Giteau deal shows league-style contracts spreading to rugby

Third-party contracts, already rearing their head in Australian rugby league as the 13-man code fights hard to keep star player Mark Gasnier from moving to union with the Waratahs, are also appearing in rugby - with Matt Giteau the A$6 million 'guinea pig'.

Giteau, of the Brumbies, was reported by Australian media yesterday as poised to sign for the Western Force in a deal worth A$1.2 million for five years. It is suspected this is a deal supported by funds outside those of the Force - bringing into focus for the first time payments by sponsors or corporate third-party interests designed to pay players more. Both the Brumbies and Queensland are upset about this and are calling for an inquiry if Giteau moves.

Third-party payments dodge league's salary cap because they're not made by the player's club and are not being made to induce him to play for another club. In the Gasnier case, league are rushing to protect him from a code switch. Although they have distanced themselves from the ploy, Channel Nine were supposed to have contracted Gasnier for as yet unspecified employment, with a rumoured NZ$500,000 not considered part of the salary cap. This, added to what he would have been paid by his Dragons club, would take Gasnier's salary past the A$800,000 being offered by the Waratahs to attract him into union.

Such payments have been reasonably rare in rugby but are now becoming a greater part of the commercial marketplace as Super 14 franchises, with John Mitchell's Force in the limelight, move aggressively into the horse-trading market. The Force are also rumoured to be pursuing three more Brumbies, all forwards.

The Brumbies will call for drastic changes to the contracting process if Giteau is lured away by corporate sweeteners to join the Western Force.

There are few examples of third-party involvement in New Zealand rugby - with one of the few a payment thought to have been made to Carlos Spencer from a Fijian backer in order to keep Spencer in New Zealand. However, third-party contracts as inducements to shift franchises have not yet been a feature of the New Zealand or Australian marketplace.

The Brumbies joined Queensland in airing concerns about the open marketplace, with players being tempted by additional third-party offers from big corporates there.

Brumbies chief executive Andrew Fagan said he couldn't see a compelling reason why Giteau, originally a local junior who is playing inside and outside Wallabies team-mates Stephen Larkham and Stirling Mortlock, would link with the competition battlers, the Force, in a World Cup year.

"If that's the case, we need to look at potential regulations to govern the contracting process, as there is in rugby league," he said.

"That would highlight the [contracting] issue. If Matt Giteau was to go to the Waratahs, there would be an argument why, but certainly if he was to move to Perth we would have serious questions as to why that would occur.

"Without additional corporate support it would make no sense."

NSW boss Fraser Neill highlighted the Force's preparedness to lure Giteau west by saying third-party money must be behind a reported A$500,000 (NZ$595,521) offer, on top of his ARU contract.

"We've heard that. We were told it was three kitchen sinks they were throwing at him," Neill said.

Queensland CEO Theo Psaros said the ARU had to ensure all four provinces were strong and believed a salary cap would be the best way to "bring integrity back into the contracting system".

"If there's bigger corporate money in Perth and Sydney, we and the Brumbies have no chance and there will have to be stronger ARU leadership," he said.

Giteau isn't the only player causing ructions in Australia with the Waratahs also unhappy with the Force, accusing them of a breach of the player contracting process over lock Al Kanaar.

The Waratahs believed Kanaar had signed for several more years when they discovered Kanaar had been in talks with the Force.

There's also talk that three Brumbies forwards are being offered to the Force as part of a package deal.

-AGENCIES