 will likely end up being a bargain for the NZR, with the backend years of that deal being considerably cheap. This would be part of the thinking of trying to sign so many players of the best young players under long-term deals right now, but McKenzie has just taken on a massive risk that he will be severely underpaid.
While his deal looks good now under the current landscape, that could be just the standard in the future. As one of the games best-attacking talents already, he will be playing on ‘unders’ when the market resets.
“Keeping your options open” is wise right now.
In other news:
Comments on RugbyPass
Wouldn’t be a bad move if Ireland pulled into SA with a young side. Particularly in Pretoria. Invaluable experience getting thumped in the bosveld.
49 Go to commentsIreland. The Princess Diana of Rugby. I never cheered so much for a team as i did for the All Blacks in that QF.
49 Go to commentsWill be great to see the Leinster first XV back in action again after their cotton wool time…
1 Go to commentsLooked up Grant Constable on google and reply was doppelgänger for Ben Smith
49 Go to commentsIt is so good that we now all get excited and debate who is best and emotionally get involved. We all back our teams which is great. Up until about 15-20 years ago, NZ was basically on its own, and then Saffa, Aussie and sometimes French and English were there. We now have at least 5-6 really top sides and another 4 who keep improving. This is so healthy. So we should not resort to rubbish comments and unhealthy debate, but rather all be chuffed that the product we watch is not competitive, exciting and often uncertain. It would be so good if World Rugger could find a way to align the rules to professional players as well as spectators. Live rugby games are SO boring as there is SO much down time as we wait for refs and TMOs and whoever else to look at every small event going back endless phases with the hope of eventually find a minute infringement to then decide cancel what was a wonderful try. This is the ultimate cork back in the bottle moment and feels like every balloon is always being popped. Come on- we must be better with the rules.
49 Go to comments“upon leaving said establishment I tripped over a stool knocking some bottles into the air and as I fell I accidently dislodged a police officer’s teaser who was passing by on an unrelated matter there by landing on said taser which caused it to discharge 50,000 watts into me. Out of shock I shouted Ireland are going to win the world cup. Upon waking up I apologised for the distress caused by my Ireland comment. The matter is closed. If you wish to pursue this matter may I remind you what I told Wayne Barnes when he sent me off. I AM A BIG ASS MAN”. Or was it “I AM A BIG ASS, MAN” or was it “I AM A BIG ASSMAN”?
1 Go to commentsThe only championship the Boks hold are: Great value for the incompetence of referees during the RWC Moaning endlessly and champions of spewing utterly ignorant 💩 at all times. Displaying the dangers of a third world education End of.
49 Go to commentsSouth Africa and Rassie do a phenomenal job of treating the 4 years in between World Cups as nothing more than a training exercise to build squad depth. The Six Nations money that keeps Irish rugby afloat is unfortunately too important to allow the same approach, and basic population size means we'll never get close to matching the depth of South Africa, England and France. That being said, Irish rugby is in a relatively good place and slowly improving inch by inch. If the other three provinces can pull the finger out and actually develop some players it'd be even better.
49 Go to commentsGood on Clarke for taking on the criticism and addressing his deficiencies, principally his laziness.
2 Go to comments“It is the people’s favourite against the actual favourite. It is the people’s champions against the actual champions. I’m joking, but it’s going to be a fantastic series.” Why did Darcy make that joke knowing it would be used as click bait? Why did RP headline it as a serious comment? Anyway, the tired comment isn’t very astute. SA players may have played more games etc. Darcy over estimated as a pundit.
49 Go to commentsNot sure Frisch will ever make the French team with Depoortère and Costes waiting in the wings to take over from Danty and Fickou.
1 Go to commentsThe Irish are tired and the Boks are old. The test series won't confirm who is best in the world, it will confirm which team needs to pursue the task of rebuilding with the most urgency.
49 Go to commentsGrant, the first time I have seen an article written by you. Maybe I have missed your previous stuff. These days all professional players effectively play a common season so all top players are equally tired, or rested. That is the job of the coaching ticket to build squad depth and juggle resources so players are ‘ fresh’ when the big games come. Possibly Ireland are less inclined to juggle squad compared to Rassie, who is prepared to take the risk to rest players as well as build depth throughout the year so come WC he has a full squad, experienced and rested enough to win 7 games. After all, to win WC you need to get through the tournament and then win the final big 3 games. Ireland should try and build a bit so come final 3 they are ready. So far only played final 1(QF). I am so looking forward to the Irish tour. Hopefully Rassie has enough time to align his guys, as he draws them from across the globe, and not from 2 sides locally( eg Leinster, Munster). No excuses, going to be exciting.
49 Go to commentsIn football, teams get fined and sometimes docked points for deliberately fielding weakened teams yet Leinster can pretty much do as they please with no comebacks. Could it be because Ireland run the URC? Could it be that Ireland run the ERC? Whichever it is, it stinks!!
6 Go to commentsIreland are only the People’s Champions in Irish eyes. The rest of the world do not care for them very much because of attitudes of people like Gordon, Ferris, Best, Jackman…I could go on!!
49 Go to commentsNot sure how Karl Dickson can ever ref a Quins game, he played for the club for 8 years as understudy to Care and is still close friends with half the team
3 Go to commentsAre bookies taking bets on how many times Vunipola's eventual statement will use the term “elders"? My money is on at least 4 times.
4 Go to commentsSo Ireland will be tired, despite having the most rested test squad in the world. They only play tests, champions cup and urc play off games ffs! Case in point; Leinster sent a B squad to SA for their last two games while their first xv rested up and trained at their leisure for the sf vs Saints at the so called ‘neutral venue’ of Croke Park. So tired? Do me a favour… And as for “people’s champions”? Seriously??? Outside of Ireland they are respected for their ability to win 6N. And of course plenty of inconsequential test friendlies without any real pressure. WC ko games when the pressure is white hot? Not so much…
49 Go to commentsSurprising how standing down or benching a player can do wonders for their motivation. Several players this week in that category.
2 Go to commentsHaha lads lads lads, that’s how you have a holiday In Majorca
4 Go to comments