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Commerce Commission approval for NZ Rugby Union salary caps no longer needed


UPDATED: The New Zealand Rugby Union (NZRU) and New Zealand Rugby Players' Association (NZRPA) are supporting a draft Commerce Commission determination that the current authorisation is no longer required for the salary cap and player movement reg

NBR staff
Wed, 09 Mar 2011

UPDATED: The Rugby Union and Players’ Association are supporting a draft Commerce Commission finding that the current authorisation is no longer required for the salary cap and player movement regulations with respect to the ITM Cup because of changes to the rugby employment landscape.

Changes to the employment arrangements of ITM Cup players mean the authorisation previously granted to the NZRU by the Commerce Commission is no longer relevant as all players are now employees not independent contractors.

The original authorisation, requested by the NZRU and granted by the Commerce Commission in 2006, authorised the salary cap and player movement regulations for the then-Air New Zealand Cup. This allowed for the competition regulations to include a salary cap and also rules governing the movement of players between Provincial Unions.

The NZRU and NZRPA agreed a new collective employment agreement in December 2009 which included a new salary cap and provisions regarding player contracting. The new agreement also provided that all rugby players in the ITM Cup must be employees and cannot be engaged as independent contractors. - which removes the need for the Commerce Commission to authorise the salary cap and associated regulations as the Commerce Act does not apply to such arrangements in employment agreements.

The NZRU will provide a submission to the Commerce Commission supporting the draft determination to revoke the original authorisation.

Earlier today the Commission said it was considering revoking its 2006 ruling allowing salary caps on NZ Rugby Union (NZRU) players.

Five years ago, the Commission authorised the NZRU to enter salary cap arrangements with players and bring in player movement regulations.

The Commission invites submissions on the possible revocation by 18 March 2011.

The draft determination is available on the Commission’s website at: http://www.comcom.govt.nz/anti-competitive-practices-authorisations-register/detail/717

NBR staff
Wed, 09 Mar 2011
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Commerce Commission approval for NZ Rugby Union salary caps no longer needed
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