Otago Union welcomes salary cap

Chief executive Russell Gray says the Otago Rugby Football Union will have few problems squeezing under New Zealand's first salary cap.

Gray welcomed the introduction of the $2 million cap and the other components of the player deal announced by the New Zealand Rugby Union (NZRU) this week.

He said Otago had been one of the leading supporters of the salary cap.

"We've always felt there needed to be some mechanism in place to control costs," Gray said.

"It won't suit everybody but I'm sure it's going to suit the majority.

"We will certainly operate quite comfortably under a $2 million cap."

Both Auckland and Canterbury, New Zealand's largest unions, have criticised the imposition of the salary cap, with Auckland cutting its number of contracted players and Canterbury reiterating that players will be forced to move.

Gray said both unions would already have their top players locked into good contracts and the cap would only have a possible effect on player movement years down the track.

Otago has 40 contracted players, including a handful on basic promising player contracts.

There would likely be two or three players leave the province by the end of the transfer period (November 30), Gray said.

Many of Otago's top players have a Super 14 termination clause, meaning someone like midfielder Jason Shoemark, who did not make the Highlanders squad, was entitled to look for opportunities elsewhere.

Gray said the deal the NZRU had struck with the players was fair to everybody.

"The NZRU is happy, the players are happy and it's got the support of the provincial unions," Gray said.

"A lot of people have spent a lot of time working on this and I think what they've come up with is a win-win situation."

- NZPA