Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Rugby Union salary cap authorised for six years

2 June 2006/135

Rugby Union salary cap authorised for six years

The Commerce Commission has told the New Zealand Rugby Union that it can impose a salary cap to limit the amount each union can spend on players. The cap will apply for six years from today, and will be reviewed after five years.

The Commission may authorise anti-competitive arrangements if it decides the benefit to New Zealanders outweighs the detriment to competition.

The Rugby Union submitted that the salary cap would create a more even spread of players, resulting in closely contested matches that would attract bigger television audiences and earn more money. The Commission analysed four years of viewing figures and found that closely contested games were not necessarily more popular with the public. However, the Commission found that the quality of players in a match did affect the match's popularity. The Commission concluded that, by encouraging a more even spread of good rugby players, the salary cap could increase the quality of play, and hence the popularity of rugby and the income to be earned from it.

"This decision is based on finely balanced judgements," says Commerce Commission Chair Paula Rebstock.

"The net benefits are modest and rely on the salary cap being correctly implemented and rigorously enforced."

Ms Rebstock says that conditions imposed by the Commission sought to increase the certainty of the salary cap delivering the benefits advanced by the Rugby Union.
The Commission approved the salary cap subject to the following conditions:
* The salary cap will last for six years, with a review beginning after four years.

* The NZRU must monitor and enforce compliance with the salary cap framework. This will include putting in place anti-avoidance clauses and ensuring they are complied with.

* The NZRU must ensure that no remuneration is excluded from salary cap calculations.

* The NZRU must evaluate the effectiveness of the salary cap in the review after five years.

Background

The NZRU applied to the Commission in November 2005 for authorisation of its proposed salary cap, and other arrangements relevant to the new modified Division One. After the Commission issued its draft determination in March, indicating the salary cap was likely to be authorised with conditions but the other arrangements were not likely to be authorised, the NZRU withdrew the other proposals, leaving only the salary cap and player movement regulations for authorisation.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra (And Dairy NZ)'s Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech