Welsh rugby players facing longer pay cuts
WELSH players could face long-term pay cuts as part of plans to protect the future of rugby in Wales.
But talks are taking place aimed at heading off the kind of chaotic situation that exists in England, with threats of strike action over the border amid moves that could see reductions in salary caps, permanent wage reductions and arbitrary deadlines for players to sign contracts.
No-one is underestimating the seriousness of the situation in Wales, though.
The coronavirus crisis has left the Dragons, Cardiff Blues, Ospreys and Scarlets facing brutal financial challenges.
The Welsh Rugby Union could be facing a £50 million loss, depending on whether Wales play any more Test rugby this year, and belt-tightening is seen as a necessity.
Players took a 25 per cent temporary paycut in April and The Sunday Times reports that ‘sensitive’ talks are taking place between the Professional Rugby Board and the Welsh Rugby Players’ Association over longer-term reductions.
“Everybody is taking pay cuts, including the players,” WRU chairman
Gareth Davies told the paper.
“We want everyone to come out of this intact. In order to do that, everybody has to contribute.
“Nobody should be immune from the problems we face.
“I’d like to think everything is transparent with the way Martyn Phillips (the union’s chief executive) has been dealing with this through the WRPA and the players.”
The challenge for the union is now to come up with a proposal the players feel able to accept.
No final percentage pay-cut figure has been agreed and nor has a time frame for any reduction been accepted, though an initial period of 12 months is said to have been mooted.
That said, negotiations are delicately poised, with any unilateral imposition of new terms potentially amounting to a breach of contract for players.
“As soon as clubs fail to remedy a breach once they impose a pay cut, which hasn’t been approved by a player, then that player is free to move. That would apply for current regional players in Wales as well,” a legallyqualified rugby source in Wales told
WalesOnline last week.
There’s hope that it won’t come to that. But Phillips’ skill as a negotiator will be tested to the full.
The players believe they are the ones who are key to significant revenues coming into the game and they privately point out their circumstances are different from others engaged in the rugby industry.
They can’t be put on four-day weeks, for instance, and reduce their working hours in line with whatever pay reduction is being proposed, as performances on the pitch will be affected.
There is also the general point that playing careers can be short and players have no security beyond their current contracts.
As a minimum, they would likely expect lower-paid players and those who are coming towards the end of their contracts to have their salaries protected.
And given that they are being asked to endure pain that could go a long way to keeping the game afloat, there is a belief among some that when normal revenues return, and potentially significantly better times in a CVC investment age, there should be an opportunity for players to claw back money lost during this period.
Contracts wouldn’t be breached in the event of changes to deals being approved by both sides.
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