NZRU strikes new deal with players

New Zealand's professional rugby players will share in broadcasting and sponsorship revenue under a new pay deal with the New Zealand Rugby Union (NZRU).

The revenue-sharing arrangement under a new collective agreement was announced in Wellington today.

Under the terms of the new three-year contract (2006-2008), which also provides for guaranteed retainers and a salary cap, 32.4 per cent share of all player-generated revenue will go into an annual player payment pool to be used for player payments and initiatives.

Player-generated revenue includes all NZRU broadcasting revenue, sponsorship and match-day revenue.

Each of the top 14 provincial unions can spend up to $2 million on paying players under a salary cap for 2006.

Thereafter, the cap will be adjusted by the consumer price index (CPI).

Under the new agreement, a player's base remuneration (or retainer) will now be guaranteed for the term of his NZRU contract.

The minimum base pay for Super 14 players will remain at $65,000.

NZRU deputy chief executive Steve Tew said under the previous contract, player remuneration was dependent on selection in a Super 12 squad each year of their contract and non-selection meant a significant drop in a player's earnings.

"It is fair to say players were rightfully concerned about their lack of financial security but now we have addressed that. This will be a major step in helping us retain players in New Zealand," Tew said.

The new agreement was reached after 12 months of negotiations.

- NZPA