All Blacks players have had their wages frozen. Photo / Photosport
All Blacks players have had their wages frozen. Photo / Photosport
Salary cuts agreed by New Zealand rugby's elite players reveal the worst-case scenario in which no return to play can be navigated this year.
In reality, while players will share significant short-term wage hits, hope remains that some of the projected $25 million cuts could yet be saved.
NZ Rugbyand the Players' Association struck an agreement whereby professional players will have 50 per cent of forecasted payments - approximately $25 million - frozen for the remainder of the year in response to the Covid-19 pandemic.
From next month, cuts include 15 per cent of players' monthly retainers for those paid more than $50,000 annually, with these rising to 30 per cent in September.
The freeze also covers assembly payments, other promotional and performance incentives, and reductions in player-funded welfare and development activities.
Potential cuts to provincial union contracts will be announced in the coming weeks.
Contemplating revenue losses in excess of $100 million, NZ Rugby has already cut all staff wages by 20 per cent. Head of professional rugby Chris Lendrum, however, indicated the bleak player payment outlook would change if the game resumes this year.
"We have to take a financially prudent approach to a really uncertain situation," Lendrum said. "Everybody is working hard to get rugby back on the field but we know we're not in control of that.
"The players have to plan for a tough scenario but in the eventuality we get back earlier, we'll be having discussions with the players about how we improve that worst case."
NZR Head of Professional Rugby Chris Lendrum. Photo / Getty
Globally, New Zealand is in a better position than some, largely thanks to the income injection from the British and Irish Lions tour in 2017.
Australia's players have agreed a 65 per cent wage cut while the vast majority of England's Premiership clubs imposed 25 per cent cuts.
"The cuts are really deep - up to 50 per cent of the remainder of the year is really significant and will be felt by every player," Lendrum said. "But we're in a slightly different position with our partnership with the players than Australia.
"This is not good news for anybody and we really feel for all our people in rugby who have been impacted during this period. Everybody is doing their part to make sure rugby remains sustainable in the medium term.
"The players have been fantastic. They are realistic, they get it, they want to do their part and acknowledge the pain all New Zealanders are going through.
"They'll be disappointed individually, of course. Nobody likes being told they have to take a pay cut, but they understand and we'll continue to talk to them one way or the other."
All Blacks players have had their wages frozen. Photo / Photosport
Gradual improvements in New Zealand's overall Covid-19 response gives hope that rugby, and other sports, could return by the middle of the year without crowds.
Contrary to recent suggestions from Sanzaar boss Andy Marinos that Super Rugby could be staged in Australia at the same time as the Rugby Championship, Lendrum confirmed New Zealand's focus remained a domestic resumption.
"At a time like this you can't remove anything from the table because you just don't know how circumstances will play out and what options you'll have available. Clearly, though, we'll be looking to get our domestic competitions up in way that is best for our fans, players and can generate the most money.
"Super Rugby and Mitre 10 Cup would be ideal. We'd like to think in the short term that Super Rugby wouldn't be compromised by having internationals removed from it."
World Rugby are expected to confirm that the July tests, in which Wales and Scotland are scheduled to tour New Zealand, won't proceed.
"We would expect clarity on that reasonably soon. Sitting here right now in isolation waiting to see if we're still in alert level 4 it's hard to contemplate those tests being played but you never know."
At this point, NZ Rugby is none the wiser on which Covid-19 alert level will enable the professional game to return.
"There's no full understanding at the moment. We're all working hard to make sure we understand the differences between level 4 and 3 but we don't have a definitive picture of when we can return to train, either in small or large groups, or when we could play again.
"Clearly a lot of attention is going on that at our place.
"We are in dialogue with Government and health authorities, where their time allows. It's an inherently uncertain situation and that's why we've had to take these steps with the players.
"Trying to put a best-case scenario forward at the moment is very challenging. We're not in control enough of our own destiny. All I can say is when we can play, we will."
