Hertford Highlander

ARU Salary Cap – How does it work ?


Written by Gwyn Pratley (Hertford Highlander)

Posted in :In the news, Super Rugby, Wallabies on 18 Apr 2011 at 07:37
Tagged with : , , ,

Rugby Heaven reports the proposed salary cap will reward the performers.

The ARU has finally broken its silence over proposed mass salary cuts for players, insisting performing players will actually be able to earn even more.

The governing body, which has been accused of shafting players, argues that salary cap limits for its Super Rugby franchises are not about cost-cutting at the players’ expense but of protecting the future of Australian rugby. It insists while individual player salaries will vary, overall contributions to players’ wages will not change.

”It’s not about saving money, it’s about utilising the money we have at hand to make Australian rugby more successful,” said high-performance director David Nucifora. ”We’ve been working on this model for two years plus. And we think it will achieve quite a few things, certainly improving the all-round good and health of the game. And not just from a financial point of view will it assist the teams, but from the point of view of making sure our best players are actually playing their best.”

Advertisement: Story continues below Under the collective bargaining agreement with the Rugby Union Players’ Association, the ARU is required to contribute 26 per cent of player-generated revenue to wages. That won’t change. However, it said it had contributed more than 29 per cent of earnings to players in years past, and that given the code’s declining bank balances in corresponding years, getting closer to the required percentage was the best move.

However, it will still have the power to go over the 26 per cent minimum.

The five Australian franchises will be limited to approximately $4.4 million next year, with this figure to be reduced to $4.1m for their top-30 contracted players in 2013-14. No franchise under the existing CBA exceeds $4.8m in player wages.

What will change is that the ARU will no longer boost the wages of players who are not in the frame for a Wallabies jersey, and free the franchises to spend their cap at will by abolishing the existing $110,000 maximum payment. The ARU will also provide $150,000 for five ”rookie” or ”fringe” players outside the top-30 squad and allow franchises to spend a further $150,000 in $30,000 instalments to retain their five best players. Also, the ARU will have 30 contracted players, not 50.

”The thing we’re trying to do is match up performance and pay,” Nucifora said. ”There’s not really less or more money on offer but it’s fair to say we’re not going to be giving contracts to people who aren’t genuinely in the Wallabies frame …

”And it’s in line with what we’ve tried to achieve with selections, building depth and competition between players. Players are aware it’s a competitive environment and if they’re playing well they’re going to be rewarded well. Competition creates performance and reward comes from performance.”

The moves are planned to make the Wallabies more competitive while placing more onus on the franchises to develop players and maintain a balanced and competitive roster. Players will have more incentive to switch franchises for more money. The Force, for example, would be allowed to offer Kurtley Beale $300,000 to encourage him to move.


1 Comment

  • Hey Hertford!! Sounds like it is a bit of a sham anyway, with the Rebels being offered post play incentives to go and Play in Melbourne.

  • Comment 1, posted at 18.04.11 13:06:29 by Whindy Reply
    Competition WinnerCompetition Winner
    Whindy
     

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