Giteau gets market talking transtasman rivals

Market forces, commercial clout, third-party deals, top-up payments.

Those issues have moved from the soft-focus background into the glare of rugby's spotlight across the ditch after Matt Giteau's multi-million dollar deal to switch franchises.

There has been oscillating ferment about this being a death knell for rugby or a boon for the game. There has been applause for the free market, calls for a salary cap and all the reaction that comes with such a significant move.

Across this side of the Tasman, there has not been the same fallout because the players' collective agreement guarantees base payments for everyone while many All Blacks are involved in extra personal endorsements.

"Here it seems that more players are getting a piece of the pie," former All Black entrepreneur Andy Haden said. "It is cut up into many slices whereas in Australia it is shared by a few because rugby is not at saturation level there."

Agents spoken to by the Herald said it was a widespread practice for senior players to be involved in private commercial deals. It was commonplace, just not as well publicised or to the extent that Giteau had managed in Perth.

"You would be surprised how widely this sort of thing is being considered," said one agent. "Firms will pay to use players' images for advertising or other commercial activities and this Giteau case has opened up a real can of worms."

That may be an exaggeration given the extent of existing activity in New Zealand, that of previous years and the apparently convergent attitudes of the NZRU and Players Association.

Remember Pinetree and his fenceposts, Andy Dalton endorsing farm products or Haden backing computers.

Buck Shelford and John Kirwan had a variety of his promotions, Jonah Lomu went with shoe companies and McDonald's, Ian Jones was allied to Philips, Sean Fitzpatrick recommended a raft of commodities from carpet to Coke, and Zinzan Brooke used Visa.

After his Toffee Pops work, Carlos Spencer had a private deal with Fijian businessman Balu Khan which enabled him to fend away offers from Britain and remain with Auckland.

Any salary in New Zealand, said NZRU deputy Steve Tew, wouldn't stop players arranging "genuine" deals outside the team environment.

It made perfect sense for the injured Conrad Smith to work for his law firm during his rehabilitation, while former All Black captain Tana Umaga worked for the Government promoting parents as teachers.

"It is all about them getting paid market rates for deals outside rugby," Players Association chief executive Rob Nichol said. "Players have to notify the NZRU about what they are doing and they have to make sure they are not in conflict with a team or series sponsor. This is not just about life after rugby, it is life."

About 80 per cent of the All Blacks would be involved in some business arrangement, earning money outside the wages they accrued for provincial, Super 14 and All Black duty. It was imperative that players had business managers arranging their personal endorsements and that their commercial activity did not impinge on any rugby duties.

"These guys are a business now and they need good advice," Nichol said. "They have a short-term career so you can't make mistakes.

"It is a good thing and we want to encourage it. It is about time management and it is healthy."

Giteau's deal was superb for Australian rugby; it was a big tick for Sanzar. Had Giteau not stitched up his A$1.5 million ($1.79 million) annual package then the money might have gone to cricket's Adam Gilchrist or someone in soccer. "So we need this to work," said Nichol.

Recent high-profile deals with individual All Blacks have Daniel Carter modelling for Jockey underwear and skipper-in-waiting Richie McCaw joining Sarah Ulmer as an ambassador for PricewaterhouseCoopers.

"The level of commercial value is determined by the reputation of the profession combined with the player," said Haden. "If rugby regains its popularity and the All Blacks jag another World Cup, the value will swing back in favour of the individuals.

"It may be at the moment that the NZRU is doing better than the players because companies like Rebel Sport or Telecom want to sponsor competitions or series, not individuals.

"Players are getting their ducks in a row and if they win the World Cup next year, that will be very important for their personal endorsements."

While individual deals are encouraged in New Zealand, Giteau's arrangement has caused ructions in Australia. Fellow Brumbie Stephen Larkham thought the money could be better used while others advocated urgent talks on the issues.

ARU chief executive Gary Flowers warned that corporate powers in Sydney and Perth would unbalance Australia's Super 14 ship to the ultimate detriment of the test team.

But Players Association boss Tony Dempsey thought the Giteau deal was a one-off and said calls for a salary cap were extremist.

Dempsey dismisses suggestions a salary cap would prevent the inequality before it got out of hand. Former ARU boss John O'Neill observed that winning was not all about corporate support. "If it was, the Waratahs would be winning the Super 14 every year."