ARU contracting process - how could it be improved?

[fatprop]

OK

Lots of moaning out there, but what could actually be done to improve the situation?

A few assumptions

1. There are limited funds available
2. The S15 sides and ARU deserve a say in the process

So how would the balance/speed/efficiency be improved?

The opposite ends would be
Give more funds to the S15 sides and the ARU just do match payments/bonuses
ARU runs a central contracting process and farms players out.

Personally, I don't think there will ever be a satisfactory option to all parties. There are too many hard decisions to be made that affect other factions

 

[Hugh Jarse]

Lots of players conduct contract negotiations and sign on the dotted line in a fairly swift and amicable manner.

The issue only appears to be with certain higher profile players.

Some high profile players also seem to manage to be able to conduct their contractual issues in an amicable manner without indulging in any attention seeking dummy spits and brinksmanship through the media.

 

[Braveheart81]

I like the concept that most players should be on a match payments contract and once you play 6 tests in a year you get upgraded to a guaranteed dollar figure plus match payments. The big benefit of that is that most of the money earned by Wallabies during the year will actually be going to the players who play for the Wallabies. Having the emphasis on fixed contracts results in the contracts for one year actually reflecting what happened in the previous year (or two years ago for those on multi year contracts).

We play a minimum of 14 tests in a year (3x mid year, 6x TRC, 1x extra Bledisloe, 4x Spring Tour). This year and certainly any RWC year the number of tests is higher. Playing 6 tests to reach a fixed bonus plus the match payments should be pretty achievable for anyone who is more than a fringe Wallaby.

The star Wallabies have the highest value Super Rugby contracts and these generally run for longer terms than Wallaby contracts. This means that our Wallaby stars have a high guaranteed income regardless of what happens. If someone is injured for an entire year then I do think that they need to make do with the Super Rugby income. For our star players this will still be several hundred thousand dollars per year.

If a star player misses a whole season they will know that when they return, they only need to play 6 games to be back on a lucrative guaranteed Wallaby contract.

I get that rugby is a contact sport and people get injured but I do think that the Super Rugby contracts for our highest profile Wallabies are lucrative enough for them to make do if they are out for an entire year. Guaranteed contracts to Wallaby stars regardless of whether they play or not effectively means you are paying them to be the face of Australian rugby. For someone like James O'Connor, I don't think he should be the face of the game leading into the Lions tour after not playing for an entire year. Pick people who have been our stars this year.

 

[mark_s]

Some principles I would like to see:

a) The ARU negotiates a base contract with an elite squad (say 27-32 for arguments sake). Each contract has a two year duration and half of the contracts expire/renew each year. If a player signs an elite contract, they have to be available for test matchs (subject to injuries of course) and sign with a super franchise. Nothing else would be permitted (except maybe some club rugby games) without ARU approval.

b) The super franchises negotiate contracts with all their players. For elite players this would be over and above the contracts with the ARU per a) and the contracts could have different expiry terms and negtiotations could happen at different times.

c) Match payments apply for all super rugby and Wallaby games. Match payments are something like $X for a win and 0.5* $X for a loss. Super rugby match payments are paid by franchises and test match payments are paid by the ARU.

For an elite player (and asusming say a 66% win ratio), a, b and c would each be roughly 1/3 of their total package.

All franchises have to live within a salary cap (including match payments), however there would be an adjustment to avoid franchises being over salary cap just by winning more games than expected. ARU can also approve excess payments where a franchise has lots of injuries.

 

[Braveheart81]

I don't think match payments (particularly those involving more for a win) for Super Rugby contracted players is a good idea.

It will instantly make it less attractive for a good player to go and play with the Force or Rebels because their earnings will be lower.

Going to play for a team that wins less is already less enticing. I don't think it should also involve a financial penalty. It could really make the poorer performing teams second class citizens.

I don't have a problem with higher match payments for a win for the Wallabies. Realistically, winning games improves the ARU's financial position so they should be able to afford to pay more to the players if they are winning consistently.

 

[mark_s]

Good point BH. I didn't think of that.

 

[Inside Shoulder]

I have no answer because I don't have enough knowledge of most if not all the issues.
However, it seems to me that a shortcoming in the present system is that it is trying to achieve too many unrelated outcomes from a finite number of variables.
For instance: salary cap + incentives for tests makes Europe attractive.
That is addressed not by money but by a hard and fast rule. Effectively you thereby combine a monetary constraint with a social one, meaning, I think, you pay money you shouldn't have to in order to achieve the social outcome - that being to keep players in oz.
History suggests the provinces can't be trusted to be financially responsible.
The central contracting system seems to work in NZ.
The decentralized system in England was a disaster - but I don't know how it is presently viewed or run.
Very interested to read what others with more knowledge have to say taking account of the above, which I'm not suggesting points the way to a certain answer.



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[fatprop]

We do bonuses from a percentage of profits based on everyone's individual wage as a percentage of overall wages.

