Collective Agreement

In 2005, the NZRPA and the NZRU signed the second ever Collective Agreement governing the terms and conditions of the employment of professional rugby players in New Zealand.
The Collective Agreement is an agreement which has changed the landscape of professional rugby in New Zealand, particularly as it relates to the relationship between the New Zealand Rugby Players Association (representing the players) and the New Zealand Rugby Union (representing the Rebel Sport Super 14 franchises and provincial unions).

The agreement recognises the need to align the interests of the players and the NZRU, combine their respective strengths and create a strong sense of partnership and shared purpose.

The agreement reflects a desire to reward players for excellent performance (both on and off the field), encourage player retention and to reward loyalty.

Download Collective Agreement as a pdf 

Download Collective Agreement Overview as a pdf

Key aspects of the Agreement include:

• The Collective Agreement covers all professional players in New Zealand. It came into force on 1 January 2006 and ends on 31 December 2008, a term of three full years.
• The agreement was reached at the conclusion of 12 months of discussions involving representatives from the New Zealand Rugby Union (NZRU), provincial unions and the New Zealand Rugby Players Association (NZRPA).
• The Collective Agreement covers players contracted for the All Blacks, Rebel Sport Super 14 squads, Super 14 wider training groups, the New Zealand Sevens squad and the Air New Zealand Cup.
• The NZRU remains the sole employer of professional players in New Zealand, with players seconded to provincial unions.

Revenue Sharing

There is a revenue sharing arrangement between the NZRU and the players at a national level. In each of four contract years (2005 – 2008) 32.41% of NZRU player generated revenue is set aside in a player payment pool and applied for the benefit of players (contracted to play for Super 14 rugby franchises and/or the NZRU). The revenue sharing arrangement does not extend to provincial unions or the Air New Zealand Cup.

Property and Promotions

• Subject to certain exemptions including broadcasting rights and a linked marketing campaign, use of the players’ property must involve groups of three (3) or more players in association with the names, logos or uniforms of New Zealand teams (and in a manner which identifies the player as a member of a New Zealand team).
• Players are able to perform personal promotions as long as they notify the NZRU. The NZRU may object to the personal promotion on certain grounds including if the personal promotion conflicts with a sponsor and the NZRU can demonstrate a significant negative financial impact on the current or future revenue of the NZRU, the player’s Super 14 rugby franchise or his provincial union. The NZRU may also object if the promotion is in TV, radio or print media and involves three (3) or more players.
• Players may write publications (i.e. write an article, book or other publication or provide commentary or critique) as long as they notify the NZRU in the manner prescribed above.
• The agreement has established a commercial merchandise programme (for example signed memorabilia, computer games, videos, trading cards, novelties etc involving players). In respect of team based products (more than three (3) players), the players involved receive 50%, and the NZRU receives 50% of net revenue, and in respect of player based products (three (3) or less) the players involved receive 80%, and the NZRU receives 20%, of the net revenue. Individual player consent is required for player based products.

NZRU Contracting Environment

• At all levels the players receive retainers which are payable for the term of a player’s contract regardless of selection, non-selection, injury, illness or suspension (subject to certain limitations) i.e. guaranteed retainers.
• Players contracted to the NZRU for the purposes of Rebel Sport Super 14 rugby receive a minimum guaranteed retainer of $65,000/year in addition to their provincial union payments. Previously this $65,000 was dependant on selection. Players contracted at this level are on NZRU Contracts.
• In addition to his NZRU retainer a player is eligible to receive NZRU team assembly Fees. NZRU team assembly fees equal across all players selected to teams as follows: All Blacks ($7500/week); Junior All Blacks ($3500/week); New Zealand Trial teams ($2000/week) and New Zealand Maori ($2000/week).
• NZRU Sevens Contract guaranteed retainer bands start at $25,000/year (plus tournament fees) with at least three players to receive at least $45,000/year (plus tournament fees). Tournament fees remain at $2,000/tournament. These payments are in addition to a player’s provincial union payments. Fifteen players will be contracted as full time Sevens players each year.

• The agreement formalises the Rebel Sport Super 14 rugby franchise wider training groups which has resulted in NZRU Wider Training Group Contracts for at least a further 35 players from outside the Rebel Sport Super 14 rugby squads, with retainer bands ranging from $15,000 per annum through to at least $30,000 per annum. These payments are in addition to a player’s provincial union payments.

• Players selected for the 2007 Rugby World Cup will be eligible for a $100,000 bonus ($35k on winning the semi and $65k on winning the final).
• Players who do not fall within the above contracts who the NZRU are looking to retain will be on an NZRU Interim Contract .

Provincial Union Contracting Environment

• Players will be contracted by their provincial union on either a Provincial Union Contract or a Provincial Union Development Contract .
• Each provincial union in the Air New Zealand Cup must contract at least 26 players on a minimum guaranteed retainer of $15,000 per annum. Any player on a Provincial Union Contract must be on a minimum $15,000 guaranteed retainer.
• Any replacement players called into a Air New Zealand Cup team must receive a minimum payment of $1000/week during the week they are assembled.
• A player contracted at provincial union level who has never previously been selected to a Rebel Sport Super 14 rugby team will automatically be available for selection (unless the player chooses otherwise), and, unless otherwise negotiated, default to a one year $65,000 NZRU contract (paid over 14 months from 1st November) upon selection to a Rebel Sport Super 14 rugby team.
• The agreement has seen the introduction of a salary cap at Air New Zealand Cup level (subject to Commerce Commission authorisation) set at $2m in 2006 and increasing with the CPI over each of the three years.
• The introduction of a new provincial union transfer period that runs from 1st October until one week after the Rebel Sport Super 14 rugby final in the following year. No transfer fees for players transferring between Air New Zealand Cup, provincial unions or limits on player numbers will apply. However transfer fees will continue to apply for players moving from Division 1 to Air New Zealand Cup unions.
• The agreement contains loan criteria which will result in each provincial union being able to loan/borrow an unlimited number of players for the purposes of the Air New Zealand Cup, as long as no more than six (6) loan players appear in a playing squad of 22. No loan may take place without the player’s individual agreement.

