NPC cap structure just does not fit

The NPC salary cap, a mechanism deemed vital to the success of the new 14-team format, will need to be seriously revamped to gain approval from the players in the collective bargaining process.

The New Zealand Rugby Union has put forward a preliminary draft on how the salary cap should be structured when it comes into force next year. That draft has not impressed neither the major unions nor the New Zealand Rugby Players Association [NZRPA].

The salary cap has two main functions - to disperse talent around the country and to reduce escalating player costs.

The NZRPA does not believe the first objective can be achieved by a cap. It wants to see a major rethink that will afford the players more security and make them less exposed to the dynamics of a controlled economic market.

The NZRU is understood to have structured the cap by imposing an absolute limit any union can spend on players. Innovative alternatives such as linking the cap to a union's total revenue or classifying players on point scales and limiting the number of players unions can select from each category have been put aside for now. That's because the main intention of the NZRU is to stop provincial unions from hoarding excessive player resources.

If squads can only pay so much to retain players, the NZRU hopes some players on the margins of major unions will be forced to join lesser unions.

But there are fears that rather than force the dispersal of talent round the country, the cap will simply force some players overseas or into taking a pay cut to remain with their province of choice.

There also concerns that some players may be forced to join provinces outside their preferred Super 12 franchise.

If, for example, a Canterbury player is faced with the option of taking a pay cut to stay at Canterbury, or move to Southland to earn the same income, it is thought most players would either move overseas or accept the pay cut.

Moving to Southland would make the player eligible for the Highlanders. His only way of making the Crusaders would be in the draft. Those who have canvassed player opinion also fear that any player shifting province purely for cash would be branded a mercenary and ostracised in the team environment.

With these potential scenarios, the players are not going to sign the collective bargaining agreement as it stands. They will be supported in their stance by the heads of the major unions.

The NZRU, however, said these are arguments of convenience and point to the fact New Zealand players are already heading overseas. Deputy chief executive Steve Tew, said: "Players are heading overseas already. But players tend to leave when they are ready anyway and offering them more money is not likely to make them stay. We are very mindful that players are leaving and are working hard to put in place a mechanism to minimise the numbers who leave.

"We have structured a salary cap which we feel best suits the nuances of the game in New Zealand."

Despite Tew's defiance, it's unlikely the NZRPA will be bullied into signing something they are not comfortable with.

The stand-off could take some time to resolve as the cap is a complex issue. It will also be vital in determining the competitiveness or otherwise of the 14-team NPC. In recent weeks Manawatu have been hammered by the Lions and Nelson Bays by Canterbury.

These huge defeats have illustrated how challenging life in the first division will be for both Manawatu and Nelson Bays.

Both sides are in desperate need of quality players who have Division One NPC experience.

If a working solution can't be found to the imposition of the cap, then there could be horrid mismatches in next year's competition.

Tew accepts the importance of finding a solution but also argues that, even with the cap in place, it will take some time for resources to even out to enable all 14 teams to compete equally.

"We have always said that it may take some time for all the teams in the competition to become competitive. We have to accept that there might be some one-sided results in the first few years."


- HERALD ON SUNDAY