Australian Rugby will reportedly shave more than 80 percent of its player’s wage bill after protracted negotiations finally peaked at the weekend.
Super Rugby and seven Australian players are set to receive a salary cut of 60 percent which – when combined with the government’s JobKeeper payment – will allow RA to save 83 percent on payments between April and September, Sydney Morning Herald report.
Formal discussions between the RA and the Rugby Union Players Association (RUPA) lasted for almost four weeks but were understood to be almost finished on Sunday afternoon.
Pressure on RA to close the deal has grown after World Rugby announced a $ 158 million grant will only be accessible after a payment agreement is reached.
Rugby will be one of the last Australian codes to complete a cut in player salaries, with NRL and AFL completing 71 and 50 percent of the sacrifice in the agreement reached a few weeks ago. The NBL, which will not begin until October, announced on Friday the highest recipient will suffer up to 50 percent of the hit in the policy which will be reviewed in three months.
Three quarters of RA staff have been defeated, with projected revenues of $ 120 million if no Super Rugby or Test matches are played this year.
Therefore, cutting the wage bill is very important. Doing so becomes easier for RA because of the JobKeeper scheme.
SMH reports that JobKeeper will cover nearly 57 percent of the $ 6 million that will be owed to players over a six-month period, while $ 9 million will be saved due to deductions. That left RA and the team with a six-month salary of $ 2.6 million, not the $ 15 million originally owed.
JobKeeper will cover the entire salary of eligible players with $ 95,000 or less, while the RA or Super Rugby clubs will pay the entire difference of 40 percent to anyone who is not entitled, reports the publication.