Other

• Under the Agreement the NZRU may enter into a playing contract with a representative entity on behalf of a player subject to specific conditions.
• Upon termination or non renewal of a NZRU contract, a player may, at his option, terminate his provincial union contract (provided he has not waived that option).
• A player not selected as part of a final Rebel Sport Super 14 rugby team (referred to as a de-listed player) may still terminate his playing contract (although he may choose to waive his right to terminate his provincial union contract subject to certain conditions including for valuable consideration).
• The NZRU will reimburse players for actual and reasonable costs of legal representation (including travel and accommodation) up to a maximum of $2,000 for on-field misconduct.
  Players suspended for on-field misconduct incur a loss of retainer of 50% (up to a maximum of $2,000 per week) from the sixth week of suspension onwards. Team selection fees will be deducted up to 50% (max $3,500/week) immediately upon suspension.
• A player charged with a doping offence and found not guilty will (subject to prior approval) have his legal costs covered by the NZRU.
• If a player becomes injured or ill, he continues to receive his retainer (and in certain circumstances All Black Team assembly fees) for the period of his playing contract (unless the injury results from an illegal act, in which case he is subject to the misconduct provisions and resulting fines).
• There continues to be a player long term loyalty and superannuation plan with $400,000 per year contributed from the player payment pool as employer contributions to the plan. The plan is managed by the NZRU and RPC.
• The professional development programme continues to be run jointly by the RPC and NZRU. A total of $550,000 of funding for the programme is provided from the player payment pool. Players have at least one half day (consistent) per week designated as uninterrupted professional development time. Such time shall not fall on a player’s day off.
• The NZRPA has established an NZRPA Benevolent and Welfare Fund which has $600,000/annum paid to it from the player payment pool. Among other things, this fund provides cover for career-ending injury or illness.
• Players pay levies to the RPC as part of this agreement (which will be deducted at source). In addition $300K per annum is paid to the RPC from the player payment pool.
• Players required to relocate for the purposes of playing rugby can receive reimbursement of actual and reasonable relocation costs and an accommodation allowance up to specified limits.
• Players are able to play in other games provided the game is not deemed by the All Blacks Coach or player’s coach as not being in the best interests of the player or New Zealand rugby.
• The NZRU has suspended seeking any compensation for player development when a player moves to another country until the conclusion by the IRB of a review of its relevant regulations. Once this review is completed, the parties will meet to consider the outcome of the review.
• NZRU contracted players receive between eight (8) and ten (10) weeks’ leave per year, but are required to continue with their individual training program while on leave (but not assemble). This includes two (2) weeks following Rebel Sport Super 14, four (4) weeks during November and two (2) weeks over Xmas, or up to eight (8) weeks for those on an end of year tour (at the conclusion of that tour). New Zealand Sevens players get eight 8 weeks’ leave allocated during the year.
• Players receive one full day off per week.
• A rested player (due to rotation, recuperation, conditioning or rehabilitation) is entitled to receive payment of any NZRU team selection fees which he would have received if he had been selected to the relevant New Zealand team.
• A player may not engage in any activity outside the course of everyday behaviour (other than rugby) which involves the risk of significant injury without the prior consent of the NZRU.
• The NZRU and RPC will work together to develop a process for the regulation of agents in New Zealand.
• There will be a Professional Rugby Advisory Group that will meet quarterly to consider and provide recommendations for all professional rugby related issues. The group will consist of at least three representatives of the NZRU, including at least two provincial union CEOs (one of which must also be a Rebel Sport Super 14 rugby franchise CEO), and at least three representatives of the RPC including at least two players.
• Under this agreement the RPC has the right to take reasonable steps to monitor the agreement. This includes the right to audit NZRU player generated revenue and the application of the player payment pool, and the right to inspect any player contracts.

Long Term Loyalty Scheme

The Long Term Loyalty Scheme is an initiative agreed between the NZRPA and the NZRU under the Collective Agreement. The purpose of the plan is to encourage and reward the loyalty of players to New Zealand rugby as well as providing a vehicle to assist with a player’s financial planning for retirement and life after rugby.

The fund is currently administered by AMP and uses the New Zealand Retirement Trust as a vehicle. Membership of the plan is open to all NZRU Contract and NZRU Sevens Contract players. Players can find further details about the plan in the Player Only section under Professional Development.

Commercial Merchandising Programme

Under the Collective Agreement the NZRU may produce commercial merchandise using their intellectual property combined with player likenesses, images, signatures or voices (called “Player Property”).

If the product uses the Player Property of four or more players then the product is a Team Based Product and the NZRU must split the net revenue 50:50 between itself and the players whose property is used.

If the product uses the Player Property of up to three players then the product is a Player Based Product and the NZRU must split the net revenue 20:80 between itself and the players whose property is used.

This revenue split does not apply for merchandise involving Player Property which does not use the names, logos or uniforms of the NZRU, Franchises or Provincial Unions.

For further details on the Commercial Merchandising Programme see either the Collective Agreement or contact us