ABs brace for salary cuts
As New Zealand Rugby prepares to take a coronavirus financial hit that will eat a big chunk out of its near $100 million in reserves, the All Blacks have taken the lead with significant pay cuts agreed to and more in the works.
New head coach Ian Foster confirmed in an interview on Newstalk ZB and Radio Sport yesterday that he and his All Blacks staff had already agreed to salary cutbacks in the face of the looming financial crisis. He said the players would be the next to tighten their belts with discussions already under way on how their reductions would be managed.
Rugby globally faces a major crisis in the face of the sporting shutdown enforced by the Covid-19 pandemic. With so many countries in lockdown and borders closed all over the world, it could be months before sport starts back up again and even longer for international competition to resume.
It is now inevitable that highsalaried professional athletes and coaches will have to endure some pain. Already Super Rugby looks a long shot to resume in anything but a localised format and the July tests must also be in serious doubt. Revenue is drying to a trickle as payments from broadcasters are set to be slashed in accordance with the lack of product.
Foster told the Devlin Radio Show that the All Blacks had already advanced discussions with their bosses at New Zealand Rugby on salary cuts, with general agreement on the steps that needed to be taken.
‘‘Our coaching group has definitely taken a big cut,’’ Foster said. ‘‘That’s already been agreed to . . . with rugby when there’s no games, there’s no revenue, and that’s a tough thing.
‘‘There’s been a lot of shaving of the programmes inside and what it’s also come down to is cutting salaries and that’s happened for some and [will be] happening for others.’’
New Zealand Rugby chief executive Mark Robinson declined to comment on cutbacks. A spokesperson said NZR hoped to have more clarity around payments to players and staff later this week and he would comment then.
Foster said senior players he had spoken to accepted that cuts were on their way and the general feeling appeared to be that was a sacrifice they were prepared to make in the current climate.
All Blacks’ player contracts generally consist of a substantial base salary, topped up by payments that reflect the number of tests they are assembled for. Reduced programmes – now an inevitability – would already hit test stars in the pocket before further reductions are factored in.
‘‘It’s a different sort of process for players but I know they’re willing to go into that space too,’’ added Foster. ‘‘Theirs is [a] more complex [situation] . . . but it’s a given and they understand that. It’s just a matter of working it through so all the different levels of players are dealt with fairly. I haven’t heard one player yet who doesn’t accept that it’s going to happen.
‘‘There’s a real willingness of those involved in the game to get behind [this] and do whatever it takes to make sure [the game] survives.
‘‘We all have to take a cut, and it may not be the last. But we’ve got a lot of people who are willing to get in behind and are passionate about it, and I’m sure we’re going to get through.’’
The All Blacks coach also noted the significant ‘‘rainy day’’ reserves NZ Rugby had built up and which would inevitably be plundered now.
‘‘Past regimes of governance need to be applauded for leaving the game with the cash reserves they have. That’s now at least given us some options.’’
Foster also admitted it was ‘‘realistic’’ to think the July tests, scheduled against Wales (twice) and Scotland, were now highly unlikely to take place in their mooted form.