The Australian Rugby Union is set to introduce an NRL-like salary cap to curb player expenditure of more than A$30 million, cracking down on third-party payments, and reducing individual player payments by as much as 25 per cent as the code continues to suffer financial pressure. The Sydney Morning Herald's Josh Rakic reports.
"In a rebuilding phase after hitting rock bottom in 2009, Australian rugby is already resigned to a fall in profits this year due to a restriction on Wallabies' in-bound Tests as a result of the World Cup.
"And while television ratings have had a big increase the ARU is following the lead of European competitions in looking to stem the outflow of cash.
"The code's biggest expenditure? Players' wages.
''The game is experiencing some financial difficulties, and as such the ARU is reviewing all of their expenditure items, player salaries included,'' a source said. ''They're looking at introducing an overall salary cap.''
"It is widely accepted that players are entitled to 25 to 30 per cent of Australian rugby revenue, but with revenue down significantly, the governing body is looking to slash that share."
RSS feed
