Rugby League on the verge of pay peace
Rugby league is on the verge of peace after clubs rubber-stamped a pay deal that effectively ended almost 12 months of negotiations.
Rugby league was on the verge of peace last night after NRL clubs rubber-stamped a pay deal that effectively ended almost 12 months of fractious negotiations between the governing body and the players union.
The deal will result in the players receiving $980 million over the next five years through a revenue share agreement that guarantees them 29.5 per cent of NRL income.
All that remains is for the RLPA board and the players to give the deal the green light. It is understood the RLPA board discussed the deal last night and the players are likely to have their say today.
The breakthrough in talks comes after intense discussions in recent days between the players union and NRL aimed at ending the impasse over a handful of issues, most notably revenue share.
The NRL and the clubs had threatened to take their offer off the table if a deal had not been struck by the October 31 deadline, a move that would have put at risk a $50m premium the clubs claimed they put on their offer to get it done before the expiration of the current Collective Bargaining Agreement.
However, those fears eased last night as the parties edged towards the conclusion of talks, which at their lowest ebb, threatened to drive a wedge between the game’s governing body and key figures within the playing ranks.
Officials from both the NRL and RLPA were tight-lipped on the latest developments but it is understood a formal announcement could be made before the weekend, ending a tumultuous period for the game during which the threat of legal and industrial action was never far from the surface.
It is understood as part of the deal, clubs last night agreed to reduce the salary cap in 2021 and 2022 to direct more money into the retirement fund. The cap was originally scheduled to be $9.7m in 2021 and $9.9m in 2022 but under the fresh terms will be reduced by $100,000 in 2021 and $200,000 in 2022.
The clubs were happy to agree to the new terms because it had no impact on the margin between their grants and player payments. It is understood NRL CEO Todd Greenberg told club bosses yesterday he was hopeful the deal could be done in coming days, and The Australian understands an announcement is imminent.
The NRL is the last of the major codes to strike a deal with players — the AFL and Cricket Australia also endured acrimonious negotiations with their players before reaching agreements earlier this year.
The NRL has indicated the offer means the players will be guaranteed a greater share of revenue than their counterparts in the AFL and cricket. The average wage will increase to $330,000 for the top 30 players at each club and the minimum wage, rising to $120,000 in 2022, will be higher than in the AFL.
The game’s elite players will also benefit to the tune of $7.5m over the next five years thanks to a marketing fund set aside to promote the game, and $15m will be devoted towards an Injury and Hardship Fund
The NRL has agreed to unprecedented levels of financial transparency under the terms of the deal, providing the RLPA with access to their unaudited revenue statements as well as the ability for one of the union’s representatives to inspect the NRL’s financial statements on 14 days’ notice.
The NRL in return will gain access to player records in situations where there is a reasonable suspicion that NRL rules have been breached to the point that it may threaten the integrity of the game, most notably in the areas of salary cap breaches, suspected match fixing, spot fixing or use of inside information for betting purposes.
The NRL’s desire to gain greater access to financial and tax records of players had been one of the more contentious issues in talks. The NRL has also outlined plans to review the game’s illicit drug-testing policy with the prospect that the penalty for a second offence will be reduced from 12 to eight games.
Rugby League Central is also likely to push ahead with plans to introduce hair testing, although it is understood that discussion has been met with initial resistance from the RLPA.
Female players will also benefit under the agreement after the NRL committed to working with the RLPA to create more elite playing opportunities.
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