ARU to look at third-party agreements after Giteau deal

SYDNEY - The Australian Rugby Union (ARU) is to investigate third-party agreements following Matt Giteau's move to the Western Force at the end of the current Super 14 season, managing director Gary Flowers said yesterday.

Wallaby centre Giteau's high-profile switch from the Brumbies to the Force on a three-year contract was confirmed earlier in the day.

"This negotiation has received an unprecedented level of scrutiny and interest, which is not surprising given that Matt Giteau is one of the best players in the world in his position," Flowers said in a statement.

"The issue of third-party agreements for individual players is a complex one and something we will be looking at very closely."

Details of Giteau's contract were not disclosed but he is reportedly set to receive A$4.5 million on a contract boosted by deals with a number of Perth companies.

"Rugby has always enjoyed very strong corporate support which contributes to the development of the game at the grassroots level and helps fund competitions like the Super 14," Flowers said.

"The fact that the support is now being extended to individual players is difficult to regulate, and in some respects is a sign that corporate support for rugby in Australia is at an all-time high."

Flowers said it was important to control salaries.

"Australian rugby and tour Super 14 provinces cannot afford for player salaries to spiral out of control," he said.

"Just like any professional sport, our wages bill is one of our biggest costs and needs to be carefully managed to ensure our teams remain financially sustainable.

"I have already met with Rugby Western Australia on this issue and in the meantime we will do all we can to ensure the current process is being correctly followed. Any allegations of breaches will be thoroughly investigated and dealt with accordingly."

- REUTERS