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Provincial unions at risk of pulling out of Mitre 10 Cup due to player payment concerns

(Photo by Dianne Manson/Getty Images)

Four provincial unions – Taranaki, Northland, Southland and North Harbour – may be forced to pull out of this year’s Mitre 10 Cup competition over fears they will not be able to pay their players.

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While eight other unions have committed to the competition, Wellington and Otago are also understood to be “on the fence” in similar precarious positions.

North Harbour Rugby chairman Gerard van Tilborg says the situation is dire and can be saved only by the players agreeing to take far less than they are now.

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“Harbour is absolutely committed to playing in a provincial union competition provided it can be adequately funded,” van Tilborg said. “The situation in negotiations between New Zealand Rugby and the Players’ Association are making that marginal.

“The cuts aren’t big enough. We’ve had staff take cuts between 45 and 30 per cent salary. We’ve spoken to most of our players who have been very supportive but we obviously can’t go outside the collective and we need to provide a similar bottom-end ratio of roughly a 30 per cent cut to make [fielding a team] viable.

“If we can’t, we’ll consider what our options are when and if we see what the competition looks like. With teams potentially pulling out what is it going to look like?

“We’re not going to wreck the union for something that is unsustainable.”

Provincial unions have been locked in negotiations with the Players’ Association for the past month as attempts continue to agree a wage-cut figure that will allow the tournament to progress with all 14 teams involved.

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As it stands, significant concessions are required for all teams to make the revised September 11 start line.

Provincial union sources have told the Herald that they and the Players’ Association are “10 per cent apart” over an agreed wage cut, but Nichol disputes this, saying that meetings today between his organisation and New Zealand Rugby will make a lie of that.

https://www.instagram.com/p/CAZM1xjgv4J/?utm_source=ig_web_copy_link

“What we have is a situation with a lot of moving parts,” Nichol said. “A lot of the modelling done to date was based on the assumption we’d have no rugby so this is a rapidly changing space.”

Nichol said the aim was still to have fully stocked Mitre 10 and Farah Palmer Cup competitions, “but how the revenue flows through to the provincial unions is the key”.

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“The player payments at provincial level are part of the equation. The players have to play a part in the [recovery] and we know this, but there are other things we need to understand too.

“There’s the Government wage subsidy to consider. There’s also the rescue package announced this week for sport. Is this relevant in this space? At this stage we don’t have a clue how that money is to be distributed but there’s a chance it could ease the pressure on the unions.”

The ongoing standoff comes after NZ Rugby cut provincial unions’ annual grants of $650,000 by 15 per cent and at a time when all unions are making redundancies to ensure their survival.

Nichol is arguing that provincial wages will be cut by 30 per cent when the government provided wage subsidy is factored in. Those at-risk provincial unions say that is not enough to get them over the line, and are instead demanding a 30 per cent cut on top of the wage subsidy.

“We’re doing everything we can to take the pressure off the provincial unions’ wage bill,” Nichol said. “But at the same time we’re looking at how much the players can be cut. NZR has to look at the way it distributes its revenue and the provincial unions have to look at what they’re doing.”

Nichol said many PUs had already “significantly” mitigated their contracting behaviour by signing fewer players.

Last month the Players’ Association and NZ Rugby agreed a 50 per cent freeze on forecasted player payments for the last eight months of this year which covers Super Rugby and All Blacks players.

Provincial union contracts sit outside the player payment pool and must, therefore, be separately negotiated. This year, across the unions, there is about $15 million worth of contracts due to be honoured.

In many ways the provincial union standoff has further underlined New Zealand Rugby’s deeply flawed player payment model, with the 14 unions operating under a $1.2 million salary cap contributing to the unsustainable future of the game here.

While the Mitre 10 Cup does not start for four months the wage cut agreement is a matter of urgency as some provincial unions are paying players now and honouring contracts as they stand.

The worst-case scenario could see some provincial unions walk away from negotiations and go to the players individually.

“Very soon we need certainty,” van Tilborg said. “With Covid we’ve been planning a number of different scenarios but we’ve got to the stage where everything is out of our control so we can’t plan or implement and that’s the difficulty.

“Unless we can get through this season in reasonable condition we’re better off considering the offer from New Zealand Rugby to pull out of the provincial competition to preserve our ability to compete 2021 and beyond.”

Van Tilborg said he’d had a personal assurance from NZR chairman Brent Impey that Harbour would not be penalised for pulling out of this year’s competition.

“We need the RPA to recognise that even their players understand getting through 2020 is the key here so we have a future beyond that. There’s no point in bankrupting unions this year… and leaving them in a vulnerable position for 2021 and beyond,” van Tilborg continued.

Cuts are being looked at elsewhere, with the prospect of teams flying in and out on match days raised – as Super Rugby teams will do – which allows for savings on accommodation.