I would like to see a bonus pool used like that, to reward all the contracted players for the real professional success as an organisation.

 

[louie]

ARU should be giving out match payments. I've never understood why you need a contract to play for your country. More Money to S15 teams.

 

[fatprop]

I have no answer because I don't have enough knowledge of most if not all the issues.
However, it seems to me that a shortcoming in the present system is that it is trying to achieve too many unrelated outcomes from a finite number of variables.
For instance: salary cap + incentives for tests makes Europe attractive.
That is addressed not by money but by a hard and fast rule. Effectively you thereby combine a monetary constraint with a social one, meaning, I think, you pay money you shouldn't have to in order to achieve the social outcome - that being to keep players in oz.
History suggests the provinces can't be trusted to be financially responsible.
The central contracting system seems to work in NZ.
The decentralized system in England was a disaster - but I don't know how it is presently viewed or run.
Very interested to read what others with more knowledge have to say taking account of the above, which I'm not suggesting points the way to a certain answer.

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Part of reason for this thread was to get posters thinking about how bloody hard it is to do this stuff. It is very easy to sit in a chair somewhere and complain (not "you" but the royal all encompassing "we") but a better solution?

Big money would be available to the genius who comes up with real solution to this bloody tough problem

 

[Inside Shoulder]

We do bonuses from a percentage of profits based on everyone's individual wage as a percentage of overall wages.

I would like to see a bonus pool used like that, to reward all the contracted players for the real professional success as an organisation.

Players and execs in the same pool so they're all pulling in the same direction.


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[fatprop]

ARU should be giving out match payments. I've never understood why you need a contract to play for your country. More Money to S15 teams.

when has the paymaster wanted less\allowed less say in how his money is spent?

 

[Inside Shoulder]

Part of reason for this thread was to get posters thinking about how bloody hard it is to do this stuff. It is very easy to sit in a chair somewhere and complain (not "you" but the royal all encompassing "we") but a better solution?

Big money would be available to the genius who comes up with real solution to this bloody tough problem

I assumed so.
Part of its philosophical and part of its historical.


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[mark_s]

What about longer term remuneration? Say bonus payments for people when they play 25, 50, 75 tests etc.?

 

[fatprop]

What about longer term remuneration? Say bonus payments for people when they play 25, 50, 75 tests etc.?

All great in practice, in reality, using the NRL as an example, players there have been dropped to reserve grade to limit bonuses & contractual options

 

[Hugh Jarse]

^^^ Not directly related to contractual issues, but relevant to the point made by fatprop.

But for extenuating circumstances, Sharpie would not have made his 100th cap.

It would have been all to easy to leave Sharpie stranded on 99 caps and have him miss out on not only that milestone, but the 100 game loyalty bonus.

Edit: Spelling

 

[Inside Shoulder]

^^^ Not directly related to cintractual issues, but relevant to the point made by fatprop.

But for extenuating circumstances, Sharpie would not have made his 100th cap.

It would have been all to easy to leave Sharpie stranded on 99 caps and have hin miss out on not only that milestone, but the 100 game loyalty bonus.

I recall the opposite happening: a new coach arrived at a certain Shute shield club and wanted to know how come X was stranded on 99 1st grade games. "Why don't we just pick him so he'll piss off" was his first suggestion for promoting club harmony.


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[p.Tah]

Can anyone explain the Super Rugby teams' salary cap? How much is it and are third party deals included in the cap?

 

[mark_s]

All great in practice, in reality, using the NRL as an example, players there have been dropped to reserve grade to limit bonuses & contractual options

What happens in practice is what happens in reality, or do you have multiple realities???

There are ways around the problem you raised. One option might be to make it the combined total of super rugby games and wallaby tests (and tour matches), and keep the bonus at every 25 games.

Alternatively, once a person reaches the first payment thereshold (say 25 Wobb tests or the like) then, on retirement from Aus rugby, the player receives the next payment on a pro-rata basis. So Sharpie would have received 24/25ths of his last payment if he was stranded on 99 games.

 

[It is what it is]

ARU should be giving out match payments. I've never understood why you need a contract to play for your country. More Money to S15 teams.

The main reasons players need a contract to play for their country are;
- At this international level rugby is a business.
- They are professional athletes who are employed by a business (ARU) that has rugby as a entertainment offering to drive its revenue. Wherever possible the ARU tries to guarantee its own revenue by entering into as many contracts as they can. These are done with sponsors, stadiums, suppliers, cities e.g. Events Victoria, the IRB, other federations for tours, TV rights, hospitality packages etc. The ARU needs the best players, so the best players mirror their ARU employer and try and ensure they can contract as much of their own income as they possibly can.
Could you imagine the ARU accepting sponsorships test to test?
- The global marketplace for rugby players offers contracts with large retainers and terms beyond 1 test at a time. This marketplace is where the ARU compete with to retain their best players.
If the ARU want to offer match payments only, just watch the exodus of our best players.