Changing the central-contract model is a risk worth taking

The central-contract model has underpinned the success of Irish professional rugby for the last 20 years, so the IRFU would never take a decision to change it lightly. Yesterday, they confirmed a seismic shift in the way the business of rugby will be conducted in this country in a move that could have a profound influence on the balance of power between the provinces in the coming decade.

The commitment from IRFU chief executive officer Kevin Potts to be “more transparent and equitable” about the way the four professional teams that feed the national team are funded is welcome.

The union have confirmed they will contribute €40m between Leinster, Munster, Connacht and Ulster next season and that the provinces will now have to contribute 30pc of the value of a player’s IRFU central contract.

Difficult

It is difficult to be specific about exactly what has changed because of the opaque nature of the union’s funding model before yesterday’s announcement, but it appears to level the playing field away from Leinster whose success has been self-perpetuating in recent years.

Because they’ve become bulk suppliers to the national team, the eastern province now have the vast majority of centrally-contracted players and that has meant they can retain squad players on large salaries and recruit top talent from abroad.

The issue has bubbled beneath the surface for years but recently boiled over when Leinster added All Black Jordie Barrett to a squad that will also contain RG Snyman next season.

Their rivals believe they are chasing a runaway financial train, whereas Leinster argue that they are simply being rewarded for getting their house in order in terms of player development and harnessing their commercial appeal.

Both things can be true at the same time, and while the national team have clearly benefited from the cohesion of selecting largely from Leinster, the union are responsible for growing the sport in all four corners of the island and can’t allow one province to prosper indefinitely.

They began the review of the model in 2023 and have included the four provinces in their consultation, so there was no surprise when the announcement came yesterday.

As a result, they’ve already factored the reality of paying 30pc of the salaries of 10 of their best-paid players into their financial projections for next season.

It’s a hit of between €1m and €1.5m and it’s a significant burden to take on, whereas for Munster, Connacht and Ulster it’s 30pc of one salary – and that’s a reflection of the current disparity.

Potts said yesterday that “the strength of rugby in Ireland is aligned to having four healthy, competitive provinces and the IRFU remains committed to delivering this in a financially sustainable manner”.

Long-term, the IRFU needs to sustain interest across the board, and while the viewing figures and ticket sales for international games remain at an all-time high, there is a need to sustain interest in the provinces. Fans must believe that their teams can be successful.

The sight of an Ireland team taking the field without an Ulster player in the 23 for the first time in the 150year history of the sport last February was a canary in the coal mine, and the trick for the IRFU is to create a more level playing field without destabilising the whole operation.

David Nucifora has been responsible for the contracts over the last decade and he warned last week about meddling too much with the model.

“There is no perfect central-contracting model that I know that exists around the world, but we have got one that works,” he said.

“It doesn’t mean that it doesn’t need to be tinkered with and it is being at the moment, there will be some adjustments made but primarily the key elements of it need to remain.

“It helps us retain the players in Irish rugby that Irish rugby wants to retain, and it helps us manage the cost base of that as well. Yes, it has [got] a little bit out of proportion over the years with how well Leinster have done but why should we be penalising Leinster for being good at what they are doing?”

It won’t affect Leinster this Saturday but they will fear that their ability to compete at the elite end of the sport will be hampered by the change.

The 30pc contribution will be reviewed every season and the IRFU will be keenly sensitive to any weakening of the national team.

That’s the balance they’re trying to strike, but this appears to be a positive step towards having a more level playing field between the provinces.