Rugby: Windfalls for players under NZRU's new agreement

Each All Black will receive a $100,000 bonus if the team win next year's World Cup. Photo / Getty Images

Each All Black will receive a $100,000 bonus if the team win next year's World Cup under the new collective employment agreement between the New Zealand Rugby Union (NZRU) and the NZ Rugby Players Association (NZRPA) announced today.

The agreement, which covers 2010 to 2012, includes a new player contracting and payment model and means Super rugby franchises can now contract players directly, regardless of which province they represent. That includes two overseas players per franchise in a final squad of between 30 and 32 players.

The All Blacks could be in for an extra windfall, with the agreement including a $35,000 individual bonus if they make the World Cup final on home soil, and another $65,000 if they win their first title since 1987.

All Blacks required to attend a photographic, filming or recording session for promotional purposes will be paid $1000 per day under the new agreement.

Players will be employed on an NZ Rugby contract, rather than the existing NZRU contract, which can include a Super rugby retainer (with an annual maximum of $180,000) and an NZRU retainer which will have no upper limit.

Super rugby franchises will contract an initial squad of 28, before the draft process, and from next season will be permitted to sign two overseas players -- subject to certain criteria and NZRU approval.

The minimum Super rugby retainer will increase to $70,000 next year, up from the current $65,000. Players drafted in from outside the initial 28-man squad will receive a minimum of $60,000, while another 40 players will be handed wider training group contracts with a minimum retainer of $20,000.

In the ITM Cup national provincial competition, each union must contract at least 26 players (excluding players named in the initial Tri-Nations All Blacks squad) on a minimum annual retainer of $15,000.

The maximum amount that can be paid to a player is $60,000 per year, except that each union may pay two veteran players (someone who has played eight or more seasons for the same union) up to $90,000.

A provincial union may contract an unlimited number of players on development contracts, and will also receive $35,000 for any player selected in the initial Tri-Nations All Blacks squad.

The provincial salary cap will no longer include notional values but the discounts for All Blacks, former All Blacks and veteran players will continue.

The new salary cap for each union will be set at the lesser of $1.35 million or 36 per cent of a union's commercial revenue, based on audited accounts from the previous two years.

The agreement also confirmed the previously discussed changes to the ITM Cup from next year, with two divisions of seven teams and a promotion-relegation system.

In each of three contract years (2010-2012), 36 per cent of NZRU player generated revenue will be set aside in a player payment pool. From 2011, 36 per cent of combined annualised Super rugby franchise player generated revenue in excess of $24 million will be also be added to the player payment pool.

NZRU general manager professional rugby, Neil Sorensen, welcomed the new agreement as a significant milestone.

Together with the new broadcasting arrangements and the extension of the adidas contract through to 2019, it would provide significant certainty about the future of the professional game.

"It has taken significant work to get here but there has been tremendous goodwill and effort by all those involved. Today marks the culmination of that work from players, the NZRPA, provincial unions, franchises and the NZRU," he said in a statement.

NZRPA chief executive Rob Nichol also welcomed the formal agreement.

"The players are proud of the results the process and final agreement has produced for rugby in New Zealand but we know we still have on-going challenges and opportunities to address to ensure rugby's long term growth and success," Nichol said.

- NZPA