Players, unions set for more broadcast funding
WITH COFFERS set for a major boost at national headquarters, hands are outstretched as rugby at all levels eyes a share of New Zealand’s incoming broadcast revenue windfall.
Powerbrokers are keeping figures close to their chest but it is understood New Zealand’s slice of the new five-year broadcast deal will produce a greater increase here than the collective 35 per cent rise achieved on the last $615 million Sanzar agreement. That would mean a boost of more than $210m.
Professional players in this country are set for a significant pay rise – under their unique 37 per cent revenue sharing model – but the provincial unions also stand to benefit from the imminent influx.
The new deal is expected to be announced by October with the major rise coming on the back of a bidding war in the United Kingdom, where Sky Sports were forced to fight off strong competition from a rival telco company to maintain the rights.
Increasing revenue couldn’t come at a better time for New Zealand Rugby with a host of stars – including Charles Piutau, Colin Slade and Tom Taylor – leaving in their prime and invaluable middletier servants also being pillaged by wealthy overseas clubs. Losing Nasi Manu, Luke Braid and Jeremy Thrush emphasises the experienced guidance that won’t be around to bring through the next generation.
Creative ways of retaining players need to be explored. One could be increasing the $1.6 million pool available to top up players outside the All Blacks who have played five years of Super Rugby and take part in the provincial season.
On top of their provincial salaries, which are limited to $55,000, at present these players can each be paid an extra $15,000 incentive in an attempt to reward loyalty.
At the top end, NZR will also consider increasing top-ups made to All Blacks at Super Rugby level where the maximum salary is capped at $195,000.
To the average punter such a wage sounds fantastic but when European clubs are regularly offering in excess of $1 million annually for New Zealand’s best talent, every attempt to close the gap must be made.
The flow of money needs to extend beyond the players, though. ‘‘Rugby Incorporated’’ must feel the benefit so the game can be fostered in these challenging financial times.
‘‘This broadcasting negotiation has brought some rewards and it sounds as though the agreement is going to be positive for all parties,’’ Players’ Association boss Rob Nichol said. ‘‘From a players’ perspective when we sit around the table to look at the collective agreement we want to make sure, whether it’s investment in professional players’ retainer, the provincial union’s community development programme or franchise high performance, that every single dollar counts.’’
Provincial unions’ bottom lines remain at risk. Wellington, Waikato and Southland were three of the four bases that slipped back into the red last year as a combined surplus of the 14 top-tier unions suffered a concerning drop of $2.1 million (down from $3.3 to $1.2 million).
Such a sharp decline highlights the ongoing stresses and strains on the domestic game as the countrywide fall-off in crowds takes a toll and sponsorship becomes a yearby-year grind.
It’s now widely accepted money in the communities to contract rugby players and keep afloat programmes to run the game at school and club level is dwindling.
Planning for the medium-to-long term is increasingly difficult, though there seems to be a collective commitment to retaining the NPC in its current format.
Simply handing out cash isn’t an option as there is a risk additional money will flood the player market and lead to provinces once again falling into bad habits of spending beyond their means.
Instead, NZR have undertaken a ‘‘provincial funding review’’ and funding is likely to be tagged to particular positions such as rugby development officers to increase the capacity to develop the game’s lower levels.
It is there, after all, that the next crop of All Blacks need to be nurtured in order to replenish the great production line.