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Carmen Beechum 1 hour ago
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JW 1 hour ago
Five reasons why Super Rugby Pacific is enjoying it's best season in forever

The Mickey Mouse playoff system that made the entire regular season redundant

The playoff system has never been redundant Ben, it was merely important to fewer teams, just those vying for top seed. After that it was simply about qualifying.


The format is arguably worse now. I can see the Canes slumping to a point were the return of key components, like their starting midfield, is now going to happen too late for them due to the reduced playoff spots. So we don’t get the perfect jeopardy like what we got with the Crusaders last year, were deservedly (despite showing they easily had a top 4 team when fit) they missed out because they were even more pathetic than that early team deserved. A couple more bonus points with some better leadership, on and off field, would have given the Crusaders a deserving. As reported last year have we not seen a more perfect finals run in.


Objectively easier finals qualification is better suited to shorter competitions, and we know SR is the “sprint” version amongst it’s rugby equivalents. The Top 14 is probably the worst competition in this respect, with it’s length with a double round robin should have a football styled champion. The Premiership, with it’s smaller base but also double round robin, was pretty much perfectly suited to it’s smaller 4 team playoff. Super Rugby, with it’s much shorter season (smaller amount of games, and most importantly over a much shorter period, would be able suited to a 6 team play off series if it had a comparative round robin. It doesn’t. Playing a bunch of random extra games, within your own division, requires you to expand the qualification reach. Super Rugby was another perfectly balanced competition.


If you want to look subjectively, sure, there are a lot of cool facets of tighter qualification, they just aren’t sensible applicable to SR so you have to be a realist.


I’m pretty sure you yourself have authored articles showing you need to be in the top four come finals time to win Super Rugby.

Competition parity this year just seems to be part luck, but we’ll take it.

The closer parity is simply more about circumstance, I agree. The Lions tour has just as much to do with the consistency and early standards in Australian players performances, and random factors balancing the NZ sides. The predictable improvement of the “Pacific Powers” another key factor, but with the case of extra support like NZR help raise their profile, as in the “Ardie” factor, possibly able to happen a year sooner than it has.


Still, as I have highlighted on previous articles, I wouldn’t be surprised if these results were nearly as predictable as they were last year, and that it was just the fixture ‘creation’ by new management that has artificially created a bit more hype and unrealistic perception on the competitions ‘parity’, in these early stages.

Super Rugby Pacific has done the right thing and got rid of most TMO interventions that have plagued the game over the last few years and impacted one World Cup final.

I wouldn’t have minded if they just put their own spin on WR’s structure. While you don’t go on to describe what the two situations are that remain, one that I think could still have been of value keeping is for the ability for the TMO to rule live.


The fact that several of the WC’s TMO officials were overly zealous in their ability to over rule the onfield decision does not mean there wouldn’t have been value in a good southern hemisphere run contingent from simply adding value and support to the game ref. Take the case last weekend as the perfect example. While I don’t believe it would have been of any real benefit for the Highlanders to have had advantage at the death (the same sequence would have still played out), looking in isolation one can clearly tell that was a live situation where the ref said he was obstructed from making a call, and if the current rules would have allowed, the TMO, like us on TV, could easily have told him to play advantage for the infringement. In another situation that type of officiating could have made all the difference to the quality and accuracy of the outcome. Views of the comp would be a lot different if it was clearly as case that the Highlanders were robbed of a deserved victory.


All told, the game is obviously much better off for what changes have been made with officiating, though this is not really isolated to SR. SR is just the only comp to have start with these.

If you want back in, put your hands up for some real competition, don’t ask for handouts. No conference systems.

We are currently in a conference system Ben, I’m afraid you’re beating the wrong drum there and you own subjective (and flawed) opinions are coming through quite clearly. As spitballed on the article a few days ago, it’s hard to see a true league table where it is either a full round robin or double round robin happen, there is still going to be some amount of divisional derby matchs going on to fill out the season.


Conferences are also the only way forward, so get on board. I would love for SARU to be able to add a couple of regional sides in Super Rugby, using the countries burgeoning playerbase. It might be far easier, and more advantageous, for SA to add to SR than say try to enlarge the URC, or go it on their own with a professional scene. They could leave their clubs to themselves and take control of running a highveld team out of Cheetahs country, and a lowveld team wherever they would like a new attempt at a ‘Kings’ team. I can’t see the clubs ever rejoining SR.


Not surprised the article is well off the mark Ben.


One thing they could do to further improve the ‘jeopardy’ though is to have a separate world club table where each seasons finalists are awarding ranking points going towards selecting who takes part in the biennial (right?) world champs the Champions Cup is hosting in the future. I’d normally expect the government to simply send whoever the most recent finalists are but I reckon creating a way to have those instead be judged by contribution since the last edition (however frequent this idea might turn out) could be a winner this new management will work out and capitalize on. It would also help add to that jeopardy if say ranking points were only allocated to the top 6 of an 8 team finals format.

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