NZRU makes $8 million payment to Provincial Unions
A record year on and off the field has underpinned the granting of a special, one-off payment to all of the country’s Provincial Unions, the New Zealand Rugby Union announced today.
The payments, which amount to a total of approximately $8 million, will be targeted at supporting the implementation of the new provincial competition structures over the next three years, and continued support for the development of Community Rugby as part of the NZRU’s Community Rugby Plan.
For full report including Provincial Union Payment Schedule click here.
The additional payment anticipates another strong financial result for the NZRU in the 2005 calendar and fiscal year. The payment is also in addition to the $14.7 million in funding that will be received by provincial unions in 2005, lifting the total direct funding paid out by the NZRU to Provincial Unions this year to a record $22.6 million.
NZRU Chairman Jock Hobbs said the payment also recognised the significant financial reserves which have been accumulated in recent years, and the desire of the NZRU Board to assist provincial unions to be as competitive as possible both on and off the field over the first three years of the new Premier and Division 1 competitions.
Hobbs said the NZRU Board also wished to reinforce its commitment to the Community Rugby Plan, and “the critical role that provincial unions, clubs and schools play in recruiting, developing and retaining players to make the amateur and professional game as strong as possible.
“We recognise both the challenges and opportunities ahead for provincial unions, and in line with their aspirations, we have decided to make this contribution in support of these vital areas of our game,” he said.
The payments will be calculated as follows:
Premier Division Provincial Unions:
• $20,000 for each non – NZRU contracted player* up to a maximum of 26 players (including NZRU contracted players) as at 30 November 2005, being the final date for transfers to be registered under the current Transfer Regulations; and
• $20 for each registered player^ as at 31 July 2005.
New Division 1 Provincial Unions:
• $50,000 for each Provincial Union; and
• $20 for each registered player^ as at 31 July 2005.
* Non-NZRU contracted players includes those players contracted by Premier Division Provincial Unions as part of their Premier Division squad but who are not contracted to the NZRU through Rebel Sport Super 14 or other national teams.
^ Registered players includes all rugby players registered in the province who play in four or more competition games.
A schedule of the estimated payments for each Provincial Union based on the 2005 Air New Zealand NPC squads and 2005 contracted players is attached.
Hobbs said the key principles on which the special payments are based are as follows:
• The payment of $20,000 per non-NZRU contracted player to Premier Division Unions is designed to assist both the four Unions being promoted from the present Air New Zealand NPC Division 2 competition and those current Division 1 Unions that do not enjoy the benefit of having a significant number of NZRU contracted players;
• The payment of $20 per registered player is directly linked to the development of Community Rugby;
• The $50,000 payment per new Division 1 Union reflects the amateur nature of that Competition.
ther important points to note are that:
• The NZRU Board expects the Premier Competition Provincial Unions to use the non – NZRU contracted player payment to develop all aspects of their professional activities, including meeting the Premier Division entry criteria requirements and such other things as, by way of example, academies, training facilities and team support;
• The NZRU Board believes that each Union should consult with the clubs and schools in their area how best to use the registered player payments;
• The payments are designed to be equitable, but not equal. This is because the NZRU Board believes it has a responsibility to direct funding towards targeted outcomes (e.g. the Competitions Review and the Community Rugby plan) for the best interests of New Zealand Rugby, while at the same time providing Provincial Unions with the discretion to make decisions according to the particular circumstances within their province;
• All payments are based on existing payment mechanisms to deliver on the NZRU’s desired targeted outcomes and to provide simplicity and clarity;
• The payment is a special, one-off, non-precedent setting, additional payment. Provincial Unions should not rely on further additional funding from the NZRU and are strongly encouraged to use the money over a period of time, and not just in one year.
In addition the NZRU Board recognises that money is only one determinant of performance by teams in the Premier Competition. To this end the Board has agreed to invite provincial Unions to make application to the NZRU for assistance in respect of high performance, commercial and other activities. Subject to agreement of an appropriate project brief, the NZRU will endeavour to facilitate the contracting of third parties to assist Premier Competition Unions and will fund all or a part of that engagement. The NZRU Board has set aside a sum of up to $500,000 for this purpose.
At the time that the format of the new Competitions were announced the NZRU made it clear that the competition was not without risk and that a more even competition would not occur in year one.
“That is why we have emphasised that the funding package announced today should be considered as contributing to the three-year start-up period for these new competitions,” Hobbs said.
“It is important to note that today’s payment is not a hand-out. It is targeted at specific outcomes, which are consistent with the strategic priorities of the NZRU and areas that both Provincial Unions and the NZRU Board have identified as vital to the future health of our game – namely new competition structures and community rugby.”
The one-off special payments will be made in October with the final amounts confirmed in December.
Meanwhile, Hobbs said work is continuing on the Provincial Funding Review and the final review report and implementation will be delivered in 2006.
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