RUPA supports a Draft System - Wayne Smith 'Australian'

[Ozee316]

The most important point to consider is why the NRC was created. It was never intended to be an amateur competition and players are already paid a minimum of between $5-10k if they are not on an ARU contract.

The intention is not to keep those payments as low as possible as you suggest but to grow them as it's possible through ARU and commercial contributions.

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[Ozee316]

The ARU has been quite open that players can and will be paid as funds allow.

There was just a Massive broadcast deal and they chopped fresh one NRC team. So I would look for NRC player payments to grow

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[TOCC]

Collectively Super Rugby teams in Australia posted losses in excess of $6million, ARU will likely post a loss of $5million as well, Australian teams will face a drop in match day revenue in 2016 on the back of one less home game. That "massive broadcast deal" will be used to stop the haemorrhaging of finances currently in Australian rugby.

NRC contributed very little value to the broadcast deal, which is why Foxtel choose to only broadcast 1 match a week and not all of them. Salaries might rise slightly, but they won't come close to $50k..


All of this leads back to the original point of a draft on the NRC, there won't be a draft on amateur players as those playing in the NRC still have week day jobs which they need to attend. You can't force relocation on if you aren't compensating them well, and the NRC/ARU doesn't have the finances to do that.

Perhaps in the future the NRC may be fully professional and that will allow that to occur, but it won't be for many years.


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[Ozee316]

Let's address those ARU numbers very simply:

1) They are increasing funding of Super Rugby by millions including raising the salary cap

2) They are increasing the Wallaby wage pool to secure top players

3) They are putting millions into Sevens over the next 4 years

4) They are doubling investment in grassroots to $10 million annually

And you expect us to believe they are not going to invest more money into the NRC which is a very important player develop tool for Australian Rugby.

I can only say fanciful.



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[Ozee316]

That increased Investment into the NRC will for sure partially go to increased wages

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[TOCC]

Right, well this conversation seems to be going around in circles.. How about we reconvene once they announce wages will be raised to $50k, until then a draft cannot and will not be placed on the NRC.

 

[Ozee316]

Sure

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[Groucho]

Collectively Super Rugby teams in Australia posted losses in excess of $6million, ARU will likely post a loss of $5million as well, Australian teams will face a drop in match day revenue in 2016 on the back of one less home game. That "massive broadcast deal" will be used to stop the haemorrhaging of finances currently in Australian rugby.

NRC contributed very little value to the broadcast deal, which is why Foxtel choose to only broadcast 1 match a week and not all of them. Salaries might rise slightly, but they won't come close to $50k..


All of this leads back to the original point of a draft on the NRC, there won't be a draft on amateur players as those playing in the NRC still have week day jobs which they need to attend. You can't force relocation on if you aren't compensating them well, and the NRC/ARU doesn't have the finances to do that.

Perhaps in the future the NRC may be fully professional and that will allow that to occur, but it won't be for many years.


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The ARU won't post a loss.

 

[TOCC]

The ARU won't post a loss.

Unless they were able to have some future broadcast earnings paid early then 2015 was forecast to be a multi-$million loss on the back of revenue falling to $80millon, that is even including a $15million grant from World Rugby to compensate for lost earnings.

 

[Ozee316]

2015 was last year

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[Train Without a Station]

Well why don't you review the strategic plan where they outline there plans for the extra $25M revenue.

Between the increases in community rugby grants and grants to super rugby franchises to cover the fact that none make money, that's it tied up.

I remember the same thing from your articles on the roar, you seem to jump to huge conclusions with no evidence behind it.

 

[TOCC]

2015 was last year

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No shit..

All the annual reports getting released currently are for the preceding 12months, ARU usually releases their annual report around April and within it there will be a $3-$5million loss and complete exhaustion of their cash reserves.

Why is this relevant, it's relevant because anyone who thinks that the new broadcast deal will see cash flowing to all corners of the game is ignoring the fact that currently the ARU and Super Rugby clubs/state bodies are losing around $10million a year. Almost half the new broadcast deal will go towards just keeping the code in the black.

It's also why the NRC players won't be getting paid the $50k/season(total of $10million a year) you insist on and also why there won't be an expensive and convoluted draft system imposed on the NRC.

 

[Ozee316]

A large proportion of NRC players are on existing Super Rugby contracts and don't need to be paid anything.

It's only the Club players who will be paid. Currently they are already paid.

It is fantasy to think the ARU will increase funding to every other single part of Australian rugby except the NRC which is crucially important to them. There is no logic in that. The NRC is not intended to be fully funded by local unions. It's a development competition which receives funding.

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[mst]

From what I understand, one of the criteria for being issued a NRC franchise licence is you are sufficiently financially resourced to operate the franchise independently. Thus the selection process via applications rather than the ARU handing out licence with a cheque and have at it.

Additional funding to other parts of the game supports clubs and organisations to leaver off the commercial opportunity the NRC provides by choosing to be involved.

 

[Braveheart81]

It is fantasy to think the ARU will increase funding to every other single part of Australian rugby except the NRC which is crucially important to them. There is no logic in that. The NRC is not intended to be fully funded by local unions. It's a development competition which receives funding.

No one is arguing that an increase in funding won't happen over time.

People are taking issue with you spouting figures that are pure speculation as if they are sure things.

On the back of everything all of us know about the ARU and its finances, a jump in player payments from roughly $5k per non Super Rugby player for the NRC to $50k seems wholly unlikely.

When the Super Rugby minimum wage is roughly $80k, it also seems highly unlikely that NRC players will start earning $50k.

 

[Ozee316]

MST that's true but that's also the same criteria used for choosing the new Super Franchises. Yet the Super players are paid from broadcast money.

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[Ozee316]

We have to separate the running costs of a franchise which are significant (eg Brumbies making million dollar losses) but their players are actually paid by the ARU from broadcast funds

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[Ozee316]

There were rumours of $2m per season from the Fox deal earmarked for NRC from this year. The ARU is likely to increase this amount in coming years.

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[Ozee316]

A jump from $5 to $50k seems unlikely to you for a number of reasons. First there is no reason why every player would get that. in NZ the minimum is 20k but top is unlimited but we'll under 100k. Players do have multi year contracts though.

In the NRC now players are making the same. Once 2nd and 3rd level players are acknowledged the payment range will go from likely between 10-15k to 50k over the next few years.

The NRC is a place Super teams can contract players outside their cap for multiple years to see if they develop into full Top grade players.

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[Train Without a Station]

Paying Non-Super Rugby players $50k a season would increase the costs by over $4M.

From the $25M increase in revenue firstly the ARU needs to cover the shortfall in Super Rugby which would be close to $10M.

Then they need to cover the extra $5M to community rugby.

Then they need to put money in the bank to replenish their near insolvent state.

It's fanciful to think they will spend $4M more on a bare bones competition to essentially secure every unsigned Super Rugby prospect in the country.