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New Zealand freezing 50% of remaining player payments

By Online Editors
(Photo by Hannah Peters/Getty Images)

New Zealand Rugby (NZR) and the New Zealand Rugby Players’ Association (NZRPA) have today agreed to a range of payment changes that apply predominantly to players contracted at Super Rugby level (including All Blacks), in the national sevens programmes and Black Ferns.

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NZR Chief Executive Mark Robinson said: “Like most businesses, people are your greatest asset, and our staff and players are most certainly our number one priority. We wanted to come up with solutions that worked for all our players and ensured that all sectors of our game were sharing in the financial pain we are currently enduring.”

NZRPA Chief Executive Rob Nichol said: “The players are committed to playing their part in ensuring the long-term future of the sport and to ensure the game best manages the financial implications of COVID-19.

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“In contemplating a scenario based on no professional rugby in 2020, NZR and the NZRPA together recognised the need to act now to prepare the game and the players for this, even if there is every intention of doing all we can to avoid it.

“As a result, we have agreed to immediately freeze approximately $25 million, or 50 percent, of the remaining forecasted player spend in 2020.

“In the event that this financial scenario eventuates, the frozen payments and benefits would become waived permanently. Alternatively, if professional rugby can resume and the financial outlook improves, then some of the frozen payments and benefits could be reinstated,” said Nichol

The expenditure freeze covers the base salary of players, assembly payments and other financial benefits and incentives, as well as reductions in player-funded welfare and development activities.

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NZR Head of Professional Rugby Chris Lendrum added: “Our payment model is complex and it has taken time to determine a model that treats all players equitably. The model we have agreed protects those on retainers of less than $50,000. While not all players are being treated exactly the same, we felt these changes were the fairest way to address player payments and benefits, considering all the different ways our players are remunerated.”

Nichol said in addition to consulting with players they have also ensured players have access to quality advice and support so they can act now to best manage the implications of these changes.

“Moving forward, the players remain committed to working with all stakeholders to ensure the game survives and is best placed to take advantage of the opportunity to get back up and running as soon as is safely possible,” said Nichol.

Robinson added everyone was putting their best foot forward for when the sport could kick off again.

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“The players signalled their desire to play their part right from the get-go and the conversations over the past few weeks have been very constructive. It was vital the sport was ready for whenever we can get back on the field,” Robinson said.

Nichol said they were still working with NZR and Provincial Unions on what would happen with Provincial Union contracts.

Summary of changes:

  • Freezing team assembly and tournament fees for all national teams, excluding the Black Ferns
  • Freezing contributions to the player savings scheme, but retaining KiwiSaver
  • Freezing promotional payments and the vast majority of player performance incentives
  • From 1 May, freezing 15 percent of the players’ 2020 base retainers for those paid more than $50,000 per year, with this rising to 30 percent in September
  • Reductions in funding for other initiatives for players that are funded by the Player Payment Pool while still maintaining insurance cover and key player wellbeing, development and support initiatives.

– New Zealand Rugby

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Nickers 5 hours ago
All Blacks sabbaticals ‘damage Super Rugby Pacific when it is fighting for survival’

Sabbaticals have helped keep NZ’s very best talent in the country on long term deals - this fact has been left out of this article. Much like the articles calling to allow overseas players to be selected, yet can only name one player currently not signed to NZR who would be selected for the ABs. And in the entire history of NZ players leaving to play overseas, literally only 4 or 5 have left in their prime as current ABs. (Piatau, Evans, Hayman, Mo’unga,?) Yes Carter got an injury while playing in France 16 years ago, but he also got a tournament ending injury at the 2011 World Cup while taking mid-week practice kicks at goal. Maybe Jordie gets a season-ending injury while playing in Ireland, maybe he gets one next week against the Brumbies. NZR have many shortcomings, but keeping the very best players in the country and/or available for ABs selection is not one of them. Likewise for workload management - players missing 2 games out of 14 is hardly a big deal in the grand scheme of things. Again let’s use some facts - did it stop the Crusaders winning SR so many times consecutively when during any given week they would be missing 2 of their best players? The whole idea of the sabbatical is to reward your best players who are willing to sign very long term deals with some time to do whatever they want. They are not handed out willy-nilly, and at nowhere near the levels that would somehow devalue Super Rugby. In this particular example JB is locked in with NZR for what will probably (hopefully) be the best years of his career, hard to imagine him not sticking around for a couple more after for a Lions tour and one more world cup. He has the potential to become the most capped AB of all time. A much better outcome than him leaving NZ for a minimum of 3 years at the age of 27, unlikely to ever play for the ABs again, which would be the likely alternative.

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