ITM Cup player payments drop
May 23, 2013
Canterbury won the 2012 ITM Cup © Getty Images
Player payments under New Zealand Rugby's salary cap across the 14 top-tier provincial unions have fallen for the second successive year. Salary cap payments for the national provincial championship unions totalled $NZ12.8 million in 2012, a fall of $NZ1.1m from the previous year, and $NZ3.5m under the maximum. This was also 8% lower than the $NZ13.9m calculated in 2011 and 13% lower than 2010 ($NZ14.7m).
All the ITM Cup unions kept player payments under their respective salary cap levels in 2012. Salary cap payments are set at the lower of either $NZ1.35m, or 36% of the union's commercial revenue.
New Zealand Rugby chief executive Steve Tew says the trend is encouraging, showing provincial unions are working hard to live within their means. "Player payments are the biggest bill any union faces, so keeping those costs in check are also a critical part of the financial equation," he said. "These remain difficult times for any union. On the revenue side, retaining and growing commercial income is a huge challenge."
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